BILL ANALYSIS Ó AB 1701 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2011-2012 Regular Session BILL NO: AB 1701 AUTHOR: Wieckowski AMENDED: June 11, 2012 FISCAL: Yes HEARING DATE: July 2, 2012 URGENCY: No CONSULTANT: Rachel Wagoner/ Joanne Roy SUBJECT : UNDERGROUND STORAGE TANKS: LOCAL AGENCIES SUMMARY : Existing law : 1)Regulates, generally, the storage of hazardous substances in Underground Storage Tanks (USTs) and requires USTs that are used to store hazardous substances to meet certain requirements, including that the primary containment be product tight and that the tank's secondary containment meet specified standards. 2)Requires the Secretary of the California Environmental Protection Agency to establish a unified hazardous waste and hazardous materials management regulatory program, known as the Certified Unified Program Agency (CUPA), as a means of consolidating the local rules or local ordinances relating to the generation or handling of hazardous waste or hazardous materials (Health and Safety Code §25404 et seq.). 3)Requires, under the existing Barry Keene Underground Storage Tank Cleanup Trust Fund Act of 1989 (Act), owners and operators of petroleum USTs to take corrective action on an unauthorized release of petroleum, including requirements for the preparation of a work plan. This bill provides for state certification of cities and counties to oversee the cleanup of USTs by: 1)Requiring a city or county to apply to the State Water Resources Control Board (SWRCB) to be certified to implement AB 1701 Page 2 the local UST cleanup programs. 2)Allowing only a certified city or county to implement the local UST oversight cleanup program after July 1, 2013. 3)Authorizing the SWRCB to certify a city or county that it determines is qualified to oversee or perform the abatement, and requiring the SWRCB to adopt procedures and criteria for certifying cities and counties. Local agency certification by the SWRCB must include a review, at a minimum, of all of the following factors of the city or county capacity: a) Adequacy of the technical expertise possessed by the city or county. b) Adequacy of staff resources. c) Adequacy of budget resources and funding mechanisms. d) Training requirements. e) Past performance in implementing and enforcing corrective action requirements. f) Recordkeeping and accounting systems. 4)Providing that if a local agency is not certified by the SWRCB, after July 1, 2013, the SWRCB must assign UST remediation cases from that city or county to either the Regional Water Quality Control Board (RWQCB) or to a certified local program. 5)Providing that an agreement between an RWQCB and a water district to oversee, coordinate or implement a cooperative oversight program entered into prior to January 1, 2013, must remain in effect in accordance with the terms of the agreement or as the terms may be amended in the future. 6)Removing obsolete provisions of the UST cleanup program, including the authority for the Santa Clara Valley Water Agency to operate as the local UST oversight agency and for the funding of these activities by the SWRCB. AB 1701 Page 3 COMMENTS : 1)Purpose of Bill . According to the author, "Leaks from underground storage tanks (USTs) represent a threat to California groundwater and land resources. Even a small amount of petroleum released from a leaking UST can contaminate groundwater. The multiple local agencies with responsibility for cleanup oversight result in highly varied local requirements and processes for the cleanup of underground tanks. This variability has led to delays in site cleanups and increased state and business costs." The author states that, on November 30, 2011, the Assembly Environmental Safety and Toxic Materials Committee conducted an oversight hearing on state and local regulation and management of USTs containing hazardous materials including petroleum. The hearing held in San Jose reviewed policies and actions to increase the efficiency and timeliness of UST cleanups. According to the author, one of the findings from the hearing was the need to standardize local agency oversight of cleanups to provide timely closure of sites. The author points out that oversight of UST cleanup is currently carried out by a range of state and local agencies including nine RWQCBs, 22 local oversight programs (LOPs), and over 90 local implementing agencies (LIAs). The multiple local agencies with responsibility for cleanup oversight result in highly varied local requirements and processes for the cleanup of USTs. According to the author, this variability has led to delays in site cleanups and increased state and business costs. 