BILL NUMBER: SB 989 CHAPTERED
BILL TEXT
CHAPTER 812
FILED WITH SECRETARY OF STATE OCTOBER 10, 1999
APPROVED BY GOVERNOR OCTOBER 8, 1999
PASSED THE SENATE SEPTEMBER 10, 1999
PASSED THE ASSEMBLY SEPTEMBER 9, 1999
AMENDED IN ASSEMBLY SEPTEMBER 7, 1999
AMENDED IN ASSEMBLY AUGUST 31, 1999
AMENDED IN SENATE JULY 12, 1999
AMENDED IN SENATE JUNE 10, 1999
AMENDED IN SENATE MAY 18, 1999
AMENDED IN SENATE APRIL 27, 1999
AMENDED IN SENATE APRIL 15, 1999
AMENDED IN SENATE APRIL 8, 1999
INTRODUCED BY Senator Sher
(Principal coauthor: Senator Hayden)
(Coauthors: Senators Figueroa, McPherson, Ortiz, and Solis)
(Coauthors: Assembly Members Aroner, Davis, Keeley, Longville,
Romero, Steinberg, and Strom-Martin)
FEBRUARY 26, 1999
An act to amend Sections 15399.10, 15399.11, 15399.14, and
15399.17 of, to amend and renumber Section 15399.19 of, to add
Sections 15399.15, 15399.15.1, and 15399.15.2 to, and to add and
repeal Section 65964 of, the Government Code, to amend Sections
25288, 25299, 25299.37.1, 25299.51, 25299.52, 25299.57, 25299.59,
25299.81, 25299.94, and 25299.99.2 of, and to add Sections 25284.1,
25292.4, 25299.18, 25299.38.1, 25299.99.3, 43013.1, and 43013.3 to,
and to repeal and add Section 43830.8 of, the Health and Safety Code,
to add Section 25310.5 to, and to add and repeal Section 21178 of,
the Public Resources Code, and to amend Section 13752 of the Water
Code, relating to pollution.
LEGISLATIVE COUNSEL'S DIGEST
SB 989, Sher. Pollution: groundwater: MTBE.
(1) Under existing law, with specified exceptions, no person may
own or operate an underground storage tank containing hazardous
substances unless a permit for its operation has been issued by the
local agency to the owner or operator of the tank, or a unified
program facility permit has been issued by the local agency to the
owner or operator of the unified program facility on which the tank
is located. Existing law requires an underground storage tank permit
to require compliance with certain design and construction
requirements, and requires the local agency to inspect every
underground tank system within its jurisdiction at least once every 3
years. Existing law imposes specified civil penalties upon owners
or operators of underground storage tanks who violate certain
requirements.
This bill would require the State Water Resources Control Board,
on or before June 1, 2000, to initiate a specified research program
to quantify the probability and environmental significance of
releases from petroleum underground storage tank systems that meet
certain upgrade requirements. The board would be required, by
January 1, 2001, to adopt specified regulations and the board would
be directed to require a tank to be fitted with under-dispenser
containment or a spill containment or control system approved by the
board, as specified, and to review existing enforcement authority.
The bill would require a local agency to inspect every tank system at
least once every year, thereby creating a state-mandated local
program by imposing new duties upon local agencies. The bill would
require the holder of a permit for an underground storage tank,
within 60 days after receiving a specified inspection or compliance
report, to file a plan to implement the compliance report or make a
specified demonstration. The bill would provide for the imposition
of civil liability upon an operator of an underground storage tank
who tampers with, or disables, automatic leak detection devices and
would impose criminal penalties upon a person who intentionally takes
such an action, thereby imposing a state-mandated local program by
creating a new crime. The bill would require the board, in
consultation with the State Department of Health Services, to develop
guidelines for the investigation and remediation of MTBE and other
ether-based oxygenates in groundwater and appropriate cleanup
standards.
The bill also would require, on and after November 1, 2000, an
owner or operator of a tank system with a single-walled component,
located as specified, to implement a program of enhanced leak
detection or monitoring pursuant to regulations that the board would
be required to adopt.
(2) Under the existing Barry Keene Underground Storage Tank
Cleanup Trust Fund Act of 1989, every owner of an underground storage
tank is required to pay a storage fee for each gallon of petroleum
placed in the tank. The fees are required to be deposited in the
Underground Storage Tank Cleanup Fund. The money in the fund may be
expended by the State Water Resources Control Board, upon
appropriation by the Legislature, for various purposes, including the
payment of claims of up to $1,000,000 per occurrence, including
joint claims, to aid owners and operators of petroleum underground
storage tanks who take corrective action to clean up unauthorized
releases from those tanks. The act is repealed by its own terms on
January 1, 2005.
This bill would increase the amount of a corrective action claim
to $1,500,000 per occurrence, would revise the requirements for
claims for regulatory assistance, and would increase the amount to
$1,500,000 for joint claims. The bill would extend the operation of
the act until January 1, 2011, thereby imposing a state-mandated
local program by continuing the imposition of duties upon the local
agencies that implement the act.
(3) Existing law authorizes the State Air Resources Board, among
other things, to adopt and implement motor vehicle fuel
specifications for the control of air contaminants and sources of air
pollution, as specified. Existing law, however, prohibits the state
board from adopting any regulation that requires the addition of any
oxygenate to motor vehicle fuel unless the regulation is subject to
multimedia rulemaking, as defined in existing law.
This bill would instead prohibit the state board from adopting any
regulation that establishes a specification for motor vehicle fuel
unless that regulation, and a multimedia evaluation conducted by
affected agencies and coordinated by the state board, are reviewed by
the California Environmental Policy Council. The bill would revise
the procedures for the conduct of such a multimedia evaluation.
The bill would require the State Energy Resources Conservation and
Development Commission, in consultation with the state board, to
develop a timetable for the removal of MTBE from gasoline at the
earliest possible date, consistent with a specified executive order.
The bill would require the state board to ensure that specified
regulations for reformulated gasoline maintain or improve upon
emissions and air quality benefits achieved by other specified
reformulated gasoline and are evaluated, as specified. The bill
would require a city, county, or air pollution control district, upon
receiving an application to construct a phase 3 reformulated
gasoline project, as defined, to undertake all reasonable efforts to
expedite action on the permit, thereby imposing a state-mandated
local program.
The bill would also authorize the Secretary for Environmental
Protection to prohibit the use of MTBE in motor vehicle fuel prior to
December 31, 2002, on a subregional basis in the Bay Area Air Basin,
or in any other air basin in the state, if the secretary makes
specified findings.
The bill would require the commission, if it determines that
specified studies do not adequately assess the ongoing supply and
availability of gasoline for the state's consumers associated with
the phaseout of MTBE, to submit a report to the Legislature and the
Governor by July 1, 2000, concerning the impact of that phaseout on
the supply and availability of gasoline.
The bill would require the board to convene a working group to
review and evaluate options for the closure of certain petroleum
underground storage tanks and to submit recommendations to the
Secretary for Environmental Protection by January 1, 2001.
(4) The existing California Environmental Quality Act requires a
lead agency, as defined, to prepare, or cause to be prepared, and
certify the completion of, an environmental impact report on a
project that it proposes to carry out or approve that may have a
significant effect on the environment, as defined, or to adopt a
negative declaration if the lead agency finds that the project will
not have that effect, unless the project is exempt from the act.
This bill would, until January 1, 2003, impose certain
requirements on districts and lead agencies, as defined, for purposes
of that act, with regard to the processing of permits and
environmental impact reports for a construction project consisting of
facilities, processing units, or equipment necessary to produce
Phase 3 reformulated gasoline, as defined, thereby imposing a
state-mandated local program.
(5) Existing law requires a person who digs, bores, or drills a
water well, cathodic protection well, or a monitoring well, or
abandons or destroys a well, or deepens or reperforates a well, to
file a report of completion with the Department of Water Resources
within 30 days after the construction or alteration is completed.
Under existing law, those reports may not be made available to the
public, except to a person who obtains a written authorization from
the owner of the well.
This bill would also allow a person performing an environmental
cleanup study under order from a regulatory agency to obtain a report
with regard to specified wells.
(6) Under existing law, until January 1, 2002, the State
Department of Health Services is authorized to expend the money in
the Drinking Water Treatment and Research Fund in the State Treasury
to make payments to public water systems for the costs of treating
contaminated groundwater and surface water for drinking water
purposes, investigating contamination, acquiring alternate drinking
water supplies, and for conducting research into treatment
technologies. Existing law, operative June 30, 1999, requires the
board to annually transfer $5,000,000, from June 30, 1999, until
January 1, 2002, from the Underground Storage Tank Cleanup Fund to
the drinking water fund for expenditure for those purposes, if a
public drinking water well has been contaminated by an oxygenate and
there is substantial evidence that the contamination was caused by a
release from an underground storage tank.
