Amended in Assembly August 18, 2014

Amended in Assembly June 10, 2014

Amended in Assembly January 8, 2014

Amended in Assembly August 26, 2013

Amended in Assembly August 12, 2013

Amended in Assembly August 5, 2013

Senate Bill No. 445

Introduced by Senator Hill

February 21, 2013

An act to amend Sections 25299.32, 25299.43, 25299.50, 25299.50.2, 25299.50.3, 25299.50.4, 25299.51, begin insert 25299.51.2, end insert 25299.57, begin insert 25299.58, 25299.59, end insert 25299.70, 25299.78, 25299.81, begin insert 25299.94, end insert 25299.101, 25299.104, 25299.105, 25299.106, and 25299.107 of, begin delete and end delete to add Sections 25292.05, 25299.50.6,25299.71, 25299.80, 25299.80.5, 25299.80.6, and 25299.82 to, begin insert and to add and repeal Sections 25299.50.7 and 25299.51.3 of, end insert the Health and Safety Code, relating to hazardous substances, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

SB 445, as amended, Hill. Underground storage tanks: hazardous substances: petroleum: groundwater and surface water contamination.

(1) Existing law provides for the regulation of underground storage tanks by the State Water Resources Control Board. Existing law requires underground storage tanks that are used to store hazardous substances and that are installed after January 1, 1984, to meet certain requirements, including that the primary containment be product tight and that the tank’s secondary containment meet specified standards. However, in lieu of these generally applied requirements, existing law authorizes underground storage tanks for motor vehicle fuels installed before January 1, 1997, to be designed and constructed in accordance with alternative requirements. Existing law imposes various monitoring, inspection, replacement, and upgrading requirements on underground storage tanks installed on or before January 1, 1984, and used for the storage of hazardous substances.

This bill would require the owners or operators of these 2 types of underground storage tanks to permanently close them by December 31, begin delete 2020, or by December 31, 2018, if they are within 1,000 feet of a public drinking water well, unless the tanks meet specified requirements. end delete begin insert 2025, and would authorize the board to adopt regulations to require the owner or operator to permanently close such an underground storage tank before December 31, 2025, if the underground storage tank poses a high threat to water quality or public health. end insert

(2) Under existing law, the Barry Keene Underground Storage Tank Cleanup Trust Fund Act of begin delete 1989, which is end delete begin insert 1989 (the act), portions of which are end insert repealed on January 1, 2016, 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, begin insert up to $1,500,000 per occurrence for end insert 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 requires the board to post on its Internet Web site the results of any program audit or fiscal audit within 90 days after its completion. end insert Existing law also specifies that certain associated rights, obligations, and authorities that apply prior to the January 1, 2016, repeal date do not terminate until the moneys in the fund are exhausted. Existing law establishes, until begin delete July end delete begin insert January end insert 1, 2016, the School District Account in the Underground Storage Tank Cleanup Fund for the payment of claims filed by a school district that takes corrective action to clean up an unauthorized release from a petroleum underground storage tank.

This bill would extend the operation of begin insert those portions of end insert the act and the School District Account until January 1, begin delete 2020. end delete begin insert 2026. The bill would require the board, by December 31, 2020, and at least once every 5 years thereafter, to commission an independent program audit and fiscal audit of the fund. end insert By extending the operation of the act, the bill would impose a state-mandated local program by continuing the operation of certain crimes regarding the furnishing of information under penalty of perjury. begin insert The bill would require the state board, until January 1, 2026, to establish the Expedited Claim Pilot Project to investigate and implement methods to improve claim processing procedures to expedite the funding of claims and the completion of site cleanup. The bill would, until January 1, 2026, establish the Expedited Claim Account in the Underground Storage Tank Cleanup Fund and would, upon appropriation by the Legislature, require the moneys in the account be expended for the implementation of the pilot program. The bill would, for the 2015-16 fiscal year, transfer $100,000,000 from the Underground Storage Tank Cleanup Fund to the Expedited Claim Account. The bill would, on or before June 1, 2015, require the state board, in collaboration with specified entities, to initiate a study to determine the cost effectiveness of issuing revenue bonds to generate proceeds to pay claims against the Underground Storage Tank Cleanup Fund and to submit a report on the study to the Legislature, on or before September 1, 2016. end insert

The bill would, as of the first day of the first calendar quarter commencing more than 90 days after the effective date of begin delete this act, end delete begin insert the bill, end insert require payment of an additional $0.006 per gallon of petroleum stored in an underground storage tank until January 1, begin delete 2020. end delete begin insert 2026. end insert The bill would require $0.003 of that $0.006 to be expended only for transfer to the School District Account, for transfer to the Petroleum Underground Storage Tank Financing Account, as specified below, or for transfer to the Site Cleanup Subaccount, which begin delete this end delete begin insert the end insert bill would establish in the Underground Storage Tank Cleanup Fund. The board would be authorized to expend the funds from that subaccount, upon appropriation by the Legislature, to pay for reasonable and necessary expenditures that the board, a regional board, or a local agency incurs to identify the source of surface or groundwater contamination, or to begin delete remediate end delete begin insert remediate, or to provide grants to remediate, end insert the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination, begin delete or for the board to make grants for the reasonable and necessary costs of actions to remediate the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination, end delete as begin delete specified . end delete begin insert specified. end insert The bill would require the board to specify the information to be included in a grant application and would authorize the board to adopt procedures to implement the grant program.

begin insert

The bill would decrease the amount that the board may pay from the Underground Storage Tank Cleanup Fund for corrective action costs to $1,000,000 per occurrence.

end insert

(3) Existing law establishes the Underground Storage Tank Petroleum Contamination Orphan Site Cleanup Fund in the State Treasury, begin delete for expenditure by end delete begin insert and authorizes end insert the board begin insert to expend the moneys in the fund end insert , upon appropriation by the Legislature, for the costs of response actions to remediate the harm caused by a petroleum contamination from an underground storage begin delete tank. Existing law imposes end delete begin insert tank that meets end insert specified requirements begin delete with regard to the expenditure of those moneys end delete , including that the site begin delete meet end delete begin insert meets end insert the conditions of a brownfield, as defined.

This bill would delete the requirement for the expenditure of funds from this fund that the site meet the conditions for a brownfield and would make other conforming changes.

(4)  begin insert Existing law authorizes the board to pay claims from the Underground Storage Tank Cleanup Fund of up to $1,500,000 per occurrence, as defined, to aid owners and operators of petroleum underground storage tanks who take corrective action to clean up unauthorized releases from those tanks. The board is also required to pay a claim of up to $3,000 for regulatory technical assistance. Existing law requires the board to pay a claim for the costs of corrective action to a person who owns property on which is located a release from a petroleum underground storage tank that has been the subject of a corrective action, and for which additional corrective action is required because of additionally discovered contamination from the previous release, if the person who carried out the earlier and completed corrective action was eligible for, and applied for, reimbursement pursuant to specified provisions, only to the extent that the amount of reimbursement for the earlier corrective action did not exceed the amount of $1,500,000. end insert Existing law prohibits the board from reimbursing a claim for corrective action costs that is received by the board more than 365 days after the date of issuance of a closure letter or after the issuance or activation of a letter of commitment, except as specified.

This bill would begin delete prohibit end delete begin insert decrease the maximum amount the board is authorized to pay for those corrective action claims filed on or after January 1, 2015, to $1,000,000 and would increase the limit for regulatory technical assistance to $5,000, plus the amount for submission of invoices using an approved electronic data system. The bill would require the board to pay a claim for the costs of corrective action to a person who owns property on which is located a release from a petroleum underground storage tank that has been removed if the site has been the subject of a corrective action, additional corrective action is required because of additionally discovered contamination from the previous release, the person who owns the property meets specified requirements and is required to perform corrective action pursuant to those provisions because of additionally discovered contamination, and the person who carried out the earlier and completed corrective action did not apply for reimbursement, as prescribed. The bill would authorize end insert the board begin delete from reimbursing end delete begin insert to reimburse end insert a claim for begin delete a end delete corrective action costs that is received by the board more than 2 years after the date the cost was incurred or more than 2 years after the date of issuance or activation of a letter of commitment, begin delete except end delete begin insert in certain circumstances, end insert as specified.

(5) Existing law specifies that the costs incurred begin delete by end delete begin insert and payable from end insert the fund for corrective action and other expenses are to be recovered by the Attorney General, upon the request of the board begin insert , from the owner or operator of the underground storage tank or from any other responsible party end insert .

This bill would instead authorize the board to recover those costs.

(6) The begin delete Barry Keene Underground Storage Tank Cleanup Trust Fund Act of 1989 end delete begin insert act end insert requires an owner or operator begin insert of an underground storage tank end insert to furnish, under penalty of perjury, any information on fees, financial responsibility, unauthorized releases, or corrective action as a local agency, regional board, or the state board may require.

The bill would subject to a civil penalty a person begin delete that end delete begin insert who fails or end insert refuses to furnish that information begin insert or furnishes false information end insert . The bill would authorize the executive director of the board to permanently disqualify a person convicted of making a false statement to the board, or found civilly liable for specified conduct relating to any claim, from receiving any moneys from the fund, if the executive director makes one of a specified set of findings with regard to claimants begin insert , contractors, or consultants end insert . The bill would also impose a civil penalty upon a person that makes a misrepresentation in a claim submitted to the fund. The bill would require the Attorney General, upon the request of the board, to bring an action in superior court to impose these civil penalties and would authorize the executive director of the board to impose these civil penalties administratively.

The bill would also provide that a person who knowingly makes or causes to be made a false statement, material misrepresentation, or false certification in support of a claim is punishable by a criminal fine or imprisonment, or by both that fine and imprisonment. begin insert By creating a new crime, the bill would impose a state-mandated local program. end insert

The bill would authorize the board to review the imposition of civil penalties by the executive director in a specified manner.

The bill would require that these fines and civil penalties be deposited into the fund. The bill would authorize the board to expend the moneys in the fund begin insert , upon appropriation, end insert to pay for the expenditures of the board associated with investigation and enforcement under the act. The bill would also make conforming changes with regard to this enforcement.

begin delete

By creating a new crime with regard to the filing of claims, the bill would impose a state-mandated local program.

end delete

The bill would also make conforming changes with regard to the amounts deposited in the fund, the purposes for which the money in the fund would be expended, and the continued existence, after the repeal of begin insert portions of end insert the act begin insert on January 1, 2026 end insert , of certain authority in the act to take specified legal actions. The begin delete board end delete begin insert bill end insert would begin delete be prohibited end delete begin insert prohibit the board end insert from accepting claim applications for reimbursement for corrective action costs or compensation of 3rd parties that are submitted to the fund after January 1, begin delete 2019, end delete begin insert 2025, end insert unless the board makes a specified finding, and would prohibit the board from accepting requests for reimbursement for those purposes after July 1, begin delete 2019 end delete begin insert 2025 end insert .

