BILL NUMBER: AB 1701	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 8, 2012

INTRODUCED BY   Assembly Members Wieckowski and Smyth

                        FEBRUARY 15, 2012

   An act to amend Sections  25299.109 and 25299.206
  25281, 25295, 25297.1, and 25299  of  , to
add Section 25297.01 to, and to repeal and add Section 25283 of,
 the Health and Safety Code, relating to underground storage
tanks.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1701, as amended, Wieckowski. Underground storage tanks:
 funds.   local agencies.  
   (1) Existing law requires the Secretary for Environmental
Protection to implement a unified hazardous waste and hazardous
materials management regulatory program. A city or local agency that
meets specified requirements is authorized to apply to the secretary
to implement the unified program, and every county is required to
apply to the secretary to be certified to implement the unified
program as a Certified Unified Program Agency (CUPA).  
   Existing law generally regulates the storage of hazardous
substances in underground storage tanks and requires the provisions
to be implemented by the local agency, which is defined as the CUPA,
except under specified conditions under which no CUPA exists.
Existing law also defines the term "unified program agency" as
meaning the CUPA, or its participating agencies, that is approved by
the secretary to implement or enforce those underground storage tank
requirements.  
   This bill would revise the term "local agency" for purposes of the
underground storage tank requirements to mean the unified program
agency with regard to the implementation of certain provisions
regulating underground storage tanks and that a city or county is the
local agency for purposes of provisions authorizing corrective
action to releases from those tanks. The bill would impose a
state-mandated local program by imposing new duties upon local
agencies with regard to the implementation of those requirements.
 
   (2) Existing law requires the State Water Resources Control Board
to develop and implement a local oversight program for the abatement
of, and oversight of the abatement of, unauthorized releases of
hazardous substances from underground storage tanks by local agencies
and authorizes the board to enter into an agreement with a local
agency to conduct that program.  
   This bill would revise those provisions to allow a city or county
to apply to the board to be certified to implement the local
oversight program and would provide, on and after July 1, 2013, that
only a certified city or county is authorized to implement the local
oversight program. The bill would authorize the board to certify a
city or county that the board determines is qualified to oversee or
perform the abatement and would require the board to adopt procedures
and criteria for certifying cities and counties, which would be
exempt from the requirements and procedures for the adoption of
regulations. The bill would require the board, if it does not, by
July 1, 2013, certify a city or county that has been previously
implementing a local oversight program, to assign the cases from that
city or county to the appropriate regional board or a certified city
or county.  
   The bill would allow the board, on and after July 1, 2013, to
enter into an agreement with a local agency to conduct the local
oversight program only if the local agency is a certified city or
county.  
   (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   Existing law requires the State Water Resources Control Board to
conduct a grant program to assist small businesses in meeting certain
requirements with regard to underground storage tanks and the board
is required to make these grant funds available from the Petroleum
Underground Storage Tank Financing Account for purposes of this
program. The funds in the Petroleum Underground Storage Tank
Financing Account are available for expenditure by the board, upon
appropriation by the Legislature, with regard to a specified grant
and loan program. Under the existing Barry Keene Underground Storage
Tank Cleanup Trust Fund Act of 1989, owners and operators of
petroleum underground storage tanks are required to pay a storage fee
for each gallon of petroleum placed in the tank. The fees are
required to be deposited in the Underground Storage Tank Cleanup
Fund, and the money in the fund is authorized to be expended by the
board, upon appropriation by the Legislature, for various purposes.
 
   This bill would delete an obsolete provision regarding the
transfer of funds from the fund to that account and would clarify
that the funds in the account may be expended by the board for
purposes of this grant program. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 25281 of the   Health
and Safety Code   is amended to read: 
   25281.  For purposes of this chapter,  and unless otherwise
expressly provided,  the following definitions apply:
   (a) "Automatic line leak detector" means any method of leak
detection, as determined in regulations adopted by the board, that
alerts the owner or operator of an underground storage tank to the
presence of a leak. "Automatic line leak detector" includes, but is
not limited to, any device or mechanism that alerts the owner or
operator of an underground storage tank to the presence of a leak by
restricting or shutting off the flow of a hazardous substance through
piping, or by triggering an audible or visual alarm, and that
detects leaks of three gallons or more per hour at 10 pounds per
square inch line pressure within one hour.
   (b) "Board" means the State Water Resources Control Board.
"Regional board" means a California regional water quality control
board.
   (c) "Compatible" means the ability of two or more substances to
maintain their respective physical and chemical properties upon
contact with one another for the design life of the tank system under
conditions likely to be encountered in the tank system.
   (d) (1) "Certified Unified Program Agency" or "CUPA" means the
agency certified by the Secretary for Environmental Protection to
implement the unified program specified in Chapter 6.11 (commencing
with Section 25404) within a jurisdiction.
   (2) "Participating Agency" or "PA" means an agency that has a
written agreement with the CUPA pursuant to subdivision (d) of
Section 25404.3, and is approved by the secretary to implement or
enforce the unified program element specified in paragraph (3) of
subdivision (c) of Section 25404, in accordance with Sections 25404.1
and 25404.2.