This bill would extend the operation of the provision providing
for the transfer of those funds from January 1, 2002, to January 1,
2010.
The bill would require the board to transfer $5,000,000 from the
Underground Storage Tank Cleanup Fund to the drinking water fund, if
the department makes a specified determination.
(7) Existing law, until December 22, 2005, or except as specified,
requires the Trade and Commerce Agency to conduct a program to make
loans to small businesses to upgrade, replace, or remove petroleum
underground storage tanks to meet applicable local, state, or federal
standards and to take corrective actions. Under existing law, funds
in the Petroleum Underground Storage Tank Financing Account in the
General Fund are continuously appropriated to the agency, without
regard to fiscal year, for making these loans. Existing law
specifies that the maximum amount of a loan is $750,000, but provides
that, if at least $6,500,000 is not transferred to the account each
fiscal year, the maximum amount of a loan is $350,000 an applicant is
restricted to one loan at any one time.
This bill would delete the contingency provision thereby
decreasing the maximum amount of a loan and restricting an applicant
to one loan at any one time. The bill would additionally authorize
the agency to conduct a grant program to assist small businesses to
comply with the new requirements imposed by the bill on petroleum
underground storage tanks and tanks with single-walled components
that are located, as specified. The bill would specify eligibility
requirements for grant applicants and the maximum amount of those
grants. The bill would require the agency, on or before April 1,
2001, to submit a report to the Legislature detailing the status of
the grant program.
The bill would authorize the agency to expend the money in the
Petroleum Underground Storage Tank Financing Account, upon
appropriation by the Legislature, to make those grants.
(8) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for specified reasons.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 15399.10 of the Government Code is amended to
read:
15399.10. For purposes of this chapter, the following terms have
the following meaning:
(a) "Agency" means the Trade and Commerce Agency.
(b) "Board" means the State Water Resources Control Board.
(c) "Loan applicant" means a small business that applies to the
agency for a loan pursuant to this chapter.
(d) "Grant applicant" means a small business that applies to the
agency for a grant pursuant to this chapter.
(e) "Tank" means an underground storage tank, as defined in
Section 25281 of the Health and Safety Code, used for the purpose of
storing petroleum, as defined in Section 25299.22 of the Health and
Safety Code. "Tank" also includes under-dispenser containment
systems, spill containment systems, enhanced monitoring and control
systems, and vapor recovery systems and dispensers connected to the
underground piping and the underground storage tank.
(f) "Project tank" means one or more tanks that would be upgraded,
replaced, or removed with loan or grant funds.
SEC. 2. Section 15399.11 of the Government Code is amended to
read:
15399.11. The agency shall conduct a loan program pursuant to
this chapter, to assist small businesses in upgrading, replacing, or
removing tanks to meet applicable local, state, or federal standards.
Loan funds may also be used for corrective actions, as defined in
Section 25299.14 of the Health and Safety Code. The agency shall
also conduct a grant program, pursuant to this chapter, to assist
small businesses to comply with Sections 25284.1 and 25292.4 of the
Health and Safety Code.
SEC. 3. Section 15399.14 of the Government Code is amended to
read:
15399.14. (a) The minimum amount that the agency may loan an
applicant is ten thousand dollars ($10,000), and the maximum amount
that the agency may loan an applicant is seven hundred fifty thousand
dollars ($750,000).
(b) The term of the loan shall be for a maximum of 20 years if
secured by real property, and for 10 years if not secured by real
property. The interest rate for loans shall be set at the rate
earned by the Surplus Money Investment Fund at the time of the loan
commitment.
(c) Loan funds may be used to finance up to 100 percent of the
costs necessary to upgrade, remove, or replace project tanks,
including corrective actions, to meet applicable local, state, or
federal standards, including, but not limited to, any design,
construction, monitoring, operation, or maintenance requirements
adopted pursuant to Sections 25284.1 and 25292.4 of the Health and
Safety Code.
(d) The repeal of this chapter pursuant to Section 15399.21 shall
not extinguish a loan obligation and shall not impair the deed of
trust or other collateral made pursuant to this chapter or the
authority of the state to pursue appropriate action for collection.
(e) The agency may charge a loan fee to loan applicants of up to 2
percent of the requested loan amount. The loan fee shall be
deposited in the Petroleum Financing Collection Account.
SEC. 4. Section 15399.15 is added to the Government Code, to read:
15399.15. (a) The agency shall make grant funds available from
the Petroleum Underground Storage Tank Financing Account to eligible
grant applicants who meet all of the following eligibility
requirements:
(1) The grant applicant is a small business, pursuant to the
following requirements:
(A) The grant applicant meets the conditions for a small business
as defined in Section 632 of Title 15 of the United States Code, and
in the federal regulations adopted to implement that section, as
specified in Section 121.2 of Title 13 of the Code of Federal
Regulations.
(B) The grant applicant employs fewer than 20 full-time and
part-time employees, is independently owned and operated, and is not
dominant in its field of operation.
(2) The principal office of the grant applicant is domiciled in
the state, and the officers of the grant applicant are domiciled in
this state.
(3) The grant applicant, the applicant's family, or an affiliated
entity, has owned or operated the project tank since January 1, 1997.
(4) All tanks owned and operated by the grant applicant are
subject to compliance with Chapter 6.7 (commencing with Section
25280) of Division 20 of the Health and Safety Code, and the
regulations adopted pursuant to that chapter.
(5) The facility where the project tank is located has sold at
retail less than 900,000 gallons of gasoline annually for each of the
two years preceding the submission of the grant application. The
numbers of gallons sold shall be based upon taxable sales figures
provided to the State Board of Equalization for that facility.
(6) The grant applicant owns or operates a tank that is in
compliance with Section 25291 of the Health and Safety Code, or
subdivisions (d) and (e) of Section 25292, of the Health and Safety
Code, and the regulations adopted to implement those sections.
(7) The grant applicant has acquired debt, or is currently making
payments on a preexisting loan, to upgrade the grant applicant's
underground storage tanks to meet state and federal requirements
prior to the December 22, 1998, deadline.
(8) The facility where the project tank is located was legally in
business retailing gasoline after January 1, 1999.
(b) Grant funds may only be used to pay the costs necessary to
comply with the requirements of Section 25284.1 or 25292.4, or both,
of the Health and Safety Code.
(c) If the total amount of grant requests by eligible grant
applicants to the agency pursuant to this section exceed, or are
anticipated to exceed, the amount in the Petroleum Underground
Storage Tank Financing Account, the agency may adopt a priority
ranking list to award grants based upon the level of demonstrated
financial hardship of the eligible grant applicant, or the relative
impact upon the local community where the project tank is located if
the claim is denied.
SEC. 5. Section 15399.15.1 is added to the Government Code, to
read:
15399.15.1. A complete grant application shall include all of the
following information:
(a) Evidence of eligibility.
(b) Financial and legal documents necessary to demonstrate the
applicant's financial hardship, if any. The agency shall develop a
standard list of documents required of all applicants, and may also
request from individual applicants additional financial and legal
documents not provided on this list.
(c) An explanation of the actions the applicant is required to
take comply with the requirements of Sections 25284.1 and 25292.4 of
the Health and Safety Code.
(d) A detailed cost estimate of the actions that are required to
be completed for the project tanks to comply with applicable local,
state, or federal standards.
(e) Any other information that the department determines to be
necessary to include in an application form.
SEC. 6. Section 15399.15.2 is added to the Government Code, to
read:
15399.15.2. (a) (1) The minimum amount that the agency may grant
an applicant is ten thousand dollars ($10,000), and the maximum
amount that the agency may grant an applicant is fifty thousand
dollars ($50,000).
(b) Grant funds may be used to finance up to 100 percent of the
costs necessary to upgrade project tanks to comply with Sections
25284.1 and 25292.4 of the Health and Safety Code. No person or
entity is eligible to receive more than fifty thousand dollars
($50,000) in grant funds pursuant to this chapter.
SEC. 7. Section 15399.17 of the Government Code is amended to
read:
15399.17. (a) The Petroleum Underground Storage Tank Financing
Account is hereby created in the General Fund. The Petroleum
Underground Storage Tank Financing Account is created for both of the
following purposes:
(1) Receiving federal, state, and local money.
(2) Receiving repayments of loans and interest and late fees on
those accounts.
(b) (1) Notwithstanding Section 13340, the funds deposited into
the account are hereby continuously appropriated to the agency
without regard to fiscal year for making loans pursuant to this
chapter.
