BILL ANALYSIS �
AB 120
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ASSEMBLY THIRD READING
AB 120 (Environmental Safety and Toxic Materials Committee)
As Introduced January 14, 2013
Majority vote
ENVIRONMENTAL SAFETY 7-0
APPROPRIATIONS 17-0
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|Ayes:|Alejo, Dahle, Bloom, |Ayes:|Gatto, Harkey, Bigelow, |
| |Donnelly, Perea, Stone, | |Bocanegra, Bradford, Ian |
| |Ting | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Hall, Ammiano, Linder, |
| | | |Pan, Quirk, Wagner, Weber |
| | | | |
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SUMMARY : Modifies eligibility requirements for the School
District Account (SDA), within the Underground Storage Tank
Cleanup Fund (UST Fund). Specifically, this bill :
1)Requires the State Water Resources Control Board (SWRCB) to
waive the permit requirement for applicants to the SDA, if
certain requirements are met.
2)Requires, as a condition of eligibility for a permit waiver,
the superintendent of the school district receiving funds from
the SDA to certify that petroleum was not delivered on or
after January 1, 2003, or that the tank was removed prior to
January 1, 2003.
EXISTING LAW :
Under the Barry Keene Underground Storage Tank Cleanup Trust
Fund Act of 1989:
1)Creates the UST Fund in the State Treasury for expenditure by
the SWRCB, upon appropriation by the Legislature. Specifies
fees, interest and penalties that are required to be deposited
into the UST Fund. Provides that an owner or operator of an
UST, as specified, who is required to perform corrective
action on a leaking UST, may apply to the SWRBC for
satisfaction of a claim. Provides that the SWRCB may pay the
claim.
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2)Creates the SDA in the UST Fund, for expenditure by the SWRCB,
to pay a claim filed by a school district based on a specified
priority schedule. Transfers ten million dollars
($10,000,000) per year, in the 2009-10, 2010-11, and 2011-12
fiscal years, from the UST Fund to the SDA, for expenditure,
upon appropriation by the Legislature, for the payment of
claims filed by a school district.
3)Requires that to be eligible for a claim payment, the claimant
must have complied with the permit requirements of Underground
Storage of Hazardous Substances statute. Provides that all
claimants who file their claim on or after January 1, 2008, as
specified, may seek a waiver of the requirement to obtain a
permit. Requires the SWRCB to waive the permit requirements
as a condition for payment from the UST Fund if it makes
specified findings, including that the claimant was unaware of
the permit requirement (HSC Section 25299.57).
FISCAL EFFECT : According to the Assembly Appropriations
Committee, the expansion of school district eligibility will
increase reimbursement from the SDA, potentially in the millions
of dollars from the SDA Fund. The bill would further result in
minor, absorbable costs for administering the program.
COMMENTS :
Leaking underground storage tanks . According to the SWRCB,
leaking underground storage tanks are a significant source of
petroleum impacts to groundwater and may pose the following
potential threats to public health and safety: exposure from
impacts to soil and/or groundwater; contamination of drinking
water aquifers; contamination of public or private drinking
water wells; and, inhalation of vapors.
Underground Storage Tank Cleanup Fund . The SWRCB states that
the Barry Keene Underground Storage Tank Cleanup Trust Fund Act
of 1989 (commencing with section 25299.10 of the HSC), created
the UST Fund to help eligible owners and operators of petroleum
USTs to meet federal and state requirements to demonstrate
financial responsibility by providing coverage to pay for the
costs of cleanup and third party liability caused by an
unauthorized release of petroleum from a UST; to provide
financial assistance by reimbursing costs of cleanup for
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unauthorized releases from petroleum USTs; and, to provide
reimbursement for damages awarded to third parties who are
injured by unauthorized releases of petroleum from USTs.
The UST Fund reimburses eligible claimants for eligible,
incurred corrective action costs. Corrective action costs
include preliminary site assessment, soil and water
investigation, corrective action plan implementation, and
verification monitoring after the cleanup is completed.
School District Account (SDA) . AB 2729 (Ruskin) Chapter 644,
Statutes of 2008, created the SDA within the UST Fund. The bill
transferred from the UST Fund to the SDA a sum of $10 million
per year in fiscal years 2009-10, 2010-11, and 2011-12, to pay
for claims filed by school districts. As of December 2, 2012,
the SDA carried a balance of $14,339,161.
School districts and permitting requirements . Supporters of the
bill argue that many school districts are ineligible for SDA
funds because they cannot comply with the UST Fund permit
requirement. Many districts have antiquated tanks, and through
staff turnover, facility changes and lack of recordkeeping over
time (all common at school districts), they have failed to
maintain current permits on their unused tanks. Additionally,
these school districts are often ineligible for the existing UST
Fund permit requirement exception and waivers because the school
districts are deemed to have knowledge of the tanks.
There are 700 reported fuel leaks at school district sites in
the State. According to data supplied by the SWRCB, as of 2012,
267 school districts applied for funding through the SDA. Of
these, 193 school district sites have been funded and 6 are on
the priority list waiting to be funded. About 40 school
districts have been denied funding due to ineligibility. The
SWRCB estimates that 25% of these later districts were denied
eligibility for being unable to comply with permitting
requirements and 48% were denied for more than one reason; the
inability to comply with permitting requirements most likely
being one of those reasons.
Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916)
319-3965
FN:
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