   (3) "Unified Program Agency" or "UPA" means the CUPA, or its
participating agencies to the extent each PA has been designated by
the CUPA, pursuant to a written agreement, to implement or enforce
the unified program element specified in paragraph (3) of subdivision
(c) of Section 25404. For purposes of this chapter, a UPA has the
responsibility and authority, to the extent provided by this chapter
and Sections 25404.1 and 25404.2, to implement and enforce only those
requirements of this chapter listed in paragraph (3) of subdivision
(c) of Section 25404 and the regulations adopted to implement those
requirements. Except as provided in Section 25296.09, after a CUPA
has been certified by the secretary, the UPA shall be the only local
agency authorized to enforce the requirements of this chapter listed
in paragraph (3) of subdivision (c) of Section 25404 within the
jurisdiction of the CUPA. This paragraph shall not be construed to
limit the authority or responsibility granted to the board and the
regional boards by this chapter to implement and enforce this chapter
and the regulations adopted pursuant to this chapter.
   (e) "Department" means the Department of Toxic Substances Control.

   (f) "Facility" means any one, or combination of, underground
storage tanks used by a single business entity at a single location
or site.
   (g) "Federal act" means Subchapter IX (commencing with Section
6991) of Chapter 82 of Title 42 of the United States Code, as added
by the Hazardous and Solid Waste Amendments of 1984  (P.L.
  (Public Law  98-616), or as it may subsequently
be amended or supplemented.
   (h) "Hazardous substance" means either of the following:
   (1)  All of the following liquid and solid substances, unless the
department, in consultation with the board, determines that the
substance could not adversely affect the quality of the waters of the
state:
   (A) Substances on the list prepared by the Director of Industrial
Relations pursuant to Section 6382 of the Labor Code.
   (B) Hazardous substances, as defined in Section 25316.
   (C) Any substance or material that is classified by the National
Fire Protection Association (NFPA) as a flammable liquid, a class II
combustible liquid, or a class III-A combustible liquid.
   (2) Any regulated substance, as defined in subsection  (2)
  (7)  of Section 6991 of Title 42 of the United
States Code, as that section reads on January 1,  1989
  2012  , or as it may subsequently be amended or
supplemented.
   (i) "Local agency" means  the local agency authorized,
pursuant to Section 25283, to implement this chapter.  
one of the following, as specified in subdivision (b) of Section
25283:  
   (1) The unified program agency.  
   (2) Before July 1, 2013, a city or county.  
   (3) On and after July 1, 2013, a city or county certified by the
board to implement the local oversight program pursuant to Section
25297.01. 
   (j) "Operator" means any person in control of, or having daily
responsibility for, the daily operation of an underground storage
tank system.
   (k) "Owner" means the owner of an underground storage tank.

   (  l  )
    (l)  "Person" means an individual, trust, firm, joint
stock company, corporation, including a government corporation,
partnership, limited liability company, or association. "Person" also
includes any city, county, district, the state, another state of the
United States, any department or agency of this state or another
state, or the United States to the extent authorized by federal law.
   (m) "Pipe" means any pipeline or system of pipelines that is used
in connection with the storage of hazardous substances and that is
not intended to transport hazardous substances in interstate or
intrastate commerce or to transfer hazardous materials in bulk to or
from a marine vessel.
   (n) "Primary containment" means the first level of containment,
such as the portion of a tank that comes into immediate contact on
its inner surface with the hazardous substance being contained.
   (o) "Product tight" means impervious to the substance that is
contained, or is to be contained, so as to prevent the seepage of the
substance from the containment.
   (p) "Release" means any spilling, leaking, emitting, discharging,
escaping, leaching, or disposing from an underground storage tank
into or on the waters of the state, the land, or the subsurface
soils.
   (q) "Secondary containment" means the level of containment
external to, and separate from, the primary containment.
   (r) "Single walled" means construction with walls made of only one
thickness of material. For the purposes of this chapter, laminated,
coated, or clad materials are considered single walled.
   (s) "Special inspector" means a professional engineer, registered
pursuant to Chapter 7 (commencing with Section 6700) of Division 3 of
the Business and Professions Code, who is qualified to attest, at a
minimum, to structural soundness, seismic safety, the compatibility
of construction materials with contents, cathodic protection, and the
mechanical compatibility of the structural elements of underground
storage tanks.
   (t) "Storage" or "store" means the containment, handling, or
treatment of hazardous substances, either on a temporary basis or for
a period of years. "Storage" or "store" does not include the storage
of hazardous wastes in an underground storage tank if the person
operating the tank has been issued a hazardous waste facilities
permit by the department pursuant to Section 25200 or granted interim
status under Section 25200.5.
   (u) "Tank" means a stationary device designed to contain an
accumulation of hazardous substances which is constructed primarily
of nonearthen materials, including, but not limited to, wood,
concrete, steel, or plastic that provides structural support.
   (v) "Tank integrity test" means a test method capable of detecting
an unauthorized release from an underground storage tank consistent
with the minimum standards adopted by the board.
   (w) "Tank tester" means an individual who performs tank integrity
tests on underground storage tanks.
