BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1674
                                                                  Page 1


          ASSEMBLY THIRD READING
          AB 1674 (Saldana)
          As Amended  April 21, 2010
          Majority vote 

           ENVIRONMENTAL SAFETY          9-0                    
          APPROPRIATIONS      16-0                            
           
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          |Ayes:|Nava, Miller, Blakeslee,  |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Chesbro, Davis, Feuer,    |     |Bradford, Charles         |
          |     |Monning, Ruskin, Smyth    |     |Calderon, Coto, Davis, De |
          |     |                          |     |Leon, Hall, Miller,       |
          |     |                          |     |Nielsen, Norby, Skinner,  |
          |     |                          |     |Solorio, Torlakson,       |
          |     |                          |     |Torrico                   |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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 all USTs installed after April 1, 2003 to be  
            double-contained, both primary and secondary containment to be  
            "product tight" (impervious to the liquid and vapor phases of  
            the substance stored); water intrusion to be prevented,  








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            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.

          2)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  :   According to the Assembly Appropriations  
          Committee, this bill may result in annual costs to state  
          agencies.  State agencies operate ASTs and this bill deletes  
          local agencies' ability to waive fees on such state agencies.   
          The actual cost of this bill depends on:  1) the number of ASTs  
          operated by state agencies; and, 2) the amount of fees local  
          agencies charge those state agencies that the local agencies  
          otherwise would have waived.


           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 USTs 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  








                                                                  AB 1674
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            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  
            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.
           

          Analysis Prepared by  :    Robert Fredenburg / E.S. & T.M. / (916)  
          319-3965 

                                                                FN: 0004183