(2) The funds deposited in the account may be expended by the
agency to make grants pursuant to this chapter, upon appropriation by
the Legislature.
(c) The agency shall annually make available not more than 33
percent of the available funds from the account for the purposes of
providing grants pursuant to this chapter.
(d) Notwithstanding Section 16305.7, all interest or other
increments resulting from the investment of the funds in the
Petroleum Underground Storage Tank Financing Account pursuant to
Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of
Division 4 of Title 2 shall be deposited in the Petroleum Underground
Storage Tank Financing Account.
(e) All interest accruing on interest payments from loan
applicants or interest earned on the funds in the Petroleum
Underground Storage Tank Financing Account shall be deposited in a
subaccount of the account.
SEC. 8. Section 15399.19 of the Government Code, as added by
Section 6 of Chapter 814 of the Statutes of 1995, is amended and
renumbered to read:
15399.19.1. (a) On or before January 1, 1997, and on or before
January 1 annually thereafter, the agency shall submit an annual
report to the Legislature concerning the performance of the grant and
loan program established by this chapter, including the number and
size of grants and loans made, characteristics of grant and loan
recipients, the number of underground storage tanks removed and
upgraded as a result of the grant and loan program, and the amount of
money spent on administering the program. Copies of the report
shall be submitted to the appropriate fiscal and policy committees of
the Legislature and, upon request, to individual Members of the
Legislature.
(b) Notwithstanding Section 7550.5 of the Government Code, on or
before April 1, 2001, the agency shall submit a report to the
Legislature detailing the status of the grant program, the remaining
needs, if any, of eligible candidates for financial assistance from
the account, and any suggested statutory changes so that the account
may better serve affected small businesses.
SEC. 9. Section 65964 is added to the Government Code, to read:
65964. (a) For the purposes of this section, the following
definitions apply:
(1) "Permitting agency" means a city or county, or an air
pollution control district, as defined in Section 65926, authorized
to issue a permit or other preconstruction authorization to construct
a Phase 3 reformulated gasoline project.
(2) "Phase 3 Reformulated Gasoline Project" means a project to
construct or modify a facility consisting of processing units or
other equipment necessary to produce California Phase 3 Reformulated
Gasoline, as required to be produced pursuant to paragraph 6 of
Executive Order D-5-99, and that is located within the physical
boundaries of an existing oil refinery or terminal.
(b) A permitting agency for a phase 3 reformulated gasoline
project shall undertake all reasonable efforts to expedite action on
the permit or other authorization with the objective of acting upon
the permit or other authorization within 12 months of receiving a
completed application for a permit or other authorization, if the
permit applicant has made reasonable efforts to cooperate with the
permitting agency in expediting the processing of the permit or other
authorization.
(c) The permitting agency, or a permit applicant with the
concurrence of the permitting agency, may request the State Air
Resources Board or the State Energy Resources Conservation and
Development Commission, or both agencies, to provide appropriate
assistance to the permitting agency to assist that agency in
achieving the objective of acting upon the permit or other
authorization within 12 months.
(d) Upon receipt of a request made pursuant to subdivision (c),
the State Air Resources Board or the State Energy Resources
Conservation and Development Commission, or both agencies, shall
provide appropriate assistance to a permitting agency with the
objective of acting upon a permit for a phase 3 reformulated gasoline
project within 12 months.
(e) Nothing in this section shall affect any of the following:
(1) The authority or obligation of a public agency under any law,
regulation, or ordinance.
(2) The ability of a public agency to hold a public hearing upon,
to comment upon, or to impose conditions upon, a reformulated
gasoline project.
(3) The rights or remedies of any party pursuant to any law,
regulation, or ordinance.
(f) This section shall remain in effect only until January 1, 2003,
and as of that date is repealed, unless a later enacted statute,
which is enacted before January 1, 2003, deletes or extends that
date.
SEC. 10. Section 25284.1 is added to the Health and Safety Code,
to read:
25284.1. (a) The board shall take all of the following actions
with regard to the prevention of unauthorized releases from petroleum
underground storage tanks:
(1) On or before June 1, 2000, initiate a field-based research
program to quantify the probability and environmental significance of
releases from underground storage tank systems meeting the 1998
upgrade requirements specified in subdivision (c) of Section 25284.
The research program shall do all of the following:
(A) Seek to identify the source and causes of releases and any
deficiencies in leak detection systems.
(B) Include single-walled, double-walled, and hybrid tank systems,
and avoid bias toward known leaking underground storage tank systems
by including a statistically valid sample of all operating
underground storage tank systems.
(C) Include peer review.
(2) Complete the research program on or before June 1, 2002.
(3) Use the results of the research program to develop appropriate
changes in design, construction, monitoring, operation, and
maintenance requirements for tank systems.
(4) On or before January 1, 2001, adopt regulations to do all of
the following:
(A) (i) Require underground storage tank owners, operators,
service technicians, installers, and inspectors to meet minimum
industry-established training standards and require tank facilities
to be operated in a manner consistent with industry-established best
management practices.
(ii) The board shall implement an outreach effort to educate small
business owners or operators on the importance of the regulations
adopted pursuant to this subparagraph.
(B) Require testing of the secondary containment components,
including under-dispenser and pump turbine containment components,
upon initial installation of a secondary containment component and
periodically thereafter, to ensure that the system is capable of
containing releases from the primary containment until a release is
detected and cleaned up. The board shall consult with the petroleum
industry and local government to assess the appropriate test or tests
that would comply with this subparagraph.
(C) Require annual testing of release detection sensors and
alarms, including under-dispenser and pump turbine containment
sensors and alarms. The board shall consult with the petroleum
industry and local government to assess the appropriate test or tests
that would comply with this subparagraph.
(5) (A) Require an owner or operator of an underground storage
tank installed after July 1, 1987, if a tank is located within 1,000
feet of a public drinking water well, as identified pursuant to the
state GIS mapping data base, to have the underground storage tank
system fitted, on or before July 1, 2001, with under-dispenser
containment or a spill containment or control system that is approved
by the board as capable of containing any accidental release.
(B) Require all underground storage tanks installed after January
1, 2000, to have the tank system fitted with under-dispenser
containment or a spill containment system or control system to meet
the requirements of subparagraph (A).
(C) Require an owner or operator of an underground storage tank
that is not otherwise subject to subparagraph (A), and not subject to
subparagraph (B), to have the underground storage tank system fitted
to meet the requirements of subparagraph (A), on or before December
31, 2003.
(D) On and after January 1, 2002, no person shall install, repair,
maintain, or calibrate monitoring equipment for an underground
storage tank unless that person satisfies both of the following
requirements:
(i) The person has fulfilled training standards identified by the
board in regulations adopted pursuant to this section.
(ii) The person possesses a Class "A" General Engineering
Contractor License, C-10 Electrical Contractor License, C-34 Pipeline
Contractor License, C-36 Plumbing Contractor License, or C-61 (D40)
Limited Specialty Service Station Equipment and Maintenance
Contractor License issued by the Contractors' State License Board.
(E) Loans and grants for the installation of under-dispenser
containment or a spill containment or control system shall be made
available pursuant to Chapter 8.5 (commencing with Section 15399.10)
of Part 6.7 of Division 3 of Title 2 of the Government Code.
(6) Convene a panel of local agency and regional board
representatives to review existing enforcement authority and
procedures and to advise the board of any changes that are needed to
enable local agencies to take adequate enforcement action against
owners and operators of noncompliant underground storage tank
facilities. The panel shall make its recommendations to the board on
or before September 30, 2001. Based on the recommendations of the
panel, the board shall also establish effective enforcement
procedures in cases involving fraud.
(b) On or before July 1, 2001, the Contractors State License
Board, in consultation with the board, the petroleum industry, air
pollution control districts, air quality management districts, and
local government, shall review its requirements for petroleum
underground storage tank system installation and removal contractors
and make changes, where appropriate, to ensure these contractors are
qualified.
SEC. 11. Section 25288 of the Health and Safety Code is amended to
read:
25288. (a) The local agency shall inspect every underground tank
system within its jurisdiction at least once every year. The
purpose of the inspection is to determine whether the tank system
complies with the applicable requirements of this chapter and the
regulations adopted by the board pursuant to Section 25299.3,
including the design and construction standards of Section 25291 or
25292, whichever is applicable, whether the operator has monitored
and tested the tank system as required by the permit, and whether the
tank system is in a safe operating condition.
(b) After an inspection conducted pursuant to subdivision (a), the
local agency shall prepare a compliance report detailing the
inspection and shall send a copy of this report to the permitholder
and the owner or operator, if the owner or operator is not the
permitholder. Any report prepared pursuant to this section shall be
consolidated into any other inspection reports required pursuant to
Chapter 6.11 (commencing with Section 25404), the requirements listed
in subdivision (c) of Section 25404, and the regulations adopted to
implement the requirements listed in subdivision (c) of Section
25404.
