BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 96
                                                                  Page 1


          ASSEMBLY THIRD READING
          AB 96 (Ruskin)
          As Amended  April 21, 2009
          2/3 vote.  Urgency 

           ENVIRONMENTAL SAFETY          6-0                    
          APPROPRIATIONS      16-0                            
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Miller, Feuer,   |Ayes:|De Leon, Nielsen,         |
          |     |Monning, Ruskin, Smyth    |     |Ammiano,                  |
          |     |                          |     |Charles Calderon, Davis,  |
          |     |                          |     |Duvall, Fuentes, Hall,    |
          |     |                          |     |Harkey, Miller,           |
          |     |                          |     |John A. Perez, Price,     |
          |     |                          |     |Skinner, Solorio, Audra   |
          |     |                          |     |Strickland, Torlakson     |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Provides $8 million for grants and loans 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 sub account of  
            the Petroleum Underground Storage Tank (PUST) Financing  
            Account to the grants and loan sub account for the Replacement  
            of Underground Storage Tanks (RUST) program.

          2)Removes existing RUST grant and loan eligibility criteria that  
            require applicants to have been the owner of the property for  
            which the grant or loan was being sought prior to 1997.

          3)Extends the sunset date for the RUST program from 2011 to  
            2016.

          4)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  








                                                                  AB 96
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            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  
            owners to assist them in meeting the EVR regulations adopted  
            by the ARB.  The RUST program sunsets on January 1, 2011.

           FISCAL EFFECT:
           
          According to the Assembly Appropriations Committee this bill:

          1)Transfers $8 million from the administration sub account of  
            the PUST Financing Account to the grants and loans sub account  
            of the RUST program and makes that money available for grants  
            (1/3 of funding) and loans (2/3 of funding) to owners of  
            smaller gas stations for EVR compliance.

          2)Extends the RUST program by five years, at an administrative  
            cost of approximately $600,000 a year.

           COMMENTS  :

          Enhanced Vapor Recovery (EVR):  EVR regulations adopted by 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.

          Replacement of Underground Storage Tanks (RUST):  SWRCB operates  
          the RUST program which 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.

           








                                                                 AB 96
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          Analysis Prepared by :    Bob Fredenburg / E.S. & T.M. / (916)  
          319-3965
                                                                FN: 0000389