BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                                Senator Wieckowski, Chair
                                  2015 - 2016  Regular 
           
          Bill No:            SB 1147
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          |Author:    |Galgiani                                             |
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          |Version:   |4/6/2016               |Hearing      |4/20/2016       |
          |           |                       |Date:        |                |
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          |Urgency:   |No                     |Fiscal:      |No              |
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          |Consultant:|Rachel Machi Wagoner                                 |
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          SUBJECT:  Hazardous materials:  aboveground storage tanks

            ANALYSIS:
          
          Existing federal law:

          1)Pursuant to the federal Spill Prevention Control and  
            Countermeasure (SPCC) rule (40 CFR Part 112), requires owners and  
            operators of tank facilities to prepare and implement an SPCC Plan  
            which is enforceable by Certified Unified Program Agencies  
            (CUPAs). 

          Existing California law:

          2)Under the Aboveground Petroleum Storage Act (APSA) (Health and  
            Safety Code §25270 et seq.):

             a)   Defines "aboveground storage tank" (AST) as a "tank that has  
               the capacity to store 55 gallons or more of petroleum and that  
               is substantially or totally above the ground," except as  
               specified.  

             b)   Defines "petroleum" as "crude oil, or a fraction thereof,  
               that is liquid at 60 degrees Fahrenheit temperature and 14.7  
               pounds per square inch absolute pressure." 

             c)   Defines "tank facility" as one or more ASTs, including any  
               piping integral to the tanks, that contain petroleum and that  
               are used by the owner or operator at a single location or site.  
                







          SB 1147 (Galgiani)                                      Page 2 of ?
          
          
             d)   Requires the Certified Unified Program Agencies (CUPAs) to  
               implement APSA.  

             e)   Requires tank facilities with storage capacity between 1,320  
               gallons and 10,000 gallons to be subject to the requirements of  
               APSA.  

             f)   Requires the owner or operator of an AST to prepare a spill  
               prevention control and countermeasure plan, periodically  
               inspect the AST, and allow the CUPA to inspect as well.  

             g)   Requires CUPAs to inspect tank facilities with a 10,000  
               gallon minimum total storage capacity at least once every three  
               years.  

             h)   Requires the owner or operator to pay a fee to cover  
               implementation costs of APSA.  

             i)   Authorizes the State Water Resources Control Board (SWRCB)  
               and regional water quality control boards (RWQCBs) to oversee  
               cleanup or abatement efforts of unauthorized releases from  
               ASTs.  

          3)Requires the Department of Forestry and Fire Protection (CAL FIRE)  
            - Office of the State Fire Marshal (OSFM) to adopt regulations and  
            provide guidance and oversight to CUPAs implementing APSA.  

          4)Allows money in the Waste Discharge Permit Fund to be used by a  
            regional board to remedy a significant unforeseen water pollution  
            problem and other specified actions.

          5)Authorizes CUPAs to assess administrative penalties on an owner or  
            operator for failing to meet the requirements of APSA and provides  
            that violations of specified APSA requirements are a misdemeanor.

          6)Allows local tank ordinances to be more stringent than state or  
            federal requirements, but since SB 1147 would allow more stringent  
            requirements with an approved ordinance, there does not appear to  
            be a conflict of language. 

          This bill:  

          1) Prohibits a city, county, or city and county from enforcing  
             standards for aboveground storage tanks that are more stringent  
             than state or federal standards for aboveground storage tanks  
             unless the city, county, or city and county first adopts an  







          SB 1147 (Galgiani)                                      Page 3 of ?
          
          
             ordinance establishing those standards.

            Background
          
          1) APSA.  APSA regulates facilities with aggregate aboveground  
             petroleum storage capacities of 1,320 gallons or more, which  
             include aboveground storage containers or tanks with petroleum  
             storage capacities of 55 gallons or greater.  These facilities  
             typically include large petroleum tank facilities, aboveground  
             fuel tank stations and vehicle repair shops with aboveground  
             petroleum storage tanks.

             APSA does not regulate non-petroleum products. 