2)Regulation of Water Quality . The SWRCB, in conjunction with nine semiautonomous RWQCBs, regulates water quality in the state. The RWQCBs -which are funded by the SWRCB and are under the SWRCB's oversight-implement water quality programs in accordance with policies, plans and standards developed by the SWRCB. Current law also requires every petroleum underground storage tank (UST) owner to pay a fee-known as the UST Maintenance Fee- and set, as of January 2012, at 1.4 cents per gallon. UST fee revenue is placed in the UST Cleanup Fund and is available to assist eligible businesses and individuals to AB 1701 Page 4 pay for unexpected and catastrophic expenses associated with the cleanup of leaking petroleum USTs. The fund also provides money to RWQCBs and local regulatory agencies to abate emergency situations or to cleanup abandoned sites that pose a threat to human health, safety and the environment as a result of a petroleum release from a UST. 3)LUSTs, LIAs and LOPs. The SWRCB is required to implement a local oversight program for the abatement of, and oversight of the abatement of, unauthorized releases of hazardous substances, such as petroleum, from leaking underground storage tanks. The program is implemented by the RWQCBs and numerous local agencies with varying requirements. Generally, there are two categories of local agencies that oversee abatement and cleanup of Leaking Underground Storage Tanks (LUSTs). The first category is known as local implementation agencies (LIAs). LIAs are mostly cities and counties, or their subdivisions, whose oversight of LUSTs and other hazardous substance regulation predates the state's uniform program for the management of hazardous substances, which began in 1996. LIAs are not directly responsible to any state agency. Some UST owners complain LIA requirements sometimes vary substantially from state requirements, leading to confusion and delay in LUST abatement and cleanup. Some contend LIAs lack legal authority to oversee LUST abatement. The second category of local agencies overseeing LUST abatement is local oversight programs (LOPs). Like LIAs, LOPs are generally comprised of cities and counties or their subdivisions. LOPs, however, operate according to a contract with the SWRCB. LOPs, therefore, receive their LUST oversight authority directly from, and are accountable to, a state agency. Some UST owners contend LOP requirements, when compared to those of LIAs, are consistent and predictable. 4)Double-Jointing Required . AB 1701 and AB 1566 (Wieckowski) amend Health and Safety Code §25281 which provides definitions for terms used in Chapter 6.7 pertaining to underground storage of hazardous substances. In order to prevent the potential of either bill from chaptering out the other, amendments are needed to double-joint the two AB 1701 Page 5 bills. 5)Related legislation . AB 1566 (Wieckowski) expands the types of tanks regulated as aboveground storage tanks and requires the Office of the State Fire Marshal to provide oversight to unified program agencies carrying out the Aboveground Petroleum Storage Act (Health and Safety Code §25270 et seq.) AB 1715 (Smyth) provides specified requirements for underground storage tank closure cases. 6)Previous legislation . AB 358 (Smyth) Chapter 571, Statutes of 2011, revised the UST program to expedite case closures. AB 1188 (Ruskin) Chapter 649, Statutes of 2009, increased the petroleum storage fee by $0.006 per gallon, between January 1, 2010, and December 31, 2011, and AB 291 (Wieckowski) Chapter 569, Statutes of 2011, extended this sunset to January 1, 2014. SB 1161 (Lowenthal) Chapter 616, Statutes of 2008, extended the sunset date for the UST fund to January 1, 2016, changed the definition of "tank" to include components attached to the tank, and allocated funding to brownfield cleanups. AB 2729 (Ruskin) Chapter 644, Statutes of 2008, as it relates to USTs, allocated $10 million to schools and revises the priority ranking used by the SWRCB by prioritizing large school districts above otherwise un-ranked tank owners and operators to receive financial awards for claims submitted to the SWRCB for UST remediation costs. SOURCE : Assemblymember Wieckowski SUPPORT : Alameda County Water District, California Association of Environmental Health Administrators, California Independent Oil Marketers Association OPPOSITION : None on file. AB 1701 Page 6