BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               AB 1566
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    AB 1566
           AUTHOR:     Wieckowski        
           AMENDED:    May 25, 2012
           FISCAL:     Yes               HEARING DATE:     July 2, 2012
           URGENCY:    No                CONSULTANT:       Joanne Roy
            
           SUBJECT  :    ABOVEGROUND STORAGE TANKS

            SUMMARY  :    
           
            Existing law  :

           1) Pursuant to the federal Spill Prevention Control and 
              Countermeasure (SPCC) rule (40 CFR Part 112), requires 
              owners and operators of tank facilities to prepare and 
              implement an SPCC Plan which is enforceable by Unified 
              Program Agencies (UPAs). 

           2) Under the Aboveground Petroleum Storage Act (APSA) (Health 
              and Safety Code §25270 et seq.):

              a)    Defines "aboveground storage tank" (AST) as a "tank 
                 that has the capacity to store 55 gallons or more of 
                 petroleum and that is substantially or totally above the 
                 ground," except as specified.  (§25270.2(a)).

              b)    Defines "petroleum" as "crude oil, or a fraction 
                 thereof, that is liquid at 60 degrees Fahrenheit 
                 temperature and 14.7 pounds per square inch absolute 
                 pressure."  (§25270.2(h)).

              c)    Defines "tank facility" as one or more ASTs, 
                 including any piping integral to the tanks, that contain 
                 petroleum and that are used by the owner or operator at 
                 a single location or site.  (§25270.2(m)).

              d)    Requires the UPAs to implement APSA.  (§25270.4) .

              e)    Requires tank facilities with storage capacity 









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                 between 1,320 gallons and 10,000 gallons to be subject 
                 to the requirements of APSA.  (§25270.3).  

              f)    Requires the owner or operator of an AST to prepare a 
                 spill prevention control and countermeasure plan, 
                 periodically inspect the AST, and allow the UPA to 
                 inspect as well.  (§25270.4.5). 

              g)    Requires UPAs to inspect tank facilities with a 
                 10,000 gallon minimum total storage capacity at least 
                 once every three years.  (§25270.5).

              h)    Requires the owner or operator to pay a fee to cover 
                 implementation costs of APSA.  (§25270.6).

              i)    Authorizes the State Water Resources Control Board 
                 (SWRCB) and regional water quality control boards 
                 (RWQCBs) to oversee cleanup or abatement efforts of 
                 unauthorized releases from ASTs.  (§25270.9).

              j)    Authorizes funds in the Environmental Protection 
                 Trust Fund (Fund) to be used for training UPAs and 
                 implementing APSA, and sunsets expenditures on July 1, 
                 2013.  (§25270.11).

              aa)   Establishes civil penalties for violation of APSA and 
                 allocates those penalties back to the Fund. (§25270.12). 


           3) Describes the process for the adoption and interpretation 
              of statewide standards and requirements for program 
              administration by the UPAs.  (§25404.1).

           4) Exempts a tank located in a below-grade structure that is 
              connected to an emergency generator tank system and meets 
              specified conditions from requirements imposed on 
              underground storage tanks, one condition being that the 
              tank or combination of tanks has a cumulative capacity of 
              1,100 gallons or less of diesel fuel.  (§25281.6).

            This bill  :  

           1) Expands the definition of "aboveground storage tank" to 









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              include a "tank in an underground area."

           2) Defines a "tank in an underground area" as at least 10 
              percent below the ground surface and contained in a 
              structure that provides secondary containment.  The tank 
              may contain specified liquids and specific conditions are 
              required based on the liquid contained in the tank. 

           3) Requires the Office of the State Fire Marshal (OSFM) to 
              adopt regulations and provide guidance and oversight to 
              UPAs implementing APSA.  OSFM must:  a) establish an 
              advisory committee made up of a variety of stakeholders; 
              and b) provide training, ensure consistency with state and 
              federal law, and support UPAs in outreach efforts to the 
              regulated community.

           4) Allows money in the Waste Discharge Permit Fund to be used 
              by an RWQCB to remedy a significant unforeseen water 
              pollution problem and other specified actions.

           5) Authorizes UPAs to assess administrative penalties on an 
              owner or operator for failing to meet the requirements of 
              APSA and provides that violations of specified APSA 
              requirements are a misdemeanor.

           6) Increases the maximum cumulative capacity of specified 
              tanks exempted from requirements imposed on underground 
              storage tanks from 1,100 gallons to 1,320 gallons.

            COMMENTS  :

            1) Purpose of Bill  .  The sponsor, California Association of 
              Environmental Health Administrators, states that "this 
              measure will clarify the definition of what is commonly 
              referred to a 'vaulted tank' and will establish the ÝOSFM] 
              as the oversight agency for the aboveground tank program 
              element within the Unified Program.  There exists tension 
              and confusion over exactly how these below-grade but not 
              'underground' or 'in-the-ground' tanks should be regulated. 
               This bill clarifies the distinction between these two 
              types of petroleum storage tanks.  Furthermore, AB 1566 
              designates the ÝOSFM] as the State oversight agency for the 
              aboveground tank program element that was transferred from 









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              SWRCB to the certified unified program agencies (CUPAs) 
              some years back.  As in all the other elements of the 
              Unified Program, the State oversight agencies assist in 
              providing training and offering interpretation in program 
              implementation - thus enhancing consistency and 
              coordination in program management."