             Facilities with total petroleum storage quantities at or above  
             10,000 gallons are inspected at least once every three years by a  
             Certified Unified Program Agency and have reporting and fee  
             requirements, while facilities with petroleum storage quantities  
             equal to or greater than 1,320 gallons but less than 10,000  
             gallons have reporting and fee requirements only. 

             All regulated facilities must meet the federal SPCC rule  
             requirements and must develop a spill prevention, control, and  
             countermeasure plan that meets federal requirements.

             APSA was established following a major spill event in Martinez,  
             California in April 1988, during which an estimated 400,000  
             gallons of crude oil spilled into sensitive marshes, the Suisun  
             Bay and the Bay Delta Estuary.  

             APSA required the Regional Water Quality Control Boards (regional  
             boards) to oversee inspections of AST facilities to ensure that a  
             federally mandated SPCC plan was in place, that tanks were not  
             leaking, and that a monitoring program was undertaken, if  
             necessary.  It also required owners and operators of ASTs, which  
             at the time was approximately 4,500 fee-paying AST facilities, to  
             file a storage statement and submit a biennial registration fee  
             to the State Water Resources Control Board (SWRCB).  SWRCB was  
             then required to use these fees to support the inspection  
             program.  The APSA also required CUPAs to enforce the  
             requirements of the APSA regarding the SPCCs.

             According to the SWRCB, in Fiscal Year 2002-03, due to the  
             state's fiscal crisis, the funding authority and positions for  
             the AST inspection program were eliminated from SWRCB's and  
             regional boards' budgets (Budget Act of 2002-03, Control Section  







          SB 1147 (Galgiani)                                      Page 4 of ?
          
          
             31.60).  As a result, the SWRCB and the regional boards  
             discontinued the AST inspection program.  The owners and  
             operators of AST facilities continued to pay the biennial fee  
             into the Fund, which eventually obtained a balance of  
             approximately $7.5 million.

             AB 1130 (Laird, Chapter 626, Statutes of 2007) transferred the  
             responsibility for the implementation, enforcement, and  
             administration of the APSA from the SWRCB and regional boards to  
             the CUPAs.  In addition to other technical changes to the  
             program, the bill deleted the existing fee structure and in its  
             place authorized the CUPAs to collect a fee, beginning January 1,  
             2010, to cover reasonable and necessary program costs.

             AB 1566 (Wieckowski, Chapter 532, Statutes of 2012) delegated  
             state oversight responsibility to the OSFM effective January 1,  
             2013 and required regulations be adopted for state oversight of  
             APSA implementation.

             According to CAL FIRE, there are currently approximately 14,930  
             facilities regulated under the APSA requirement. 

            Comments
          
          Purpose of Bill.  According to the author, SB 1147 improves clarity  
          and consistency to the regulation of aboveground storage tanks by  
          providing a mechanism for cities and counties to regulate these  
          tanks on the local level.  The author states that recently, there  
          have been concerns in Kern County where ASTs have been 'red-tagged'  
          for being out-of-compliance with County standards.  Statewide, ASTs  
          are required to meet UL 142 (the Standard for Safety for Steel  
          Aboveground Tanks for Flammable and Combustible Liquids as  
          established by Underwriters Laboratories); however, Kern County has  
          required tanks to meet more stringent standards and have done so  
          without adopting a local ordinance.  The author asserts that SB 1147  
          would maintain local regulation and resolve this issue by requiring  
          cities and counties to adopt an ordinance prior to enforcing AST  
          standards that are more stringent than state or federal AST  
          standards.
           
           DOUBLE REFERRAL:    

          If this measure is approved by the Senate Environmental Quality  
          Committee, the do pass motion must include the action to re-refer  
          the bill to the Senate Rules Committee.  








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           SOURCE:                    

          California Cotton Growers Association
          California Cotton Ginners Association
          Western Agricultural Processors Association  
          
           SUPPORT:               

          California Fresh Fruit Association
          Milk Producers Council
           
           OPPOSITION:    

          None received  

                                         -- END --