Amended in Senate April 16, 2013

Senate BillNo. 763


Introduced by Senator Fuller

February 22, 2013


begin deleteAn act to amend Section 41700 of the Health and Safety Code, relating to air resources. end deletebegin insertAn act to amend Sections 25284.1, 25299.51, 25299.102, 25299.103, 25299.104, 25299.105, 25299.106, and 25299.109,end insertbegin insert of, to repeal Sections 25299.111, 25299.113, and 25299.117 of, and to repeal and add Section 25299.110 of, the Health and Safety Code, relating to underground storage tanks, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 763, as amended, Fuller. begin deleteAir resources: discharges. end deletebegin insertState Water Resources Control Board: underground storage tanks.end insert

begin insert

(1) Existing law provides for the regulation of underground storage tanks by the State Water Resources Control Board. Existing law, until January 1, 2016, requires the board to conduct a loan and grant program to assist small businesses in upgrading, replacing, or removing tanks meeting applicable local, state, or federal standards (UST upgrade program). Under existing law, the interest rate for loans is set at the rate earned by the Surplus Money Investment Fund at the time of the loan commitment. Existing law establishes the Petroleum Underground Storage Tank Financing Account (financing account) and, upon appropriation by the Legislature, requires moneys in the account to be used by the board to make loans and grants for purposes of the UST upgrade program. Existing law requires interest earned from the investment of the moneys in the account to be deposited into a subaccount, available upon appropriation by the Legislature for administrative expenses of the board. Existing law requires the board annually to make available not more than 33% of the available funds from the account for the purposes of providing grants.

end insert
begin insert

This bill would extend the loan and grant program indefinitely and revise loan eligibility and grant award requirements. The bill would require the board to annually make available not more than 15% of the available funds from the account for the purposes of providing grants. The bill would set the interest rate for loans at the rate equal to 12 of the most recent general obligation rate obtained by the office of the Treasurer at the time of commitment. The bill would instead require interest earned from moneys in the financing account to be deposited into that account and would eliminate the subaccount. The bill would require loan fees and various other moneys received in the implementation of the loan and grant program to be deposited into the financing account. The bill would specify that moneys in the financing account are permitted to be used, in addition to making loans and grants, to service loans, to recover defaulted loan moneys, to protect the state’s position as a lender creditor, and for administration costs, as specified.

end insert
begin insert

(2) Existing law establishes the Underground Storage Tank Cleanup Fund in the State Treasury and requires specified moneys to be deposited into the fund. Under existing law, moneys in the fund may be expended by the board, upon appropriation by the Legislature, for purposes of the Barry Keene Underground Storage Tank Cleanup Trust Fund Act of 1989.

end insert
begin insert

This bill would transfer $8,000,000 from the fund to the financing account and appropriate these funds for the purpose of making grants and loans and administering specific provisions, as prescribed.

end insert
begin insert

(3) This bill would also make technical, nonsubstantive changes to various provisions.

end insert
begin delete

Existing law, until January 1, 2014, authorizes a local air pollution control district or air quality management district to adopt a rule or regulation, consistent with protecting the public’s comfort, repose, health, and safety, and not causing injury, detriment, nuisance, or annoyance, that ensures district staff and resources are not used to investigate complaints, determined to be repeated and unsubstantiated, alleging a nuisance odor violation of that discharge prohibition. If a district adopts such a rule or regulation, the district is required to submit the rule or regulation to the Senate Committee on Environmental Quality and the Assembly Committee on Natural Resources within 30 days of adopting the rule or regulation.

end delete
begin delete

Existing law, operative on January 1, 2014, provides that, except as specified, a person is prohibited from discharging a quantity of air contaminants or other material that causes injury, detriment, nuisance, or annoyance to the public, or that endangers the comfort, repose, health, or safety of the public, or that causes injury or damage to business or property, as provided.

end delete
begin delete

This bill would make technical, nonsubstantive changes to the above-referenced provisions that become operative on January 1, 2014.

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 25284.1 of the end insertbegin insertHealth and Safety Codeend insert
2begin insert is amended to read:end insert

3

25284.1.  

