BILL ANALYSIS Ó
AB 291
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CONCURRENCE IN SENATE AMENDMENTS
AB 291 (Wieckowski)
As Amended July 7, 2011
2/3 vote. Urgency
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|ASSEMBLY: |62-7 |(June 2, 2011) |SENATE: |31-7 |(September 6, |
| | | | | |2011) |
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Original Committee Reference: E.S. & T.M.
SUMMARY : Extends for two years a temporary fee, from 1.4 mils
to 2 mils, per gallon on motor vehicle fuel (petroleum storage
fee), that the owner of an underground storage tank (UST) must
pay.
The Senate amendments require that the enactment of this bill is
contingent on the approval of AB 358 (Smyth), which provides for
the review and reporting of clean-up and closure of leaking UST
cases by the State Water Resources Control Board (SWRCB).
EXISTING LAW under the Barry Keene Underground Storage Tank
Cleanup Act of 1989 (Act):
1)Establishes the Underground Storage Tank Cleanup Fund (Fund)
for the deposit of fees collected pursuant to the Act.
2)Authorizes the SWRCB to expend the moneys in the Fund, upon
appropriation by the Legislature, for various purposes,
including the payment of claims to aid owners and operators of
petroleum UST who take corrective action to clean up
unauthorized releases from those tanks, corrective actions
undertaken by specified agencies, the cleanup and oversight of
unauthorized releases at abandoned tank sites, and grants to
small businesses to retrofit certain hazardous substance
underground storage tanks.
3)Establishes a fee of 2 mils per gallon of motor vehicle fuel
that the owner of an underground storage tank must pay for
each gallon of petroleum that is stored in an underground
tank.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version approved by the Senate.
AB 291
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FISCAL EFFECT : According to the Assembly Appropriations
Committee, annual UST per-gallon fee revenue of approximately
$180 million, through 2013, to the SWRCB Fund.
COMMENTS : According to the author, this bill is necessary to
help bridge the funding gap and promote reform of the Fund
resulting in more efficient review and closures of leaking USTs,
where appropriate. There is insufficient funding to fulfill
commitments for the financial assurance program for operators of
USTs for cleanups of leaks and spills. Based on the current
demand of $240 million, the Fund projects a $126 million revenue
deficiency for fiscal year 2011-12.
The Fund is administered by the SWRCB and is designed to
contribute to the protection of California's public health,
safety, and water quality through: 1) establishing a mechanism
for owners and operators of USTs to meet federal financial
responsibility requirements; and, 2) reimbursing eligible UST
owners and operators for corrective action costs incurred in the
cleanup of soil and groundwater contamination resulting from the
unauthorized release of petroleum from USTs.
Currently, the Fund is supported by a 2 mils per gallon fee
collected quarterly from petroleum UST owner/operators by the
State Board of Equalization. The fee currently generates about
$270 million per year for claims reimbursement and other
authorized accounts.
Over the life of the Fund, some 19,300 claims for reimbursement
have been filed with the program, and $2.5 billion has been paid
to claimants. Cleanups have been completed at over 6,800 sites,
and costs at another 4,100 active sites are currently being
paid. A closed site indicates the contaminants have been
investigated, monitored, and removed to a level protective of
health, safety, and the environment, and allows the property to
continue in its current use or return to productive use to the
benefit the community.
Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916)
319-3965
FN: 0002337
AB 291
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