(c) In lieu of the annual local agency inspections, the local
agency may require the permitholder to employ a special inspector to
conduct the annual inspection. The local agency shall supply the
permitholder with a list of at least three special inspectors that
are qualified to conduct the inspection. The permitholder shall
employ a special inspector from the list provided by the local
agency. The special inspector's authority shall be the same as that
of the local agency as set forth in subdivision (a).
(d) Within 60 days after receiving a compliance report or special
inspection report prepared in accordance with subdivision (b) or (c),
respectively, the permitholder shall file with the local agency a
plan to implement all recommendations contained in the compliance
report or shall demonstrate, to the satisfaction of the local agency,
why these recommendations should not be implemented. Any corrective
action conducted pursuant to the recommendations in the report shall
be taken pursuant to Sections 25299.36 and 25299.37.
SEC. 12. Section 25292.4 is added to the Health and Safety Code,
to read:
25292.4. (a) On and after November 1, 2000, an owner or operator
of an underground storage tank system with a single-walled component
that is located within 1,000 feet of a public drinking water well, as
identified pursuant to the state G1S mapping data base, shall
implement a program of enhanced leak detection or monitoring, in
accordance with the regulations adopted by the board pursuant to
subdivision (c).
(b) The board shall notify the owner and operator of each
underground storage tank system that is located within 1,000 feet of
a public drinking water well, as identified pursuant to the state GIS
mapping data base, of the owner and operators' responsibilities
pursuant to this section. The board shall provide each local agency
with a list of tank systems within the local agency's jurisdiction
that are located within 1,000 feet of a public drinking water well,
as identified pursuant to the state GIS mapping data base.
(c) The board shall adopt regulations to implement the enhanced
leak detection and monitoring program required by subdivision (a).
Before adopting these regulations, the board shall consult with the
petroleum industry, local governments, environmental groups, and
other interested parties to assess the appropriate technology and
procedures to implement the enhanced leak detection or monitoring
program required by subdivision (a). In adopting these regulations,
the board shall consider existing leak detection technology and
external monitoring techniques or procedures for underground storage
tanks.
SEC. 13. Section 25299 of the Health and Safety Code is amended to
read:
25299. (a) Any operator of an underground tank system shall be
liable for a civil penalty of not less than five hundred dollars
($500) or more than five thousand dollars ($5,000) for each
underground storage tank for each day of violation for any of the
following violations:
(1) Operating an underground tank system which has not been issued
a permit, in violation of this chapter.
(2) Violation of any of the applicable requirements of the permit
issued for the operation of the underground tank system.
(3) Failure to maintain records, as required by this chapter.
(4) Failure to report an unauthorized release, as required by
Sections 25294 and 25295.
(5) Failure to properly close an underground tank system, as
required by Section 25298.
(6) Violation of any applicable requirement of this chapter or any
requirement of this chapter or any regulation adopted by the board
pursuant to Section 25299.3.
(7) Failure to permit inspection or to perform any monitoring,
testing, or reporting required pursuant to Section 25288 or 25289.
(8) Making any false statement, representation, or certification
in any application, record, report, or other document submitted or
required to be maintained pursuant to this chapter.
(9) Tampering with or otherwise disabling automatic leak detection
devices or alarms.
(b) Any owner of an underground tank system shall be liable for a
civil penalty of not less than five hundred dollars ($500) or more
than five thousand dollars ($5,000) per day for each underground
storage tank, for each day of violation, for any of the following
violations:
(1) Failure to obtain a permit as specified by this chapter.
(2) Failure to repair or upgrade an underground tank system in
accordance with this chapter.
(3) Abandonment or improper closure of any underground tank system
subject to this chapter.
(4) Knowing failure to take reasonable and necessary steps to
assure compliance with this chapter by the operator of an underground
tank system.
(5) Violation of any applicable requirement of the permit issued
for operation of the underground tank system.
(6) Violation of any applicable requirement of this chapter or any
regulation adopted by the board pursuant to Section 25299.3.
(7) Failure to permit inspection or to perform any monitoring,
testing, or reporting required pursuant to Section 25288 or 25289.
(8) Making any false statement, representation, or certification
in any application, record, report, or other document submitted or
required to be maintained pursuant to this chapter.
(c) Any person who intentionally fails to notify the board or the
local agency when required to do so by this chapter or who submits
false information in a permit application, amendment, or renewal,
pursuant to Section 25286, is liable for a civil penalty of not more
than five thousand dollars ($5,000) for each underground storage tank
for which notification is not given or false information is
submitted.
(d) (1) Any person who falsifies any monitoring records required
by this chapter, or knowingly fails to report an unauthorized
release, shall, upon conviction, be punished by a fine of not less
than five thousand dollars ($5,000) or more than ten thousand dollars
($10,000), by imprisonment in the county jail for not to exceed one
year, or by both that fine and imprisonment.
(2) Any person who intentionally disables or tampers with an
automatic leak detection system in a manner that would prevent the
automatic leak detection system from detecting a leak or alerting the
owner or operator of the leak, shall, upon conviction, be punished
by a fine of not less than five thousand dollars ($5,000) or more
than ten thousand dollars ($10,000), by imprisonment in the county
jail for not more than one year, or by both the fine and
imprisonment.
(e) In determining both the civil and criminal penalties imposed
pursuant to this section, the court shall consider all relevant
circumstances, including, but not limited to, the extent of harm or
potential harm caused by the violation, the nature of the violation
and the period of time over which it occurred, the frequency of past
violations, and the corrective action, if any, taken by the person
who holds the permit.
(f) Each civil penalty or criminal fine imposed pursuant to this
section for any separate violation shall be separate, and in addition
to, any other civil penalty
or criminal fine imposed pursuant to this section or any
other provision of law, and shall be paid to the treasury of the
local agency or state, whichever is represented by the office of the
city attorney, district attorney, or Attorney General bringing the
action. All penalties or fines collected on behalf of the board or a
regional board by the Attorney General shall be deposited in the
State Water Pollution Cleanup and Abatement Account in the State
Water Quality Control Fund, and are available for expenditure by the
board, upon appropriation, pursuant to Section 13441 of the Water
Code.
(g) Paragraph (9) of subdivision (a) does not prohibit the owner
or operator of an underground storage tank, or his or her designee,
from maintaining, repairing, or replacing automatic leak detection
devices or alarms associated with that tank.
SEC. 14. Section 29299.18 is added to the Health and Safety Code,
to read:
25299.18. "MTBE" means methyl tertiary-butyl ether.
SEC. 15. Section 25299.37.1 of the Health and Safety Code is
amended to read:
25299.37.1. (a) No closure letter pursuant to this chapter shall
be issued unless the soil or groundwater, or both, where applicable,
at the site have been tested for MTBE and the results of that testing
are known to the regional board.
(b) Subdivision (a) does not apply to a closure letter for a tank
case for which the board, a regional board, or local agency
determines that the tank has only contained diesel or jet fuel.
SEC. 16. Section 25299.38.1 is added to the Health and Safety
Code, to read:
25299.38.1. (a) The board, in consultation with the State
Department of Health Services, shall develop guidelines for the
investigation and cleanup of MTBE and other ether-based oxygenates in
groundwater. The guidelines shall include procedures for
determining, to the extent practicable, whether the contamination
associated with an unauthorized release of MTBE is from the tank
system prior to the system's most recent upgrade or replacement or if
the contamination is from an unauthorized release from the current
tank system.
(b) The board, in consultation with the State Department of Health
Services, shall develop appropriate cleanup standards for
contamination associated with a release of MTBE.
SEC. 17. Section 25299.50 of the Health and Safety Code is amended
to read:
25299.50. (a) The Underground Storage Tank Cleanup Fund is hereby
created in the State Treasury. The money in the fund may be
expended by the board, upon appropriation by the Legislature, for
purposes of this chapter. From time to time, the board may modify
existing accounts or create accounts in the fund or other funds
administered by the board, which the board determines are appropriate
or necessary for proper administration of this chapter.
(b) Except for funds transferred to the Drinking Water Treatment
and Research Fund created pursuant to subdivision (c) of Section
116367, all of the following amounts shall be deposited in the fund:
(1) Money appropriated by the Legislature for deposit in the fund.
(2) The fees, interest, and penalties collected pursuant to
Article 5 (commencing with Section 25299.40).
(3) Notwithstanding Section 16475 of the Government Code, any
interest earned upon the money deposited in the fund.
(4) Any money recovered by the fund pursuant to Section 25299.70.
