BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
AB 282 (Wieckowski) - Underground storage tanks: petroleum:
charges.
Amended: July 2, 2013 Policy Vote: EQ 7-1
Urgency: No Mandate: No
Hearing Date: August 12, 2013 Consultant:
Marie Liu
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 282 would extend the sunset date of the
Underground Storage Tank (UST) Cleanup Program from 2016 until
2018 and extend the sunset of a $0.006 surcharge on petroleum
stored in an UST from 2014 until 2016.
Fiscal Impact:
Ongoing additional revenue of $79 million annually to the
UST Cleanup Fund (USTCF) (special) for FY 2014-15 and FY
2015-16 as a result of the $0.006 surcharge.
Ongoing revenue of approximately $185 million annually to
the USTCF in FY 2015-16 and FY 2017-18 from the $0.014 base
fee as a result of extending the program to 2018.
Ongoing costs of $35 million annually to the USTCF in FY
2015-16 and FY 2017-18 to the Board of Equalization (BOE) and
State Water Resources Control Board (SWRCB) for
administration of the UST Cleanup Program.
Background: The Barry Keen Underground Storage Tank Cleanup
Trust Fund Act of 1989 requires every owner of an underground
storage tank to pay a storage tax for each gallon of petroleum
placed in the tank. The fees are deposited in the USTCF, which
may be used by the SWRCB to provide grants and loans to pay for
abatement and oversight costs of unauthorized releases of
hazardous substances from underground storage tanks. The USTCF
is also used to fund a number of special accounts that address
specific cleanup situations. Under the program, priority for
funding is first given to individual home owners; then small
businesses, non-profit organizations, and small local government
agencies; and then for larger businesses and government
agencies. The UST Cleanup Program is set to sunset on January 1,
2016.
AB 282 (Wieckowski)
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The current base tax is set at $0.014 per gallon of petroleum
placed in an UST. There is a surcharge of an additional $0.006
per gallon until 2014 for a total charge of $0.02 per gallon.
The tax is collected by the BOE and is deposited in the USTCF
less the BOE's collection costs.
Proposed Law: This bill would extend the sunset date on the
$0.006 surcharge on petroleum stored in an UST from 2014 until
2016 and the sunset date on the UST Cleanup Program from 2016
and 2018.
This bill would also require the SWRCB to make certain
information about the performance of the UST Cleanup Program
available on its website, including: the status of closed UST
sites, the project number of UST tank sites ready for closure,
closed cleanup cases, and administrative expenses paid from the
USTCF.
Related Legislation: AB 1188 (Ruskin) Chapter 649/2009
established the $0.006 surcharge until January 1, 2012. AB 291
(Wieckowski) Chapter 569/2011 extended the $0.006 surcharge on
the UST fee until January 1, 2014.
Staff Comments: In recent years, program expenditures have
exceeded revenues, in part due to poor program oversight by
SWRCB and in part due to unforeseen cost increases for cleanup.
Based on the results of a recent program audit, several changes
have been made to the program by the SWRCB and the Legislature
to better manage available funding, accelerate the process for
completing cleanup projects, and reduce demands for future
funding. However, there remains an ongoing backlog of thousands
of claims for which there are insufficient funds to pay. The
SWRCB indicates that projected revenues from the extension of
the supplemental tax will be about $79 million over two years.
By extending the program, this bill also extends the annual
revenues and administrative costs the program currently incurs.
Administrative costs include costs to the SWRCB to implement the
program and BOE to collect the assessment.
AB 282 (Wieckowski)
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