BILL ANALYSIS
AB 96
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 96 (Ruskin)
As Amended July 1, 2009
2/3 vote. Urgency
-----------------------------------------------------------------
|ASSEMBLY: |76-0 |(April 30, |SENATE: |27-7 |(July 9, 2009) |
| | |2009) | | | |
-----------------------------------------------------------------
Original Committee Reference: E.S. & T.M.
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 subaccount of the
Petroleum Underground Storage Tank (PUST) Financing Account to
the grants and loan subaccount for the Replacement of
Underground Storage Tanks (RUST) program.
2)Deletes existing RUST grant and loan eligibility criteria that
require applicants to have been the owner of the property,
prior to 1997, for which the grant or loan is being sought.
3)Extends the sunset date for the RUST program from 2011 to
2016.
4)Enacts this bill as an urgency measure.
The Senate amendments :
1)Extend the deadline for applications for grants from April 1,
2009 to June 30, 2009.
2)Sunset the new grants and loans program provided by this bill
on January 1, 2011.
3)Provide that applicants for grants or loans be in compliance
with existing vapor recovery requirements pursuant to Health
and Safety Code Section 41954.
AS PASSED BY THE ASSEMBLY , this bill provided $8 million for
grants and loans to assist gas station operators in meeting the
AB 96
Page 2
EVR regulations adopted by the ARB.
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
and loans 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 :
Purpose of bill . According to the author, many small gas
station owners have had difficulty complying with the EVR Phase
II requirements due to a crunched credit market and because the
least expensive EVR system was not certified by ARB until
October 2008. This measure provides a funding source to assist
those gas station operators.
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.
Enforcement of EVR Requirements . On May 14, 2009, the
California Air Pollution Control Officers Association, which
represents local Air Pollution Control Agencies, notified the
California Senate that fines for violation of the EVR
requirements would be limited to no more than $1,000 per station
provided the operators have acted in good faith by applying for
a permit for the installation of the Phase II EVR systems.
Replacement of Underground Storage Tanks (RUST) . The State
Water Resources Control Board operates the 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
AB 96
Page 3
petroleum pumps. Business owners or operators of underground
petroleum storage tanks are eligible for these loans and grants.
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.
Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916)
319-3965
FN: 0001824