BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1674
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                                                                 AB 1674
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          Date of Hearing:   April 13, 2010

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Pedro Nava, Chair
                 AB 1674 (Saldana) - As Introduced:  January 20, 2010
           
          SUBJECT :   Underground storage tanks.

           SUMMARY  :   Modifies existing exemptions of underground storage  
          tanks (UST).  Specifically,  this bill  : would make various  
          technical changes to existing law pertaining to USTs and  
          aboveground storage tanks (ASTs) including:

          1)Exempts from certain UST design and construction requirements  
            those USTs for which exterior surfaces of the UST can be  
            visually monitored (such as those that are in concrete vaults)  
            and where the USTs meet other regulatory requirements.

          2)Eliminates a provision of current law that allows the State  
            Water Resources Control Board (SWRCB) to object to a local  
            agency decision as to whether a tank meets UST regulatory  
            requirements.

          3)Makes various technical changes to existing law pertaining to  
            ASTs, including deleting the authorization for a local Unified  
            Program Agency (UPA) to waive a local AST regulatory fee on  
            state or local government agencies.

           EXISTING LAW  

          1)Requires that the SWRCB and local governments regulate the  
            design, installation and operation of USTs.  Imposes standards  
            for the design and upgrade of tanks, requires that tank owners  
            obtain permits to operate tanks, prohibits the use of tanks  
            that have not been upgraded to meet specified standards,  
            provides for the enforcement of tank requirements, and  
            requires that appropriate corrective action be taken when  
            spills occur or underground storage tanks leak.

          2)Requires all USTs installed after April 1, 2003 to be  
            double-contained, both primary and secondary containment to be  








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            "product tight" (impervious to the liquid and vapor phases of  
            the substance stored); water intrusion to be prevented,  
            secondary containment to meet specified volumetric  
            requirements.  Requires the tank to have a continuous leak  
            monitoring system, pressurized piping to be equipped with leak  
            detection and the tank to be tested using enhanced leak  
            detection before it is placed into use.

          3)Provides exemption from underground tank design, installation  
            and operation requirements for tanks if all exterior surfaces,  
            including connected piping and the floor directly beneath the  
            tank can be monitored by direct viewing.

          FISCAL EFFECT  :   Unknown.

           COMMENTS  .

           1)Need for the bill  .   According to the sponsors of the bill,  
            the California Health Officers Association, AB 1674 will  
            address two enforcement issues involving fuel storage tanks.   
            Specifically, the bill clarifies that vaulted tanks are not  
            mandated to meet every requirement placed on underground  
            storage tanks installed after July 1, 2004. Certain  
            requirements, such as pressure monitoring between the soil and  
            the exterior walls of the tanks, are not applicable to tanks  
            that are below-grade but not buried in the ground.

            The bill makes a technical amendment to the Above Ground  
            Petroleum Storage Act (APSA) to include CUPA oversight of  
            above ground petroleum storage in federal facilities.  This  
            change will enable the collection of fees that will provide  
            cost recovery for APSA program implementation.

           2)UST design standards  .   Federal and state laws and regulations  
            set standards for UST system design, construction,  
            installation and notification; upgrading of existing UST  
            systems, general operating requirements, release detection;  
            reporting and investigation; corrective action and  
            out-of-service and closed UST systems. Those standards were  
            enacted to reduce the risk of water contamination by petroleum  
            products and hazardous and toxic additives such as MTBE that  
            can leak from USTs.  
           
           3)AST fee waiver authority  .  The sponsors of the bill have  
            requested clarification on the ability of local governments to  








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            assess fees on federal facilities.   In order to create a  
            level fee structure that captures the full cost of local  
            government oversight, the federal agencies have raised  
            objections to exemption of state and local facilities from  
            permit fees.

           4)Issue  .  This bill provides a broad exemption for USTs that are  
            not buried in the ground by also exempting them from other UST  
            design and construction standards that are necessary to  
            protect water quality.  For example, the bill would exempt  
            these UST from existing requirements that vent lines, vapor  
            recovery lines and fill pipes must also have secondary levels  
            of containment.  This type of tank design is important for  
            preventing USTs from leaking and for reducing the potential of  
            groundwater contamination from leaking tanks and the USTs that  
            are not buried in the ground should still remain subject to  
            these requirements.  
           
            The Committee may wish to specify that vent lines, pipes and  
            vapor recovery standards would still apply to these USTs.

           REGISTERED SUPPORT / OPPOSITION :   

           Support 
           California Association of Environmental Health Administrators
          County of San Diego

           Opposition 
           None received  
           
           
          Analysis Prepared by  :    Robert Fredenburg / E.S. & T.M. / (916)  
          319-3965