   (x) "Unauthorized release" means any release of any hazardous
substance that does not conform to this chapter, including an
unauthorized release specified in Section 25295.5.
   (y) (1) "Underground storage tank" means any one or combination of
tanks, including pipes connected thereto, that is used for the
storage of hazardous substances and that is substantially or totally
beneath the surface of the ground. "Underground storage tank" does
not include any of the following:
   (A) A tank with a capacity of 1,100 gallons or less that is
located on a farm and that stores motor vehicle fuel used primarily
for agricultural purposes and not for resale.
   (B) A tank that is located on a farm or at the residence of a
person, that has a capacity of 1,100 gallons or less, and that stores
home heating oil for consumptive use on the premises where stored.
   (C) Structures, such as sumps, separators, storm drains, catch
basins, oil field gathering lines, refinery pipelines, lagoons,
evaporation ponds, well cellars, separation sumps, lined and unlined
pits, sumps and lagoons. A sump that is a part of a monitoring system
required under Section 25290.1, 25290.2, 25291, or 25292 and sumps
or other structures defined as underground storage tanks under the
federal act are not exempted by this subparagraph.
   (D) A tank holding hydraulic fluid for a closed loop mechanical
system that uses compressed air or hydraulic fluid to operate lifts,
elevators, and other similar devices.
   (2) Structures identified in subparagraphs (C) and (D) of
paragraph (1) may be regulated by the board and any regional board
pursuant to the Porter-Cologne Water Quality Control Act (Division 7
(commencing with Section 13000) of the Water Code) to ensure that
they do not pose a threat to water quality.
   (z) "Underground tank system" or "tank system" means an
underground storage tank, connected piping, ancillary equipment, and
containment system, if any.
   (aa) (1) "Unified program facility" means all contiguous land and
structures, other appurtenances, and improvements on the land that
are subject to the requirements of paragraph (3) of subdivision (c)
of Section 25404.
   (2) "Unified program facility permit" means a permit issued
pursuant to Chapter 6.11 (commencing with Section 25404), and that
encompasses the permitting requirements of Section 25284.
   (3) "Permit" means a permit issued pursuant to Section 25284 or a
unified program facility permit as defined in paragraph (2).
   SEC. 2.    Section 25283 of the   Health and
Safety Code   is repealed.  
   25283.  (a)  (1)  This chapter shall be implemented, pursuant to
the regulations adopted by the board, by one of the following:
   (A)  If there is a CUPA, the unified program agency.
   (B)  If there is no CUPA, by one of the following:
   (i)  Before January 1, 1997, the county or a city, pursuant to
paragraph (2).
   (ii)  On and after January 1, 1997, the agency authorized pursuant
to subdivision (f) of Section 25404.3.
   (2)  (A)  Before January 1, 1997, if there is no CUPA, a city may,
by ordinance, assume responsibility for the implementation of this
chapter pursuant to the regulations adopted by the board and, if so,
shall have exclusive jurisdiction within the boundary of the city for
the purposes of carrying out this chapter. The ordinance adopted by
the city shall comply with this chapter, applicable federal laws, and
the regulations and guidelines adopted pursuant thereto. If there is
no CUPA, a city which, prior to January 1, 1990, was exempt from
implementing this chapter, has the exclusive jurisdiction, within its
boundaries, for the purpose of implementing this chapter.
   (B)  No city may assume responsibility for implementation of this
chapter unless it has notified the county, on or before July 1, 1990,
of its intentions to assume responsibility for implementation of
this chapter.
   (C)  A city's authorization for implementing this chapter pursuant
to this paragraph shall remain in effect only until a CUPA is
certified, or until January 1, 1997, whichever is earlier. On and
after January 1, 1997, the agency responsible for administering and
enforcing this chapter shall be the agency so authorized pursuant to
subdivision (f) of Section 25404.3.
   (b)  If there is no CUPA, the county and any city that assumes
responsibility pursuant to paragraph (2) of subdivision (a) shall
designate a department, office, or other agency of that county or
city, as the case may be, as the local agency responsible for
administering and enforcing this chapter, pursuant to subdivision
(a). A city that assumes responsibility for implementation of this
chapter pursuant to paragraph (2) of subdivision (a) shall designate
the agency which has responsibility for implementing Chapter 6.95
(commencing with Section 25500) as the local agency responsible for
administering and enforcing this chapter. A designation pursuant to
this subdivision shall remain in effect only until a CUPA is
certified or until January 1, 1997, whichever is earlier. On and
after January 1, 1997, the agency responsible for administering and
enforcing this chapter shall be the agency so authorized pursuant to
subdivision (f) of Section 25404.3.
   (c)  If the agency which receives certification as a certified
unified program agency subsequently withdraws or is decertified
before January 1, 1997, the local agency responsible for
administering and enforcing this chapter prior to the certification
of the CUPA shall assume responsibility for administering and
enforcing this chapter until a successor CUPA is certified or until
January 1, 1997, whichever is earlier.
   (d)  Revenue from fees collected by the county pursuant to this
chapter shall be prorated between the city and county based upon when
the city assumes responsibility for implementation of this chapter.

