BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                         Senator Robert M. Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
           ------------------------------------------------------------------ 
          |Bill No:  |SB 1147                          |Hearing    |5/4/16   |
          |          |                                 |Date:      |         |
          |----------+---------------------------------+-----------+---------|
          |Author:   |Galgiani                         |Tax Levy:  |No       |
          |----------+---------------------------------+-----------+---------|
          |Version:  |4/6/16                           |Fiscal:    |No       |
           ------------------------------------------------------------------ 
           ----------------------------------------------------------------- 
          |Consultant|Favorini-Csorba                                       |
          |:         |                                                      |
           ----------------------------------------------------------------- 

                    Hazardous materials:  aboveground storage tanks



          Requires local governments to adopt an ordinance prior to  
          enforcing standards on aboveground storage tanks that are more  
          stringent than state standards.


           Background 

           Unified Program. State law requires the Secretary of the  
          California Environmental Protection Agency (CalEPA) to establish  
          a unified hazardous waste and hazardous materials management  
          regulatory program, known as the "Unified Program" (SB 1082,  
          Calderon, 1993).  The Unified Program consolidated, coordinated,  
          and made consistent the following six programs that aim to  
          regulate hazardous materials and wastes, including the  
          Aboveground Petroleum Storage Act (ASPA). 

          A local agency, such as a county or city, applies to CalEPA to  
          become a Certified Unified Program Agency (CUPA), responsible  
          for implementing the Unified Program within its jurisdiction.   
          Under the unified program, CUPAs issue permits, perform  
          inspections, levy fees, and take enforcement actions on  
          facilities that store hazardous waste, and the implementation of  
          the Unified Program must be consistent throughout each county.   
          CUPAs may also adopt other requirements on facilities subject to  
          the Unified Program as long as they are more stringent than the  
          statewide requirements.  







          SB 1147 (Galgiani) 4/6/16                               Page 2  
          of ?
          
          

          Currently, there are 83 CUPAs in California, including all 58  
          counties, which are required by state law to apply to be CUPAs.   
          County environmental health departments frequently serve as  
          CUPAs, but in other cases fire agencies or public safety  
          departments may be the CUPA for a jurisdiction or participate in  
          the administration of the Unified Program.  CalEPA periodically  
          reviews and evaluates individual CUPAs to determine how  
          successfully they are implementing the Unified Program.

          Aboveground Petroleum Storage Program.  The APSA directs CUPAs  
          to regulate facilities that store more than 1,320 gallons of  
          petroleum in aggregate, stored in aboveground storage tanks with  
          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, but can also include farms or construction sites.  
          AB 1566 (Wieckowski, 2012) tasked the Office of the State Fire  
          Marshal with overseeing the CUPAs' implementation of the APSA  
          and required the State Fire Marshal to adopt regulations  
          governing state oversight of APSA implementation.  

          All facilities subject to the APSA that store 10,000 gallons or  
          more of petroleum must (1) be inspected at least once every  
          three years by a CUPA, (2) report information about the tank  
          facility to the CUPA, and (3) pay a fee to help cover the cost  
          of the program.  Facilities that store between 1,320 gallons and  
          10,000 gallons of petroleum must only meet the reporting and fee  
          requirements. In addition, most facilities subject to the ASPA  
          must prepare spill prevention control and countermeasure plans,  
          but certain farms, logging sites, and construction sites are  
          exempted.  Federal regulations require the spill prevention  
          plans to, among other things, describe the oil handling  
          operations, spill prevention practices, discharge or drainage  
          controls, and the personnel, equipment and resources at the  
          facility that are used to prevent oil spills.  Facility owners  
          must also periodically inspect the tanks and connected pipes.

          Standards for Aboveground Storage Tanks.  Aboveground storage  
          tanks must meet certain standards set out in state and local  
          fire codes.  Fire codes in California are typically developed  
          and adopted according to the following process:

                 A model fire code is developed by the National Fire  








          SB 1147 (Galgiani) 4/6/16                               Page 3  
          of ?
          
          
               Protection Association (NFPA).

                 The State of California then adopts that model code,  
               with any amendments specific to California, as the  
               California Fire Code.