(a) The board shall take all of the following actions
4with regard to the prevention of unauthorized releases from
5petroleum underground storage tanks:

6(1) On or before June 1, 2000, initiate a field-based research
7program to quantify the probability and environmental significance
8of releases from underground storage tank systems meeting the
91998 upgrade requirements specified in Section 25284, as that
10section read on January 1, 2002. The research program shall do
11all of the following:

12(A) Seek to identify the source and causes of releases and any
13deficiencies in leak detection systems.

14(B) Include single-walled, double-walled, and hybrid tank
15systems, and avoid bias towards known leaking underground
16storage tank systems by including a statistically valid sample of
17all operating underground storage tank systems.

18(C) Include peer review.

19(2) Complete the research program on or before June 1, 2002.

20(3) Use the results of the research program to develop
21appropriate changes in design, construction, monitoring, operation,
22and maintenance requirements for tank systems.

23(4) On or before January 1, 2001, adopt regulations to do all of
24the following:

P4    1(A) (i) Require underground storage tank owners, operators,
2service technicians, installers, and inspectors to meet minimum
3industry-established training standards and require tank facilities
4to be operated in a manner consistent with industry-established
5best management practices.

6(ii) The board shall implement an outreach effort to educate
7small business owners or operators on the importance of the
8regulations adopted pursuant to this subparagraph.

9(B) (i) Except as provided in clauses (ii) and (iii), require testing
10of the secondary containment components, including
11under-dispenser and pump turbine containment components, upon
12initial installation of a secondary containment component and
13periodically thereafter, to ensure that the system is capable of
14containing releases from the primary containment until a release
15is detected and cleaned up. The board shall consult with the
16petroleum industry and local government to assess the appropriate
17test or tests that would comply with this subparagraph.

18(ii) Secondary containment components that are part of an
19emergency generator tank system may be tested using enhanced
20leak detection, if the test is performed at the frequency specified
21by the board for testing of secondary containment pursuant to
22Section 2644.1 of Title 23 of the California Code of Regulations.
23If the results of the enhanced leak detection test indicate that any
24component of the emergency generator tank system is leaking
25liquid or vapor, the owner or operator shall take appropriate actions
26to correct the leakage, and the owner or operator shall retest the
27system using enhanced leak detection until the system is no longer
28leaking liquid or vapor.

29(iii) Any tank or piping that is part of an emergency generator
30tank system and located within a structure as described in paragraph
31(2) of subdivision (a) of Section 25283.5 is exempt from the
32secondary containment testing required by clausebegin delete (i) of
33subparagraph (B) of paragraph (4),end delete
begin insert (i),end insert if the owner or operator
34conducts visual inspections of tank or piping each time the tank
35system is operated, but no less than monthly, and maintains a log
36of inspection results for review by the local agency.begin delete The provisions
37of thisend delete
begin insert Thisend insert clausebegin delete areend deletebegin insert isend insert not applicable if the board adopts
38regulations pursuant to Section 25299.3 that address the design,
39construction, upgrade, and monitoring of unburied tanks that are
40part of an emergency generator tank system.

P5    1(C) Require annual testing of release detection sensors and
2alarms, including under-dispenser and pump turbine containment
3sensors and alarms. The board shall consult with the petroleum
4industry and local government to assess the appropriate test or
5tests that would comply with this subparagraph.

6(5) (A) Require an owner or operator of an underground storage
7tank installed after July 1, 1987, if a tank is located within 1,000
8feet of a public drinking water well, as identified pursuant to the
9state GIS mapping database, to have the underground storage tank
10system fitted, on or before July 1, 2001, with under-dispenser
11containment or a spill containment or control system that is
12approved by the board as capable of containing any accidental
13release.

14(B) Require all underground storage tanks installed after January
151, 2000, to have the tank system fitted with under-dispenser
16containment or a spill containment or control system to meet the
17requirements of subparagraph (A).

18(C) Require an owner or operator of an underground storage
19tank that is not otherwise subject to subparagraph (A), and not
20subject to subparagraph (B), to have the underground storage tank
21system fitted to meet the requirements of subparagraph (A), on or
22before December 31, 2003.

23(D) On and after January 1, 2002, no person shall install, repair,
24maintain, or calibrate monitoring equipment for an underground
25storage tank unless that person satisfies both of the following
26requirements:

27(i) The person has fulfilled training standards identified by the
28board in regulations adopted pursuant to this section.

