BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1715
                                                                  Page 1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1715 (Smyth)
          As Amended  June 20, 2012
          Majority vote
           
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          |ASSEMBLY:  |77-0 |(May 29, 2012)  |SENATE: |36-0 |(August 9,     |
          |           |     |                |        |     |2012)          |
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           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 








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               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
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             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
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           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