Reimbursement fund established to replace outdated piping

The Petroleum Tank Release Cleanup Fund (commonly known as the “Petrofund”) is used to reimburse eligible applicants for up to 90% of costs they incur in responding to a petroleum tank leak.

A new law taking effect Aug. 1, 2026, will establish that a portion of the fund can be used to reimburse owners of underground petroleum storage tanks for 50% of the cost of replacing single-walled steel piping and related equipment with piping and equipment that meets all current state and federal standards.

Sponsored by Rep. Shane Mekeland (R-Clear Lake) and Sen. Bill Weber (R-Luverne), this law will allow up to $4 million of the “Petrofund” to be used annually for such reimbursements, for replacement projects beginning after Jan. 1, 2027.

To qualify for the reimbursement, owners must consider at least two bids and select the lowest bid, which the Petroleum Tank Release Compensation Board must determine is reasonable.

The program expires June 30, 2037.

HF3298*/SF3477/CH113

HF3298* / SF3477 / CH113