Amended in Senate July 2, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 282

Introduced by Assembly Members Wieckowski and Mitchell

February 11, 2013

An act to amend begin delete Section end delete begin insert Sections end insert 25299.43 begin insert and 25299.81 end insert of begin insert , and to add Section 25299.50.1 to, end insert the Health and Safety Code, relating to underground storage tanks.

LEGISLATIVE COUNSEL’S DIGEST

AB 282, as amended, Wieckowski. Underground storage tanks: petroleum: charges.

Under the existing Barry Keene Underground Storage Tank Cleanup Trust Fund Act of 1989 begin delete , which is repealed on January 1, 2016 end delete , every owner of an underground storage tank is required to pay a storage fee for each gallon of petroleum placed in the tank. The fees are required to be deposited in the Underground Storage Tank Cleanup Fund and the State Water Resources Control Board is authorized to expend the moneys in the fund, upon appropriation by the Legislature, for various purposes, including the payment of claims to aid owners and operators of petroleum underground storage tanks who take corrective action to clean up unauthorized releases from those tanks, corrective actions undertaken by the board, a California regional water quality board, or a local agency, the cleanup and oversight of unauthorized releases at abandoned tank sites, and grants to small businesses to retrofit certain hazardous substance underground storage tanks. begin insert Existing law repeals the act on January 1, 2016, but specifies that certain associated rights, obligations, and authorities that apply prior to the repeal date do not terminate until the moneys in the fund are exhausted. end insert

Existing law, until January 1, 2014, provides for an increase in the fee for storage in an underground tank of $0.006 per gallon of petroleum.

This bill would require payment of the additional $0.006 per gallon until January 1, 2016 begin insert . The bill would extend the repeal date of the fund until January 1, 2018, and make conforming changes. The bill would require the board, no later than January 1, 2015, to make specified information relating to the payment of claims available on its Internet Web site end insert . This bill would constitute a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2⁄3 of the membership of each house of the Legislature.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 25299.43 of the Health and Safety Code
is amended to read:

25299.43.  

(a) To implement the changes to this chapter made
by Chapter 1191 of the Statutes of 1994, and consistent with
Section 25299.40, effective January 1, 1995, every owner subject
to Section 25299.41 shall pay a storage fee of one mill ($0.001)
for each gallon of petroleum placed in an underground storage
tank that the person owns, in addition to the fee required by Section
25299.41.

(b) On and after January 1, 1996, the storage fee imposed under
subdivision (a) shall be increased by two mills ($0.002) for each
gallon of petroleum placed in an underground storage tank.

(c) On and after January 1, 1997, the storage fee increased under
subdivision (b) shall be increased by an additional three mills
($0.003) for each gallon of petroleum placed in an underground
storage tank.

(d) On and after January 1, 2005, the storage fee increased under
subdivision (c) shall be increased by an additional one mill ($0.001)
for each gallon of petroleum placed in an underground storage
tank.

(e) On and after January 1, 2006, the storage fee increased under
subdivision (d) shall be increased by an additional one mill
($0.001) for each gallon of petroleum placed in an underground
storage tank.

(f) On and after January 1, 2010, the storage fee increased under
subdivision (e) shall be increased by an additional six mills
($0.006) for each gallon of petroleum placed in an underground
storage tank. The increase provided for in this subdivision shall
be effective until January 1, 2016, at which time, the fee shall
revert back to the fee pursuant to subdivision (e).

(g) The fee imposed under this section shall be paid to the State
Board of Equalization under Part 26 (commencing with Section
50101) of Division 2 of the Revenue and Taxation Code in the
same manner as, and consistent with, the fees imposed under
Section 24299.41.

(h) The State Board of Equalization shall amend the regulations
adopted under Section 25299.41 to carry out this section.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 25299.50.1 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 25299.50.1. end insert   

In addition to the requirement in subdivision (d)
of Section 25299.81, and to the extent permitted by existing laws
protecting the confidentiality of records and the release of personal
information, the board shall, no later than January 1, 2015, also
make the following information available on its Internet Web site:

(a) An update on underground storage tank closures, both by
the board and by local or regional agencies.

(b) The projected number of underground storage tank sites,
as determined by the board and local or regional agencies, that
are ready for closure, but that have not yet been closed.

(c) A review of the local or regional agency underground
storage tank certification process and cases that are no longer
under the board’s jurisdiction.

(d) An update on the board’s review of cases and related
budgets, which shall include estimates of the board’s reasonably
budgeted amounts, and how those amounts might impact the total
financial obligations of the fund.

