BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1130
                                                                  Page  1

          Date of Hearing:   May 23, 2007 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

                    AB 1130 (Laird) - As Amended:  April 19, 2007 

          Policy Committee:                              Environmental  
          Safety & Toxic Materials                      Vote: 7-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill transfers, from the State Water Resources Control  
          Board (SWRCB) and regional water boards to County Unified  
          Program Agencies (CUPAs), the administration of the Aboveground  
          Storage Tank (AST) inspection program.

           FISCAL EFFECT  

          1)Substantial shift, from the SWRCB and regional boards to local  
            CUPAs, in the costs to inspect ASTs containing petroleum.   
            These costs are covered by inspection fees imposed on AST  
            operators and owners.

          2)Appropriates all money remaining in the Environmental  
            Protection Trust Fund (EPTF) on January 1, 2008, about $7  
            million, to fund CUPA training on ASTs and to fund the first  
            few years of CUPA administration of the AST inspection  
            program.

           COMMENTS  

           1)Rationale  .  This bill, sponsored by the SWRCB, transfers AST  
            inspection responsibilities to local CUPAs.  The state and  
            regional board AST inspection process has been dormant since  
            2002, when the Budget Act eliminated funding, although  
            inspection fees continue to be paid and deposited in the EPTF.  
             The author also notes that CUPAs are well positioned and  
            qualified to take over and reinstate these inspection  
            activities.

           2)Background  .  SB 1050 (Torres) - Chapter 1383, Statutes of 1989  








                                                                  AB 1130
                                                                  Page  2

            established the AST inspection program at the SWRCB as a  
            companion program to the Underground Storage Tank program.   
            The SWRCB and regional boards are responsible for inspecting  
            ASTs to detect leaks and other equipment deficiencies that  
            could lead to spills and other tank releases.  The program is  
            supported by biennial fees imposed on AST owners and operators  
            ranging from $100 for small tanks to $30,000 for facilities  
            with tanks holding more than 100 million gallons of petroleum  
            per facility.

            Since the 2002 Budget Act eliminated staff resources for the  
            SWRCB-administered AST program, no inspections have occurred  
            but inspection fees continue to be imposed and collected,  
            generating about $1 million annually.

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081