BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 1130|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 1130
          Author:   Laird (D)
          Amended:  8/1/07 in Senate
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  7-0, 7/10/07
          AYES:  Simitian, Runner, Aanestad, Florez, Kuehl,  
            Lowenthal, Steinberg

           SENATE APPROPRIATIONS COMMITTEE  :  9-0, 8/22/07
          AYES:  Torlakson, Cox, Cedillo, Corbett, Florez, Kuehl,  
            Oropeza, Runner, Steinberg
          NO VOTE RECORDED:  Aanestad, Ashburn, Battin, Dutton,  
            Ridley-Thomas, Simitian, Wyland, Yee
           
          ASSEMBLY FLOOR  :  79-0, 6/6/07 - See last page for vote


           SUBJECT :    Aboveground storage tanks

           SOURCE  :     State Water Resources Control Board


           DIGEST  :    This bill transfers responsibility for the  
          aboveground storage tank inspection program and fee  
          collection from the State Water Resources Control Board and  
          the Regional Water Quality Control Boards to the local  
          certified Unified Program Agencies.

           ANALYSIS  :    

           Existing Law
                                                           CONTINUED





                                                              AB 1130
                                                                Page  
          2

           
          1.Requires the State Water Resources Control Board (SWRCB)  
            to adopt an inspection schedule for aboveground storage  
            tank (AST) facilities and authorizes Regional Water  
            Quality Control Boards (RWQCB) to conduct inspections.

          2.Requires SWRCB and RWQCBs to inspect facilities to ensure  
            a Spill Prevention Control and Countermeasure is in  
            place, tanks are not leaking, and a monitoring program is  
            undertaken, if necessary.

          3.Requires owners and operators of ASTs to file a storage  
            statement and submit a biennial registration fee.   
            Requires SWRCB to deposit these fees in the Environmental  
            Protection Trust Fund and use the money to support an  
            inspection program.

          4.Requires the Secretary for the California Environmental  
            Protection Agency (CalEPA) to adopt regulations and  
            implement the Unified Hazardous Waste and Hazardous  
            Materials Management Regulatory Program.  A local city or  
            county agency that meets specified requirements can be  
            authorized to assume enforcement duties of the program as  
            a Certified Unified Program Agency (CUPA).

          5.Under the CUPA program, authorizes local city and county  
            agencies to unify the administration and enforcement of  
            six environmental programs - the hazardous waste,  
            aboveground and underground storage tank, hazardous  
            materials inventory, extremely hazardous materials  
            accidental release, and hazardous materials/fire code  
            programs.  

          6.Defines "unified program agency" or "UPA" as the CUPA, or  
            its participating agencies (PAs), to the extent each PA  
            has been designated by the CUPA, to enforce the unified  
            program. 

          This bill transfers responsibility for the aboveground  
          storage tank inspection program and fee collection from the  
          SWRCB and the RWQCBs to the CUPAs, and makes other  
          conforming changes to the program.  This bill authorizes a  
          portion of the EPTF funds, as determined by the California  
          Environmental Protection Agency (CalEPA), to be allocated  







                                                               AB 1130
                                                                Page  
          3

          to each CUPAs according to a formula and process determined  
          by CalEPA in consultation with the CUPAs.  Up to 80 percent  
          of each of the CUPA's allocations could be distributed to  
          it in advance of actual expenditure for start-up costs  
          associated with staff training and for the CUPAs to  
          recommence the inspection program as soon as possible.

          This bill provides a "fee holiday" until 2010, at which  
          time owners and operators of AST will be required to resume  
          paying the fee.  The fees will be established by the CUPAs,  
          as part of the single fee system, as specified, at a level  
          sufficient to pay the necessary and reasonable costs  
          incurred by the CUPAs in administering the AST.  The CUPAs  
          will be required to implement the fee accountability  
          program, as specified.  This bill will give the CUPAs the  
          discretion to provide a waiver of the fees where a state or  
          local government agency submits a tank facility statement.

           Comments
           
          According to the sponsor, SWRCB, this proposal transferred  
          the responsibility for the AST Inspection Program to local  
          environmental health and fire departments sanctioned under  
          law as CUPAs.  The AST Inspection Program has remained  
          dormant since 2002 when the Budget Act eliminated funding  
          from SWRCB's budget during fiscal year 2002-03 as a cost  
          saving measure, which halted all inspection activities.  

          According to SWRCB, it was anticipated that changes to  
          existing statutes would occur and AST facility inspections  
          would become a local responsibility under the CUPA  
          umbrella.  To date, however, there have been no changes to  
          existing law, so responsibility remains with SWRCB.  Thus,  
          no ASTs are being inspected which increases the threat that  
          ASTs will leak and threaten water quality.  This bill  
          transfers responsibility of the inspection program and fee  
          collection to the CUPAs and reactivates the AST compliance  
          program.  SB 77 (Ducheny), authorized the use of all of the  
          monies in the EPTF ($7.5 million) for the authorized  
          purposes of those monies, but the CUPAs would administer  
          the program, not SWRCB.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes







                                                               AB 1130
                                                                Page  
          4


          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

             Major Provisions                2007-08     2008-09     
             2009-10               Fund  

            Fund distribution             minor and  
            absorbableSpecial*
            Local mandate       not reimbursable

             *   Environmental Protection Trust Fund -- revenues  
              from fees and penalties

           SUPPORT  :   (Verified  8/27/07)

          State Water Resources Control Board (source)
          California Association of Environmental Health  
          Administrators
          Contra Costa Health Services
          Department of Finance

           ARGUMENTS IN SUPPORT  :    The California Association of  
          Environmental Health Administrators (CAEHA) states that  
          this transfer is critical and long overdue, CAEHA states  
          that the funding authority and staff positions for the  
          SWRCB and RWQCBs were eliminated from the state budget due  
          to the state's fiscal crisis.  It was the Legislature's  
          intent at the time that the program be transferred to the  
          local CUPAs, in order to continue regular inspections of  
          ASTs.  Because the transfer has not occurred, no tank  
          inspections have been conducted in almost five years.


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Aghazarian, Anderson, Arambula, Bass, Beall,  
            Benoit, Berg, Berryhill, Blakeslee, Brownley, Caballero,  
            Charles Calderon, Carter, Cook, Coto, Davis, De La Torre,  
            De Leon, DeSaulnier, DeVore, Duvall, Dymally, Emmerson,  
            Eng, Evans, Feuer, Fuentes, Fuller, Gaines, Galgiani,  
            Garcia, Garrick, Hancock, Hayashi, Hernandez, Horton,  
            Houston, Huff, Huffman, Jeffries, Jones, Karnette, Keene,  
            Krekorian, La Malfa, Laird, Leno, Levine, Lieber, Lieu,  







                                                               AB 1130
                                                                Page  
          5

            Ma, Maze, Mendoza, Mullin, Nakanishi, Nava, Niello,  
            Parra, Plescia, Portantino, Price, Richardson, Sharon  
            Runner, Ruskin, Salas, Saldana, Silva, Smyth, Solorio,  
            Spitzer, Strickland, Swanson, Torrico, Tran, Villines,  
            Walters, Wolk, Nunez
          NO VOTE RECORDED:  Soto


          TSM:do  8/29/07   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****