(7) Existing law requires owners and operators of underground storage tanks systems containing hazardous substances to maintain evidence of financial responsibility. Existing law also requires petroleum underground storage tanks to establish and maintain specified evidence of financial responsibility for taking corrective action and compensating 3rd parties for bodily injury and property damage arising from operating begin delete an underground storage end delete begin insert the end insert tank, except that certain owners or operators eligible for payment of a claim from the fund are deemed in compliance with those financial responsibility requirements.

This bill would allow all claimants to use the fund to establish and maintain evidence of financial responsibility for purposes of the requirements imposed upon petroleum underground storage tanks but would prohibit, on and after January 1, 2019, an owner or operator of a tank for which a permit is in effect from using the fund as a mechanism to demonstrate compliance with certain financial responsibility requirements and specified federal statutory requirements.

(8) Existing law, until January 1, 2022, requires the board to conduct a loan program to assist small businesses to upgrade, replace, or remove tanks used for the purpose of storing petroleum to meet applicable local, state, or federal standards and to conduct a grant program to assist small businesses to comply with certain requirements imposed on those tanks with regard to specified testing and containment systems and enhanced leak detection. Existing law provides that the maximum amount that the board may grant an applicant is $50,000. begin insert Existing law transfers specified funds from the Underground Storage Tank Cleanup Fund to the Petroleum Underground Storage Tank Financing Account and appropriates those funds for the purpose of making those grants and loans. end insert

This bill would expand the purposes for which the board may issue those grants and loans to include the upgrade, removal, or replacement of those tanks to meet specified requirements with regard to the permanent closure of underground storage begin delete tanks. The bill end delete begin insert tanks and end insert would increase the maximum amount that the board may grant an applicant to $70,000 begin insert , thereby making an appropriation end insert . The bill would authorize the board to waive certain permitting and other requirements for a grant applicant that is ineligible for a loan pursuant to the program and will remove a tank without replacing it.

(9) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(10) This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

Section 25292.05 is added to the Health and
Safety Code, to read:

25292.05.  

(a) On or before December 31, begin delete 2018, end delete begin insert 2025, end insert the
owner or operator of an underground storage tank shall permanently
close that underground storage tank in accordance with Section
25298 and the regulations adopted pursuant to that section, if the
begin delete underground storage tank is located within 1,000 feet of a public
drinking water well identified pursuant to Section 25292.4 andthe end delete
underground storage tank meets either of the following conditions:

(1) The underground storage tank is designed and constructed
in accordance with paragraph (7) of subdivision (a) of Section
25291 and does not meet the requirements of paragraphs (1) to
(6), inclusive, of subdivision (a) of Section 25291.

(2) The underground storage tank was installed on or before
January 1, 1984, and does not meet the requirements of paragraphs
(1) to (6), inclusive, of subdivision (a) of Section 25291.

begin delete

(b) Except as otherwise provided in subdivision (a), on or before
December 31, 2020, the owner or operator of an underground
storage tank shall permanently close that underground storage tank
in accordance with Section 25298 and the regulations adopted
pursuant to that section, if the underground storage tank is
described in either paragraph (1) or (2) of subdivision (a).

end delete begin insert

(b) Notwithstanding subdivision (a), the board may adopt
regulations to require the owner or operator of an underground
storage tank to permanently close that underground storage tank
before December 31, 2025, in accordance with Section 25298 and
the regulations adopted pursuant to that section, if the underground
storage tank meets the conditions specified in either paragraph
(1) or (2) of subdivision (a) and the underground storage tank
poses a high threat to water quality or public health. The board
shall consult with stakeholders before adopting regulations
pursuant to this subdivision.

end insert

SEC. 2.  

Section 25299.32 of the Health and Safety Code is
amended to read:

25299.32.  

(a)  begin delete (1) end delete begin delete   end delete Except as provided in subdivision (f), a
claimant who meets any of the following requirements may use
the fund to establish and maintain evidence of financial
responsibility:

begin delete

(2)

end delete

begin insert (1) end insert  A claimant who meets the qualifications of paragraph (1)
of subdivision (b) of Section 25299.52 shall be deemed in
compliance with Section 25299.31 if the claimant is eligible for
reimbursement from the fund pursuant to Section 25299.54,
subdivision (d) of Section 25299.57, and subdivision (b) of Section
25299.58.

begin delete

(3)

end delete

begin insert (2) end insert  If a claimant meets the qualifications of paragraph (2) or (3)
of subdivision (b) of Section 25299.52, the level of financial
responsibility required to be obtained pursuant to Section 25299.31
shall be at least five thousand dollars ($5,000) for each occurrence
and at least five thousand dollars ($5,000) annual aggregate
coverage for taking corrective action.

begin delete

(4)

end delete

begin insert (3) end insert  If a claimant meets the qualifications of paragraph (4) of
subdivision (b) of Section 25299.52, the level of financial
responsibility required to be obtained pursuant to Section 25299.31
shall be at least ten thousand dollars ($10,000) for each occurrence,
and at least ten thousand dollars ($10,000) annual aggregate
coverage for taking corrective action.

(b) The level of financial responsibility required to be obtained
pursuant to Section 25299.31 for each occurrence for bodily injury
and property damage shall be in the amount specified by the board
in the regulations adopted pursuant to Section 25299.77.

(c) The level of financial responsibility required to be obtained
pursuant to Section 25299.31 shall be in the amount specified by
the board for annual aggregate coverage for both corrective action
and bodily injury and property damage.

(d) The board may periodically increase the minimum level of
financial responsibility specified in subdivision (a) upon its
determination that private insurance is available and affordable.

(e) The changes made to this section by Chapter 1191 of the
Statutes of 1994 shall apply to all claimants with claims, or portions
of claims, for corrective action at sites that have not been
completed, and for which reimbursement by the fund has not been
fully paid by the board.

(f) (1) On and after January 1, 2019, an owner or operator of
a tank for which a permit that is issued pursuant to Section 25284
is in effect shall not use the fund as a mechanism to demonstrate
compliance with the financial responsibility requirements of
Sections 25292.2 and 25299.31 and with the federal act.

(2) On or before December 31, 2018, an owner or operator who
previously used the fund as a mechanism to demonstrate
compliance with financial responsibility requirements shall submit,
to the local agency that issued the permit for the operation of the
tank pursuant to Section 25284, evidence of the alternative financial
responsibility mechanism that will be used, on and after January
1, 2019, to comply with Sections 25292.2 and 25299.31 and with
the federal act.

SEC. 3.  

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, 2014, at which time, the fee shall
revert back to the fee pursuant to subdivision (e).

(g) (1) On and after the first day of the first calendar quarter
commencing begin insert more than end insert 90 days after the effective date of the act
adding this paragraph, 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, begin delete 2020, end delete begin insert 2026, end insert at which time the fee shall revert back to
the fee established pursuant to subdivision (e).

(2) Three mills ($0.003) of the six mills ($0.006) for each gallon
of petroleum placed in an underground storage tank collected
pursuant to this subdivision shall be available for expenditure by
the board only for purposes provided in subdivision (o) of Section
25299.51.

(h) 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 25299.41.

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

SEC. 4.  

Section 25299.50 of the Health and Safety Code is
amended to read:

25299.50.  

(a) The Underground Storage Tank Cleanup Fund
is hereby created in the State Treasury. The money in the fund
may be expended by the board, upon appropriation by the
Legislature, for purposes of this chapter. From time to time, the
board may modify existing accounts or create accounts in the fund
or other funds administered by the board, which the board
determines are appropriate or necessary for proper administration
of this chapter.

(b) All of the following amounts shall be deposited in the fund:

(1) Money appropriated by the Legislature for deposit in the
fund.

(2) The fees, interest, and penalties collected pursuant to Article
5 (commencing with Section 25299.40).

(3) Notwithstanding Section 16475 of the Government Code,
any interest earned upon the money deposited in the fund.

(4) Any money recovered by the fund pursuant to Section
25299.70.

(5) Any civil and criminal penalties collected by the board or
regional board pursuant to Section 25299.76, 25299.78, 25299.80,
or 25299.80.5.

(6) Money recovered as compensation for expenditures
associated with investigations or enforcement actions pursuant to
subdivision (j) or (n) of Section 25299.51.

(7) Money recovered to correct a previously overpaid
expenditure issued pursuant to this chapter.

(c) Notwithstanding subdivision (a), any funds appropriated by
the Legislature in the annual Budget Act for payment of a claim
for the costs of a corrective action in response to an unauthorized
release, that are encumbered for expenditure for a corrective action
pursuant to a letter of credit issued by the board pursuant to
subdivision (e) of Section 25299.57, but are subsequently not
expended for that corrective action claim, may be reallocated by
the board for payment of other claims for corrective action pursuant
to Section 25299.57.

SEC. 5.  

Section 25299.50.2 of the Health and Safety Code is
amended to read:

25299.50.2.  

(a) The Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund is hereby established
in the State Treasury.

(b) (1) Except as provided in paragraph (2), the sum of ten
million dollars ($10,000,000) is hereby transferred, for each of the
2008-09, 2009-10, and 2010-11 fiscal years, from the
Underground Storage Tank Cleanup Fund to the Underground
Storage Tank Petroleum Contamination Orphan Site Cleanup Fund.

(2) Available federal moneys may be deposited in the
Underground Storage Tank Petroleum Contamination Orphan Site
Cleanup Fund. The amount transferred pursuant to paragraph (1)
in a fiscal year shall be reduced by the amount of federal moneys
deposited in the Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund in that fiscal year.

(c) The board may expend the moneys in the Underground
Storage Tank Petroleum Contamination Orphan Site Cleanup Fund,
upon appropriation by the Legislature, for the costs of response
actions to remediate the harm caused by petroleum contamination
at a site that meets all of the following conditions:

(1) The petroleum contamination is the principal source of
contamination at the site.

(2) The source of the petroleum contamination is, or was, an
underground storage tank.

(3) A financially responsible party has not been identified to
pay for remediation at the site.

(4) If the expenditure includes federal moneys deposited in the
Underground Storage Tank Petroleum Contamination Orphan Site
Cleanup Fund, the expenditure at the site is consistent with all
applicable requirements for expenditure of the federal moneys.

