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 









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             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.
            
             









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           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 









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             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 









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             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.
            









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