(5) Any civil penalties collected by the board or regional board
pursuant to Section 25299.76.
(c) (1) Notwithstanding subdivision (a), any funds appropriated by
the Legislature in the annual Budget Act for payment of a claim for
the costs of a corrective action in response to an unauthorized
release, that are encumbered for expenditure for a corrective action
pursuant to a letter of credit issued by the board pursuant to
subdivision (e) of Section 25299.57, but are subsequently not
expended for that corrective action claim, may be reallocated by the
board for payment of other claims for corrective action pursuant to
Section 25299.57.
(2) Notwithstanding Section 7550.5 of the Government Code, the
board shall report at least once every three months on the
implementation of this subdivision to the Senate Committee on Budget
and Fiscal Review, the Senate Committee on Environmental Quality, the
Assembly Committee on Budget, and the Assembly Committee on
Environmental Safety and Toxic Materials, or to any successor
committee, and to the Director of Finance.
SEC. 18. Section 25299.51 of the Health and Safety Code is amended
to read:
25299.51. The board may expend the money in the fund for all the
following purposes:
(a) In addition to the purposes specified in subdivisions (c),
(d), and (e), for expenditure by the board for the costs of
implementing this chapter, which shall include costs incurred by the
board pursuant to Article 8.5 (commencing with Section 25299.80.1).
(b) To pay for the administrative costs of the State Board of
Equalization in collecting the fee imposed by Article 5 (commencing
with Section 25299.40).
(c) To pay for the reasonable and necessary costs of the regional
board or local agency for corrective action pursuant to Section
25299.36, up to one million five hundred thousand dollars
($1,500,000) per occurrence. The Legislature may appropriate the
money in the fund for expenditure by the board, without regard to
fiscal year, for prompt action in response to any unauthorized
release.
(d) To pay for the costs of an agreement for the abatement of, and
oversight of the abatement of, an unauthorized release of hazardous
substances from underground storage tanks, by a local agency, as
authorized by Section 25297.1 or by any other provision of law,
except that, for the purpose of expenditure of these funds, only
underground storage tanks, as defined in Section 25299.24, shall be
the subject of the agreement.
(e) To pay for the costs of cleanup and oversight of unauthorized
releases at abandoned tank sites. The board shall not expend more
than 25 percent of the total amount of money collected and deposited
in the fund annually for the purposes of this subdivision and
subdivision (h).
(f) To pay claims pursuant to Section 25299.57.
(g) To pay, upon order of the Controller, for refunds pursuant to
Part 26 (commencing with Section 50101) of Division 2 of the Revenue
and Taxation Code.
(h) To pay for the reasonable and necessary costs of the regional
board or the local agency for corrective action pursuant to
subdivision (g) of Section 25299.37.
(i) To pay claims pursuant to Section 25299.58.
SEC. 19. Section 25299.52 of the Health and Safety Code is amended
to read:
25299.52. (a) The board shall adopt a priority ranking list at
least annually for awarding claims pursuant to Section 25299.57 or
25299.58. Any owner or operator eligible for payment of a claim
pursuant to Section 25299.54 shall file an application with the board
within a reasonable period, to be determined by the board, prior to
adoption of the priority ranking list.
(b) Except as provided in subdivision (c), in awarding claims
pursuant to Section 25299.57 or 25299.58, the board shall pay claims
in accordance with the following order of priority:
(1) Owners of tanks who are eligible to file a claim pursuant to
subdivision (e) of Section 25299.54.
(2) Owners and operators of tanks that are either of the
following:
(A) An owner or operator of a tank that is a small business, by
meeting the requirements of subdivision (d) of Section 14837 of the
Government Code. An owner or operator that meets that definition of
small business, but who is domiciled or has its principal office
outside of the state, shall be classified in this category if the
owner or operator otherwise meets the requirements of subdivision (d)
of Section 14837 of the Government Code with regard to the number of
employees and the total annual revenues received.
(B) An owner or operator that is a city, county, district, or
nonprofit organization that receives total annual revenues of not
more than seven million dollars ($7,000,000). In determining the
amount of a nonprofit organization's annual revenues, the board shall
calculate only those revenues directly attributable to the
particular site at which the tank or tanks for which the claim is
submitted are located.
(3) Owners or operators of tanks that are either of the following:
(A) The owner or operator owns and operates a business that
employs fewer than 500 full-time and part-time employees, is
independently owned and operated, and is not dominant in its field of
operation.
(B) The owner or operator is a city, county, district, or
nonprofit organization that employs fewer than 500 full-time and
part-time employees. In determining the number of employees employed
by a nonprofit organization, the board shall calculate only those
employees employed at the particular site at which a tank for which
the claim is being submitted is located.
(4) All other tank owners and operators.
(c) (1) In any year in which the board is not otherwise authorized
to award at least 15 percent of the total amount of funds committed
for that year to tank owners or operators in those categories set
forth in paragraph (3) or (4) of subdivision (b) due to the priority
ranking list award limitations set forth in subdivision (b), the
board shall allocate between 14 and 16 percent of the total amount of
funds committed for that year to each category that is not otherwise
entitled to at least that level of committed funding for that year.
(2) If the total amount of claims outstanding in one or more of
the priority categories specified in paragraph (3) or (4) of
subdivision (b) is less than 15 percent of the total amount annually
appropriated from the fund for the purpose of awarding claims, the
board shall reserve for making claims in that category only the
amount that is necessary to satisfy the outstanding claims in that
category.
(d) The board shall give priority to a claim that is filed before
September 24, 1993, by a city, county, or district that is eligible
for payment pursuant to Section 25299.54 in the following manner:
(1) The board shall determine whether the priority category
specified for a city, county, or district pursuant to subparagraph
(B) of paragraph (2), or pursuant to subparagraph (B) of paragraph
(3), of subdivision (b) requires that the priority ranking of the
claim be changed.
(2) If the priority ranking of the claim is changed and the claim
is placed into either the priority category specified in subparagraph
(B) of paragraph (2), or specified in subparagraph (B) of paragraph
(3), of subdivision (b), the board shall pay all other claims that
were assigned to that priority category prior to January 1, 2000,
before paying the claim of the city, county, or district.
(e) The board may, to carry out the intent specified in paragraph
(1) of subdivision (b) of Section 25299.10 and to expedite the
processing and awarding of claims pursuant to Sections 25299.57 and
25299.58, implement the contracting procedures required by Chapter 10
(commencing with Section 4525) of Division 5 of Title 1 of the
Government Code, as may be necessary, to alleviate the claims
processing and award backlog. If, at the conclusion of any fiscal
year, 25 percent or more of the funds appropriated annually for
awards to claimants during that year have not actually been obligated
by the board, the board shall, at its next regularly scheduled
meeting, determine, in a public hearing, whether, given the
circumstances of the awards backlog, it is appropriate to implement
those contracting procedures for some, or all, of the claims filed
with the board.
(f) For purposes of this section, the following definitions shall
apply:
(1) "Nonprofit organization" means a nonprofit public benefit
organization incorporated pursuant to Part 2 (commencing with Section
5110) of Division 2 of Title 1 of the Corporations Code.
(2) "Annual revenue," with respect to public entities, means the
total annual general purpose revenues, excluding all restricted
revenues over which the governing agency has no discretion, as
reported in the Annual Report of Financial Transactions submitted to
the Controller, for the latest fiscal year ending prior to the date
the fund reimbursement claim application was filed.
(3) "Annual revenue," with respect to nonprofit organizations,
means the total annual revenues, as shown in an annual fiscal report
filed with the Registry of Charitable Trusts of state and federal tax
records, based on the latest fiscal year ending prior to the date
the fund reimbursement claim application was filed.
(4) "General purpose revenues," as used in paragraph (2), means
revenues consisting of all of the following: secured and unsecured
revenues; less than countywide funds, secured and unsecured; prior
year secured and unsecured penalties and delinquent taxes; sales and
use taxes; transportation taxes (nontransit); property transfer
taxes; transient lodging taxes; timber yield taxes; aircraft taxes;
franchise taxes; fines, forfeitures, and penalties; revenues from use
of money and property; motor vehicle in-lieu taxes; trailer coach
in-lieu taxes; homeowner property tax relief; open-space tax relief;
and cigarette taxes.
