BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 681 (Wieckowski) Hearing Date: 08/25/2011 Amended: 07/07/2011 Consultant: Brendan McCarthy Policy Vote: EQ 7-0 _________________________________________________________________ ____ BILL SUMMARY: AB 681 gives the State Fire Marshal responsibility for developing regulations for the oversight by local governments of certain types of petroleum storage tanks that are located in underground areas. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Developing regulations $250 $250 $250 Special * and oversight Grants to local governments About $1,000 over two yearsSpecial ** * Unified Hazardous Materials Account. ** Environmental Protection Trust Fund. _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. Under current law, underground petroleum storage tanks are regulated by California Unified Program Agencies, which are specified local government agencies. These tanks are regulated to prevent leakage which can contaminate soil and groundwater. Similarly, above ground petroleum storage tanks are regulated under state and federal law. Under current law, petroleum storage tanks that are located in basements or other underground rooms are considered underground storage tanks. (For example, facilities that have emergency backup generators may have a diesel fuel storage tank in a basement area, but not actually buried in the ground.) AB 681 gives the Office of the State Fire Marshal the authority AB 681 (Weickowski) Page 1 to develop and adopt regulations for the regulatory oversight of petroleum storage tanks located in underground areas. California Unified Program Agencies would continue to provide ongoing oversight of those tanks, pursuant to the regulations adopted by the Office of the State Fire Marshal. While the regulation of underground storage tanks is aimed at reducing pollution from leakage, this bill intends to regulate storage tanks in underground areas to prevent hazards from fire, which is a more likely risk with such tanks. The Office of the State Fire Marshal indicates that the cost to develop and adopt regulations and provide ongoing oversight and assistance to the California Unified Program Agencies will be about $250,000 per year. Under current law, the California Environmental Protection Agency is authorized to impose fees on tank owners, and additional fees from owners would cover those costs. The bill also extends the authority of the California Environmental Protection Agency to expend funds from the Environmental Protection Trust Fund for grants to California Unified Program Agencies for training. The remaining balance in that fund is about $1 million.