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
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          ____
          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.
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          ____
                            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.
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          ____

          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.