29(ii) The person possesses a tank testing license issued by the
30board pursuant to Section 25284.4, or a Class “A” General
31Engineering Contractor License, C-10 Electrical Contractor
32License, C-34 Pipeline Contractor License, C-36 Plumbing
33Contractor License, or C-61 (D40) Limited Specialty Service
34Station Equipment and Maintenance Contractor License issued by
35the Contractors’ State License Board.

36(E)  Loans and grants for the installation of under-dispenser
37containment or a spill containment or control system shall be made
38available pursuant to Chapterbegin delete 8.5end deletebegin insert 6.76end insert (commencing with Section
39begin delete 15399.10) of Part 6.7 of Division 3 of Title 2 of the Government
40Code.end delete
begin insert 25299.10).end insert

P6    1(6) Convene a panel of local agency and regional board
2representatives to review existing enforcement authority and
3procedures and to advise the board of any changes that are needed
4to enable local agencies to take adequate enforcement action against
5owners and operators of noncompliant underground storage tank
6facilities. The panel shall make its recommendations to the board
7on or before September 30, 2001. Based on the recommendations
8of the panel, the board shall also establish effective enforcement
9procedures in cases involving fraud.

10(b) On or before July 1, 2001, the Contractors’ State License
11Board, in consultation with the board, the petroleum industry, air
12pollution control districts, air quality management districts, and
13local government, shall review its requirements for petroleum
14underground storage tank system installation and removal
15contractors and make changes, where appropriate, to ensure these
16contractors are qualified.

17begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 25299.51 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
18amended to read:end insert

19

25299.51.  

The board may expend the money in the fund for
20all the following purposes:

21(a) In addition to the purposes specified in subdivisions (c), (d),
22and (e), for the costs of implementing this chapter and for
23implementing Section 25296.10 for a tank that is subject to this
24chapter.

25(b) To pay for the administrative costs of the State Board of
26Equalization in collecting the fee imposed by Article 5
27(commencing with Section 25299.40).

28(c) To pay for the reasonable and necessary costs of corrective
29action pursuant to Section 25299.36, up to one million five hundred
30thousand dollars ($1,500,000) per occurrence. The Legislature
31may appropriate the money in the fund for expenditure by the
32board, without regard to fiscal year, for prompt action in response
33to any unauthorized release.

34(d) To pay for the costs of an agreement for the abatement of,
35and oversight of the abatement of, an unauthorized release of
36hazardous substances from underground storage tanks, by a local
37agency, as authorized by Section 25297.1 or by any other provision
38of law, except that, for the purpose of expenditure of these funds,
39only underground storage tanks, as defined in Section 25299.24,
40shall be the subject of the agreement.

P7    1(e) To pay for the costs of cleanup and oversight of unauthorized
2releases at abandoned tank sites. The board shall not expend more
3than 25 percent of the total amount of money collected and
4deposited in the fund annually for the purposes of this subdivision
5and subdivision (h).

6(f) To pay claims pursuant to Section 25299.57.

7(g) To pay, upon order of the Controller, for refunds pursuant
8to Part 26 (commencing with Section 50101) of Division 2 of the
9Revenue and Taxation Code.

10(h) To pay for the reasonable and necessary costs of corrective
11action pursuant to subdivision (f) of Section 25296.10, in response
12to an unauthorized release from an underground storage tank
13subject to this chapter.

14(i) To pay claims pursuant to Section 25299.58.

15(j) To pay for expenditures by the board associated with
16discovering violations of, and enforcing, or assisting in the
17enforcement of, the requirements of Chapter 6.7 (commencing
18with Section 25280) with regard to petroleum underground storage
19tanks.

20(k) For transfer to the Petroleum Underground Storage Tank
21Financing Account, for purposes of Chapterbegin delete 6.77 (commencing
22with Section 25299.200).end delete
begin insert 6.76 (commencing with Section
2325299.100).end insert

24begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 25299.102 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
25amended to read:end insert

26

25299.102.  