   SEC. 3.    Section 25283 is added to the  
Health and Safety Code   , to read:  
   25283.  (a) This chapter shall be implemented by the board, by the
regional board, and by the local agency, as defined in subdivision
(b), pursuant to the regulations adopted by the board.
   (b) For purposes of this chapter, "local agency" means the
following:
   (1) (A) A local agency means the unified program agency for
purposes of implementing the unified program, as specified in
paragraph (3) of subdivision (c) of Section 25404, including the
requirements of this chapter and the requirements of any underground
storage tank ordinance adopted by a city or county.
   (B) Consistent with paragraph (3) of subdivision (c) of Section
25404, for purposes of this chapter, a local agency does not
implement those responsibilities assigned to the state board pursuant
to Section 25297.1 or the corrective action requirements of Sections
25296.10 to 25296.40, inclusive.
   (2) Before July 1, 2013, a local agency means a city or county for
purposes of implementing the corrective action requirements of
Sections 25296.10 to 25296.40, inclusive, and Sections 25296.09,
25297, 25297.2, and 25298.5, and Sections 25299 to 25299.3,
inclusive, with regard to implementing those corrective action
requirements.
   (3) On and after July 1, 2013, a local agency means a city or
county that is certified by the board to implement the local
oversight program pursuant to Section 25297.01 for purposes of
implementing the corrective action requirements of Sections 25296.10
to 25296.40, inclusive, and Sections 25296.09, 25297, 25297.2, and
25298.5, and Sections 25299 to 25299.3, inclusive, with regard to
implementing those corrective action requirements. 
   SEC. 4.    Section 25295 of the   Health and
Safety Code   is amended to read: 
   25295.  (a) (1) An unauthorized release that escapes from the
secondary containment, or from the primary containment, if no
secondary containment exists, increases the hazard of fire or
explosion, or causes deterioration of the secondary containment of
the underground tank system shall be reported by the owner or
operator to the local agency  designated pursuant to Section
25283  within 24 hours after the release has been detected
or should have been detected. The owner or operator of the
underground tank system shall transmit the information specified in
this paragraph regarding the unauthorized release to the local agency
no later than five working days after the date of the occurrence of
the unauthorized release. The information shall be submitted to the
local agency on a written form or using an electronic format
developed by the board and approved by the Secretary for
Environmental Protection as consistent with the standardized
electronic format and protocol requirements of Sections 71060 to
71065, inclusive, of the Public Resources Code. Either reporting
method shall include all of the following:
   (A) A description of the nature and volume of the unauthorized
release.
   (B) The corrective or remedial actions undertaken.
   (C) Any further corrective or remedial actions, including
investigative actions, that will be needed to clean up the
unauthorized release and abate the effects of the unauthorized
release.
   (D) A time schedule for implementing the actions specified in
subparagraph (C).
   (E) The source and cause of the unauthorized release.
   (F) The underground storage tank system's record of compliance
with this chapter, including data on equipment failures.
   (G) Any other information the board deems necessary to implement
or comply with this chapter, Chapter 6.75 (commencing with Section
 25299. 10)   25299.10)  , or the federal
act.
   (2) The local agency shall review the permit whenever there has
been an unauthorized release or when it determines that the
underground tank system is unsafe. In determining whether to modify
or terminate the permit, the local agency shall consider the age of
the tank, the methods of containment, the methods of monitoring, the
feasibility of any required repairs, the concentration of the
hazardous substances stored in the tank, the severity of potential
unauthorized releases, and the suitability of any other long-term
preventive measures  which   that  would
meet the requirements of this chapter.
   (b) (1) Each regional board and local agency shall submit a report
to the board for all unauthorized releases, indicating for each
unauthorized release the responsible party, the site name, the
hazardous substance, the quantity of the unauthorized release if
known, the actions taken to abate the problem, the source and cause
of the unauthorized release, the underground storage tank system's
record of compliance with this chapter, data on equipment failures,
and any other information that the board deems necessary to implement
this chapter, Chapter 6.75 (commencing with Section 25299.10), or
the federal act.
   (2) The information required by this subdivision shall be
submitted to the board and updated using the board's
Internet-accessible database that accepts data pursuant to Section
13196 of the Water Code.
   (3) On and before December 1, 2012, and not less than annually
thereafter, the board shall post and update on its Internet Web site,
the information concerning unauthorized releases in the reports
submitted pursuant to this subdivision.
   (4) The board may adopt regulations pursuant to Section 25299.3
that specify reporting requirements for the implementation of this
section, including, but not limited to, requirements for the
electronic submission of the information required in a report
submitted pursuant to this subdivision. If the board adopts these
regulations, the board shall adopt the regulations as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code, and
for the purposes of that chapter, including Section 11349.6 of the
Government Code, the adoption of these regulations is an emergency
and shall be considered by the Office of Administrative Law as
necessary to avoid serious harm to the public peace, health, safety,
or general welfare. Notwithstanding Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code, including subdivision (e) of Section 11346.1 of the Government
Code, the emergency regulations adopted pursuant to this subdivision
shall be filed with, but shall not be repealed by, the Office of
Administrative Law and shall remain in effect until revised by the
board.