(d) Any funds in the Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund that are not expended
in the 2009-10, 2010-11, or 2011-12 fiscal years shall remain in
the Underground Storage Tank Petroleum Contamination Orphan
Site Cleanup Fund until they are encumbered.

(e) Notwithstanding Section 16304.1 of the Government Code,
a disbursement in liquidation of an encumbrance may be made
before or during the four years following the last day the
appropriation is available for encumbrance.

SEC. 6.  

Section 25299.50.3 of the Health and Safety Code is
amended to read:

25299.50.3.  

(a) For purposes of this section, “school district”
means a school district as defined in Section 80 of the Education
Code, or a county office of education.

(b) The School District Account is hereby created in the
Underground Storage Tank Cleanup Fund, for expenditure by the
board to pay a claim filed by a district that is a school district and
has a priority based on paragraph (2), (3), or (4) of subdivision (b)
of Section 25299.52. Notwithstanding Section 25299.52, in the
2009-10, 2010-11, and 2011-12 fiscal years, the board shall pay
a claim filed by a district that is a school district and has a priority
based on paragraph (4) of subdivision (b) of Section 25299.52
only from funds appropriated from the School District Account.

(c) (1) The sum of ten million dollars ($10,000,000) per year
shall be transferred, in the 2009-10, 2010-11, and 2011-12 fiscal
years, from the Underground Storage Tank Cleanup Fund to the
School District Account, for expenditure, upon appropriation by
the Legislature, for the payment of claims filed by a district that
is a school district with a priority based on paragraph (2), (3), or
(4) of subdivision (b) of Section 25299.52. The ten million dollars
($10,000,000) shall be transferred to the School District Account
prior to allocating the remaining available funds to each priority
ranking in paragraphs (1), (2), (3), and (4) of subdivision (b) of
Section 25299.52.

(2) The board shall consult with the Department of Toxic
Substances Control in allocating the funds transferred to the School
District Account.

(3) The board shall pay claims from a school district with a
priority based on paragraph (4) of subdivision (b) of Section
25299.52 from the School District Account in the order of the date
of the filing of the claim application to the Underground Storage
Tank Cleanup Fund. In each of the fiscal years identified in
subdivision (b), if the board estimates that money will be available
in the School District Account after the board has allocated funding
for all submitted claims from school districts with a priority based
on paragraph (4) of subdivision (b) of Section 25299.52, School
District Account funds may be used to fund school district claims
with a priority based on paragraph (2) or (3) of subdivision (b) of
Section 25299.52.

(d) Funds in the School District Account that are not expended
in a fiscal year shall remain in the School District Account. Funds
remaining in the School District Account on January 1, begin delete 2020, end delete begin insert 2026, end insert
shall be transferred to the Underground Storage Tank Cleanup
Fund.

(e) The board shall include information on the expenditure of
the funds transferred to the School District Account, as well as the
amount of all claims filed by districts that are school districts and
the amount of reimbursements made to districts that are school
districts from the Underground Storage Tank Cleanup Fund, in its
annual report, and shall, in consultation with the Department of
Toxic Substances Control, estimate the amount of funds needed
to reimburse anticipated future claims by districts that are school
districts. The board shall provide a copy of this report to the State
Allocation Board and the State Department of Education.

(f) This section does not affect the priority of a district that is a
school district and has a priority based on paragraph (2) or (3) of
subdivision (b) of Section 25299.52.

(g) The board shall waive the requirements of paragraph (4) of
subdivision (d) of Section 25299.57 for a claim that is reimbursed
from the School District Account pursuant to this section, if the
superintendent of the school district receiving the reimbursement
certifies to the board that petroleum was not delivered on or after
January 1, 2003, to the tank that is the subject of the claim or that
the tank was removed before January 1, 2003.

(h) This section shall remain in effect only until January 1, begin delete 2020, end delete
begin insert 2026, end insert and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, begin delete 2020, end delete begin insert 2026, end insert deletes or extends
that date.

SEC. 7.  

Section 25299.50.4 of the Health and Safety Code is
amended to read:

25299.50.4.  

(a) It is the intent of the Legislature that the board
and the Department of Toxic Substances Control, using information
gathered and reported pursuant to subdivision (e) of Section
25299.50.3, propose changes to Section 25299.50.3 that may be
necessary to ensure that adequate funds are available to reimburse
anticipated future claims by districts that are school districts and
have a priority based on paragraph (4) of subdivision (b) of Section
25299.52.

(b) This section shall remain in effect only until July 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2018, deletes or extends that date.

SEC. 8.  

Section 25299.50.6 is added to the Health and Safety
Code, to read:

25299.50.6.  

(a) The Site Cleanup Subaccount is hereby
established in the Underground Storage Tank Cleanup Fund.

(b) The board may expend the funds in the Site Cleanup
Subaccount, upon appropriation by the Legislature, for the
following purposes:

(1) To pay for reasonable and necessary expenditures that the
board, a regional board, or a local agency incurs to identify the
source of surface or groundwater contamination.

(2) To pay for reasonable and necessary expenditures that the
board, a regional board, or a local agency incurs to remediate the
harm or threat of harm to human health, safety, and the
environment caused by existing or threatened surface or
groundwater contamination. The board shall consider the following
factors when approving expenditures for specific locations:

(A) The degree to which human health, safety, and the
environment are threatened by contamination at the location.

(B) Whether the location is located in a small or financially
disadvantaged community.

(C) The cost and potential environmental benefit of the
investigation or cleanup.

(D) Whether there are other potential sources of funding for the
investigation or cleanup.

(E) Any other information the board identifies as necessary for
consideration.

(3) To issue grants pursuant to this section for the reasonable
and necessary costs of actions to remediate the harm or threat of
harm to human health, safety, and the environment caused by
existing or threatened surface or groundwater contamination at a
location that meets both of the following conditions:

(A) The board, a regional board, or local agency requires the
responsible parties to undertake or contract for investigation or
cleanup, pursuant to an oral or written order, directive, notification,
or approval issued pursuant to Section 25296.10, or pursuant to a
cleanup and abatement order issued under Section 13304 of the
Water Code. The board may waive this requirement if the board
finds that it is infeasible for an order to be issued before initiation
of remediation.

(B) The responsible parties lack sufficient financial resources
to pay for the required response actions.

(c) At least annually, the board shall review grant applications
and adopt a list of applicants to be awarded grants pursuant to
paragraph (3) of subdivision (b). In addition to the conditions
specified in paragraph (3) of subdivision (b), the board shall
consider all of the following factors when awarding grants:

(1) The degree to which human health, safety, and the
environment are threatened by surface water or groundwater
contamination at the location.

(2) Whether the location is located in a small or financially
disadvantaged community.

(3) The cost and potential environmental benefit of the
investigation or cleanup.

(4) Whether there are other potential sources of funding for the
investigation or cleanup.

(5) Any other information the board identifies as necessary for
consideration.

(d) (1) The board shall specify the information that shall be
included in a grant application, consistent with this section,
including, but not limited to, a provision requiring the applicant
to make a sworn verification of the information in the application
to the best of the applicant’s knowledge.

(2) The board may adopt procedures to implement this section.

(3) The board shall post any procedures or information
requirements adopted pursuant to this section on its Internet Web
site.

(e) (1) The recipient of grant moneys shall expend those funds
only for the reasonable costs necessary to protect human health,
safety, and the environment, incurred on or after the effective date
of the act adding this section.

(2) The board shall not issue a grant for any costs for which the
applicant has been, or will be, paid by another source.

(3) The board may terminate a grant and may bar the applicant
from receiving any future grants from the Site Cleanup Subaccount
if the board finds that the applicant has made a misrepresentation
or false claim.

(f) (1) Any funds in the Site Cleanup Subaccount that are not
expended in a fiscal year shall remain in the subaccount until they
are encumbered.

(2) Notwithstanding Section 16304.1 of the Government Code,
a disbursement in liquidation of an encumbrance may be made
before or during the four years following the last day the
appropriation is available for encumbrance.

(g) The Attorney General may recover the actual, reasonable
costs of investigation or cleanup undertaken pursuant to this section
in a civil action, upon request from the board, from any responsible
party. All money recovered by the Attorney General pursuant to
this section shall be deposited in the fund.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 25299.50.7 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 25299.50.7. end insert   

(a) The Expedited Claim Account is hereby created
in the Underground Storage Tank Cleanup Fund for expenditure
by the board to pay claims that have been selected to participate
in the pilot project established by this section.

(b) The sum of one hundred million dollars ($100,000,000) shall
be transferred in the 2015-16 fiscal year from the Underground
Storage Tank Cleanup Fund to the Expedited Claim Account for
expenditure, upon appropriation by the Legislature, for the
payment of claims pursuant to this section. Claims shall be paid
from the Expedited Claim Account until moneys in the account are
exhausted.

(c) Funds in the Expedited Claim Account that are not expended
in a fiscal year shall remain in the Expedited Claim Account. Funds
remaining in the Expedited Claim Account on January 1, 2026,
shall be transferred to the Underground Storage Tank Cleanup
Fund.

(d) The board shall establish the Expedited Claim Pilot Project
to investigate and implement methods to improve administrative
and claim processing procedures. The goals of the improvements
are to expedite the funding of claims and thus expedite the
completion of site cleanup.

(1) The board shall investigate potential methods for improving
claim processing, including, but not limited to, alternate means
of staffing for claim processing procedures, administrative
flexibility in assigning annual funding for individual claims,
expedited reviews of claim forms, increased collaboration between
fund staff, regulatory staff and claimants and their contractors,
and establishment of multiyear funding for claims.

(2) The board shall solicit fund claims from all priority rankings
for participation in the pilot project to implement potential
improvement methods. The board shall select a limited number of
claims to participate in the project.

(3) The board shall develop criteria for the selection of claims
to participate in the pilot project and, at a minimum, shall consider
the threat to human health, safety, or the environment caused by
contamination at the site that is the subject of the claim, the priority
ranking assigned to the claim pursuant to Section 25299.52, and
the progress of cleanup at the site that is the subject of the claim.

(4) The development of criteria and procedures pursuant to this
subdivision shall not be considered as regulations subject to, and
shall be exempt from, Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(e) The board shall include information on the expenditure of
funds transferred to the Expedited Claim Account, as well as the
amount of all claims filed by claimants participating in the
Expedited Claim Pilot Project and the amount of reimbursements
made to claimants in the pilot project, in its annual report.

