BILL ANALYSIS
AB 1674
Page 1
Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1674 (Saldana) - As Amended: April 21, 2010
Policy Committee: Environmental
Safety and Toxic Materials Vote: 9-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill alters existing requirements for petroleum storage
tanks design, operation, inspection and fee collection.
Specifically, this bill:
1)Exempts, from certain design, testing and monitoring
requirements, underground storage tanks (USTs) that meet
certain conditions, including that they are "double-vaulted,"
as in a basement, and have received an exemption from the
local agency responsible for UST monitoring and testing.
2)For purposes of exempting a UST from design, testing and
monitoring requirements, clarifies that a local agency,
without State Water Resources Control Board (SWRCB) input, may
determine a UST meets applicable regulatory standards.
Current law allows a local agency to make such a determination
"without objection" from SWRCB.
3)Redefines "tank facility", from one(s) used by and a "single
business entity", to one(s) used by "an owner or operator,"
the effect of which is to allow oversight of aboveground
storage tanks (ASTs) operated by federal facilities.
4)Removes the ability of a local agency to waive AST operator
fees when applied to a local or state government.
FISCAL EFFECT
This bill may result in annual costs to state agencies. This is
because state agencies operate ASTs and because this bill
deletes local agencies' ability to waive fees such on such state
AB 1674
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agencies. The actual cost of this bill depends on (1) the
number of ASTs operated by state agencies, and (2) the amount of
fees local agencies charge those state agencies that the local
agencies otherwise would have waived, absent this bill.
A limited survey of these local agencies seems to indicate they
rarely will impose new fees on state agencies. This is because,
currently, they tend not to exercise their fee waiver authority.
These surveyed local agencies also indicate AST fees on state
agencies may decrease following passage of the bill. This is
because the fee payer universe will newly include federal
agencies, thereby potentially defraying the costs currently born
by state and local AST operators.
COMMENTS
1)Rationale . The California Association of Environmental Health
Administrators (sponsor) claims certain UST requirements, such
as pressure monitoring between the soil and the exterior
walls, are not appropriate for tanks contained in underground
vaults. This bill, the sponsors contend, appropriately
clarifies that such tanks need not meet all UST requirements.
The sponsors additionally claim that existing law, which
refers to a local agency's authority to waive fees on state
and local agencies, seems to prevent local agencies from
monitoring ASTs operated by federal agencies, such as the
Department of Defense (DOD). The sponsor contends this bill
will clearly provide locals the authority to monitor ASTs on
federal sites and to charge applicable fees to federal tank
operators.
2)Background . Existing law charges SWRCB and local agencies,
known as Certified Unified Program Agencies (CUPAs), with
regulating operators of petroleum storage tanks. There are
differing regulatory requirements for underground storage
tanks and aboveground storage tanks.
a) Underground Storage Tanks . The SWRCB and the CUPAs
regulate the design, installation and operation of USTs.
The CUPAs are required to implement and enforce the laws
governing USTs, accidental release prevention, hazardous
materials, and hazardous waste. CUPAs must also establish
fees to support the program.
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Existing law requires all USTs installed after July 1,
2004, to be double-walled and "product tight," meaning
impervious to liquid and vapor release. In addition,
operators of USTs must use vacuum, pressure, or
interstitial liquid level measurements to ensure the
integrity of interstitial spaces. As written, the law
requires such design and montoring for all USTs, even
underground tanks wholly contained in a concrete vault,
such as those commonly found at oil change facilities.
The law exempts underground tank design, installation and
operation requirements for tanks if all exterior surfaces,
including connected piping and the floor directly beneath
the tank, can be monitored by direct viewing. To qualify
for such an exemption, the law directs the CUPA to
determine, without SWRCB objection, the UST meets
requirements that are equal to or more stringent applicable
design and operating requirements.
b) Aboveground Storage Tanks . On January 1, 2008, the
state delegated implementation of the Aboveground Petroleum
Storage Act (APSA) to the CUPAs. As of January 1, 2010,
CUPAs impose fees on AST operators to implement the act.
Some have interpreted the law to prevent CUPAs from
collecting the fee from a federal agency, such as DOD,
which stores million gallons of fuel in aboveground tanks
throughout California. This is because the law specifies
that CUPAs have the authority to waive fees for state or
local governments but makes no mention of the federal
government.
3)Support . This bill is supported by California Association of
Environmental Health Administrators and the County of San
Diego.
4)There is no registered opposition to this bill .
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081