   (c) The reporting requirements imposed by this section are in
addition to any requirements that may be imposed by Sections 13271
and 13272 of the Water Code.
   SEC. 5.    Section 25297.01 is added to the 
 Health and Safety Code   , to read:  
   25297.01.  (a) In addition to the authority granted to the board
pursuant to Division 7 (commencing with Section 13000) of the Water
Code and to the department pursuant to Chapter 6.8 (commencing with
Section 25300), the board, in cooperation with the department, shall
develop and implement a local oversight program for the abatement of,
and oversight of the abatement of, unauthorized releases of
hazardous substances from underground storage tanks by a local agency
certified pursuant to this section.
   (b) On and after July 1, 2013, only a city or county certified
pursuant to subdivision (c) may implement a local oversight program.
The board may enter into an agreement pursuant to Section 25297.1
with a certified city or county to implement the oversight program.
   (c) The board may certify a city or county if the board determines
that the city or county is qualified to oversee or perform the
abatement of unauthorized releases of hazardous substances from
underground storage tanks. The board shall consider, as criteria for
determining whether a city or county is qualified, at a minimum, all
of the following factors:
   (1) Adequacy of the technical expertise possessed by the city or
county.
   (2) Adequacy of staff resources.
   (3) Adequacy of budget resources and funding mechanisms.
   (4) Training requirements.
   (5) Past performance in implementing and enforcing corrective
action requirements.
   (6) Recordkeeping and accounting systems.
   (d) The board shall adopt procedures and criteria for certifying
cities and counties pursuant to this section. The adoption of these
procedures and criteria shall not be considered as regulations
subject to, and shall be exempt from, Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code.
   (e) If the board does not, by July 1, 2013, certify a city or
county that has been implementing a local oversight program pursuant
to an agreement entered into with the board on or before January 1,
2013, the board shall assign the cases from that city or county to
the appropriate regional board or to a city or county that is
certified by the board. An order or directive issued by that
uncertified city or county on or before July 1, 2013, shall remain in
effect and may be enforced by the regional board or certified city
or county that receives the case. 
   SEC. 6.    Section 25297.1 of the   Health
and Safety Code   is amended to read: 
   25297.1.  (a)  In addition to the authority granted to the
board pursuant to Division 7 (commencing with Section 13000) of the
Water Code and to the department pursuant to Chapter 6.8 (commencing
with Section 25300), the board, in cooperation with the department,
shall develop and implement a local oversight program for the
abatement of, and oversight of the abatement of, unauthorized
releases of hazardous substances from underground storage tanks by
local agencies. In   For purposes of  implementing
 , pursuant to Section   25297.01,  the local
oversight program  for the abatement of, and oversight of the
abatement of, unauthorized releases of hazardous substances from
underground storage tanks  , the  board may enter into in an
 agreement specified in subdivision (b)  shall be
between the board and   with  the local agency.
 The board shall select local agencies for participation in
the program from among those local agencies that apply to the board,
giving first priority to those local agencies that have demonstrated
prior experience in cleanup, abatement, or other actions necessary to
remedy the effects of unauthorized releases of hazardous substances
from underground storage tanks. The board shall select only those
local agencies that have implemented this chapter and that, except as
provided in Section 25404.5, have begun to collect and transmit to
the board the surcharge or fees pursuant to subdivision (b) of
Section 25287. 
    (1)     A city or county that the board
selected pursuant to this section, as it read on January 1, 2012,
which entered into an agreement with the board before July 1, 2013,
shall apply to the board for certification pursuant to Section
25297.01. The city or county may continue to implement the oversight
program until July 1, 2013, and after that date, the city or county
shall either be certified or be subject to subdivision (e) of Section
25297.01.  
   (2) On and after July 1, 2013, the board may enter into an
agreement pursuant to this section only with a city or county
certified pursuant to Section 25297.01. 
             (b) In implementing the local oversight program 
described in subdivision (a)   for the abatement of,
and oversight of the abatement of, unauthorized releases of hazardous
substances from underground storage tanks , the board may
 enter into an agreement with any   select a
local agency to enter into an agreement with the board. When
selecting a local agency, the board shall, from among those local
agencies that apply to the board, give first priority to those local
agencies that have demonstrated prior experience in cleanup,
abatement, or other actions necessary to remedy the effects of
unauthorized releases of hazardous substances from underground
storage tanks. The board shall enter into an agreement with only
those local agencies that have implemented this chapter and that,
except as provided in Section 25404.5, have begun to collect and
transmit to the board the surcharge or fees   pursuant to
subdivision (b) of Section 25287. The agreement shall provide for the
 local agency to perform, or cause to be performed, any
cleanup, abatement, or other action necessary to remedy the effects
of a release of hazardous substances from an underground storage tank
with respect to which the local agency has enforcement authority
pursuant to this section. The board may not enter into an agreement
with a local agency for soil contamination cleanup or for groundwater
contamination cleanup unless the board determines that the local
agency has a demonstrated capability to oversee or perform the
cleanup. The implementation of the cleanup, abatement, or other
action shall be consistent with procedures adopted by the board
pursuant to subdivision (d) and shall be based upon cleanup standards
specified by the board or regional board.