(f) After July 1, 2020, the board shall prepare a report analyzing
the effectiveness and efficiency of the Expedited Claim Pilot Project
in expediting the funding of claims and thus expediting completions
of site cleanups. This report shall be posted on the board’s Internet
Web site.

(g) This section shall remain in effect only until January 1, 2026,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2026, deletes or extends that date.

end insert

begin delete SEC. 9. end delete
begin insert SEC. 10. end insert   

Section 25299.51 of the Health and Safety Code is
amended to read:

25299.51.  

The board may expend the money in the fund for
all the following purposes:

(a) In addition to the purposes specified in subdivisions (c), (d),
and (e), for the costs of implementing this chapter and for
implementing Section 25296.10 for a tank that is subject to this
chapter.

(b) To pay for the administrative costs of the State Board of
Equalization in collecting the fee imposed by Article 5
(commencing with Section 25299.40).

(c) To pay for the reasonable and necessary costs of corrective
action pursuant to Section 25299.36, up to one million begin delete five hundred
thousand end delete dollars begin delete ($1,500,000) end delete begin insert ($1,000,000) end insert per occurrence. The
Legislature may appropriate the money in the fund for expenditure
by the board, without regard to fiscal year, for prompt action in
response to any unauthorized release.

(d) To pay for the costs of an agreement for the abatement of,
and oversight of the abatement of, an unauthorized release of
hazardous substances from underground storage tanks, by a local
agency, as authorized by Section 25297.1 or by any other provision
of law, except that, for the purpose of expenditure of these funds,
only underground storage tanks, as defined in Section 25299.24,
shall be the subject of the agreement.

(e) To pay for the costs of cleanup and oversight of unauthorized
releases at abandoned tank sites. The board shall not expend more
than 25 percent of the total amount of money collected and
deposited in the fund annually for the purposes of this subdivision
and subdivision (h).

(f) To pay claims pursuant to Section 25299.57.

(g) To pay, upon order of the Controller, for refunds pursuant
to Part 26 (commencing with Section 50101) of Division 2 of the
Revenue and Taxation Code.

(h) To pay for the reasonable and necessary costs of corrective
action pursuant to subdivision (f) of Section 25296.10, in response
to an unauthorized release from an underground storage tank
subject to this chapter.

(i) To pay claims pursuant to Section 25299.58.

(j) To pay for expenditures by the board associated with
discovering violations of, and enforcing, or assisting in the
enforcement of, the requirements of Chapter 6.7 (commencing
with Section 25280) with regard to petroleum underground storage
tanks.

(k) For transfer to the Petroleum Underground Storage Tank
Financing Account, for purposes of Chapter 6.76 (commencing
with Section 25299.100).

(l) Upon repeal of Chapter 6.76 (commencing with Section
25299.100), to pay for expenditures authorized by subdivision (b)
of Section 25299.117 as that section reads as of December 31,
2021.

(m) For transfer to the Site Cleanup Subaccount to pay for
expenditures by the board pursuant to Section 25299.50.6,
including costs for regulatory oversight of sites funded pursuant
to that section.

(n) To pay for reasonable and necessary expenditures by the
board associated with discovering violations of and enforcing, or
assisting in the enforcement of, the requirements of this chapter,
including actions relating to the submission of false information
to the fund.

(o) (1) For transfer to the School District Account to pay for
expenditures by the board pursuant to Section 25299.50.3 or for
transfer pursuant to subdivision (k) or (m).

(2) This subdivision shall apply only to the moneys collected
pursuant to paragraph (2) of subdivision (g) of Section 25299.43.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 25299.51.2 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

25299.51.2.  

begin delete Within end delete begin insert (a) end insert begin insert   end insert begin insert On or before December 31, 2020, and
at least once every five years thereafter, the board shall
commission an independent program audit and a fiscal audit of
the fund by an independent auditor. end insert

begin insert (b) end insert begin insert   end insert begin insert Within end insert 90 days of the completion of begin delete any end delete begin insert the end insert independent
program audit or fiscal audit of the fund, the board shall post the
results of the program audit or fiscal audit on the board’s Internet
Web site.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 25299.51.3 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 25299.51.3. end insert   

(a) On or before June 1, 2015, the board shall
initiate a study to determine the cost-effectiveness of issuing
revenue bonds to generate proceeds to be used to pay claims
against the fund. At a minimum, the study shall include participants
from the board, the Department of Finance, the Treasurer’s Office,
the California Infrastructure and Economic Development Bank,
and fund stakeholders, including claimant and industry
representatives.

(b) No later than September 1, 2016, the board shall provide
to the Legislature, pursuant to Section 9795 of the Government
Code, a report on the study.

(c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2021.

end insert

begin delete SEC. 10. end delete
begin insert SEC. 13. end insert   

Section 25299.57 of the Health and Safety Code is
amended to read:

25299.57.  

(a)  begin insert (1) end insert begin insert   end insert If the board makes the determination
specified in subdivision begin delete (d), end delete begin insert (d) for a claim filed on or before
December 31, 2014, end insert the board may only pay for the costs of a
corrective action that exceed the level of financial responsibility
required to be obtained pursuant to Section 25299.32, but not more
than one million five hundred thousand dollars ($1,500,000) for
each occurrence. begin delete In end delete

begin insert

(2) If the board makes the determination specified in subdivision
(d) for a claim filed on or after January 1, 2015, the board may
only pay for the costs of a corrective action that exceed the level
of financial responsibility required to be obtained pursuant to
Section 25299.32, but not more than one million dollars
($1,000,000) for each occurrence.

end insert

begin insert (3) end insert begin insert   end insert begin insert In end insert the case of an owner or operator who, as of January 1,
1988, was required to perform corrective action, who initiated that
corrective action in accordance with Division 7 (commencing with
Section 13000) of the Water Code or Chapter 6.7 (commencing
with Section 25280), and who is undertaking the corrective action
in compliance with waste discharge requirements or other orders
issued pursuant to Division 7 (commencing with Section 13000)
of the Water Code or Chapter 6.7 (commencing with Section
25280), the owner or operator may apply to the board for
satisfaction of a claim filed pursuant to this article. begin delete The end delete

begin insert (4) end insert begin insert   end insert begin insert The end insert board shall notify claimants applying for satisfaction
of claims from the fund of eligibility for reimbursement in a prompt
and timely manner and that a letter of credit or commitment that
will obligate funds for reimbursement shall follow the notice of
eligibility as soon thereafter as possible.

(b) (1) For claims eligible for reimbursement pursuant to
subdivision (c) of Section 25299.55, the claimant shall submit the
actual cost of corrective action to the board, which shall either
approve or disapprove the costs incurred as reasonable and
necessary. At least 15 days before the board proposes to disapprove
the reimbursement of corrective action costs that have been
incurred on the grounds that the costs were unreasonable or
unnecessary, the board shall issue a notice advising the claimant
and the lead agency of the proposed disallowance, to allow review
and comment.

(2) The board shall not reject any actual costs of corrective
action in a claim solely on the basis that the invoices submitted
fail to sufficiently detail the actual costs incurred, if all of the
following apply:

(A) Auxiliary documentation is provided that documents to the
board’s satisfaction that the invoice is for necessary corrective
action work.

(B) The costs of corrective action work in the claim are
reasonably commensurate with similar corrective action work
performed during the same time period covered by the invoice for
which reimbursement is sought.

(C) The invoices include a brief description of the work
performed, the date that the work was performed, the vendor, and
the amount.

(c) (1) For claims eligible for prepayment pursuant to
subdivision (c) of Section 25299.55, the claimant shall submit the
estimated cost of the corrective action to the board, which shall
approve or disapprove the reasonableness of the cost estimate.

(2) If the claim is for reimbursement of costs incurred pursuant
to a performance-based contract, Article 6.5 (commencing with
Section 25299.64) shall apply to that claim.

(d) Except as provided in subdivision (j), a claim specified in
subdivision (a) may be paid if the board makes all of the following
findings:

(1) There has been an unauthorized release of petroleum into
the environment from an underground storage tank.

(2) The claimant is required to undertake or contract for
corrective action pursuant to Section 25296.10, under the federal
act, or under Section 6973 of Title 42 of the United States Code,
or, as of January 1, 1988, the claimant has initiated corrective
action in accordance with Division 7 (commencing with Section
13000) of the Water Code.

(3) The claimant has complied with Section 25299.31.

(4) (A) Except as provided in subparagraphs (B), (C), and (F),
the claimant has complied with the permit requirements of Chapter
6.7 (commencing with Section 25280). A claimant shall obtain a
permit required by subdivision (a) of Section 25284 for the
underground storage tank that is the subject of the claim when the
claimant becomes subject to subdivision (a) of Section 25284 or
when the applicable local agency begins issuing permits pursuant
to subdivision (a) of Section 25284, whichever occurs later. begin insert For
the purpose of this subparagraph, a claimant shall demonstrate
compliance with the permit requirements of Chapter 6.7
(commencing with Section 25280) by submitting copies of the
required permits or other documentation that demonstrate
compliance to the satisfaction of the board. end insert

(B) A claimant who acquires real property on which an
underground storage tank is situated and, despite the exercise of
reasonable diligence, was unaware of the existence of the
underground storage tank when the real property was acquired,
has obtained a permit required by subdivision (a) of Section 25284
for the underground storage tank that is the subject of the claim
within a reasonable period, not to exceed one year, from when the
claimant should have become aware of the existence of the
underground storage tank, or when the applicable local agency
began issuing permits pursuant to Section 25284, whichever occurs
later.

(C) All claimants who file their claim on or after January 1,
2008, and who do not obtain a permit required by subdivision (a)
of Section 25284 in accordance with subparagraph (A) or (B) may
seek a waiver of the requirement to obtain a permit. The board
shall waive the provisions of subparagraphs (A) and (B) as a
condition for payment from the fund if the board finds all of the
following:

(i) The claimant was unaware of the permit requirement, and
upon becoming aware of the permit requirement, the claimant
complies with either subdivision (a) of Section 25284 or Section
25298 and the regulations adopted to implement those sections
within a reasonable period, not to exceed one year, from when the
claimant became aware of the permit requirement.

(ii) Prior to submittal of the application to the fund, the claimant
has complied with Section 25299.31 and has obtained and paid
for all permits currently required by this paragraph.

(iii) Prior to submittal of the application to the fund, the claimant
has paid all fees, interest, and penalties imposed pursuant to Article
5 (commencing with Section 25299.40) of this chapter and Part
26 (commencing with Section 50101) of Division 2 of the Revenue
and Taxation Code for the underground storage tank that is the
subject of the claim.

