BILL ANALYSIS Ó
AB 282
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Date of Hearing: May 8, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 282 (Wieckowski) - As Introduced: February 11, 2013
Policy Committee: Environmental
Safety and Toxic Materials Vote: 5-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends the current $.006 storage fee on each gallon
of petroleum placed in an underground storage tank (UST) from
the current sunset date of January 1, 2014 to January 1, 2016.
FISCAL EFFECT
The extension of the fee will generate approximately $79 million
per year for two years.
COMMENTS
1)Rationale. The author contends that without this bill, the
UST Cleanup Fund will be significantly underfunded. Even
with the extension, current revenues are not sufficient to
cover the work required by regulatory agencies. This fee
provides funding for a variety of remediation and clean-up
programs intended to aid small businesses and others who take
corrective actions or oversee the clean-up of unauthorized
releases at abandoned tank sites.
Declining gasoline sales have reduced fund revenues below
projections. Currently there are over 100 small or medium
size businesses and local governments waiting for access to
the fund, including many who have been waiting for years.
2)Background. Currently, the UST program is supported by a two
cent mils per gallon fee collected quarterly from petroleum
UST owner/operators by the State Board of Equalization.
This includes an ongoing base storage fee of 0.014 (14 mils)
AB 282
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plus the 0.006 (six mils) scheduled to sunset on January 1,
2014.
In 2009, there was an over-expenditure of the Fund of
approximately $80 million and payments for costs already
incurred were suspended. The lack of funds caused hardship on
the business owners and consulting firms that performed the
work but were not been reimbursed for their efforts in a
timely manner.
AB 1188 (Ruskin) Chapter 649, Statutes of 2009, increased the
petroleum storage fee by $0.006 per gallon between January 1,
2010, and December 31, 2011, to bridge part of the shortfall.
This fee was further extended by AB 291 (Wieckoski) Chapter,
Statutes of 2011.
Claims are paid in priority order based on criteria
established in statute. First priority is given to
homeowners, second priority to small business, non-profit or
small local agencies, third priority to business with less
than 500 employees, and the lowest priority is given to major
corporations and larger local government agencies.
3)Fund Status. The Fund's balance is $225.7 million as of
12/31/12. In fiscal year 2011-2012, the fee generated
approximately $305 million for claims reimbursement,
administration, overhead costs and other authorized accounts.
Currently there are 2,852 active claims for underground tank
clean-ups that are being funded, and 4,700 additional claims
are on the priority list waiting to be funded.
Analysis Prepared by : Jennifer Galehouse / > / (916) 319-2081