Committee hears bill to let Petro Fund reimburse replacement of aging single-walled fuel piping and lays it over for further review

Senate File 3477, introduced March 9 by Senator Weber, would expand the Minnesota Petroleum Tank Release Fund (the Petro Fund) to allow limited reimbursements for proactively replacing single-walled steel piping at retail fueling sites.

Under the bill as described by Senator Weber, current owners of underground storage systems would be eligible for 50% of project costs to replace single-walled steel piping, with a maximum reimbursement of $100,000 per site and an owner limit of two sites per year. The bill includes a proposed annual cap of $4,000,000 for project reimbursements. Senator Weber offered an A1 (authors) amendment that the committee adopted; he said the measure is intended as a preventive investment to avoid larger cleanup costs later.

Fiscal staff told the committee a preliminary estimate is that the provision would cost about $4,200,000 per year to the Petro Fund starting in 2027 for 10 years, plus roughly $2,200,000 per year in additional administrative costs; the fiscal note was described as preliminary and not yet complete.

Dallas Fisher of Fueling Minnesota said roughly 38% of retail fueling sites, about 500 locations in the state, still operate with single-walled pressurized steel piping that is corrosion-prone, and argued targeted reimbursements would save the state money by preventing leaks and expensive cleanups. Verne Kelly, who recently served as Petro Fund board chair, supported the bill and described an MPCA inspection that found pressurized steel piping failures.

Committee members indicated general support for the concept and discussed fiscal implications. The committee laid Senate File 3477 over for possible inclusion and further work rather than voting on final passage.

(Reporting from the Senate Energy, Utilities, Environment and Climate Committee hearing, March 9, 2026.)