(D) (i) A claimant exempted pursuant to subparagraph (C) and
who has complied, on or before December 22, 1998, either with
subdivision (a) of Section 25284 or Section 25298 and the
regulations adopted to implement those sections, shall obtain a
level of financial responsibility twice as great as the amount that
the claimant is otherwise required to obtain pursuant to subdivision
(a) of Section 25299.32, but not less than ten thousand dollars
($10,000). All other claimants exempted pursuant to subparagraph
(C) shall obtain a level of financial responsibility that is four times
as great as the amount that the claimant is otherwise required to
obtain pursuant to subdivision (a) of Section 25299.32, but not
less than twenty thousand dollars ($20,000).

(ii) The board may waive the requirements of clause (i) if the
claimant can demonstrate that the conditions specified in clauses
(i) to (iii), inclusive, of subparagraph (C) were satisfied prior to
the causing of any contamination. That demonstration may be
made through a certification issued by the permitting agency based
on a site evaluation and tank tests at the time of permit application
or in any other manner acceptable to the board.

(E) All claimants who file a claim before January 1, 2008, and
who are not eligible for a waiver of the permit requirements
pursuant to applicable statutes or regulations in effect on the date
of the filing of the claim may resubmit a new claim pursuant to
subparagraph (C) on or after January 1, 2008. The board shall rank
all claims resubmitted pursuant to subparagraph (C) lower than
all claims filed before January 1, 2008, within their respective
priority classes specified in subdivision (b) of Section 25299.52.

(F) The board shall waive the provisions of subparagraph (A)
as a condition for payment from the fund for a claimant who filed
his or her claim on or after January 1, 2008, and before July 1,
2009, but is not eligible for a waiver of the permit requirement
pursuant to the regulations adopted by the board in effect on the
date of the filing of the claim, and who did not obtain or apply for
a permit required by subdivision (a) of Section 25284, if the board
finds all of the following:

(i) The claim is filed pursuant to paragraph (2) of subdivision
(h) of Section 25299.54 and the claim otherwise satisfies the
eligibility requirements of that paragraph.

(ii) The claimant became the owner or de facto owner of an
underground storage tank prior to December 22, 1998.

(iii) The claimant did not, and does not, operate the underground
storage tank.

(iv) Within three years after becoming the owner or de facto
owner of the underground storage tank but not after December 22,
1998, the claimant caused the underground storage tank to be
removed and closed in accordance with applicable law, and
commenced no later than December 22, 1998, to perform corrective
action pursuant to Section 25296.10 of this code or pursuant to
Division 7 (commencing with Section 13000) of the Water Code.

(G) The board shall rank all claims submitted pursuant to
subparagraph (F) in their respective priority classes specified in
subdivision (b) of Section 25299.52 in the order in which the claims
are received by the board, but subsequent to any claim filed on a
previous date in each of those priority classes.

(H) For purposes of clauses (ii) and (iv) of subparagraph (F),
“de facto owner of an underground storage tank” means a person
who purchases or otherwise acquires real property, as defined in
subparagraph (D) of paragraph (5) of subdivision (h) of Section
25299.54, and has actual possession of, and control over, an
underground storage tank that has been abandoned by its previous
owner.

(5) The board has approved either the costs incurred for the
corrective action pursuant to subdivision (b) or the estimated costs
for corrective action pursuant to subdivision (c).

(6) The claimant has paid all fees, interest, and penalties imposed
pursuant to Article 5 (commencing with Section begin delete 29299.40) end delete
begin insert 25299.40) end insert and Part 26 (commencing with Section 50101) of
Division 2 of the Revenue and Taxation begin delete Code end delete begin insert Code, end insert for the
underground storage tank that is the subject of the claim.

(e) The board shall provide the claimant, whose cost estimate
has been approved, a letter of commitment authorizing payment
of the costs from the fund.

(f) The claimant may submit a request for partial payment to
cover the costs of corrective action performed in stages, as
approved by the board.

(g) (1) A claimant who submits a claim for payment to the
board shall submit multiple bids for prospective costs as prescribed
in regulations adopted by the board pursuant to Section 25299.77.

(2) A claimant who submits a claim to the board for the payment
of professional engineering and geologic work shall submit
multiple proposals and fee estimates, as required by the regulations
adopted by the board pursuant to Section 25299.77. The claimant’s
selection of the provider of these services is not required to be
based on the lowest estimated fee, if the fee estimate conforms
with the range of acceptable costs established by the board.

(3) A claimant who submits a claim for payment to the board
for remediation construction contracting work shall submit multiple
bids, as required in the regulations adopted by the board pursuant
to Section 25299.77.

(4) Paragraphs (1), (2), and (3) do not apply to a tank owned or
operated by a public agency if the prospective costs are for private
professional services within the meaning of Chapter 10
(commencing with Section 4525) of Division 5 of Title 1 of the
Government Code and those services are procured in accordance
with the requirements of that chapter.

(h) The board shall provide, upon the request of a claimant,
assistance to the claimant in the selection of contractors retained
by the claimant to conduct reimbursable work related to corrective
actions. The board shall develop a summary of expected costs for
common corrective actions. This summary of expected costs may
be used by claimants as a guide in the selection and supervision
of consultants and contractors.

(i) (1) To the extent funding is available, the board shall pay,
within 60 days from the date of receipt of an invoice of
expenditures, all costs specified in the work plan developed
pursuant to Section 25296.10, and all costs that are otherwise
necessary to comply with an order issued by a local, state, or
federal agency.

(2) If corrective action costs, third-party compensation costs,
or regulatory technical assistance costs submitted by a claimant
are approved for reimbursement by the board but funding is not
available for payment to the claimant at the time of approval, the
board shall reimburse carrying costs incurred by the claimant after
November 7, 2008, but before June 30, 2010, subject to all of the
following limitations:

(A) The reimbursement for carrying costs shall not exceed the
carrying costs actually incurred by the claimant from the date the
corrective action costs, third-party compensation costs, or
regulatory technical assistance costs are approved for payment by
the board until the date that a check for the reimbursement request
is issued by the Controller.

(B) The reimbursement for carrying costs shall not exceed an
amount equivalent to a maximum annual percentage rate of 7
percent as applied to the amount approved for reimbursement and
for the period calculated pursuant to subparagraph (A).

(C) The board shall not reimburse carrying costs that amount
to less than one hundred dollars ($100) per reimbursement request.

(D) The board shall not reimburse carrying costs that exceed 9
percent of the total amount of costs approved for the reimbursement
to which the carrying costs apply.

(E) A claimant may submit a request for reimbursement of
carrying costs after receipt of fund reimbursement for the corrective
action costs, third-party compensation costs, or regulatory technical
assistance costs to which the carrying costs apply. Additional
carrying costs associated with a reimbursement request for carrying
costs submitted pursuant to this paragraph are not eligible for
payment.

(F) This paragraph does not apply to tank owners or operators
that are not described in begin delete paragraphs end delete begin insert paragraph end insert (1), (2), or (3) of
subdivision (b) of Section 25299.52.

(3) For the purposes of paragraph (2), “carrying cost” means
the interest expense incurred by a claimant to acquire money to
pay costs approved for reimbursement by the board but for which
reimbursement is delayed because funds are unavailable.

(j) (1) The board shall pay a claim of not more than begin delete three
thousand dollars ($3,000) end delete begin insert five thousand dollars ($5,000) end insert per
occurrence for regulatory technical assistance to an owner or
operator who is otherwise eligible for reimbursement under this
begin delete chapter. end delete begin insert chapter, except that reasonable and necessary regulatory
technical assistance costs associated with the electronic submission
of invoices to the fund using an electronic data system approved
by the board shall not be subject to this limit. end insert

(2) For the purposes of this subdivision, regulatory technical
assistance is limited to assistance from a person, other than the
claimant, in the preparation and submission of a claim to the fund.
Regulatory technical assistance does not include assistance in
connection with proceedings under Section 25296.40, 25299.39.2,
or 25299.56 or any action in court.

(k) (1) Notwithstanding any other provision of this section, the
board shall pay a claim begin delete for end delete begin insert pursuant to paragraph (2) or (3) for end insert
the costs of corrective action to a person who owns property on
which is located a release from a petroleum underground storage
tank that has been begin delete the subject of a completed corrective action and
for which additional corrective action is required because of
additionally discovered contamination from the previous release,
only if the person who carried out the earlier and completed
corrective action was eligible for, and applied for, reimbursement
pursuant to subdivision (b), and only to the extent that the amount
of reimbursement for the earlier corrective action did not exceed
the amount of reimbursement authorized by subdivision (a).
Reimbursement to a claimant on a reopened site shall occur when
funds are available, and reimbursement commitment shall be made
ahead of any new letters of commitment to be issued, as of the
date of the reopening of the claim, if funding has occurred on the
original claim, in which case funding shall occur at the time it
would have occurred under the original claim. end delete begin insert removed, if the site
has been the subject of a completed corrective action, and for
which additional corrective action is required because of
additionally discovered contamination from the previous release. end insert

begin insert

(2) (A) The board shall pay a claim pursuant to this paragraph
if the person who carried out the earlier and completed corrective
action was eligible for, and applied for, reimbursement pursuant
to subdivision (b).

end insert begin insert

(B) Reimbursement for additional corrective action shall be
available only to the extent that the amount of reimbursement for
the earlier corrective action did not exceed the amount of
reimbursement authorized by subdivision (a).

end insert begin insert

(C) Reimbursement to a claimant on a reopened site pursuant
to this paragraph shall occur when funds are available, and the
reimbursement commitment shall be made ahead of any new letters
of commitment to be issued, as of the date of the reopening of the
claim, if funding has occurred on the original claim.

end insert begin insert

(D) If funding has not occurred on the original claim, funding
shall occur at the time it would have occurred under the original
claim.

end insert begin insert

(3) (A) The board may reimburse a claim pursuant to this
paragraph if all of the following conditions are satisfied:

end insert begin insert

(i) The person who carried out the earlier and completed
corrective action did not apply for reimbursement pursuant to
subdivision (b).

end insert begin insert

(ii) The person who owns the property is required to perform
corrective action because of additionally discovered contamination.

end insert begin insert

(iii) The person who owns the property is the owner or operator
of an underground storage tank located on the property at the time
of application to the fund.

end insert begin insert

(iv) The person who owns the property is in compliance with
the requirements to pay the fee pursuant to Article 5 (commencing
with Section 25299.40).

end insert begin insert

(v) The person who owns the property is in compliance with the
requirements to obtain a permit pursuant to Chapter 6.7
(commencing with Section 25280).

end insert begin insert

(B) The board shall assign the person submitting a claim
pursuant to this paragraph a priority ranking consistent with the
categories described in Section 25299.52.

end insert begin insert

(C) The board shall limit reimbursement for a claim pursuant
to this paragraph to the amounts described in Section 25299.59
and for the incurred corrective action costs that are necessary and
reasonable.

end insert begin delete

(2)

end delete

begin insert (4) end insert  For purposes of this subdivision, a corrective action is
completed when the local agency or regional board with
jurisdiction over the site or the board issues a closure letter pursuant
to subdivision (g) of Section 25296.10.

