BILL NUMBER: AB 1906	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Lowenthal

                        FEBRUARY 9, 2004

   An act to amend Section 25299.43 of the Health and Safety Code,
relating to hazardous materials.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1906, as introduced, Lowenthal.  Hazardous materials:
petroleum:  underground storage tanks:  cleanup:  fees.
   Existing law requires the owner or operator of an underground
petroleum storage tank, or other responsible party, to take
corrective action, as defined, in response to an unauthorized release
of petroleum from the tank.  A person required to perform corrective
action may apply to the State Water Resources Control Board for
payment of specified portions of the costs of corrective action.
Existing law establishes the Underground Storage Tank Cleanup Fund in
the State Treasury and authorizes the money in the fund to be used,
upon appropriation by the Legislature, to pay those claims, among
other things.  Existing law imposes certain petroleum storage fees
upon the owner of an underground storage tank for which a permit is
required and requires those fees to be deposited in the fund.
   This bill would increase a specified petroleum storage fee by
$0.001 per gallon of petroleum stored, on and after January 1, 2005,
and by and additional $0.001 per gallon of petroleum stored, on and
after January 1, 2006.  By operation of existing law, the revenue
resulting from the increase would be required to be deposited in the
fund and be available, upon appropriation, for expenditure for the
purposes authorized under existing law for money in the fund.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature hereby finds and declares all of the
following:
   (a) The petroleum underground storage tank cleanup fees authorized
under Article 5 (commencing with Section 25299.40) of Chapter 6.75
of Division 20 of the Health and Safety Code were last increased on
January 1, 1997.
   (b) The value of those fees has been eroded by inflation.
   (c) The average cost of cleanup per claim under the petroleum
underground storage tank cleanup program (Chapter 6.75 (commencing
with Section 25299.10) of Division 20 of the Health and Safety Code)
has greatly increased since the inception of that program.
   (d) It is substantially uncertain that the existing cleanup
program will generate sufficient funds to pay all claimants under the
program, particularly class D claimants, as identified in paragraph
(4) of subdivision (b) of Section 25299.52 of the Health and Safety
Code.
   (e) The modest fee increases authorized under this act are
intended to ensure that all claimants under the cleanup program will
have a reasonable opportunity to have approved claims paid before the
expiration of the cleanup program, as was envisioned when the
program was initially established.
  SEC. 2.  Section 25299.43 of the Health and Safety Code is amended
to read:
   25299.43.  (a) To implement the changes to this chapter made by
the act adding this section, and consistent with Section 25299.40,
effective January 1, 1995, every owner subject to Section 25299.41
shall pay a storage fee of one mill ($0.001) for each gallon of
petroleum placed in an underground storage tank which the person
owns, in addition to the fee required by Section 25299.41. 
The fee imposed pursuant to this section shall be paid to the State
Board of Equalization pursuant to Part 26 (commencing with Section
50101) of Division 2 of the Revenue and Taxation Code in the same
manner as, and consistent with, the fees imposed pursuant to Section
24299.41. 
   (b) On and after January 1, 1996, the storage fee imposed 
pursuant to   under  subdivision (a) shall be
increased by two mills ($0.002) for each gallon of petroleum placed
in an underground storage tank.
   (c) On and after January 1, 1997, the storage fee  imposed
pursuant to subdivisions (a) and   increased under
subdivision  (b) shall be increased by  an additional 
three mills ($0.003) for each gallon of petroleum placed in an
underground storage tank.
   (d)  On and after January 1, 2005, the storage fee increased
under subdivision (c) shall be increased by an additional one mill
($0.001) for each gallon of petroleum placed in an underground
storage tank.
   (e) On and after January 1, 2006, the storage fee increased under
subdivision (d) shall be increased by an additional one mill ($0.001)
for each gallon of petroleum placed in an underground storage tank.

   (f) The fee imposed under this section shall be paid to the State
Board of Equalization under Part 26 (commencing with Section 50101)
of Division 2 of the Revenue and Taxation Code in the same manner as,
and consistent with, the fees imposed under Section 24299.41. 

   (g)  The State Board of Equalization shall amend the
regulations adopted  pursuant to   under 
Section 25299.41 to carry out this section.