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 --