(e) The status of open and active claims with projections
covering the time period during which all existing claims might
be completed.

(f) The total number of claims that have been processed and
are only awaiting reimbursement, with the information segregated
by the class of the claimant.

(g) A five-year itemization of administrative expenses paid out
of moneys in the fund, including payments to local or regional
agencies. To the extent possible, the itemization shall include a
five-year projection of annual payments by the board to local or
regional agencies in connection with administrative expenses.

(h) To the extent possible, a current estimate of the claim
duration in the fund by class and a projection of claim duration
in the fund for the next five years, segregated by class.

end insert

begin insert

begin insert SEC. end insert begin insert 3. end insert   

end insert

begin insert Section 25299.81 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

25299.81.  

(a) Except as provided in subdivisions (b) and (c),
this chapter shall remain in effect only until January 1, begin delete 2016 end delete begin insert 2018 end insert ,
and as of that date is repealed, unless a later enacted statute, which
is enacted before January 1, begin delete 2016 end delete begin insert 2018 end insert , deletes or extends that
date.

(b) Notwithstanding subdivision (a), Article 1 (commencing
with Section 25299.10), Article 2 (commencing with Section
25299.11), and Article 4 (commencing with Section 25299.36)
shall not be repealed and shall remain in effect on January 1, begin delete 2016 end delete
begin insert 2018 end insert .

(c) The repeal of certain portions of this chapter does not
terminate any of the following rights, obligations, or authorities,
or any provision necessary to carry out these rights and obligations:

(1) The filing and payment of claims against the fund, including
the costs specified in subdivisions (c), (e), and (h) of Section
25299.51, claims filed under Section 25299.50.3, and claims for
commingled plumes, as specified in Article 11 (commencing with
Section 25299.90), until the moneys in the fund are exhausted.
Upon exhaustion of the fund, any remaining claims shall be invalid.

(2) The repayment of loans, outstanding as of January 1, begin delete 2016 end delete
begin insert 2018 end insert , due and payable to the board.

(3) The recovery of moneys reimbursed to a claimant to which
the claimant is not entitled, or the resolution of any cost recovery
action.

(4) The collection of unpaid fees that are imposed pursuant to
Article 5 (commencing with Section 25299.40), as that article read
on December 31, 2015, or have become due before January 1,
begin delete 2016 end delete begin insert 2018 end insert , including any interest or penalties that accrue before,
on, or after January 1, begin delete 2016 end delete begin insert 2018 end insert , associated with those unpaid
fees.

(5) (A) The filing of an application for funds from, and the
making of payments from, the Underground Storage Tank
Petroleum Contamination Orphan Site Cleanup Fund pursuant to
Section 25299.50.2, any action for the recovery of moneys paid
pursuant to Section 25299.50.2 to which the recipient is not
entitled, and the resolution of that cost recovery action.

(B) Upon liquidation of funds in the Underground Storage Tank
Petroleum Contamination Orphan Site Cleanup Fund, the obligation
to make a payment from the Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund is terminated.

(6) (A) The payment of loans and grants, consistent with the
terms of agreements that were effective prior to January 1, begin delete 2016 end delete
begin insert 2018 end insert , from the Underground Storage Tank Cleanup Fund, pursuant
to this chapter or the Petroleum Underground Storage Tank
Financing Account pursuant to Chapter 6.76 (commencing with
Section 25299.100). Upon exhaustion of the Underground Storage
Tank Cleanup Fund, any remaining claims for payment of grants
or loans shall be invalid.

(B) The amount of money disbursed for grants and loans
pursuant to Chapter 6.76 (commencing with Section 25299.100)
shall not exceed the sum of following:

(i) The amount that reverts to the Underground Storage Tank
Cleanup Fund pursuant to Section 25299.111.

(ii) Amounts recovered through the repayment of loans granted
pursuant to Chapter 6.76 (commencing with Section 25299.100).

(iii) The resolution of any cost recovery action filed prior to
January 1, begin delete 2016 end delete begin insert 2018 end insert , or the initiation of an action or other
collection process to recover defaulted loan moneys due to the
board or to recover money paid to a grant or loan recipient pursuant
to Chapter 6.76 (commencing with Section 25299.100) to which
the recipient is not entitled.

(d) The board shall continuously post and update on its Internet
Web site, but at a minimum, annually on or before September 30,
information that describes the status of the fund and shall make
recommendations, when appropriate, to improve the efficiency of
the program.