   (c) The board shall provide funding to a local agency that enters
into an agreement pursuant to subdivision (b) for the reasonable
costs incurred by the local agency in overseeing any cleanup,
abatement, or other action taken by a responsible party to remedy the
effects of unauthorized releases from underground storage tanks.
   (d) The board shall adopt administrative and technical procedures,
as part of the state policy for water quality control adopted
pursuant to Section 13140 of the Water Code, for cleanup and
abatement actions taken  by a local agency with which the board
has entered into an agreement  pursuant to this section. The
procedures shall include, but not be limited to, all of the
following:
   (1) Guidelines as to which sites may be assigned to the local
agency.
   (2) The content of the agreements  which may be entered
into by the board and the local agency  .
   (3) Procedures by which a responsible party may petition the board
or a regional board for review, pursuant to Article 2 (commencing
with Section 13320) of Chapter 5 of Division 7 of the Water Code, or
pursuant to Chapter 9.2 (commencing with Section 2250) of Division 3
of Title 23 of the California Code of Regulations, or any successor
regulation, as applicable, of actions or decisions of the local
agency in implementing the cleanup, abatement, or other action.
   (4) Protocols for assessing and recovering money from responsible
parties for any reasonable and necessary costs incurred by the local
agency in implementing this section, as specified in subdivision (i),
unless the cleanup or abatement action is subject to subdivision (d)
of Section 25296.10.
   (5) Quantifiable measures to evaluate the outcome of a pilot
program established pursuant to this section.
   (e) Any agreement between the regional board and a local agency to
carry out a local oversight program pursuant to this section shall
require both of the following:
   (1) The local agency shall establish and maintain accurate
accounting records of all costs it incurs pursuant to this section
and shall periodically make these records available to the board. The
Controller may annually audit these records to verify the hourly
oversight costs charged by a local agency. The board shall reimburse
the Controller for the cost of the audits of a local agency's records
conducted pursuant to this section.
   (2) The board and the department shall make reasonable efforts to
recover costs incurred pursuant to this section from responsible
parties, and may pursue any available legal remedy for this purpose.
   (f) The board shall develop a system for maintaining a database
for tracking expenditures of funds pursuant to this section, and
shall make this data available to the Legislature upon request.
   (g) (1) Sections 25355.5 and 25356 do not apply to expenditures
from the Toxic Substances Control Account for oversight of abatement
of releases from underground storage tanks as part of the local
oversight program  established   conducted 
pursuant to  an agreement entered into pursuant to  this
section.
   (2) A local agency that enters into an agreement pursuant to
subdivision (b) shall notify the responsible party, for any site
subject to a cleanup, abatement, or other action taken pursuant to
the local oversight program established pursuant to this section,
that the responsible party is liable for not more than 150 percent of
the total amount of site-specific oversight costs actually incurred
by the local agency.
   (h) Any aggrieved person may petition the board or regional board
for review of the action or failure to act of a local agency that
enters into an agreement pursuant to subdivision (b), at a site
subject to cleanup, abatement, or other action conducted as part of
the local oversight program established pursuant to this section, in
accordance with the procedures adopted by the board or regional board
pursuant to subdivision (d).
   (i) (1) For purposes of this section, site-specific oversight
costs include only the costs of the following activities, when
carried out by the staff of a local agency or the local agency's
authorized representative, that are either technical program staff or
their immediate supervisors:
   (A) Responsible party identification and notification.
   (B) Site visits.
   (C) Sampling activities.
   (D) Meetings with responsible parties or responsible party
consultants.
   (E) Meetings with the regional board or with other affected
agencies regarding a specific site.
   (F) Review of reports, workplans, preliminary assessments,
remedial action plans, or postremedial monitoring.
   (G) Development of enforcement actions against a responsible
party.
   (H) Issuance of a closure document.
   (2) The responsible party is liable for the site-specific
oversight costs, calculated pursuant to paragraphs (3) and (4),
incurred by a local agency, in overseeing any cleanup, abatement, or
other action taken pursuant to  an agreement entered into
pursuant to this section to remedy an unauthorized release from
an underground storage tank.
   (3) Notwithstanding the requirements of any other 
provision of  law, the amount of liability of a responsible
party for the oversight costs incurred by the local agency and by the
board and regional boards in overseeing any action pursuant to 
an agreement entered into pursuant to  this section shall be
calculated as an amount not more than 150 percent of the total amount
of the site-specific oversight costs actually incurred by the local
agency and shall not include the direct or indirect costs incurred by
the board or regional boards.
   (4) (A) The total amount of oversight costs for which a local
agency may be reimbursed shall not exceed one hundred fifteen dollars
($115) per hour, multiplied by the total number of site-specific
hours performed by the local agency.
   (B) The total amount of the costs per site for administration and
technical assistance to local agencies by the board and the regional
board entering into agreements pursuant to subdivision (b) shall not
exceed a combined total of thirty-five dollars ($35) for each hour of
site-specific oversight. The board shall base its costs on the total
hours of site-specific oversight work performed by all participating
local agencies. The regional board shall base its costs on the total
number of hours of site-specific oversight costs attributable to the
local agency that received regional board assistance.
