BILL ANALYSIS Ó AB 1566 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1566 (Wieckowski) As Amended August 21, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |77-0 |(May 30, 2012) |SENATE: |36-0 |(August 22, | | | | | | |2012) | ----------------------------------------------------------------- Original Committee Reference: E.S. & T.M. SUMMARY : Authorizes the Office of the State Fire Marshal (State Fire Marshal) to regulate the Aboveground Petroleum Storage Act (APSA) and makes conforming changes to the APSA. The Senate amendments: 1)Define "tank in an underground area" to mean a tank to which all of the following apply: a) The tank is located in a structure that is at least 10% below the ground surface, including, but not limited to, a basement, cellar, shaft, pit, or vault. b) The structure in which the tank is located, at a minimum, provides for secondary containment of the contents of the tank, piping, and ancillary equipment, until cleanup occurs. c) The tank meets specified conditions, including requirements for the placement and inspectability of the tank and piping, and requirements that the tank contain petroleum to be used or previously used as a lubricant or coolant, or motor fuel, as defined. 2)Make other technical and conforming changes. 3)Add double-jointing language to avoid chaptering out issues with AB 1701 (Wieckowski). AS PASSED BY THE ASSEMBLY , this bill was substantially similar to the current version. FISCAL EFFECT : According to the Senate Appropriations AB 1566 Page 2 Committee, enactment of this bill could have the following fiscal impact: $225,000 to $300,000 annually to the Unified Program Account for the State Fire Marshall to oversee local implementation of the aboveground storage tank (AST) program, provide outreach, establish and administer an advisory committee, and adopt regulations, if necessary. 1)Costs to the State Fire Marshall are offset an existing annual surcharge paid by regulated parties. 2)Minor, if any, penalty revenue split between the local certified unified program agency (CUPA) and the district attorney. COMMENTS : Statewide oversight : As established in 1988, the APSA required Regional Water Quality Control Boards to oversee inspections of AST facilities to ensure that a federally mandated spill prevention, control and countermeasure (SPCC) plan was in place, that tanks were not leaking, and that a monitoring program was undertaken, if necessary. It also required CUPAs to enforce the requirements of the APSA regarding the SPCCs. In fiscal year 2002-03, the funding authority and positions for the AST inspection program were eliminated from the state and regional water boards' budgets, thus discontinuing the AST inspection program. AB 1130 (Laird), Chapter 626, Statutes of 2007, attempted to repair the AST program by transferring the responsibility for the implementation, enforcement, and administration of the APSA from the state and local boards to local environmental health and fire departments sanctioned under law as CUPAs. According to the sponsor, the California Association of Environmental Health Administrators, the APSA is the only local environmental health program lacking state oversight. Because there are 83 CUPAs, they can differ in their interpretation of the APSA. This bill provides statewide consistency and one point of contact for the AST program by assigning regulatory authority of the program to the State Fire Marshal. Penalty provisions : Current AST law provides for civil penalties, but does not explicitly authorize administrative or criminal penalties. In contrast, underground storage tank law, AB 1566 Page 3 in addition to providing for civil penalties, provides for criminal penalties for specified violations. Also, CUPAs are authorized to impose an administrative penalty for specified violations of underground storage tank (UST) law. This bill makes AST penalty provisions consistent with the other laws consolidated in the Unified Program, including UST law, by authorizing CUPAs to levy criminal penalties and administrative penalties. Conformance with federal law : According to the sponsor, there are more than 1,000 facilities statewide with lubricating oil and used oil tanks in underground areas that can be visually inspected that currently fall under the definition of an UST. Because UST requirements are designed for monitoring buried tanks, applying UST rules to tanks in underground areas is typically an expensive engineering challenge combined with the difficulty of meeting varying and inconsistent CUPA requirements. Further, because authority for the federal SPCC program is not delegated to the CUPAs, enforcement is confused. This bill redefines aboveground storage tanks in California law in order to align state statute with the Code of Federal Regulations and to better streamline oversight and enforcement of the AST program. Analysis Prepared by : Shannon McKinney / E.S. & T.M. / (916) 319-3965 FN: 0005304