Client Alert: Important Petroleum Releases Language In Pending Legislation

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Senate Bill 277 (SB 277) is an ambitious reform bill introduced this legislative session in the Indiana General Assembly

IN Senate Bill 277 was authored by Senator Niemeyer, chair of the Senate Environmental Affairs Committee, in collaboration with representatives of the Indiana Department of Environmental Management (IDEM), including its commissioner, Clint Woods.

In line with the Reduction of Excessive Environmental Regulation Executive Order 25-38, issued by Governor Mike Braun shortly after he took office in 2025, IN SB 277 drastically amends Title 13 of the Indiana Code and will “simplify, streamline, consolidate, and clarify” IDEM code, says Commissioner Woods.

 KERAMIDA sees this reform as largely beneficial for its clients. KERAMIDA has identified certain language related to petroleum release in the pending bill that requires clarification.

Reportable Quantity for Petroleum Releases

  • IC 13-23-13 deals with Corrective Action for releases of petroleum from regulated USTs (and some ASTs). As amended, IC 13-23-13-1(b) states that if a “reportable quantity” of the released petroleum remains or may remain underground at the site of the underground storage tank or aboveground storage tank, a no further action determination cannot be rendered by IDEM unless an initial site characterization (or equivalent) and an evaluation of potential remedial activities to achieve remedial objectives have been performed and reviewed by IDEM.

  • The term “reportable quantity” has clear, specific definitions in the context of other laws and regulations, most notably the list of hazardous substances defined in 40 CFR 302 under the definition in 42 U.S.C. 9602(a) as incorporated by reference in IC 13 (from which petroleum is explicitly excluded). It is imperative that a definition of “reportable quantity” for petroleum be included in this bill.

 IDEM May Impose Restrictive Covenants

  • In the pending bill, Section IC 13-25-4-11 states that once a response is initiated due to hazardous substances under IC 13-25-4 or a response due to a petroleum release is initiated under IC 13-24-1, the department (IDEM) may impose a restrictive covenant on a “facility or site” where remediation objectives set forth in IC 13-25-5-8.5 have not been met.

  • The definitions section of Title 13 includes definitions of “Facility,” for purposes of IC 13-25-4, and “Petroleum facility,” for purposes of IC 13-24-1, that both include real property onto which contamination has migrated. It is imperative that the pending bill specifies whether the imposition of a restrictive covenant applies equally to the property where the release occurred and to other properties that have been impacted by such release.

 SB 277 will be heard by the House of Representatives Environmental Affairs Committee on Wednesday, February 11 (see IGA | House Committee on Environmental Affairs), during which KERAMIDA intends to draw attention to the need for a definition of a “reportable quantity” and the needed clarification that IDEM does not intend to exercise its authority to impose a restrictive covenant on properties where the landowner is not at fault.

Contact:

Lauren Nielsen, P.E.
Senior Engineer, Land Services
KERAMIDA Inc.

Contact Lauren at lnielsen@keramida.com.