            2) Background  .  UPAs regulate facilities with ASTs containing 
              petroleum-based substances.  These typically include large 
              petroleum tank facilities, aboveground fuel tank stations 
              and vehicle repair shops with aboveground petroleum storage 
              tanks.  There are approximately 9,000 regulated facilities 
              covered by APSA requirements.   

            3) "Tank In an Underground Area"  .  AB 1566 expands the 
              definition of "aboveground storage tank" to include a "tank 
              in an underground area" which is commonly referred to as a 
              "vaulted" tank.  For example, these vaulted tanks are 
              typically used in oil change service shops.  The proposed 
              definition requires the tank to be above the surface of the 
              floor, able to be physically inspected, and meet either of 
              the following conditions:

                a)  If the tank contains oil or coolant to be used as a 
                lubricant in a motor engine or transmission or used oil 
                or coolants, then the tank must be situated to allow for 
                physical inspection of the exterior of the tank except 
                for the part of the tank in contact with the surface of 
                the floor. 

                b)  If the tank contains motor fuel, then the tank must 
                be situated to allow for physical inspection of the 
                exterior of the tank including all piping connected to 
                the tank including any portion of a vent line, vapor 
                recovery line, or fill pipe that is beneath the surface 
                of the ground, and all ancillary equipment.

              Oil/coolant tanks are receptacles and almost exclusively do 
              not have ancillary piping connected to the tank and the 
              liquid is drained in and pumped out.  On the other hand, 
              motor fuel tanks have ancillary piping which has the 
              potential to leak.










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            4) Opposition  .  The U.S. Department of Defense contends that 
              the proposed definition of "tank in an underground area" is 
              too restrictive by limiting the contents of vaulted tanks 
              to "oil or coolant to be used as a lubricant in a motor 
              engine or transmission or used oil or coolants" and argues 
              that all uses of petroleum products should be included.

           The U.S. Navy installed oil water separator tanks for a waste 
              treatment system at the Naval Air Weapons Station, China 
              Lake.  The tanks were originally designed and constructed 
              to meet hazardous waste systems criteria pursuant to 
              California Code of Regulations (CCR) Title 22 and have been 
              operated as 22 CCR hazardous waste water tank systems.  

           In February 2011, San Bernardino County Certified Unified 
              Program Agency (CUPA) issued an enforcement order citing 
              that these tanks at China Lake should be regulated as 
              underground storage tanks, registered and operated under 
              CCR Title 23 and Health and Safety Code Chapter 6.7 
              pertaining to underground storage of hazardous substances.  
              According to the U.S. Navy, it has requested the San 
              Bernardino County CUPA to reconsider and the enforcement 
              order is pending the outcome of AB 1566.  

           In addition to AB 1566, the U.S. Navy has considered other 
              options to address the issue cited by the San Bernardino 
              County CUPA including "requesting a statutory exemption 
              based on visual monitoring of the units with comparable 
              regulatory standards for operation and maintenance of these 
              tank units." (U.S. Navy letter to San Bernardino County 
              Fire Department, subject: underground storage tank 
              determination response with request for consideration 
              and/or 6.7 HSC 25283.5 exemption, June 10, 2011.)  

           It may be appropriate to strike the definition of "tank in an 
              underground area," revise the definition of "aboveground 
              storage tank" accordingly, and strike reference to "tank in 
              an underground area" in §25281(y)(1)(E), while the parties 
              can continue to meet and resolve this issue.

            5) Conflict/Chaptering Out  .  AB 1566 (Wieckowski) and AB 1701 
              (Wieckowski) both amend §25281 which provides definitions 
              for terms used in Chapter 6.7 of the Health and Safety Code 









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              pertaining to underground storage of hazardous substances.

           Amendments are needed to double-joint the two bills in order 
              to prevent the potential of either bill from chaptering out 
              the other.

            6) Related legislation  .  AB 1701 (Wieckowski) provides for 
              state certification of cities and counties to oversee the 
              cleanup of USTs.  This bill is being heard in Senate 
              Environmental Quality Committee July 2, 2012.

            7) Previous legislation  .  AB 681 (Wieckowski) Chapter 574, 
              Statutes of 2011, extended the Environmental Protection 
              Trust fund expenditures until June 1, 2013, and provided 
              that unexpended funds be deposited in the Unified Program 
              Account for further support for Certified Unified Program 
              Agencies' aboveground storage tank activities.

           AB 1130 (Laird) Chapter 626, Statutes of 2007, transferred the 
              responsibility for aboveground storage tank inspection 
              program and fee collection from the SWRCB and RWQCBs to the 
              local CUPAs. 

            SOURCE  :        California Association of Environmental Health 
                          Administrators  

           SUPPORT  :       None on file  

           OPPOSITION  :    U.S. Department of Defense