BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1147| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: SB 1147 Page 2 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. SB 1147 Page 3 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 SB 1147 Page 4 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 SB 1147 Page 5 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 SB 1147 Page 6 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 **** END **** SB 1147 Page 7