The board shall only make loan funds available to
27loan applicants that meet all of the following eligibility
28requirements:

29(a) The loan applicant is a small business, either as defined in
30Section 632 of Title 15 of the United States Code, and in the federal
31regulations adopted to implement that section, as specified in Part
32121 (commencing with Sectionbegin delete 121.1011)end deletebegin insert 121.101)end insert of Chapter 1
33of Title 13 of the Code of Federal Regulations, or employs fewer
34than 500 full-time and part-time employees, is independently
35owned and operated, and is not dominant in its field of operation.
36In either case, the principal office of the small business shall be
37domiciled in the state, and the officers of the small business shall
38be domiciled in this state. The board shall give priority to awarding
39loans to small businesses that meet the definition of small business
P8    1specified in subdivision (d) of Section 14837 of the Government
2Code.

3(b) The loan applicant owns or operates a project tank.

begin delete

4(c) Loan funds are not obtainable, upon reasonable terms, from
5private financial institutions, the California Pollution Control
6Financing Authority, or any other government board.

end delete
begin delete

7(d)

end delete

8begin insert(c)end insert The loan applicant demonstrates the ability to repay the loan,
9and the availability of adequate collateral to secure the loan.

begin delete

10(e)

end delete

11begin insert(d)end insert All tanks owned and operated by the loan applicant are
12subject to compliance with Chapter 6.7 (commencing with Section
1325280), and the regulations adopted pursuant to that chapter.

begin delete

14(f)

end delete

15begin insert(e)end insert The loan applicant has complied, or will comply, with the
16financial responsibility requirements specified in Section 25299.31
17and the regulations adopted pursuant to this section.

18begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 25299.103 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
19amended to read:end insert

20

25299.103.  

(a) A complete loan application shall include all
21of the following:

22(1) Evidence of eligibility.

23(2) An environmental audit, as specified in Sectionbegin delete 5268end deletebegin insert 5260end insert
24 of Title 10 of the California Code of Regulations.

25(3) Financial and legal documents necessary to demonstrate the
26applicant’s ability to repay and provide collateral for the loan. The
27begin delete departmentend deletebegin insert boardend insert shall develop a standard list of documents
28required of all applicants, and may also request from individual
29applicants additional financial and legal documents not provided
30on this list.

31(4) An explanation of the reasons why the project tank is not in
32compliance with applicable local, state, or federal standards, and
33evidence that tanks not included in the list of project tanks are
34currently in compliance with applicable local, state, or federal
35standards.

36(5) A detailed cost estimate of the tasksbegin delete whichend deletebegin insert thatend insert are required
37to be completed in order for the project tanks to comply with
38applicable local, state, or federal standards.

39(6) Any other information that thebegin delete departmentend deletebegin insert boardend insert determines
40to be necessary to include in an application form.

P9    1(b) Notwithstanding paragraph (4) of subdivision (a), the
2begin delete departmentend deletebegin insert boardend insert may not refuse to grant a loan to an applicant
3solely because the applicant has failed to obtain a permit pursuant
4to the requirements of Chapter 6.7 (commencing with Section
525280).

6begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 25299.104 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
7amended to read:end insert

8

25299.104.  

(a) The minimum amount that the board may loan
9an applicant is ten thousand dollars ($10,000), and the maximum
10amount that the board may loan an applicant is seven hundred fifty
11thousand dollars ($750,000).

12(b) The term of the loan shall be for a maximum of 20 years if
13secured by real property, and for 10 years if not secured by real
14property. The interest rate for loans shall be set at the ratebegin delete earned
15by the Surplus Money Investment Fundend delete
begin insert equal to one-half of the
16most recent general obligation bond rate obtained by the office of
17the Treasurerend insert
at the time of the loan commitment.

18(c) Loan funds may be used to finance up to 100 percent of the
19costs necessary to upgrade, remove, or replace project tanks,
20including corrective actions, to meet applicable local, state, or
21federal standards, including, but not limited to, any design,
22construction, monitoring, operation, or maintenance requirements
23adopted pursuant to Sections 25284.1 and 25292.4.

begin delete

24(d) The repeal of this chapter pursuant to Section 25299.117
25shall not extinguish a loan obligation and shall not impair the deed
26of trust or other collateral made pursuant to this chapter or the
27authority of the state to pursue appropriate action for collection.

end delete
begin delete

28(e)

end delete

29begin insert(d)end insert The board may charge a loan fee to loan applicants of up to
302 percent of the requested loan amount. The loan fee shall be
31deposited in the Petroleumbegin insert Underground Storage Tankend insert Financing
32begin delete Collectionend delete Account.

33begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 25299.105 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
34amended to read:end insert

35

25299.105.  

(a) The board shall make grant funds available
36from the Petroleum Underground Storage Tank Financing Account
37to eligible grant applicants who meet all of the following eligibility
38requirements:

39(1) The grant applicant is a small business, pursuant to the
40following requirements:

P10   1(A) The grant applicant meets the conditions for a small business
2concern as defined in Section 632 of Title 15 of the United States
3Code, and in the federal regulations adopted to implement that
4section, as specified in Part 121 (commencing with Section
5121.101) of Chapter I of Title 13 of the Code of Federal
6Regulations.

7(B) The grant applicant employs fewer than 20 full-time and
8part-time employees, is independently owned and operated, and
9is not dominant in its field of operation.

10(2) The principal office of the grant applicant is domiciled in
11the state and the officers of the grant applicant are domiciled in
12this state.

13(3) All tanks owned and operated by the grant applicant are
14subject to compliance with Chapter 6.7 (commencing with Section
1525280) and the regulations adopted pursuant to that chapter.

16(4) The facility where the project tank is located has sold at
17retail less than 900,000 gallons of gasoline annually for each of
18the two years preceding the submission of the grant application.
19The number of gallons sold shall be based upon taxable sales
20figures provided to the State Board of Equalization for that facility.

21(5) The grant applicant owns or operates a tank that is in
22compliance with all of the following:

23(A) Section 41954.

24(B) Any of the following:

25(i) Section 25290.1.

26(ii) Section 25290.2.

27(iii) Section 25291.

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

29(C) Any regulation implementing the applicable sections
30required for compliance with subparagraphs (A) and (B).

31(6) The facility where the project tank is located was legally in
32business retailing gasoline after January 1, 1999.

33(b) Grant funds may only be used to pay the costs necessary to
34comply with the requirements of Section 25284.1, 25292.4, or
3525292.5.

begin delete

36(c) If the total amount of grant requests by eligible grant
37applicants to the board pursuant to this section exceeds, or is
38anticipated to exceed, the amount in the Petroleum Underground
39Storage Tank Financing Account, the board may adopt a priority
40ranking list to award grants based upon the level of demonstrated
P11   1financial hardship of the eligible grant applicant or the relative
2impact upon the local community where the project tank is located
3if the claim is denied.

end delete
4begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 25299.106 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
5amended to read:end insert

6

25299.106.  

A complete grant application shall include all of
7the following information:

8(a) Evidence of eligibility.

9(b) begin deleteFinancial and legal documents necessary to demonstrate the
10applicant’s financial hardship, if any. end delete
The board shall develop a
11standard list of documents required of all applicants, and may also
12request from individual applicants additional financial and legal
13documents not provided on this list.

14(c) An explanation of the actions the applicant is required to
15take to comply with the requirements of Sections 25284.1 and
1625292.4.

17(d) begin delete(1)end deletebegin deleteend deleteA detailed cost estimate of the actions that are required
18to be completed for the project tanks to comply with applicable
19local, state, or federal standards, if applicable.

begin delete

20(2) A detailed description of the costs incurred to perform work
21and complete the Enhanced Vapor Recovery Phase II upgrade, as
22required by Section 41954 and implementing regulations, if
23applicable.

end delete

24(e) Any other information that the board determines to be
25necessary to include in an application form.

26begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 25299.109 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
27amended to read:end insert

28

25299.109.  

(a) The Petroleum Underground Storage Tank
29Financing Account is hereby created in the State Treasury.begin delete The
30Petroleum Underground Storage Tank Financing Account is created
31for both of the following purposes:end delete
begin insert All of the following moneys
32shall be deposited in the Petroleum Underground Storage Tank
33Financing Accountend insert
begin insert:end insert

34(1) begin deleteReceiving federal, end deletebegin insertFederal, end insertstate, and localbegin delete money.end deletebegin insert funds
35transferred for deposit in the account.end insert

