(a) The Hazardous Substance Remedial Action Trust Fund is created.

(b) The Hazardous Substance Remedial Action Trust Fund will be administered by the Director of the Arkansas Department of Environmental Quality, who shall authorize expenditures from the Hazardous Substance Remedial Action Trust Fund.

(c)

(1) Any moneys remaining in the Emergency Response Fund as of June 30, 2005, shall be transferred in their entirety to the Hazardous Substance Remedial Action Trust Fund.

(2) Beginning July 1, 2005, the Hazardous Substance Remedial Action Trust Fund shall consist of all moneys received as penalties under §§ 8-4-101 -- 8-4-106, 8-4-201 -- 8-4-229, 8-4-301 -- 8-4-313, 8-6-201 -- 8-6-214, 8-7-201 -- 8-7-226, 8-7-504, and 20-27-1001 et seq.

(3) In addition to all moneys appropriated by the General Assembly to the Hazardous Substance Remedial Action Trust Fund, there shall be deposited into the Hazardous Substance Remedial Action Trust Fund:

(A) Any moneys received by the state as a gift or donation to the Hazardous Substance Remedial Action Trust Fund;

(B) All interest earned upon moneys deposited into the Hazardous Substance Remedial Action Trust Fund;

(C) All fees assessed under § 8-7-518;

(D) All costs recovered from the Emergency Response Fund;

(E) All punitive damages collected pursuant to § 8-7-517; and

(F) Any other moneys legally designated for the Hazardous Substance Remedial Action Trust Fund.

(4) In addition, there is authorized to be deposited into the Hazardous Substance Remedial Action Trust Fund all moneys recovered pursuant to § 8-7-514 and all moneys received as penalties pursuant to § 8-7-504.

(d)

(1) Ten percent (10%) of the moneys collected for the Hazardous Substance Remedial Action Trust Fund after July 1, 1991, shall be deposited into the Environmental Education Fund. Total deposit of funds shall not exceed two hundred seventy-five thousand dollars ($275,000) per fiscal year.

(2)

(A) Ten percent (10%) of the moneys collected for the Hazardous Substance Remedial Action Trust Fund after July 1, 2017, may be used for conducting site assessments of potentially contaminated sites when a letter of intent has been signed and available federal funds are exhausted in accordance with § 8-7-1101 et seq.

(B) This amount shall not exceed five hundred thousand dollars ($500,000) per fiscal year.

(3) The remaining moneys in the Hazardous Substance Remedial Action Trust Fund may be expended by the director as authorized by this subsection and subsection (e) of this section:

(A) For the costs and expenses reasonably necessary for the administration of this subchapter by the Arkansas Department of Environmental Quality;

(B) For the state share mandated by § 104(c)(3) of the federal act, 42 U.S.C. § 9604(c)(3); and

(C) To provide for the investigation, identification, assessment, containment, abatement, treatment, or control, including monitoring and maintenance, of hazardous substance sites within the state. The director may enter into the contracts and use the funds for those purposes directly associated with identification, investigation, containment, abatement, treatment, or control, including monitoring and maintenance, prescribed above, including:

(i) Hiring of personnel;

(ii) Purchasing, leasing, or renting of equipment; and

(iii) Other necessary expenses related to the operation and implementation of this subchapter.

(e) The moneys in the Hazardous Substance Remedial Action Trust Fund may be expended by the director for removal actions, including:

(1) The purchase of any commodities or services necessary in taking removal actions in connection with a release or threatened release; and

(2) Reimbursement of all costs incurred by the department in taking removal actions in connection with a release or threatened release.

(f)

(1) No expenditures from the Hazardous Substance Remedial Action Trust Fund, as authorized by subdivisions (d)(3)(B) and (C) of this section, shall be made prior to the approval by the Arkansas Pollution Control and Ecology Commission of a prioritized listing of hazardous substance sites at which remedial actions are authorized through the use of Hazardous Substance Remedial Action Trust Fund moneys. This listing shall be revised annually by the department and submitted to the commission for approval after public notice and opportunity for hearing.

(2) Upon a showing that a release of a hazardous substance at a site exists and will continue without expeditious remedial action, the commission may list the site on the prioritized listing pursuant to the procedures set out in § 8-4-202(e) prior to public notice and thereby authorize the director to expend funds pursuant to subdivision (d)(3)(C) of this section. Such an emergency listing need not be supported by a factual showing of irreparable harm or imminent and substantial endangerment.

(g)

(1) Notwithstanding the provisions of §§ 19-6-108 and 19-6-601, grants to the state under the federal Resource Conservation and Recovery Act and the federal Comprehensive Environmental Response, Compensation, and Liability Act, as each may be amended from time to time, and otherwise from the United States Environmental Protection Agency received by the Treasurer of State from the United States Government are declared to be cash funds restricted in their use and dedicated and are to be used solely as authorized in this subchapter and the Arkansas Brownfield Revolving Loan Fund Act, § 15-5-1501 et seq.

(2) When received by the Treasurer of State, the cash funds shall not be deposited or deemed to be a part of the State Treasury for the purposes of Arkansas Constitution, Article 5, § 29, Arkansas Constitution, Article 16, § 12, Arkansas Constitution, Amendment 20, or any other constitutional or statutory provisions.

(3) The Treasurer of State shall pay the cash funds to the Arkansas Development Finance Authority for deposit into the Brownfield Revolving Loan Fund established pursuant to the Arkansas Brownfield Revolving Loan Fund Act, § 15-5-1501 et seq., to be used for the purposes authorized by this subchapter and the Arkansas Brownfield Revolving Loan Fund Act, § 15-5-1501 et seq.

(4) Such federal grants transferred directly to the authority are declared to be cash funds restricted in their use and dedicated and to be used solely as authorized in this subchapter and the Arkansas Brownfield Revolving Loan Fund Act, § 15-5-1501 et seq.