(l) (1) Except as provided in subdivision (m), claims for
reimbursement of corrective action costs that are received by the
board more than 365 days after the date of issuance of a closure
letter issued pursuant to subdivision (g) of Section 25296.10 or
after the issuance or activation of a letter of commitment,
whichever occurs later, shall not be reimbursed unless either of
the following applies:

(A) Claims for corrective action costs are submitted to the board
pursuant to begin delete paragraph (1) of end delete subdivision (k).

(B) The board finds that submission within the time period
specified in this paragraph was beyond the claimant’s reasonable
control, ongoing work is required for closure that will result in
submission of claims beyond that time period, or that under the
circumstances of the particular case, it would be unreasonable or
inequitable to impose the time period specified in this paragraph.

(2) This section does not limit or abrogate the rights of a
claimant in disputing reimbursement determinations or suspension
of claims.

(3) For cases that have been issued a closure letter pursuant to
subdivision (g) of Section 25296.10 prior to January 1, 2012, the
board shall notify claimants of the 365-day filing deadline specified
in paragraph (1) on or before March 31, 2012, or upon issuance
of a letter of commitment, whichever occurs later.

(m) (1) The board shall not reimburse a claim for
reimbursement of a corrective action cost that is received by the
board more than two years after the date the cost was incurred or
more than two years after the date of the issuance or activation of
a letter of commitment, whichever occurs later, except under one
or both of the following conditions:

(A) The board may reimburse a claim for a cost incurred before
January 1, 2015, by a claimant that has an active letter of
commitment on January 1, 2015, that was received by the board
on or before December 31, 2015, or within two years of the date
the cost was incurred, whichever occurs later.

(B) The executive director finds that submission within the time
period specified in this subdivision was beyond the claimant’s
reasonable control or that, under the circumstances of the particular
case, it would be unreasonable or inequitable to impose the time
period specified in this subdivision.

(2) For the purposes of this subdivision, a cost is incurred on
the date that the task to be paid for is completed.

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 25299.58 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

25299.58.  

(a) Except as provided in subdivision (d), if the
board makes the determination specified in subdivision (b), the
board may reimburse only those costs that are related to the
compensation of third parties for bodily injury and property
damages and that exceed the level of financial responsibility
required to be obtained pursuant to Section 25299.32, but not more
than one million dollars ($1,000,000) for each occurrence.

(b) A claim may be paid if the board makes all of the following
findings:

(1) There has been an unauthorized release of petroleum into
the environment from an underground storage tank.

(2) The claimant has been ordered to pay a settlement or final
judgment for third-party bodily injury or property damage arising
from operating an underground storage tank.

(3) The claimant has complied with Section 25299.31.

(4) (A) Except as provided in subparagraphs (B) and (C), the
claimant has complied with the permit requirements of Chapter
6.7 (commencing with Section 25280). A claimant shall obtain a
permit required by subdivision (a) of Section 25284 for the
underground storage tank that is the subject of the claim when the
claimant becomes subject to subdivision (a) of Section 25284 or
when the applicable local agency begins issuing permits pursuant
to subdivision (a) of Section 25284, whichever occurs later. begin insert For
the purpose of this subparagraph, a claimant shall demonstrate
compliance with the permit requirements of Chapter 6.7
(commencing with Section 25280) by submitting copies of the
required permits or other documentation that demonstrates
compliance to the satisfaction of the board. end insert

(B) A claimant who acquires real property on which an
underground storage tank is situated and, despite the exercise of
reasonable diligence, was unaware of the existence of the
underground storage tank when the real property was acquired,
has obtained a permit required by subdivision (a) of Section 25284
for the underground storage tank that is the subject of the claim
within a reasonable period, not to exceed one year, from when the
claimant should have become aware of the existence of the
underground storage tank, or when the applicable local agency
began issuing permits pursuant to Section 25284, whichever occurs
later.

(C) All claimants who file their claim on or after January 1,
2008, and who do not obtain a permit required by subdivision (a)
of Section 25284 in accordance with subparagraph (A) or (B) may
seek a waiver of the requirement to obtain a permit. The board
shall waive the provisions of subparagraphs (A) and (B) as a
condition for payment from the fund if the board finds all of the
following:

(i) The claimant was unaware of the permit requirement, and
upon becoming aware of the permit requirement, the claimant
complies with subdivision (a) of Section 25284 or Section 25298
and the regulations adopted to implement those sections within a
reasonable period, not to exceed one year, from when the claimant
became aware of the permit requirement.

(ii) Prior to submittal of the application to the fund, the claimant
has complied with Section 25299.31 and has obtained and paid
for all permits currently required by this paragraph.

(iii) Prior to submittal of the application to the fund, the claimant
has paid all fees, interest, and penalties imposed pursuant to Article
5 (commencing with Section 25299.40) of this chapter and Part
26 (commencing with Section 50101) of Division 2 of the Revenue
and Taxation Code for the underground storage tank that is the
subject of the claim.

(D) (i) A claimant who is exempted pursuant to subparagraph
(C) and who has complied, on or before December 22, 1998, with
subdivision (a) of Section 25284 or Section 25298 and the
regulations adopted to implement those sections, shall obtain a
level of financial responsibility in an amount twice as great as the
amount that the claimant is otherwise required to obtain pursuant
to subdivision (a) of Section 25299.32, but in no event less than
ten thousand dollars ($10,000). All other claimants exempted
pursuant to subparagraph (C) shall obtain a level of financial
responsibility that is four times as great as the amount that the
claimant is otherwise required to obtain pursuant to subdivision
(a) of Section 25299.32, but in no event less than twenty thousand
dollars ($20,000).

(ii) The board may waive the requirements of clause (i) if the
claimant can demonstrate that the conditions specified in clauses
(i) to (iii), inclusive, of subparagraph (C) were satisfied prior to
any contamination having been caused. The demonstration may
be made through a certification issued by the permitting agency
based on a site evaluation and tank tests at the time of permit
application or in any other manner as may be acceptable to the
board.

(E) All claimants who file a claim before January 1, 2008, and
who are not eligible for a waiver of the permit requirements
pursuant to applicable statutes or regulations in effect on the date
of the filing of the claim may resubmit a new claim pursuant to
subparagraph (C) on or after January 1, 2008. The board shall rank
all claims resubmitted pursuant to subparagraph (C) lower than
all claims filed before January 1, 2008, within their respective
priority classes specified in subdivision (b) of Section 25299.52.

(5) The claimant is required to undertake or contract for
corrective action pursuant to Section 25296.10, under the federal
act, or under Section 6973 of Title 42 of the United States Code,
or, as of January 1, 1988, the claimant has initiated corrective
action in accordance with Division 7 (commencing with Section
13000) of the Water Code or Chapter 6.7 (commencing with
Section 25280).

(6) The claimant has paid all fees, interest, and penalties imposed
pursuant to Article 5 (commencing with Section 29299.40) of this
chapter and Part 26 (commencing with Section 50101) of Division
2 of the Revenue and Taxation Code for the underground storage
tank that is the subject of the claim.

(c) A claimant may be reimbursed by the fund for compensation
of third parties for only the following:

(1) Medical expenses.

(2) Actual lost wages or business income.

(3) Actual expenses for remedial action to remedy the effects
of damage to the property of the third party caused by the
unauthorized release of petroleum from an underground storage
tank.

(4) The fair market value of the property rendered permanently
unsuitable for use by the unauthorized release of petroleum from
an underground storage tank.

(d) The board shall pay a claim submitted by a person eligible
to submit a claim pursuant to subdivision (e) of Section 25299.54
for the costs related to the compensation of third parties for bodily
injury and property damages that exceed the level of financial
responsibility required to be obtained pursuant to paragraph (2) of
subdivision (a) of Section 25299.32, but not more than one million
dollars ($1,000,000) for each occurrence.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 25299.59 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

25299.59.  

(a) If the board has paid out of the fund for any
costs of corrective action, the board shall not pay any other claim
out of the fund for the same costs.

(b) begin insert   end insert begin insert (1) end insert  Notwithstanding Sections 25299.57 and 25299.58, begin insert for
a claim filed on or before December 31, 2014, end insert the board shall not
reimburse or authorize prepayment of any claim in an aggregate
amount exceeding one million five hundred thousand dollars
($1,500,000), less the minimum level of financial responsibility
specified in Section 25299.32, for a claim arising from the same
event or occurrence. If a claim exceeds one million dollars
($1,000,000) for an occurrence, the board may only reimburse
costs submitted pursuant to Section 25299.57 for those costs in
excess of one million dollars ($1,000,000).

begin insert

(2) If a claim is filed on or after January 1, 2015, the board
shall not reimburse or authorize prepayment of the claim in an
aggregate amount exceeding one million dollars ($1,000,000),
less the minimum level of financial responsibility specified in
Section 25299.32, for a claim arising from the same event or
occurrence.

end insert

(c) The board may conduct an audit of any corrective action
claim honored pursuant to this chapter. The claimant shall
reimburse the state for any costs disallowed in the audit. A claimant
shall preserve, and make available, upon request of the board or
the board’s designee, all records pertaining to the corrective action
claim for a period of three years after the final payment is made
to the claimant.

begin delete SEC. 11. end delete
begin insert SEC. 16. end insert   

Section 25299.70 of the Health and Safety Code is
amended to read:

25299.70.  

(a) The board may recover any costs incurred and
payable from the fund pursuant to subdivisions (c), (e), (h), and
(n) of Section 25299.51 from the owner or operator of the
underground storage tank which released the petroleum and which
is the subject of those costs or from any other responsible party.

(b) The liability of an owner or operator shall be the full and
total costs specified in subdivision (a) if the owner or operator has
not complied with the requirements of Article 3 (commencing with
Section 25299.30) or has violated Section 25296.10 or any
corrective action order, begin delete directive, notification end delete begin insert directive, notification, end insert
or approval order issued pursuant to this chapter, Chapter 6.7
(commencing with Section 25280), or Division 7 (commencing
with Section 13000) of the Water Code. The liability of a
responsible party who is not an owner or operator shall be the full
and total costs specified in subdivision (a).