36(2) begin deleteReceiving repayments end deletebegin insertRepayments end insertof loans and interest and
37late fees onbegin delete those accounts.end deletebegin insert loans issued pursuant to this chapter.end insert

begin insert

38(3) Repayments of loans and interest and late fees on loans
39issued pursuant to former Chapter 8.5 (commencing with Section
P12   115399.10) of Part 6.7 of Division 3 of Title 2 of the Government
2Code, as that chapter existed on December 31, 2003.

end insert
begin insert

3(4) Moneys collected pursuant to Section 25299.110 and
4subdivision (d) of Section 25299.104.

end insert
begin insert

5(5) Repayments of loan and grant moneys paid to a loan or
6grant applicant to which the applicant is not entitled.

end insert
begin insert

7(6) Notwithstanding Section 16305.7 of the Government Code,
8all interest earned upon moneys that are deposited in the account.

end insert
begin insert

9(7) All unexpended moneys in a subaccount of the account that
10is consolidated into the account by the act adding this paragraph.

end insert
begin insert

11(8) All unexpended moneys in the Petroleum Financing
12Collection Account established pursuant to Section 25299.110, as
13added by Section 1 of Chapter 624 of the Statutes of 2004.

end insert

14(b) Upon appropriation by the Legislature, funds in the account
15shall be used by the boardbegin delete onlyend delete to make loans andbegin delete grants pursuant
16toend delete
begin insert grants, service loans, recover defaulted loan moneys due, protect
17the state’s position as a lender creditor, and administerend insert
this
18chapter.

19(c) The board shall annually make available not more thanbegin delete 33end delete
20begin insert 15end insert percent of the available funds from the account for the purposes
21of providing grants pursuant to this chapter.begin delete Funds transferred
22pursuant to subdivision (e) shall not be used in calculating the
23maximum amount that may be made available for grant funding.end delete

begin delete

24(d)  Notwithstanding Section 16305.7 of the Government Code,
25all interest or other increments resulting from the investment of
26the funds in the Petroleum Underground Storage Tank Financing
27Account pursuant to Article 4 (commencing with Section 16470)
28of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government
29Code shall be deposited in a subaccount of the Petroleum
30Underground Storage Tank Financing Account, and expended only
31pursuant to Section 25299.113.

end delete
begin delete

32(e) (1) The sum of eight million dollars ($8,000,000) is hereby
33transferred from the subaccount established in subdivision (d) to
34the Petroleum Underground Storage Tank Financing Account and
35is appropriated for the purpose of making grants and loans pursuant
36to this chapter in the 2008-09 and 2009-10 fiscal years.

end delete
begin delete

37(2) An application for grant funding pursuant to this subdivision
38must have been received not later than June 30, 2009.

end delete
begin delete

39(3) If a grant or loan from moneys transferred pursuant to this
40subdivision is being requested for the purpose of compliance with
P13   1Enhanced Vapor Recovery Phase II regulations, then the applicant
2must have applied for or obtained a permit from the air quality
3management district by April 1, 2009, and have obtained an
4enforcement agreement or other binding obligation by June 30,
52009.

end delete
begin insert

6(d) Eight million dollars ($8,000,000) is hereby transferred
7from the fees collected pursuant to Section 25299.43 in the
8Underground Storage Tank Cleanup Fund, to the Petroleum
9Underground Storage Tank Financing Account, and is hereby
10appropriated for the purposes of making grants and loans pursuant
11to this chapter and administering this chapter.

end insert
12begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 25299.110 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
13repealed.end insert

begin delete
14

25299.110.  

(a) There is hereby created, in the California
15Economic Development Grant and Loan Fund, the Petroleum
16Financing Collection Account. The Petroleum Financing Collection
17Account is created solely for the purpose of receiving charges,
18fees, and income, including, but not limited to, the charges and
19costs collected pursuant to subdivision (c).

20(b) To defray the costs of the board in administrating the loan
21program created pursuant to this chapter, the board may do all of
22the following:

23(1) Impose reasonable charges on all applications and impose
24the loan fee specified in subdivision (e) of Section 25299.104.

25(2) Recover collection costs from the borrower or other party.

26(3) Earn income on any asset recovered pursuant to a loan
27default.

