BILL ANALYSIS
AB 96
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Date of Hearing: March 24, 2009
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Wesley Chesbro, Chair
AB 96 (Ruskin) - As Introduced: January 6, 2009
As Proposed To Be Amended
SUBJECT : Gasoline vapor recovery systems.
SUMMARY : Provides $8 million for grants to assist gas station
operators in meeting the Enhanced Vapor Recovery (EVR)
regulations adopted by the Air Resources Board (ARB).
Specifically, this bill :
1) Transfers $8 million from the administration subaccount
of the Petroleum Underground Storage Tank Financing Account
to the grants and loan subaccount for the Replacement of
Underground Storage Tanks (RUST) program.
2) Provides that these funds transferred within the RUST
program may be used exclusively for grants.
3) Removes existing RUST grant and loan eligibility
criteria for that require applicants to have been the owner
of the property for which the grant or loan was being
sought prior to 1997.
4) Extends the sunset date for the RUST program from 2011
to 2016.
5) Enacts this bill as an urgency measure to help address
the April 1, 2009, ARB deadline for EVR installation.
EXISTING LAW :
1) Requires ARB to adopt procedures for determining the gas
vapor control compliance of any system designed for the control
of gasoline vapor emissions during gasoline marketing
operations, including storage and transfer operations, and
additional performance standards to ensure that systems for the
control of gasoline vapors from motor vehicle fueling operations
do not cause excessive spillage and emissions.
2) Authorizes the State Water Resources Control Board (SWRCB) to
provide grants and loans from the RUST program to gas station
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owners to assist gas station operator in meeting the EVR
regulations adopted by the ARB. The RUST program sunsets on
January1, 2011
FISCAL EFFECT : This bill transfers and appropriates $8 million
of the existing $11.2 million in the administration subaccount
of the Petroleum Underground Storage Tank Financing Account to
the RUST Grant and Loan program. The $8 million would be
available for FY 2008-2009 and FY 2009-2010. Extending the
sunset on the RUST program would result in an annual cost of
approximately $600,000 to administer the program.
The RUST loan and grant program was initially funded through the
SWRCB's Underground Storage Tank Clean-up Fund. It currently
maintains its balance from loan principal and interest payments.
COMMENTS :
Enhanced Vapor Recovery (EVR). EVR regulations adopted by the
ARB in March 2000 require approximately 11,000 service stations
to upgrade equipment to reduce gasoline vapor emissions by April
1, 2009. The upgraded EVR requirements, known as EVR Phase II
systems, will reduce gasoline vapor emissions that contribute to
ozone formation which will protect public health and meet
California clean air attainment requirements.
EVR Phase II is not required in counties that are in attainment
for ozone, including Lake, Mendocino, Humboldt, Del Norte and
Trinity Counties. Since Siskiyou County, Northern Sonoma
County, and San Luis Obispo County were recently designated as
non-attainment areas, gas stations in these counties have until
November 2010 to install EVR Phase II systems. With the
enactment of SB 155 (Cox) in 2008, stations with throughputs of
less than 240,000 gallons per year in Alpine, Modoc, Lassen,
Plumas, and Sierra Counties have until April 1, 2011, to install
the equipment.
Replacement of Underground Storage Tanks (RUST) . The SWRCB
operates the Replacement of Underground Storage Tanks (RUST)
program that offers direct grants and loans for replacement or
repair of underground storage tanks. The program helps owners
and operators of small independent underground storage tanks to
comply with the ARB requirements to control vapor emissions from
petroleum pumps. Business owners or operators of underground
petroleum storage tanks are eligible for these loans and grants.
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In 2004, the RUST program was expanded to cover EVR systems. In
past years, the program has had $2.6 million for grants and
about $5 million for loans annually. Applications for RUST funds
are currently being approved for fiscal year 2008-09. To date,
nineteen gasoline dispensing facilities have already been
approved to receive RUST grants, averaging about $50,000 per
site. Applications for RUST loans average about $65,000, and
one loan has been approved. The amount of funds requested in
RUST grant and loan applications submitted for the 2008-2009
fiscal year already exceeds the total amount of funds allocated
for 2008-2009.
Loans vs. Grants . This bill proposes to use the full $8 million
in new funds for grants to gas station operators. The current
program requires no more than 33% of their funds for grants with
the remainder provided as loans subject to repayment. One of
the dilemmas faced by service station operators has been the
lack of available financing for vapor system upgrades. The
availability of loan funds would meet that need while allowing
the state to recover those costs in future years.
Related Legislation:
SB 155 (Cox) Chapter 702, Statutes of 2008, provided low
throughput stations in several counties two more years to
install EVR Phase II. Stations with annual throughputs of
240,000 gallons of gasoline or less, located in Modoc, Lassen,
Sierra, Plumas or Alpine Counties, have an EVR Phase II deadline
of April 1, 2011.
SB 507 (Cox - 2009) would prohibit the ARB from requiring gas
stations to install EVR upgrade until April 1, 2011. This bill
is currently awaiting action in the Senate.
REGISTERED SUPPORT / OPPOSITION :
Support
California Independent Oil Marketers Association (CIOMA)
AFSCME
California Association of Harbor Masters and Port Captains
California Marine Parks and Harbor Association
California Yacht Brokers Association
Marine Recreation Association
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Northern California Marine Association
Western Boaters Safety Group
Opposition
None on file
Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916)
319-3965