BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1566
                                                                  Page 1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1566 (Wieckowski)
          As Amended  August 21, 2012
          Majority vote
           
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          |ASSEMBLY:  |77-0 |(May 30, 2012)  |SENATE: |36-0 |(August 22,    |
          |           |     |                |        |     |2012)          |
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           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
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          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
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          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 


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