BILL ANALYSIS Ó SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Wieckowski, Chair 2015 - 2016 Regular Bill No: SB 1147 ----------------------------------------------------------------- |Author: |Galgiani | ----------------------------------------------------------------- |-----------+-----------------------+-------------+----------------| |Version: |4/6/2016 |Hearing |4/20/2016 | | | |Date: | | |-----------+-----------------------+-------------+----------------| |Urgency: |No |Fiscal: |No | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Rachel Machi Wagoner | | | | ----------------------------------------------------------------- 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. SB 1147 (Galgiani) Page 5 of ? 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 --