SEC. 20. Section 25299.57 of the Health and Safety Code is amended
to read:
25299.57. (a) If the board makes the determination specified in
subdivision (d), the board may only pay for the costs of a corrective
action that exceeds the level of financial responsibility required
to be obtained pursuant to Section 25299.32, but not more than one
million five hundred thousand dollars ($1,500,000) for each
occurrence. In the case of an owner or operator who, as of January
1, 1988, was required to perform corrective action, who initiated
that corrective action in accordance with Division 7 (commencing with
Section 13000) of the Water Code or Chapter 6.7 (commencing with
Section 25280), and who is undertaking the corrective action in
compliance with waste discharge requirements or other orders issued
pursuant to Division 7 (commencing with Section 13000) of the Water
Code or Chapter 6.7 (commencing with Section 25280), the owner or
operator may apply to the board for satisfaction of a claim filed
pursuant to this article. It is the intent of the Legislature that
claimants applying for satisfaction of claims from the fund be
notified of eligibility for reimbursement in a prompt and timely
manner and that a letter of credit or commitment that will obligate
funds for reimbursement follow the notice of eligibility as soon
thereafter as possible.
(b) (1) For claims eligible for reimbursement pursuant to
subdivision (c) of Section 25299.55, the claimant shall submit the
actual cost of corrective action to the board, which shall either
approve or disapprove the costs incurred as reasonable and necessary.
(2) The board shall not reject any actual costs of corrective
action in a claim solely on the basis that the invoices submitted
fail to sufficiently detail the actual costs incurred, if all of the
following applies:
(A) Auxiliary documentation is provided which documents to the
board's satisfaction that the invoice is for necessary corrective
action work.
(B) The costs of corrective action work in the claim are
reasonably commensurate with similar corrective action work performed
during the same time period covered by the invoice for which
reimbursement is sought.
(C) The invoices include a brief description of the work
performed, the date that the work was performed, the vendor, and the
amount.
(c) For claims eligible for prepayment pursuant to subdivision (c)
of Section 25299.55, the claimant shall submit the estimated cost of
the corrective action to the board, which shall approve or
disapprove the reasonableness of the cost estimate.
(d) Except as provided in subdivision (j), a claim specified in
subdivision (a) may be paid if the board makes all of the following
findings:
(1) There has been an unauthorized release of petroleum into the
environment from an underground storage tank.
(2) The claimant is required to undertake or contract for
corrective action pursuant to Section 25299.37, or, as of January 1,
1988, the claimant has initiated corrective action in accordance with
Division 7 (commencing with Section 13000) of the Water Code.
(3) (A) Except as provided in subparagraph (B), the claimant has
complied with Section 25299.31 and the permit requirements of Chapter
6.7 (commencing with Section 25280).
(B) All claimants who file their claim on or after January 1,
1994, and all claimants who filed their claim prior to that date but
are not eligible for a waiver of the permit requirement pursuant to
board regulations in effect on the date of the filing of the claim,
and who did not obtain or apply for any permit required by
subdivision (a) of Section 25284 by January 1, 1990, shall be subject
to subparagraph (A) regardless of the reason or reasons that the
permit was not obtained or applied for. However, on and after
January 1, 1994, the board may waive the provisions of subparagraph
(A) as a condition for payment from the fund if the board finds all
of the following:
(i) The claimant was unaware of the permit requirement prior to
January 1, 1990, and there was no intent to intentionally avoid the
permit requirement or the fees associated with the permit.
(ii) Prior to submittal of the application to the fund, the
claimant has complied with Section 25299.31 and has obtained and paid
for all permits currently required by this paragraph.
(iii) Prior to submittal of the application to the fund, the
claimant has paid all current underground storage tank fees imposed
pursuant to Section 25299.41 and all prior fees due on and after
January 1, 1991.
(C) (i) A claimant exempted pursuant to subparagraph (B) shall
obtain a level of financial responsibility twice as great as the
amount which the claimant is otherwise required to obtain pursuant to
subdivision (a) of Section 25299.32.
(ii) The board may waive the requirements of clause (i) if the
claimant can demonstrate that the conditions specified in clauses (i)
to (iii), inclusive, of subparagraph (B) were satisfied prior to the
causing of any contamination. That demonstration may be made
through a certification issued by the permitting agency based on site
and tank tests at the time of permit application or in any other
manner acceptable to the board.
(D) The board shall rank all claims resubmitted pursuant to
subparagraph (B) lower than all claims filed before January 1, 1994,
within their respective priority classes specified in subdivision (b)
of Section 25299.52.
(4) The board has approved either the costs incurred for the
corrective action pursuant to subdivision (b) or the estimated costs
for corrective action pursuant to subdivision (c).
(e) The board shall provide the claimant, whose cost estimate has
been approved, a letter of credit authorizing payment of the costs
from the fund.
(f) The claimant may submit a claim for partial payment to cover
the costs of corrective action performed in stages, as approved by
the board.
(g) (1) Any claimant who submits a claim for payment to the board
shall submit multiple bids for prospective costs as prescribed in
regulations adopted by the board pursuant to Section 25299.77.
(2) Any claimant who submits a claim to the board for the payment
of professional engineering and geologic work shall submit multiple
proposals and fee estimates, as required by the regulations adopted
by the board pursuant to Section 25299.77. The claimant's selection
of the provider of these services is not required to be based on the
lowest estimated fee, if the fee estimate conforms with the range of
acceptable costs established by the board.
(3) Any claimant who submits a claim for payment to the board for
remediation construction contracting work shall submit multiple bids,
as required in the regulations adopted by the board pursuant to
Section 25299.77.
(4) Paragraphs (1), (2), and (3) do not apply to a tank owned or
operated by a public agency if the prospective costs are for private
professional services within the meaning of Chapter 10 (commencing
with Section 4525) of Division 5 of Title 1 of the Government Code
and those services are procured in accordance with the requirements
of that chapter.
(h) The board shall provide, upon the request of a claimant,
assistance to the claimant in the selection of contractors retained
by the claimant to conduct reimbursable work related to corrective
actions. The board shall develop a summary of expected costs for
common remedial actions. This summary of expected costs may be used
by claimants as a guide in the selection and supervision of
consultants and contractors.
(i) The board shall pay, within 60 days from the date of receipt
of an invoice of expenditures, all costs specified in the work plan
developed pursuant to Section 25299.37, and all costs which are
otherwise necessary to comply with an order issued by a local, state,
or federal agency.
(j) (1) The board shall pay a claim of not more than three
thousand dollars ($3,000) per occurrence for regulatory technical
assistance to an owner or operator who is otherwise eligible for
reimbursement under this chapter.
(2) For the purposes of this subdivision, regulatory technical
assistance is limited to assistance from a person, other than the
claimant, in the preparation and submission of a claim to the fund.
Regulatory technical assistance does not include assistance in
connection with proceedings under Section 25299.39.2 or 25299.56 or
any action in court.
(k) (1) Notwithstanding any other provision of this section, the
board shall pay a claim for the costs of corrective action to a
person who owns property on which is located a release from a
petroleum underground storage tank which has been the subject of a
completed corrective action and for which additional corrective
action is required because of additionally discovered contamination
from the previous release, only if the person who carried out the
earlier and completed corrective action was eligible for, and applied
for, reimbursement pursuant to subdivision (b), and only to the
extent that the amount of reimbursement for the earlier corrective
action did not exceed the amount of reimbursement authorized by
subdivision (a). Reimbursement to a claimant on a reopened site
shall occur when funds are available, and reimbursement commitment
shall be made ahead of any new letters of commitment to be issued, as
of the date of the reopening of the claim, if funding has occurred
on the original claim, in which case funding shall occur at the time
it would have occurred under the original claim.
(2) For purposes of this subdivision, a corrective action is
completed when the local agency or regional board with jurisdiction
over the site or the board issues a closure letter pursuant to
subdivision (h) of Section 25299.37.
SEC. 21. Section 25299.59 of the Health and Safety Code is amended
to read:
25299.59. (a) If the board has paid out of the fund for any costs
of corrective action, the board shall not pay any other claim out of
the fund for the same costs.
(b) Notwithstanding Sections 25299.57 and 25299.58, the board
shall not reimburse or authorize prepayment of any claim in an
aggregate amount exceeding one million five hundred thousand dollars
($1,500,000), less the minimum level of financial responsibility
specified in Section 25299.32, for a claim arising from the same
event or occurrence. If a claim exceeds one million dollars
($1,000,000) for an occurrence, the board may only reimburse costs
submitted pursuant to Section 25299.57 for those costs in excess of
one million dollars ($1,000,000).
(c) The board may conduct an audit of any corrective action claim
honored pursuant to this chapter. The claimant shall reimburse the
state for any costs disallowed in the audit. A claimant shall
preserve, and make available, upon request of the board or the board'
s designee, all records pertaining to the corrective action claim for
a period of three years after the final payment is made to the
claimant.
SEC. 22. Section 25299.81 of the Health and Safety Code is amended
to read:
25299.81. (a) Except as provided in subdivisions (b) and (c),
this chapter shall remain in effect only until January 1, 2011, and
as of that date is repealed, unless a later enacted statute, which is
enacted before January 1, 2011, deletes or extends that date.