(c) The amount of costs determined pursuant to this section
shall be recoverable in a civil action. This section does not deprive
a party of any defense the party may have.

(d) All money recovered by the board pursuant to this section
shall be deposited in the fund.

(e) The amount of the costs constitutes a lien on the affected
property upon service of a copy of the notice of lien on the owner
and upon the recordation of a notice of lien, if the notice identifies
the property on which the condition was abated, the amount of the
lien, and the owner of record of the property, in the office of the
county recorder of the county in which the property is located.
Upon recordation, the lien shall have the same force, effect, and
priority as a judgment lien, except that it attaches only to the
property posted and described in the notice of lien, and shall
continue for 10 years from the time of the recording of the notice,
unless sooner released or otherwise discharged. Not later than 45
days from the date of receipt of a notice of lien, the owner may
petition the court for an order releasing the property from the lien
or reducing the amount of the lien. In that court action, the
governmental agency that incurred the cleanup costs shall establish
that the costs were reasonable and necessary. The lien may be
foreclosed by an action brought by the board for a money judgment.

begin delete SEC. 12. end delete
begin insert SEC. 17. end insert   

Section 25299.71 is added to the Health and Safety
Code, to read:

25299.71.  

(a) (1) Except as provided in subdivisions (b) and
(c), if a person is convicted under Section 25299.80.5 or is found
to be civilly liable under Section 25299.78 or 25299.80, the
executive director of the board may permanently disqualify that
person from receiving any moneys from the fund. If the executive
director of the board determines that the disqualified person is a
contractor or consultant, a claimant shall not submit invoices to
the fund for any work performed or directed by that person.

(2) For purposes of this section, “contractor or consultant” means
a person whose professional services are engaged to perform work
that is the subject of a claim specified in paragraph (2) of
subdivision (d) of Section 25299.57.

(b) If the person convicted under Section 25299.80.5 or found
to be civilly liable under Section 25299.78 or 25299.80 is a
claimant, the executive director of the board may permanently
disqualify the claimant from further participation in the fund, with
respect to begin insert only end insert the fund claims that are the subject of that
conviction under Section 25299.80.5 or that civil liability under
Section 25299.78 or 25299.80, begin insert and end insert only if the executive director
makes a finding that the alleged violation is knowing, willful, or
intentional.

(c) If the person convicted under Section 25299.80.5 or found
to be civilly liable under Section 25299.78 or 25299.80 is a
begin delete claimant end delete begin insert contractor or consultant end insert , the executive director of the
board may permanently disqualify the begin delete claimant end delete begin insert contractor or
consultant end insert from further participation in the fund, including
begin insert participation in corrective action for end insert fund claims that are not the
subject of that conviction under Section 25299.80.5 or civil liability
under Section 25299.78 or 25299.80, only if the executive director
makes one of the following findings:

(1) The alleged violation is knowing, willful, or intentional.

(2) The begin delete claimant end delete begin insert contractor or consultant end insert received a material
economic benefit from the action begin delete which end delete begin insert that end insert caused the violation.

(3) The alleged violation is chronic or the begin delete claimant end delete begin insert contractor
or consultant end insert is a recalcitrant violator, as determined pursuant to
subdivision (g) of Section 13399 of the Water Code.

(d) In addition to the requirements of subdivisions (b) and (c),
in determining the extent to which a person, including, but not
limited to, a claimant, begin insert contractor, or consultant, end insert convicted under
Section 25299.80.5 or found to be civilly liable under Section
25299.78 or 25299.80 may be disqualified from receiving any
money from the fund, including the extent to which the person
may be reimbursed for pending or future claims from the fund, the
executive director of the board, or the court, as the case may be,
shall take into account the nature, circumstances, extent, and
gravity of the violation, the person’s ability to pay, any prior history
of misrepresentations by the person to the board, or local agency,
any economic benefits or savings that resulted or would have
resulted from the false statement, and any other matters as justice
may require.

begin delete SEC. 13. end delete
begin insert SEC. 18. end insert   

Section 25299.78 of the Health and Safety Code is
amended to read:

25299.78.  

(a) To carry out the purposes of this chapter, any
authorized representative of the local agency, regional board, or
board shall have the authority specified in Section 25185, with
respect to any place where underground storage tanks are located,
and in Section 25185.5, with respect to any real property which is
within 2,000 feet of any place where underground storage tanks
are located.

(b) An owner or operator shall furnish, under penalty of perjury,
any information on fees imposed pursuant to Article 5
(commencing with Section 25299.40), financial responsibility,
unauthorized releases, or corrective action as the local agency,
regional board, or board may require.

(c) A person who fails or refuses to furnish information under
subdivision (b) or furnishes false information to the fund is subject,
in accordance with the requirements of subdivision (d), to civil
liability of not more than ten thousand dollars ($10,000) for each
violation of this subdivision.

(d) (1) Except as provided in subdivision (2), a claimant shall
not be liable under subdivision (c) unless one of the following is
established by the court, if the action is brought pursuant to
subdivision (e), or the executive director, if the action is brought
pursuant to subdivision (f):

(A) The alleged violation is knowing, willful, or intentional.

(B) The claimant received a material economic benefit from the
action which caused the alleged violation.

(C) The alleged violation is chronic or that the claimant is a
recalcitrant violator, as determined pursuant to subdivision (g) of
Section 13399 of the Water Code.

(2) If a claimant is in violation of subdivision (c), but does not
meet any of the conditions specified in paragraph (1), the claimant
may be held liable only if the board or an authorized representative
of the board issues a notice to comply pursuant to Chapter 5.8
(commencing with Section 13399) of Division 7 of the Water Code
before an action is taken pursuant to subdivision (e) or (f).

(e) The Attorney General, upon request of the board, shall bring
an action in superior court to impose the civil liability specified
in subdivision (c).

(f) The executive director of the board may impose the civil
liability specified in subdivision (c) administratively in the same
manner as the executive director of the board is authorized to
impose civil liability pursuant to Article 2.5 (commencing with
Section 13323) of Chapter 5 of Division 7 of the Water Code.

(g) In determining the amount of any civil liability imposed
under this section, the executive director of the board, or the court,
as the case may be, shall take into account the nature,
circumstances, extent, and gravity of the false statement or refusal
or failure to furnish information, the person’s ability to pay, any
prior history by the person of misrepresentations to or
noncooperation with the board or local agency, any economic
benefits or savings that resulted or would have resulted from the
false statement or refusal or failure to furnish information, and
other matters as justice may require.

(h) Remedies under this section are in addition to, and do not
supersede or limit, any other civil, begin delete administrative end delete begin insert administrative, end insert
or criminal remedies.

(i) All funds collected pursuant to this section shall be deposited
into the fund.

begin delete SEC. 14. end delete
begin insert SEC. 19. end insert   

Section 25299.80 is added to the Health and Safety
Code, to read:

25299.80.  

(a) A person who makes a misrepresentation in any
claim, including, but not limited to, a record, report, certification,
application, invoice, form, or other document that is submitted to
the fund relating to a claim, is subject to civil liability of not more
than five hundred thousand dollars ($500,000) for each violation
of this subdivision.

(b) Except as provided in subdivision (d), the Attorney General,
upon request of the state board, shall bring an action in superior
court to impose the civil liability specified in subdivision (a).

(c) Except as provided in subdivision (d), the executive director
of the board may impose the civil liability specified in subdivision
(a) administratively in the same manner as the executive director
of the board is authorized to impose civil liability pursuant to
Article 2.5 (commencing with Section 13323) of Chapter 5 of
Division 7 of the Water Code.

(d) If the violation by a claimant of subdivision (a) is not
knowing, willful, or intentional, the board or an authorized
representative shall first issue a notice to comply pursuant to
Chapter 5.8 (commencing with Section 13399) of Division 7 of
the Water Code before an action may be taken pursuant to
subdivision (b) or (c).

(e) In determining the amount of civil liability imposed under
this section, the executive director of the board, or the court, as
the case may be, shall take into account the nature, circumstance,
extent, and gravity of the violation, the person’s ability to pay, any
prior history of misrepresentations by the person to the board or
local agency, any economic benefits or savings that resulted or
would have resulted from the false statement, and other matters
as justice may require.

(f) Remedies under this section are in addition to, and do not
supersede or limit, any other civil, administrative, or criminal
remedies.

(g) All money collected pursuant to this section shall be
deposited into the fund.

(h) The board shall file a complaint with any applicable licensing
board against any person licensed or otherwise regulated by that
licensing board who is found to be liable under this section.

begin delete SEC. 15. end delete
begin insert SEC. 20. end insert   

Section 25299.80.5 is added to the Health and Safety
Code, to read:

25299.80.5.  

(a) A person who knowingly makes or causes to
be made any false statement, material misrepresentation, or false
certification in support of any claim under this chapter, including,
but not limited to, in an application, record, report, certification,
plan, invoice, form, or other document that is submitted, filed, or
required to be maintained under this chapter for purposes of a
claim, shall, upon conviction, be punished by a fine of not more
than ten thousand dollars ($10,000), or by imprisonment in a county
jail for not more than one year, or in the state prison for 16 months,
begin delete two, end delete begin insert two years, end insert or three years, or by both that fine and
imprisonment.

(b) The Attorney General, upon request of the board, may bring
an action in superior court to impose the criminal penalty specified
in subdivision (a).

(c) Remedies under this section are in addition to, and do not
supersede or limit, any other civil or criminal remedies.

(d) All funds collected pursuant to this section shall be deposited
into the fund.

(e) The board shall file a complaint with any applicable licensing
board against any person licensed or otherwise regulated by that
licensing board who is convicted under this section.

begin delete SEC. 16. end delete
begin insert SEC. 21. end insert   

Section 25299.80.6 is added to the Health and Safety
Code, to read:

25299.80.6.  

An action by the executive director to impose civil
liability under this chapter is subject to review by the board in the
same manner as provided for the review by the State Water
Resources Control Board of actions of a regional board under
Section 13320 of the Water Code.

begin delete SEC. 17. end delete
begin insert SEC. 22. end insert   

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

25299.81.  

(a) Except as provided in subdivisions (b) and (c),
this chapter shall remain in effect only until January 1, begin delete 2020, end delete begin insert 2026, end insert
and as of that date is repealed, unless a later enacted statute, which
is enacted before January 1, begin delete 2020, end delete begin insert 2026, 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 2020. end delete
begin insert 2026. 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 2020, end delete
begin insert 2026, 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, begin delete 2019, end delete begin insert 2025, end insert or have become due before January
1, begin delete 2020, end delete begin insert 2026, end insert including any interest or penalties that accrue before,
on, or after January 1, begin delete 2020, end delete begin insert 2026, 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 2020, end delete
begin insert 2026, 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 begin insert the end insert 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 2020, end delete begin insert 2026, 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.

