BILL ANALYSIS Ó AB 1715 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1715 (Smyth) As Amended June 20, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |77-0 |(May 29, 2012) |SENATE: |36-0 |(August 9, | | | | | | |2012) | ----------------------------------------------------------------- Original Committee Reference: E.S. & T.M. SUMMARY : Establishes new requirements for the State Water Resources Control Board (SWRCB) for review, reporting and enforcing the closure of underground Storage Tank (UST) clean-ups. The Senate amendments delete the Assembly version of this bill, and instead: 1)State legislative intent that SWRCB should process UST closure cases expediently while ensuring adequate protection of public health and safety. 2)Require the Fund Manager to determine whether a UST case should be closed based on the annual review mandated in California Health and Safety Code Section 25299.39.2(a) (1). 3)Require the Fund Manager to provide a summary report to the appropriate Regional Water Quality Control Boards (RWQCB) and local oversight agency stating the reasons for determining that closure of a case is appropriate. 4)Require the Fund Manager to give the appropriate RWQCB and oversight local agency the opportunity to comment on the summary report. 5)Prohibit an RWQCB or oversight local agency from mandating additional or enforcing existing corrective actions after the Fund Manager provides the summary report, unless: a) The oversight agency demonstrates imminent threat to human health, safety, or the environment; b) The oversight agency demonstrates that other AB 1715 Page 2 site-specific needs warrant additional action during the time SWRCB is considering case closure; c) The Fund Manager determines that case closure is not warranted; or, d) The oversight agency closes the case but action is needed to carry out case-closure activities. 6)Specify that subsequent corrective action costs that are eligible for reimbursement up to $10,000, include groundwater monitoring. EXISTING LAW : 1)Requires that UST cleanup, abatement, or other action shall, be consistent with procedures adopted by the SWRCB and shall be based upon clean-up standards specified by the SWRCB or the RWQCB. 1) Requires a UST owner or operator to take corrective action in response to a leaking UST in order to protect human health, safety, and the environment. 2) Requires the local agency or RWQCB to give the owner or operator of a UST that is subject to corrective action a closure letter once the UST site is deemed in compliance and that no further corrective action is required. 3) Establishes the Barry Keene Underground Storage Tank Cleanup Trust Fund Act of 1989 (Act), as a means for petroleum UST owners and operators to meet federal and state financial responsibility requirements, provide financial assistance by reimbursing costs of cleanup for unauthorized releases from petroleum USTs, and provide reimbursement for damages awarded to third parties who are injured by unauthorized releases of petroleum from USTs. 4) The Act requires the SWRCB Fund Manager to annually review the case history of all claims having a Letter of Commitment (LOC) active for more than five years unless the owner or AB 1715 Page 3 operator objects. Authorizes the Fund Manager to recommend closure of a case to SWRCB. AS PASSED BY THE ASSEMBLY , this bill required the SWRCB to make recommendations to the Legislature on standards and measurements for judging a local agency's compliance with the UST cleanup standards. FISCAL EFFECT : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS : Need for the bill . According to the author, "Under ÝSWRCB's] five-year review process, the Fund Manager may determine that case closure is appropriate based on evidence and review of the case. This bill seeks to place a reasonable relief period on local enforcement action during the five-year review until ÝSWRCB] issues a decision on case closure. The relief period would not occur in unsuitable cases (e.g., there is a demonstrated imminent threat to human health, safety, or the environment)." UST Five-Year Review Case Closure . SWRCB states that there are currently over 3,000 claims in the Barry Keene Underground Storage Tank Cleanup Trust Fund (Fund) that received their first LOC five or more years ago. Since re-implementing the five-year review process in 2007, the Fund has completed such reviews for approximately 2,500 claims. According to SWRCB, the Fund Manager is required to annually review the case history of all claims having an LOC active for more than five years unless the owner or operator objects. The purpose of the review is to determine whether recommendation for case closure is in order. The review provides a third-party check on the progress of the case relative to the expenditure of funds and reduces the chance that the responsible party will run out of funds before the case is cleaned up. It also provides an opportunity for the Fund to detect fraud and abuse if funds are used at sites that warrant closure. Related legislation from the 2011-2012 session . AB 1701 (Wieckowski), provides for state certification of cities and counties to oversee the cleanup of USTs. AB 1715 Page 4 Previous legislation . AB 358 (Smyth) Chapter 571, Statutes of 2011, revised the UST program to expedite case closures. Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916) 319-3965 FN: 0004666