BILL ANALYSIS Ó
AB 358
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Date of Hearing: April 26, 2011
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Bob Wieckowski, Chair
AB 358 (Smyth) - As Amended: April 13, 2011
Author's Proposed Amendments
SUBJECT : Underground Storage Tanks.
SUMMARY : Requires the adoption of emergency regulations by the
State Water Resources Control Board (SWRCB) to establish
standards for high risk leaking underground storage tanks
(LUSTs). Specifically, this bill :
1)Requires that the SWRCB, by January 1, 2012, adopt regulations
to specify those conditions where an LUST poses an immediate
threat to public health or safety or the environment as a
result of contamination, nuisance, or pollution.
2)Establishes that these regulations shall be adopted as
emergency regulations to go into immediate effect.
EXISTING LAW :
1)Generally regulates the storage of hazardous substances in
USTs and requires USTs that are used to store hazardous
substances to meet certain requirements, including that the
primary containment be product tight and that the tank's
secondary containment meet specified standards.
2)Requires under the Barry Keene Underground Storage Tank
Cleanup Trust Fund Act of 1989, owners and operators of
petroleum underground storage tanks to take corrective action
to an unauthorized release of petroleum, including
requirements for the preparation of a work plan. Provides for
the issuance of a specified closure letter relative to the
completion of an investigation and corrective action for a
petroleum underground storage tank.
3)Authorizes the SWRCB to suspend corrective action at a site,
except for emergency sites. Requires the SWRCB to adopt
regulations to specify those conditions where an LUST poses an
immediate threat to public health or safety or the environment
as a result of contamination, nuisance, or pollution.
AB 358
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FISCAL EFFECT : Not Known.
COMMENTS :
1)Need for the bill . According to the author, "In
September-December, 2008, the Water Board suspended over 1300
claims where ongoing remediation activities were underway due
to insufficient agency attention regarding funding and revenue
income balances. It is highly likely that such a situation
will occur, again, at the end of 2011. Anticipated revenues
to the Fund are already declining due to the high price of
fuel. This bill will allow rapid regulatory relief in the
event of another major fiscal crisis in the underground tank
clean-up program. The language of AB 358 amends Section
25296.25 of the Health & Safety Code. This code section
already provides authority for the Water Board to assume
corrective action responsibility for sites that have funding
suspended from the underground storage tank program. The
amendments shorten the provisions and remove the need for
regulatory adoption."
2)According to the SWRCB, in 2008, the cash reserve built up in
the early years of the LUST program fell below prudent
reserves, and the program experienced a cash shortage. This
shortage was made worse because of a concurrent dip in
revenues due to the slow-down in the economy. Insufficient
cash was not available to service all of the active claims,
and payments were and remain delayed by many months. This
created a sudden and severe hardship for small business
claimants and their consultants, who are also small
businesses.
3)Author's Amendment: The author has proposed to add an urgency
clause to this bill to allow it to go into effect immediately
upon signature by the Governor.
4)Related Legislation:
AB 291 (Wieckowski), 2011. Establishes a requirement that
SWRCB payments for LUSTs be made based on the environmental or
public health risk posed by the LUST. This bill is pending in
the Environmental Safety and Toxic Materials Committee.
5)Prior Legislation:
AB 358
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AB 1188 (Ruskin) - Chapter 649, Statues of 2009. Increased
the fees paid by owners of underground petroleum storage
tanks. Increased, temporarily, the fee paid per gallon on
motor vehicle fuel (petroleum storage fee) that the owner of
an underground storage tank must pay from 1.4 mils to 2 mils
per gallon through January 1, 2012.
REGISTERED SUPPORT / OPPOSITION :
Support
California Independent Oil Marketers Association
Opposition
None on file.
Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916)
319-3965