28(c) The board shall deposit the charges and costs collected
29pursuant to subdivision (b), including the loan fees charged
30pursuant to subdivision (e) of Section 25299.104, in the Petroleum
31Financing Collection Account. Notwithstanding Section 13340 of
32the Government Code, all money deposited in the Petroleum
33Financing Collection Account shall be continuously appropriated
34to the board for those costs necessary to protect the state’s position
35as a lender-creditor. These costs shall be broadly construed to
36include, but not be limited to, foreclosure expenses, auction fees,
37title searches, appraisals, real estate brokerage fees, attorney fees,
38mortgage payments, insurance payments, utility costs, repair costs,
39removal and storage costs for repossessed equipment and inventory,
P14   1and additional expenditures to purchase a senior lien in foreclosure
2or bankruptcy proceedings.

end delete
3begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 25299.110 is added to the end insertbegin insertHealth and Safety
4Code
end insert
begin insert, to read:end insert

begin insert
5

begin insert25299.110.end insert  

To defray the costs of the board in administering
6the loan program created pursuant to this chapter, the board may
7do all of the following:

8(a) Impose reasonable charges on all applications and impose
9the loan fee specified in subdivision (d) of Section 25299.104.

10(b) Recover collection costs from the borrower or other party.

11(c) Earn income on any asset recovered pursuant to a loan
12default.

end insert
13begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 25299.111 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
14repealed.end insert

begin delete
15

25299.111.  

If this chapter is repealed pursuant to Section
1625299.117, then following the day on which the authority ceases
17to exist, all moneys in the Petroleum Underground Storage Tank
18Financing Account and all moneys due that account shall revert
19to, and accrue to the benefit of, the Underground Storage Tank
20Cleanup Fund in the State Treasury.

end delete
21begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 25299.113 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
22repealed.end insert

begin delete
23

25299.113.  

(a) The board may, upon appropriation by the
24Legislature in the annual Budget Act, expend the funds in the
25subaccount established in the Petroleum Underground Storage
26Tank Financing Account in subdivision (d) of Section 25299.109
27for the administrative expenses in carrying out this chapter.

28(b) Commencing on the effective date of this chapter, the
29Controller shall do all of the following:

30(1) Transfer the interest payments from loan applicants and
31interest earned on the funds in the Petroleum Underground Storage
32Tank Financing Account received from July 1, 2002, to the
33effective date of this chapter, inclusive, into the subaccount
34established in subdivision (d) of Section 25299.109.

35(2) Direct to the Petroleum Underground Storage Tank
36Financing Account repayments of principal of loans issued pursuant
37to former Chapter 8.5 (commencing with Section 15399.10) of
38Part 6.7 of Division 3 of Title 2 of the Government Code, as that
39chapter existed on December 31, 2003.

P15   1(3) Direct to the subaccount established in subdivision (d) of
2Section 25299.109, the payment of interest on loans issued pursuant
3to former Chapter 8.5 (commencing with Section 15399.10) of
4Part 6.7 of Division 3 of Title 2 of the Government Code, as that
5chapter existed on December 31, 2003.

6(c) For the 2004-05 fiscal year, using funds available in the
7subaccount established in subdivision (d) of Section 25299.109,
8the Department of Finance may augment the board’s budget for
9the reasonable amount necessary to implement this chapter and
10may administratively establish necessary positions. Pursuant to
11subdivision (a), the board shall request the continuation of the
12necessary positions and funding for the 2005-06 fiscal year, and
13succeeding years, through the annual Budget Act.

end delete
14begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 25299.117 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
15repealed.end insert

begin delete
16

25299.117.  

This chapter is repealed as of January 1, 2016,
17unless a later enacted statute that is enacted on or before January
181, 2016, deletes or extends that date.

end delete
begin delete
19

SECTION 1.  

Section 41700 of the Health and Safety Code, as
20added by Section 2 of Chapter 411 of the Statutes of 2010, is
21amended to read:

22

41700.  

(a) Except as otherwise provided in Section 41705, a
23person shall not discharge from any source whatsoever a quantity
24of air contaminants or other material that causes injury, detriment,
25nuisance, or annoyance to any considerable number of persons or
26to the public, or that endangers the comfort, repose, health, or
27safety of any of those persons or the public, or that causes, or has
28a natural tendency to cause, injury or damage to business or
29property.

30(b) This section shall become operative on January 1, 2014.

end delete


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