BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1147|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  SB 1147
          Author:   Galgiani (D) 
          Amended:  4/6/16  
          Vote:     21 

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  7-0, 4/20/16
           AYES:  Wieckowski, Gaines, Bates, Hill, Jackson, Leno, Pavley

           SENATE GOVERNANCE & FIN. COMMITTEE:  6-0, 5/4/16
           AYES:  Hertzberg, Beall, Hernandez, Lara, Moorlach, Pavley
           NO VOTE RECORDED:  Nguyen

           SUBJECT:   Hazardous materials:  aboveground storage tanks


          SOURCE:    Author

          DIGEST:   This bill 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 ordinance establishing those standards.

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


          Existing state law:


          1)Establishes the Aboveground Petroleum Storage Act (APSA)  
            (Health and Safety Code §25270 et seq.) which:








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             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.  


             d)   Requires the 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  
               SPCC 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.  










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


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


          3)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.


          4)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.


          5)Allows local tank ordinances to be more stringent than state  
            or federal requirements, but since this bill allows more  
            stringent requirements with an approved ordinance, there does  
            not appear to be a conflict of language. 


          This bill prohibits a city, county, or city and county from  
          enforcing standards for ASTs that are more stringent than state  
          or federal standards for ASTs unless the city, county, or city  
          and county first adopts an ordinance establishing those  
          standards.


          Background


          Aboveground petroleum storage program.  The APSA directs CUPAs  
          to regulate facilities that store more than 1,320 gallons of  
          petroleum in aggregate, stored in ASTs with capacities of 55  
          gallons or greater.  These facilities typically include large  








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          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, Chapter 532, Statutes of 2012) tasked the OSFM 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 SPCC 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.  ASTs 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 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  








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            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.  ASTs 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 OSFM, 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.



          FISCAL EFFECT:    Appropriation:    No         Fiscal  
          Com.:NoLocal:     No










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          SUPPORT:   (Verified5/5/16)


          California Cotton Ginners Association
          California Cotton Growers Association
          California Fresh Fruit Association
          Milk Producers Council
          Western Agricultural Processors Association  


           OPPOSITION:   (Verified5/5/16)


          None received

          ARGUMENTS IN SUPPORT:  According to the author, SB 1147 improves  
          clarity and consistency to the regulation of ASTs 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 maintains local regulation and resolves 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.



          Prepared by:Rachel Wagoner / E.Q. / (916) 651-4108
          5/6/16 14:26:28


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