   (C) The amounts specified in subparagraphs (A) and (B) are base
rates for the 1990-91 fiscal year. Commencing July 1, 1991, and for
each fiscal year thereafter, the board shall adjust the base rates
annually to reflect increases or decreases in the cost of living
during the prior fiscal year, as measured by the implicit price
deflator for state and local government purchases of goods and
services, as published by the United States Department of Commerce or
by a successor agency of the federal government.
   (5) In recovering costs from responsible parties for costs
incurred under this section, the local agency shall prorate any costs
identifiable as startup costs over the expected number of cases that
the local agency will oversee during a 10-year period. A responsible
party who has been assessed startup costs for the cleanup of any
unauthorized release that, as of January 1, 1991, is the subject of
oversight by a local agency, shall receive an adjustment by the local
agency in the form of a credit, for the purposes of cost recovery.
Startup costs include all of the following expenses:
   (A) Small tools, safety clothing, cameras, sampling equipment, and
other similar articles necessary to investigate or document
pollution.
   (B) Office furniture.
   (C) Staff assistance needed to develop computer tracking of
financial and site-specific records.
   (D) Training and setup costs for the first six months of the local
agency program.
   (6) This subdivision does not apply to costs that are required to
be recovered pursuant to Article 7.5 (commencing with Section 25385)
of Chapter 6.8. 
   (j) (1) Notwithstanding subdivisions (a) and (b), the board may
enter into an agreement with a local agency and the Santa Clara
Valley Water District to implement the local oversight program in
Santa Clara County.  
   (2) Paragraph (1) shall remain operative only until June 30, 2005.
 
   (3) 
    (j)  The inoperation of  former  paragraph (1)
 of this subdivision  does not affect the validity of any
action taken by the Santa Clara Valley Water District before June 30,
2005, and does not provide a defense for an owner, operator, or
other responsible party who fails to comply with that action.

   (k) If the board enters into an agreement with a local agency and
the Santa Clara Valley Water District to implement the local
oversight program in Santa Clara County, pursuant to subdivision (j),
the board may provide funding to the Santa Clara Valley Water
District pursuant to subdivision (d) of Section 25299.51 for
oversight costs incurred by the district on and after July 1, 2002,
to June 30, 2005. 
   SEC. 7.    Section 25299 of the   Health and
Safety Code   is amended to read: 
   25299.  (a)  Any   An  operator of an
underground tank system shall be liable for a civil penalty of not
less than five hundred dollars ($500) or more than five thousand
dollars ($5,000) for each underground storage tank for each day of
violation for any of the following violations:
   (1) Operating an underground tank system  which 
 that  has not been issued a permit, in violation of this
chapter.
   (2) Violation of  any of the   an 
applicable  requirements   requirement  of
the permit issued for the operation of the underground tank system.
   (3) Failure to maintain records, as required by this chapter.
   (4) Failure to report an unauthorized release, as required by
Sections 25294 and 25295.
   (5) Failure to properly close an underground tank system, as
required by Section 25298.
   (6) Violation of  any   an  applicable
requirement of this chapter or any regulation adopted by the board
pursuant to Section 25299.3.
   (7) Failure to permit inspection or to perform  any
  a  monitoring, testing, or reporting required
pursuant to Section 25288 or 25289.
   (8) Making  any   a  false statement,
representation, or certification in  any   an
 application, record, report, or other document submitted or
required to be maintained pursuant to this chapter.
   (9) Tampering with or otherwise disabling automatic leak detection
devices or alarms.
   (b)  Any   An  owner of an underground
tank system shall be liable for a civil penalty of not less than five
hundred dollars ($500) or more than five thousand dollars ($5,000)
per day for each underground storage tank, for each day of violation,
for any of the following violations:
   (1) Failure to obtain a permit as specified by this chapter.
   (2) Failure to repair or upgrade an underground tank system in
accordance with this chapter.
   (3) Abandonment or improper closure of  any  
an underground tank system subject to this chapter.
   (4) Violation of  any   an  applicable
requirement of the permit issued for operation of the underground
tank system.
   (5) Violation of  any   an  applicable
requirement of this chapter or  any   a 
regulation adopted by the board pursuant to Section 25299.3.
   (6) Failure to permit inspection or to perform  any
  a  monitoring, testing, or reporting required
pursuant to Section 25288 or 25289.
   (7) Making any   a  false statement,
representation, or certification in  any   an
 application, record, report, or other document submitted or
required to be maintained pursuant to this chapter.
   (c)  Any   A  person who intentionally
fails to notify the board  , the regional board,  or the
local agency when required to do so by this chapter or who submits
false information in a permit application, amendment, or renewal,
pursuant to Section 25286, is liable for a civil penalty of not more
than five thousand dollars ($5,000) for each underground storage tank
for which notification is not given or false information is
submitted.
   (d) (1)  Any   A  person who violates
 any   a  corrective action requirement
established by, or issued pursuant to, Section 25296.10 is liable for
a civil penalty of not more than ten thousand dollars ($10,000) for
each underground storage tank for each day of violation.