(7) (A) The imposition and collection of civil liability pursuant
to Article 7 (commencing with Section 25299.70), as that article
read on December 31, begin delete 2019. end delete begin insert 20 end insert begin insert 25. end insert

(B) Subparagraph (A) shall not be construed as extending or
modifying any applicable statute of limitations.

(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.

begin delete SEC. 18. end delete
begin insert SEC. 23. end insert   

Section 25299.82 is added to the Health and Safety
Code, to read:

25299.82.  

To ensure that the phase out of the Underground
Storage Tank Cleanup Fund program, as provided in Section
25299.81, is achieved in an orderly manner that enables owners
and operators to maintain continuous coverage for financial
responsibility obligations required by Sections 25292.2 and
25299.31 and the federal act, the board shall take the following
actions:

(a) The board shall not accept claim applications submitted to
the fund pursuant to Section 25299.57 or 25299.58 after January
1, begin delete 2019, end delete begin insert 2025, end insert unless the board finds that the unauthorized release
that is the subject of the claim was discovered before January 1,
begin delete 2019, end delete begin insert 2025, end insert and the submission of a claim application by that date
was beyond the claimant’s reasonable control.

(b) The board shall not accept requests for reimbursements
submitted to the fund pursuant to Section 25299.57 or 25299.58
after July 1, begin delete 2019. end delete begin insert 2025. end insert

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 25299.94 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

25299.94.  

(a)  begin insert (1) end insert begin insert   end insert The board may pay the cost of corrective
actions and third-party compensation claims that are submitted as
part of a joint claim begin insert filed on or before December 31, 2014, end insert and
begin delete which end delete begin insert that end insert exceed the amount specified in subdivision (b), but do
not exceed an amount equal to one million five hundred thousand
dollars ($1,500,000) per occurrence, for which an owner or operator
named in the joint claim is eligible for reimbursement under this
chapter. begin delete If end delete

begin insert (2) end insert begin insert   end insert begin insert If end insert a claim from a contributing site exceeds one million dollars
($1,000,000) for an occurrence, the board may only reimburse
costs submitted pursuant to Section 25299.57 for those costs in
excess of one million dollars ($1,000,000).

begin insert

(3) If a joint claim is filed on or after January 1, 2015, the
board may pay the cost of corrective actions and third-party
compensation claims that are submitted as part of a joint claim
and that exceed the amount specified in subdivision (b), but do not
exceed an amount equal to one million dollars ($1,000,000) per
occurrence, for which an owner or operator named in the joint
claim is eligible for reimbursement under this chapter.

end insert

(b) For each joint claim, the board may only pay for the costs
of corrective action and third-party compensation claims that
exceed the aggregate of the levels of financial responsibility
required pursuant to Section 25299.32 for each owner or operator
named in the joint claim.

(c) The costs of corrective action determined eligible for
reimbursement shall be paid before third-party compensation
claims.

(d) Except as provided in paragraph (1) of subdivision (e),
reimbursement for costs of corrective action is limited to costs
incurred by the joint claimants after executing an agreement under
paragraph (7) of subdivision (a) of Section 25299.93.

(e) Both of the following costs of corrective action incurred at
a contributing site may be reimbursed in accordance with
subdivision (f):

(1) Costs incurred by an owner or operator before executing an
agreement described in paragraph (7) of subdivision (a) of Section
25299.93.

(2) Costs relating to unauthorized releases that do not contribute
to the commingled plume, but which are included in the occurrence
which is the subject of the joint claim.

(f) An owner or operator may seek reimbursement of costs
described in subdivision (e) by doing either of the following:

(1) Including a payment request for those corrective action costs
with the claim filed under this article.

(2) Filing a claim or maintaining an existing claim under Article
6 (commencing with Section 25299.50).

(g) Any reimbursement received pursuant to subdivision (f) and
any amount excluded from the payment based on the amount of
financial responsibility required to be maintained shall be applied
toward the limitations prescribed in subdivision (a).

(h) The board shall not reimburse a claimant or joint claimant
for any eligible costs for which the claimant or joint claimant has
been, or will be, compensated by another party.

begin delete SEC. 19. end delete
begin insert SEC. 25. end insert   

Section 25299.101 of the Health and Safety Code is
amended to read:

25299.101.  

(a) The board shall conduct a loan program
pursuant to this chapter, to assist small businesses in upgrading,
replacing, or removing tanks to meet applicable local, state, or
federal standards. Loan funds may also be used for corrective
actions, as defined in Section 25299.14.

(b) The board shall also conduct a grant program, pursuant to
this chapter, to assist small businesses to upgrade, remove, or
replace project tanks to comply with Section 25284.1, 25292.05,
25292.4, or 41954.

begin delete SEC. 20. end delete
begin insert SEC. 26. end insert   

Section 25299.104 of the Health and Safety Code is
amended to read:

25299.104.  

(a) The minimum amount that the board may loan
an applicant is ten thousand dollars ($10,000), and the maximum
amount that the board may loan an applicant is seven hundred fifty
thousand dollars ($750,000).

(b) The term of the loan shall be for a maximum of 20 years if
secured by real property, and for 10 years if not secured by real
property. The interest rate for loans shall be set at the rate equal
to one-half of the most recent general obligation bond rate obtained
by the office of the Treasurer at the time of the loan commitment.

(c) Loan funds may be used to finance up to 100 percent of the
costs necessary to upgrade, remove, or replace project tanks,
including corrective actions, to meet applicable local, state, or
federal standards, including, but not limited to, any design,
construction, monitoring, operation, or maintenance requirements
adopted pursuant to Section 25284.1, 25292.05, 25292.4, or 41954.

(d) The board may charge a loan fee to loan applicants of up to
2 percent of the requested loan amount. The loan fee shall be
deposited in the Petroleum Underground Storage Tank Financing
Account.

(e) The inoperation or repeal of this chapter pursuant to Section
25299.117 shall not extinguish a loan obligation and shall not
impair the deed of trust or other collateral made pursuant to this
chapter or the authority of the state to pursue appropriate action
for collection.

begin delete SEC. 21. end delete
begin insert SEC. 27. end insert   

Section 25299.105 of the Health and Safety Code is
amended to read:

25299.105.  

(a) The board shall make grant funds available
from the Petroleum Underground Storage Tank Financing Account
to eligible grant applicants who meet all of the following eligibility
requirements:

(1) The grant applicant is a small business, pursuant to the
following requirements:

(A) The grant applicant meets the conditions for a small business
concern as defined in Section 632 of Title 15 of the United States
Code, and in the federal regulations adopted to implement that
section, as specified in Part 121 (commencing with Section
121.101) of Chapter I of Title 13 of the Code of Federal
Regulations.

(B) The grant applicant employs fewer than 20 full-time and
part-time employees, is independently owned and operated, and
is not dominant in its field of operation.

(2) The principal office of the grant applicant is domiciled in
the state and the officers of the grant applicant are domiciled in
this state.

(3) All tanks owned and operated by the grant applicant are
subject to compliance with Chapter 6.7 (commencing with Section
25280) and the regulations adopted pursuant to that chapter.

(4) The facility where the project tank is located has sold at
retail less than 900,000 gallons of gasoline annually for each of
the two years preceding the submission of the grant application.
The number of gallons sold shall be based upon taxable sales
figures provided to the State Board of Equalization for that facility.

(5) Except as provided in subdivision (b), the grant applicant
owns or operates a tank that is in compliance with all of the
following:

(A) Section 41954.

(B) Any of the following:

(i) Section 25290.1.

(ii) Section 25290.2.

(iii) Section 25291.

(iv) Subdivisions (d) and (e) of Section 25292.

(C) Any regulation implementing the applicable sections
required for compliance with subparagraphs (A) and (B).

(6) The facility where the project tank is located was legally in
business retailing gasoline after January 1, 1999.

(b) The board may grant a waiver from requirements of
paragraph (5) of subdivision (a) if the board finds all of the
following:

(1) The grant applicant owns or operates a project tank.

(2) The project tank will be removed and will not be replaced
with another tank.

(3) The grant applicant does not meet the requirements to obtain
a loan pursuant to this chapter.

(c) Grant funds may only be used to pay the costs necessary to
upgrade, remove, or replace project tanks to comply with Section
25284.1, 25292.05, 25292.4, 25292.5, or 41954.

begin delete SEC. 22. end delete
begin insert SEC. 28. end insert   

Section 25299.106 of the Health and Safety Code is
amended to read:

25299.106.  

A complete grant application shall include all of
the following information:

(a) Evidence of eligibility.

(b) The board shall develop a standard list of documents required
of all applicants, and may also request from individual applicants
additional financial and legal documents not provided on this list.

(c) An explanation of the actions the applicant is required to
take to comply with the requirements of Section 25284.1 ,
25292.05, 25292.4, 25292.5, or 41954.

(d) A detailed cost estimate of the actions that are required to
be completed for the project tanks to comply with applicable local,
state, or federal standards, if applicable.

(e) Any other information that the board determines to be
necessary to include in an application form.

begin delete SEC. 23. end delete
begin insert SEC. 29. end insert   

Section 25299.107 of the Health and Safety Code is
amended to read:

25299.107.  

(a) The minimum amount that the board may grant
an applicant is three thousand dollars ($3,000), and the maximum
amount that the board may grant an applicant is seventy thousand
dollars ($70,000).

(b) Grant funds may be used to finance up to 100 percent of the
costs necessary to upgrade, remove, or replace project tanks to
comply with Section 25284.1, 25292.05, 25292.4, 25292.5, or
41954.

(c) If the board received the applicant’s grant application on or
before April 1, 2009, grant funds may be used to reimburse up to
100 percent of the costs that the applicant incurred after the board
received the grant application to comply with the Enhanced Vapor
Recovery Phase II regulations.

(d) A person or entity is not eligible to receive more than seventy
thousand dollars ($70,000) in grant funds pursuant to this chapter.

begin delete SEC. 24. end delete
begin insert SEC. 30. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

begin delete SEC. 25. end delete
begin insert SEC. 31. end insert   

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to protect the health and safety of the people of the state
from the dangers of surface water and groundwater contamination
and protect the environment from hazardous substance releases,
it is necessary that this act take effect immediately.