BILL ANALYSIS
AB 1188
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1188 (Ruskin)
As Amended October 14, 2009
2/3 vote. Urgency
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|ASSEMBLY: | |(June 1,2009) |SENATE: |35-2 |(October 14, |
| | | | | |2009) |
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(vote not relevant)
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|COMMITTEE VOTE: |7-0 |(October 26, 2009) |RECOMMENDATION: |Concur |
| | | | | |
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Original Committee Reference: E.S. & T.M.
The Senate amendments delete the Assembly approved version of this
bill, and instead:
1)Increase the fees paid by owners of underground petroleum storage
tanks.
2)Increase temporarily the fee paid per gallon on motor vehicle
fuel (petroleum storage fee) that the owner of an underground
storage tank must pay from 1.4 mils to 2 mils per gallon through
January 1, 2012.
3)Require the State Water Resources Control Board (SWRCB) to,
within 90 days of the completion of an audit of the Underground
Storage Tank Cleanup Fund (Fund), post the results of the audit
on its Web site.
4)Allow claimants who have approved, but unpaid, claims to get
reimbursed for costs related to obtaining other financing to
cover "carrying costs" as defined.
5)Define "carrying costs" as the interest expense incurred by a
claimant to acquire money to pay costs approved for reimbursement
in the case in which payment is delayed due to lack of funds.
EXISTING LAW , under the Barry Keene Underground Storage Tank
Cleanup Act (Act) of 1989:
AB 1188
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1)Authorizes the SWRCB to provide grants and loans to assist gas
station operators in meeting the under ground tank clean-up and
Enhanced Vapor Recovery (EVR) regulations adopted by the Air
Resources Board (ARB).
2)Establishes the Fund for the deposit of fees collected pursuant
to Section 25299.43 of the Health and Safety Code.
3)Authorizes expenditures from the Fund for the clean up of
unauthorized releases from underground storage tanks.
4)Establishes a fee of 1.4 mils per gallon of motor vehicle fuel
that the owner of an underground storage tank must pay for each
gallon of petroleum that is stored in an underground tank.
5)Directs the SWRCB to adopt a ranking system to prioritize the
payment of claims made against the Fund.
6)Requires that claims are paid according to the priority assigned
to each class and not according to when it was filed.
AS PASSED BY THE ASSEMBLY , this bill expanded the potential uses of
administrative penalties assessed by DTSC and deposited in Toxic
Substances Control Account (TSCA) to include the Orphan Share
Reimbursement Trust Fund and the Pollution Prevention Technology
Assistance Grant Fund and other DTSC pollution prevention
activities.
FISCAL EFFECT : According to the Senate Appropriations Committee,
this bill increases the petroleum storage fee by $0.006 from
January 1, 2010 until December 31, 2012. The SWRCB estimates that
this fee increase will generate about $96 million per year, or $192
million in total additional revenue. The additional authority to
cover the "carrying cost" for applicants will result in an annual
cost of $7 million.
COMMENTS :
1)Purpose of bill . According to the sponsor, there is an
over-expenditure of the Fund of approximately $80 million and
payments for costs already incurred have been suspended. This
has caused extreme hardship on the small business owners and
consulting firms that performed the work to clean up leaking
tanks but have yet to be reimbursed for their efforts. They
AB 1188
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state that hundreds of small businesses are in danger of going
bankrupt if a solution is not found. This bill will generate the
revenue needed to un-suspend the backlogged claims and get the
program running again.
2)UST reforms underway . The SWRCB is working with stakeholders to
make improvements in administration of the Fund. There is a
program and fiscal audit of the UST fund and program being
planned. The SWRCB is holding meetings and has developed a task
force to coordinate these efforts.
3)The Assembly approved provisions of this bill were deleted in the
Senate. This bill was amended in the Senate and the subject
matter was not heard in Assembly policy committee.
Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916)
319-3965
FN: 0003463