   (2) A civil penalty under this subdivision may be imposed in a
civil action under this chapter, or may be administratively imposed
by the board or a regional board pursuant to Article 2.5 (commencing
with Section 13323) of Chapter 5 of Division 7 of the Water Code.
   (e)  Any  A  person who violates Section
25292.3 is liable for a civil penalty of not more than five thousand
dollars ($5,000) for each underground storage tank for each day of
violation.
   (f) (1)  Any   A    person who
falsifies any monitoring records required by this chapter, or
knowingly fails to report an unauthorized release, shall, upon
conviction, be punished by a fine of not less than five thousand
dollars ($5,000) or more than ten thousand dollars ($10,000), by
imprisonment in the county jail for not to exceed one year, or by
both that fine and imprisonment.
   (2)  Any   A  person who intentionally
disables or tampers with an automatic leak detection system in a
manner that would prevent the automatic leak detection system from
detecting a leak or alerting the owner or operator of the leak,
shall, upon conviction, be punished by a fine of not less than five
thousand dollars ($5,000) or more than ten thousand dollars
($10,000), by imprisonment in the county jail for not more than one
year, or by both the fine and imprisonment.
   (g) In determining both the civil and criminal penalties imposed
pursuant to this section, the board, a regional board or the court,
as the case may be, shall consider all relevant circumstances,
including, but not limited to, the extent of harm or potential harm
caused by the violation, the nature of the violation and the period
of time over which it occurred, the frequency of past violations, and
the corrective action, if any, taken by the person who holds the
permit.
   (h) (1)  Each   A  civil penalty or
criminal fine imposed pursuant to this section for  any
  a  separate violation shall be separate, and in
addition to, any other civil penalty or criminal fine imposed
pursuant to this section or any other provision of law, except that
no civil penalty shall be recovered under subdivision (d) for
violations for which a civil penalty is recovered pursuant to Section
13268 or 13350 of the Water Code. The penalty or fine shall be paid
to the unified program agency, the participating agency, or the
state, whichever is represented by the office of the city attorney,
district attorney, or Attorney General bringing the action.
   (2) Any penalties or fines paid to a uniform program agency or a
participating agency pursuant to paragraph (1) shall be deposited
into a special account and shall be expended only to fund the
activities of the unified program agency or participating agency in
enforcing this chapter within that jurisdiction pursuant, to the
uniform program specified in Chapter 6.11 (commencing with Section
25404).
   (3) All penalties or fines collected by the board or a regional
board or collected on behalf of the board or a regional board by the
Attorney General shall be deposited in the State Water Pollution
Cleanup and Abatement Account in the State Water Quality Control
Fund, and are available for expenditure by the board, upon
appropriation, pursuant to Section 13441 of the Water Code.
   (i) Paragraph (9) of subdivision (a) does not prohibit the owner
or operator of an underground storage tank, or his or her designee,
from maintaining, repairing, or replacing automatic leak detection
devices or alarms associated with that tank.
   SEC. 8.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.  
  SECTION 1.    Section 25299.109 of the Health and
Safety Code is amended to read:
   25299.109.  (a) The Petroleum Underground Storage Tank Financing
Account is hereby created in the State Treasury. The Petroleum
Underground Storage Tank Financing Account is created for both of the
following purposes:
   (1) Receiving federal, state, and local money.
   (2) Receiving repayments of loans and interest and late fees on
those accounts.
   (b) Upon appropriation by the Legislature, funds in the account
shall be used by the board only to make loans and grants pursuant to
this chapter and grants pursuant to Chapter 6.77 (commencing with
Section 25299.200).
   (c) The board shall annually make available not more than 33
percent of the available funds from the account for the purposes of
providing grants pursuant to this chapter. Funds transferred pursuant
to subdivision (e) shall not be used in calculating the maximum
amount that may be made available for grant funding.
   (d) Notwithstanding Section 16305.7 of the Government Code, all
interest or other increments resulting from the investment of the
funds in the Petroleum Underground Storage Tank Financing Account
pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of
Part 2 of Division 4 of Title 2 of the Government Code shall be
deposited in a subaccount of the Petroleum Underground Storage Tank
Financing Account, and expended only pursuant to Section 25299.113.
   (e) (1) The sum of eight million dollars ($8,000,000) is hereby
transferred from the subaccount established in subdivision (d) to the
Petroleum Underground Storage Tank Financing Account and is
appropriated for the purpose of making grants and loans pursuant to
this chapter in the 2008-09 and 2009-10 fiscal years.
   (2) An application for grant funding pursuant to this subdivision
must have been received not later than June 30, 2009.
   (3) If a grant or loan from moneys transferred pursuant to this
subdivision is being requested for the purpose of compliance with
Enhanced Vapor Recovery Phase II regulations, then the applicant must
have applied for or obtained a permit from the air quality
management district by April 1, 2009, and have obtained an
enforcement agreement or other binding obligation by June 30, 2009.
 
  SEC. 2.    Section 25299.206 of the Health and
Safety Code is amended to read:
   25299.206.  Any funds transferred from the Underground Storage
Tank Cleanup Fund pursuant to this section on or before January 1 ,
2013, that remain in the account shall revert to the Underground
Storage Tank Cleanup Fund.