                 Local agencies in California then enact an ordinance to  
               adopt the California Fire Code.  Those ordinances may  
               include amendments that are more stringent than the  
               California Fire Code, if the local governing body makes  
               findings that the amendments are necessary because of local  
               climatic, geological, or topographical conditions.

          The California Fire Code requires the design, fabrication, and  
          construction of tanks to conform to certain standards developed  
          by the NFPA.  These standards include provisions for different  
          types of storage tanks, such as steel tanks without additional  
          protections as well as "protected" steel tanks, which must meet  
          a higher standard.  Above-ground storage tanks must generally be  
          protected tanks unless they hold less flammable motor oil.   
          However, the California Fire Code includes some exemptions from  
          these standards for tanks on farms.  

          Kern County.   The Kern County Environmental Health Services  
          Division is the CUPA in Kern County.  The Kern County Fire  
          Department also participates in implementing the APSA because it  
          is responsible for issuing permits for storage tanks under the  
          Kern County Fire Code.  In 2013, following delegation of  
          oversight responsibility for APSA to the Office of the State  
          Fire Marshal, Kern County began rigorously enforcing the APSA  
          and identifying tanks as not meeting the required standards in  
          the Kern County Fire Code.  These standards require farms to use  
          protected tanks.

          A 2016 evaluation of Kern County's implementation of the Unified  
          Program found that Kern County was not adequately ensuring that  
          violators of the APSA had in fact returned to compliance by  
          replacing tanks that did not meet standards.  Accordingly, some  
          tank owners have been told that they must remove their tanks.  
          These owners are concerned that Kern County has been enforcing  
          standards higher than state regulations without first adopting  
          an ordinance.










          SB 1147 (Galgiani) 4/6/16                               Page 4  
          of ?
          
          
           Proposed Law

           Senate Bill 1147 prohibits a city, county, or city and county  
          from enforcing standards for aboveground storage tanks that are  
          more stringent than state or federal standards unless it adopts  
          an ordinance establishing those standards.


           State Revenue Impact

           No estimate


           Comments

           1.  Purpose of the bill  .  Aboveground storage tanks are necessary  
          to store fuel for agricultural equipment in an accessible  
          manner.  Yet recently, some tank owners in Kern County have been  
          told that their tanks are in violation of county standards for  
          tanks and that they must remove them.  This removal must often  
          be performed within 30 days of the notice of violation and  
          represents a significant cost to landowners.  Moreover, Kern  
          County's standards appear to exceed state standards that some  
          tank owners would otherwise be in compliance with.  SB 1147  
          requires local agencies to pass an ordinance prior to enforcing  
          standards on aboveground storage tanks that are higher than  
          statewide standards.  This simple fix ensures that tank owners  
          have adequate notice about the standards that they must meet and  
          provides a mechanism for local governments to regulate  
          aboveground storage tanks.

          2.  Sure, but will it work  ?  SB 1147 arose out of concerns that  
          Kern County was imposing a higher standard than state  
          regulations for the storage of flammable liquids, which  
          potentially results in costly replacements for tank owners.   
          Accordingly, a previous version of the bill would have delayed  
          the replacement of some storage tanks and statutorily defined  
          statewide standards for tanks.  The bill has since been amended  
          to contain the current requirement to adopt an ordinance in  
          order to enforce higher standards.  However, this requirement  
          appears to duplicate existing law, which already requires local  
          agencies to adopt ordinances and make findings prior to  
          increasing standards.  Furthermore, the Kern County Fire Code  
          was amended in 2013 to specify the standards that above-ground  








          SB 1147 (Galgiani) 4/6/16                               Page 5  
          of ?
          
          
          storage tanks must meet.  Thus SB 1147 may not address the  
          challenges facing tank owners who have been tagged as violating  
          the APSA in Kern County.  The Committee may wish to consider  
          whether SB 1147 is necessary.


           Support and  
          Opposition   (4/28/16)


           Support  :  California Cotton Growers and Ginners Association  
          (co-sponsor); Wester Agricultural Processors Association  
          (co-sponsor); California Fresh Fruit Association; Milk Producers  
          Council.

           Opposition  :  Unknown.


                                      -- END --