FL S1278

Establishes up to $10 million annually from the Inland Protection Trust Fund to pay for repair, replacement, or preventive measures for petroleum storage systems damaged by ethanol or biodiesel fuel blends.

Requires petroleum storage system owners to submit affidavits from specialty contractors documenting damage or incompatibility with ethanol/biodiesel fuels, along with inspection reports and detailed cost proposals, with department review and approval within 30 days.

Limits reimbursement to 75 percent of approved costs (25 percent deductible), with maximum annual payments of $200,000 per facility or $500,000 in aggregate across all facilities, and preventive measure plans capped at 5 years.

Prohibits payments for proposal costs, certified public accountant fees, costs exceeding approved amounts, previously repaired equipment, non-compliant facilities, or damage caused by factors other than ethanol or biodiesel storage.

Requires petroleum storage systems approved after July 1, 2017, to meet compatibility standards for ethanol blends, biodiesel blends, and other alternative fuels.