(b) Notwithstanding subdivision (a), Article 1 (commencing with
Section 25299.10), Article 2 (commencing with Section 25299.11), and
Article 4 (commencing with Section 25299.36) shall not be repealed
and shall remain in effect on January 1, 2011.
(c) The repeal of certain portions of this chapter does not
terminate any of the following rights, obligations, or authorities,
or any provision necessary to carry out these rights and obligations:
(1) The filing and payment of claims against the fund, until the
moneys in the fund are exhausted. Upon exhaustion of the fund, any
remaining claims shall be invalid.
(2) The repayment of loans, outstanding as of January 1, 2011, due
and payable to the board under the terms of Chapter 8.5 (commencing
with Section 15399.10) of Part 6.7 of Division 3 of Title 2 of the
Government Code.
(3) The resolution of any cost recovery action.
(d) Notwithstanding Section 7550.5 of the Government Code, the
board shall annually, on or before September 30, prepare and submit a
report to the Legislature which describes the status of the fund and
sets forth recommendations for legislative changes to improve the
efficiency of the program established pursuant to this chapter, with
a special emphasis on expediting environmental cleanup and the
distribution of money from the fund, including alternative methods
for the distribution of that money.
SEC. 23. Section 25299.94 of the Health and Safety Code is amended
to read:
25299.94. (a) The board may pay the cost of corrective actions
and third-party compensation claims that are submitted as part of a
joint claim and which exceed the amount specified in subdivision (b),
but do not exceed an amount equal to one million five hundred
thousand dollars ($1,500,000) per occurrence, for which an owner or
operator named in the joint claim is eligible for reimbursement under
this chapter. If a claim from a contributing site exceeds one
million dollars ($1,000,000) for an occurrence, the board may only
reimburse costs submitted pursuant to Section
25299.57 for those costs in excess of one
million dollars ($1,000,000).
(b) For each joint claim, the board may only pay for the costs of
corrective action and third-party compensation claims that exceed the
aggregate of the levels of financial responsibility required
pursuant to Section 25299.32 for each owner or operator named in the
joint claim.
(c) The costs of corrective action determined eligible for
reimbursement shall be paid before third-party compensation claims.
(d) Except as provided in paragraph (1) of subdivision (e),
reimbursement for costs of corrective action is limited to costs
incurred by the joint claimants after executing an agreement under
paragraph (7) of subdivision (a) of Section 25299.93.
(e) Both of the following costs of corrective action incurred at a
contributing site may be reimbursed in accordance with subdivision
(f):
(1) Costs incurred by an owner or operator before executing an
agreement described in paragraph (7) of subdivision (a) of Section
25299.93.
(2) Costs relating to unauthorized releases that do not contribute
to the commingled plume, but which are included in the occurrence
which is the subject of the joint claim.
(f) An owner or operator may seek reimbursement of costs described
in subdivision (e) by doing either of the following:
(1) Including a payment request for those corrective action costs
with the claim filed under this article.
(2) Filing a claim or maintaining an existing claim under Article
6 (commencing with Section 25299.50).
(g) Any reimbursement received pursuant to subdivision (f) and any
amount excluded from the payment based on the amount of financial
responsibility required to be maintained shall be applied toward the
limitations prescribed in subdivision (a).
(h) The board shall not reimburse a claimant or joint claimant for
any eligible costs for which the claimant or joint claimant has
been, or will be, compensated by another party.
SEC. 24. Section 25299.99.2 of the Health and Safety Code is
amended to read:
25299.99.2. This article, notwithstanding Section 25299.81, shall
remain in effect only until January 1, 2010, and as of that date is
repealed, unless a later enacted statute, which is enacted before
January 1, 2010, deletes or extends that date.
SEC. 25. Section 25299.99.3 is added to the Health and Safety
Code, to read:
25299.99.3. In any fiscal year, if the department determines that
less than two million dollars ($2,000,000) of unencumbered funds
remain in the fund, it shall notify the board and the board shall
transfer five million dollars ($5,000,000) from the Underground
Storage Tank Cleanup Fund to the Drinking Water Treatment and
Research Fund, to be expended for the purposes set forth in Section
116367, if a drinking water well has been contaminated with oxygenate
and there is substantial evidence that the contamination was caused
by a release from an underground storage tank.
SEC. 26. Section 43013.1 is added to the Health and Safety Code,
to read:
43013.1. (a) The State Energy Resources Conservation and
Development Commission, in consultation with, and the state board,
shall develop a timetable for the removal of MTBE from gasoline at
the earliest possible date. In developing the timetable, the
commission and the state board shall consider studies conducted by
the commission and should ensure adequate supply and availability of
gasoline.
(b) The state board shall ensure that regulations for California
Phase 3 Reformulated Gasoline (CaRFG3) adopted pursuant to Executive
Order D-5-99 meet all of the following conditions:
(1) Maintain or improve upon emissions and air quality benefits
achieved by California Phase 2 Reformulated Gasoline in California as
of January 1, 1999, including emission reductions for all
pollutants, including precursors, identified in the State
Implementation Plan for ozone, and emission reductions in
potency-weighted air toxics compounds.
(2) Provide additional flexibility to reduce or remove oxygen from
motor vehicle fuel in compliance with the regulations adopted
pursuant to subdivision (a).
(3) Are subject to a multimedia evaluation pursuant to Section
43830.8.
(c) On or before April 1, 2000, the State Water Resources Control
Board, in consultation with the Department of Water Resources and the
State Department of Health Services, shall identify areas of the
state that are most vulnerable to groundwater contamination by MTBE
or other ether-based oxygenates. The State Water Resources Control
Board shall direct resources to those areas for protection and
cleanup on a prioritized basis. Loans for upgrading, replacing, or
removing tanks shall be made available pursuant to Chapter 8.5
(commencing with Section 15399.10) of Part 6.7 of Division 3 of Title
2 of the Government Code. In identifying areas vulnerable to
groundwater contamination, the State Water Resources Control Board
shall consider criteria including, but not limited to, any one, or
any combination of, the following:
(1) Hydrogeology.
(2) Soil composition.
(3) Density of underground storage tanks in relation to drinking
water wells.
(4) Degree of dependence on groundwater for drinking water
supplies.
SEC. 27. Section 43013.3 is added to the Health and Safety Code,
to read:
43013.3. Notwithstanding Section 43013.1, the Secretary for
Environmental Protection may prohibit the use of methyl
tertiary-butyl ether (MTBE) in motor vehicle fuel prior to December
31, 2002, on a subregional basis in the Bay Area Air Basin, or in any
other air basin in the state, if the secretary finds and determines
all of the following:
(a) That the removal of MTBE in motor vehicle fuel on a
subregional basis will not cause or contribute to the basin being
designated as a state or federal nonattainment area for one or more
ambient air quality standards, including, but not limited to, state
or federal ambient air standards for ambient ozone and carbon
monoxide.
(b) That the removal of MTBE in motor vehicle fuel will not
increase potency-weighted air toxic compounds, or violate one or more
control measures adopted by the state board or a district pursuant
to Chapter 3.5 (commencing with Section 39650) of Part 2.
(c) That the subregion is a vulnerable groundwater area as defined
in Section 25292.4.
(d) That the removal of MTBE will not significantly affect the
price or supply of gasoline in the subregion.
SEC. 28. Section 43830.8 of the Health and Safety Code is
repealed.
SEC. 29. Section 43830.8 is added to the Health and Safety Code,
to read:
43830.8. (a) The state board may not adopt any regulation that
establishes a specification for motor vehicle fuel unless that
regulation, and a multimedia evaluation conducted by affected
agencies and coordinated by the state board, are reviewed by the
California Environmental Policy Council established pursuant to
subdivision (b) of Section 71017 of the Public Resources Code.
(b) As used in this section, "multimedia evaluation" means the
identification and evaluation of any significant adverse impact on
public health or the environment, including air, water, or soil, that
may result from the production, use, or disposal of the motor
vehicle fuel that may be used to meet the state board's motor vehicle
fuel specifications.
(c) The evaluation shall be based on the best available scientific
data, written comments submitted by any interested person, and
information collected by the state board. At a minimum, the
evaluation shall address impacts associated with both of the
following:
(1) Emissions of air pollutants, including ozone forming
compounds, particulate matter, toxic air contaminants, and greenhouse
gases.
(2) Contamination of surface water, groundwater, and soil.
(d) The state board shall prepare a written summary of the
multimedia evaluation, and shall submit the summary for external
scientific peer review in accordance with Section 57004. The state
board shall maintain, for public inspection, a record of any relevant
materials from any state agencies and any written public comments on
the multimedia evaluation. The state board shall submit the written
summary, and the results of the peer review, to the California
Environmental Policy Council prior to the adoption of the proposed
regulation.
