BILL ANALYSIS Ó
AB 120
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Date of Hearing: April 10, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 120 (Committee on Environmental Safety)
As Introduced: January 14, 2013
Policy Committee: Environmental
Safety and Toxic Materials Vote: 7-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill revises eligibility requirements for school districts
applying for reimbursement from the School Districts Account
(SDA) within the Underground Storage Tank Clean-up Fund (UST
Fund). Specifically, this bill requires the State Water
Resources Control Board (SWRCB) to waive permit requirements if
the superintendent of the applicant school district certifies
that petroleum was not delivered on or after January 1, 2003 or
that the tank was removed before January 1, 2003.
FISCAL EFFECT
1) Expanding school district eligibility will increase
reimbursement from the SDA, potentially in the millions.
Typical costs for contaminated site clean-ups range from
$50,000 to over $1,000,000.
2)Minor, absorbable costs for administering the program.
COMMENT
1. Purpose . Leaking underground storage tanks contaminate
groundwater, drinking water aquifers and wells, pose a
threat to public health and safety. The SWRCB reports
there are 700 fuel leaks at school district sites
throughout the state. About 40 school districts have been
denied funding, about 75% of which were denied for
inability to comply with permitting requirements. This
bill allows school districts that have not recently used
their underground storage tanks to claim reimbursement from
AB 120
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the SDA for required corrective actions.
2. Background . The UST is funded by storage fees, interest
and penalties paid by permitted tank owners to assist with
corrective actions necessary to meet federal and state
requirements. Injured third parties may also receive
reimbursement for the clean-up of unauthorized petroleum
releases or leaks.
To be eligible for UST reimbursement, the claimant must
prove compliance with permit requirements under the
Underground Storage of Hazardous Substance Act. The
exception to this requirement is if a claimant was unaware
of the underground storage tank at the time the real
property was acquired and obtained a permit within one
year.
The SDA was created to pay claims submitted by school
districts based on priorities established in law. Thirty
million dollars was transferred from the UST to the SDA
over the last three fiscal years. The current fund
balance is about $14 million. The SDA sunsets on January
1, 2016, and any remaining funds will be transferred back
to the UST.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081