(e) The California Environmental Policy Council shall complete its
review of the multimedia review within 90 calendar days following
notice from the state board of its intention to adopt a regulation
subject to this section. If the council determines that any
significant impact on public health or the environment is adverse, or
that alternatives exist that would be less adverse, the council
shall recommend those alternatives, or other measures that the state
board or other state agencies may take, to reduce the adverse public
health or environmental impacts. The council shall make all
information relating to this review available to the public.
(f) Within 60 days after receiving a notice from the council of a
determination of an adverse impact on public health or the
environment, the state board shall revise the proposed regulation to
avoid or reduce the adverse impacts, or the state agencies subject to
this section shall take those appropriate actions that will, to the
extent feasible, mitigate the adverse impacts, so that, on balance,
there are no adverse impacts on public health or the environment.
(g) In conducting a multimedia evaluation pursuant to subdivision
(a), the state board shall consult with other boards and departments
within the California Environmental Protection Agency, the State
Department of Health Services, the State Energy Resources
Conservation and Development Commission, the Department of Forestry
and Fire Protection, the Department of Food and Agriculture, and
other state agencies with responsibility for, or expertise regarding,
impacts that could result from the production, use, or disposal of
the motor vehicle fuel that may be used to meet the specification.
(h) Notwithstanding subdivisions (a) to (g), inclusive, the state
board may, on or before July 1, 2000, adopt a regulation that was
formally proposed prior to January 1, 2000, to revise existing
specifications for motor vehicle fuels, if the California
Environmental Policy Council has reviewed the environmental
assessment of the proposed revision and concurs that there will be no
significant adverse impact on public health or the environment,
including the impacts on air, water, or soil, that is likely to
result from the changes in motor vehicle fuels that are expected to
be used to meet the state board's revised motor vehicle fuel
specifications. The state board shall deem the determination by the
council to be final and conclusive.
(i) The state board shall enter into an agreement, consistent with
Section 57004, to conduct an external scientific peer review of the
state board's predictive model and, notwithstanding Section 7550.5 of
the Government Code, shall submit the findings of that review to the
Legislature, on or before July 1, 2000.
SEC. 30. Section 21178 is added to the Public Resources Code, to
read:
21178. (a) This section applies only to an application received
on or before January 1, 2001, by the permit issuing agency, for a
permit to construct a project consisting of facilities, processing
units, or equipment necessary to produce Phase 3 reformulated
gasoline.
(b) A lead agency shall determine whether an environmental impact
report should be prepared within 30 days of its determination that
the application for the project is complete.
(c) If a lead agency determines that an environmental impact
report should be prepared, the lead agency shall send a notice of
preparation, as provided in Section 21080.4, within 10 days of that
determination.
(d) If the environmental impact report will be prepared under
contract with the lead agency pursuant to Section 21082.1, the lead
agency shall issue a request for proposals for preparation of the
report as soon as it has adequate information to prepare a request
for proposals, and in any event, not later than 30 days after the
time for response to the notice of preparation has expired. The
contract shall be awarded within 30 days of the response date for the
request for proposals.
(e) The period of time for public review and comment on a draft
environmental impact report shall be 45 days from the date that a
copy of the draft environmental impact report is sent with the public
notice by first-class mail, or any other method that is at least as
prompt, to any requester. The lead agency may extend the comment
period for not more than 15 days if it determines that the public
interest will be served. This subdivision shall not be construed to
limit the authority of the lead agency to hold a public hearing to
receive comments on the draft report after expiration of the 45-day
period, or any extended review period. Any comment concerning the
adequacy of a negative declaration or environmental impact report
that is not received by the lead agency within the 45-day comment
period, within any extended review period, or at a public hearing
held after the expiration of the 45-day period, shall not be
considered part of the record before the lead agency in considering a
project approval.
(f) Where a public agency has approved a negative declaration or
certified an environmental impact report and approved a project, but
has failed to file within five working days after the approval
becomes final, the notice required by subdivision (a) of Section
21152, the permit applicant may file a notice of approval, as
specified in Section 21152 with the county clerk. The notice shall
identify the approving agency and shall contain all of the
information required by Section 21152. For purposes of Section
21167, a permit applicant's filing of a notice pursuant to this
subdivision shall have the same effect as the public agency's filing
of the notice required by Section 21152.
(g) No environmental impact report shall include a discussion of a
"no project" alternative, nor shall it include a discussion of any
alternative sites for the project that are outside of existing
refinery boundaries.
(h) Any action or proceeding brought pursuant to subdivision (c)
of Section 21167 shall be commenced within 20 days after the filing
of the notice required by subdivision (a) of Section 21152 by the
lead agency if the final environmental impact report is sent, by
first-class mail at least 15 days before the notice is filed.
(i) For the purposes of this section, "Phase 3 reformulated
gasoline" means gasoline meeting the specifications adopted by the
State Air Resources Board on or before January 1, 2000, pursuant to
Executive Order D-5-99.
(j) The deadlines established in subdivisions (b), (c), and (d)
may be extended by a public agency, to the extent that delay is
caused by a failure of the applicant to provide necessary information
on a timely basis or by the applicant's delay in paying any fees
required by the lead agency for preparation of the environmental
impact report.
(k) This section shall be repealed on January 1, 2003, unless a
later enacted statute, which is enacted on or before January 1, 2003,
deletes or extends the date on which it is repealed.
SEC. 31. Section 25310.5 is added to the Public Resources Code, to
read:
25310.5. If the commission determines the studies on methyl
tertiary-butyl ether (MTBE) undertaken by the commission pursuant to
Executive Order D-5-99 and pursuant to the Supplemental Report of the
Budget Act of 1997 do not adequately assess the ongoing supply and
availability of gasoline for the state's consumers associated with
the phaseout of MTBE, notwithstanding Section 7550.5 of the
Government Code, the commission shall submit a report to the
Legislature and the Governor on or before July 1, 2000, concerning
the impact of that phaseout on the supply and availability of
gasoline.
SEC. 32. Section 13752 of the Water Code is amended to read:
13752. Reports made in accordance with paragraph (1) of
subdivision (b) of Section 13751 shall not be made available for
inspection by the public, but shall be made available to governmental
agencies for use in making studies, or to any person who obtains a
written authorization from the owner of the well. However, a report
associated with a well located within two miles of an area affected
or potentially affected by a known unauthorized release of a
contaminant shall be made available to any person performing an
environmental cleanup study associated with the unauthorized release,
if the study is conducted under the order of a regulatory agency. A
report released to a person conducting an environmental cleanup
study shall not be used for any purpose other than for the purpose of
conducting the study.
SEC. 33. Nothing in this act shall abrogate, limit, or restrict
any right to relief under any theory of liability that any person or
any state or local agency may have under any statute or common law
for any injury or damage, whether to person or property, including
any legal, equitable, or administrative remedy under federal or state
law, against any party, with respect to methyl tertiary-butyl ether
(MTBE).
SEC. 34. The State Water Resources Control Board shall convene a
working group of interested parties, including, but not limited to,
local agency, regional board, industry, environmental, and water
agency representatives to review and evaluate options for the prompt
closure of petroleum underground storage tanks that have not been
upgraded to meet the December 22, 1998, upgrade deadline and that
have not been closed in conformance with Section 25298 of the Health
and Safety Code. On or before January 1, 2001, the working group
shall recommend to the Secretary for Environmental Protection
appropriate actions to reduce the threat to groundwater resources
posed by those tanks.
SEC. 35. (a) It is the intent of the Legislature that California
Phase 3 Reformulated Gasoline (CaRFG3) regulations adopted pursuant
to Executive Order D-5-99, and proposed by the State Air Resources
Board prior to January 1, 2000, be subject to a comprehensive
multimedia evaluation consistent with the objectives of this act, to
the extent practicable within the timeframe provided in the executive
order.
(b) It is further the intent of the Legislature that the
evaluation of any significant adverse impact in the conduct of a
multimedia evaluation pursuant to Section 43830.8 of the Health and
Safety Code be performed by the agency with lead responsibility and
expertise over the public health or environmental impact, that the
evaluation be subject to peer review, and that the evaluation be
submitted to the California Environmental Policy Council for final
review and approval.
SEC. 36. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code or because costs may be incurred by a
local agency or school district will be incurred because this act
creates a new crime or infraction, eliminates a crime or infraction,
or changes the penalty for a crime or infraction, within the meaning
of Section 17556 of the Government Code, or changes the definition of
a crime within the meaning of Section 6 of Article XIIIB of the
California Constitution.