BILL ANALYSIS                                                                                                                                                                                                    



                                                               AB 1674
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    AB 1674
           AUTHOR:     Saldana
           AMENDED:    April 21, 2010
           FISCAL:     Yes               HEARING DATE:     June 14, 2010
           URGENCY:    No                CONSULTANT:       Amber Hartman
            
           SUBJECT  :    HAZARDOUS SUBSTANCES: STORAGE TANKS

            SUMMARY  :    
           
            Existing law  :

           1) Requires the primary containment of underground storage  
              tanks (USTs) to be product-tight and compatible with the  
              substance stored.  Requires the secondary containment of  
              USTs to be constructed, operated, and maintained in a  
              manner to prevent structural weakening and also to be  
              capable of storing the hazardous substances for the maximum  
              anticipated period of time necessary for the recovery of  
              any released hazardous substance.  UST design and  
              construction requirements became increasingly stringent in  
              2003 and 2004.  (Health and Safety Code 25290.1, 25290.2,  
              25291).

           2) Establishes additional requirements for USTs, including  
              requiring continuous monitoring systems; interstitial  
              space; equipment to prevent spills and overfills; and  
              automatic line leak detector, among others. (25290.1,  
              25290.2, 25291).

           3) Exempts tanks from meeting underground tank design,  
              installation, and operation requirements if all exterior  
              surfaces, including piping and the floor directly beneath  
              the tank can be monitored by direct viewing.  (25283.5).

           4) Establishes the Aboveground Petroleum Storage Act (APSA)  
              which authorizes the Unified Program Agency (UPA) to  
              inspect and certify aboveground storage tanks (ASTs).   
              (25270.4).









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           5) Establishes, in the Barry Keene Underground Storage Tank  
              Cleanup Fund Act of 1989, guidelines and programs to store  
              fuel in USTs.  (25299)

           6) Under federal law, Subchapter IX of Chapter 82 of Title 42  
              of the United States Code allows USTs to be regulated  
              pursuant to an authorized state program.  California has  
              such authorization.

            This bill  : 

           1) Removes the ability of the UPA to waive a fee for state and  
              local agencies that have an AST.

           2) Defines "tank facility" for the APSA to be tanks used by a  
              single owner or operator.

           3) Exempts underground tanks from some UST design and  
              construction requirements if the exterior surfaces of the  
              tanks can be visually monitored and if the tank meets other  
              UST regulatory requirements.

           4) Deletes the ability of the SWRCB to object to a local  
              agency's determination that a tank fulfills the UST  
              requirements.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "Current law  
              requires impractical testing of vaulted USTs that can be  
              visually inspected and is unclear as to whether the SWRCB  
              has to review and approve every exemption that a CUPA may  
              grant for a UST.  Also, current law does not grant the  
              authority to allow CUPAs to inspect aboveground fuel tanks  
              on DoD land."

            2) Background  .  This bill addresses two separate issues.   
              First, by using the words "owner or operator" rather than  
              "single business entity" in the tank facility definition,  
              it conforms with preceding definitions in the section of  
              owner or operator which include business entities as well  
              as governmental and academic agencies.  In actual practice,  









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              CUPAs currently inspect governmental and commercial ASTs  
              already and this technical amendment clarifies that  
              authority.

              Second, the bill attempts to lay out the proper  
              requirements for USTs that are vaulted rather than buried,  
              which means, in practice, that they can be visually  
              inspected by CUPAs.  The statutory requirements were  
              written primarily for tanks physically surrounded by soil  
              rather than below-grade tanks suspended in a concrete vault  
              and, as currently written, create confusion in the field  
              during inspections.

            3) Removing fee waiver  .  Removing the authority for the CUPAs  
              to waive AST fees for state and local agencies could  
              conceivably increase costs of operation for these agencies.  
               However, brief surveys conducted by the Assembly  
              Appropriations Committee suggest that, although they have  
              the authority, CUPAs rarely, if ever, charge fees for  
              inspections of AST's.  Because fees are not charged in the  
              first place, they do not end up being waived.  Therefore,  
              deletion of this authority would not seem to greatly impact  
              the status quo.

            4) SWRCB authority  .  At first glance, deleting the phrase  
              "without objection from the Board" from 25283.5 might seem  
              to diminish SWRCB's authority over UST exemption  
              determinations.  However, SWRCB retains full ultimate  
              authority and responsibility for all fuel storage tank  
              inspections through oversight of the CUPAs in 25404.1(a).   
              In fact, it seems reasonable that the vaulted UST approval  
              process will move more efficiently if SWRCB is not involved  
              in case-by-case verification of local agencies' approvals.  
              Instead, the Board would issue broad guidelines needed for  
              vaulted UST compliance and have the CUPAs adhere to those  
              guidelines while retaining ultimate authority if  
              clarification is required in the future.
            
           5) Secondary containment: 1984 vs. 2003  .  As currently  
              drafted, vaulted USTs installed on or after 2003 are  
              required to meet 1984 design and construction standards  
              defined in 25291 because many of the vapor monitoring and  
              external space monitoring requirements in the 2003 sections  









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              (25290.1) are not applicable to vaulted USTs, which are  
              not actually buried in the soil.  However, it does seem  
              prudent to require tanks installed after 2003 to still  
              comply with more stringent secondary containment  
              requirements rather than allowing them to revert back to  
              single-walled tanks where the cement vault and epoxy create  
              the secondary containment.  This type of secondary  
              containment is much more vulnerable to petroleum  
              contamination of the environment than is a double-walled  
              tank-within-a-tank configuration.  Therefore, the committee  
              may wish to adopt amendments that remove the single-walled  
              tank with secondary containment as a form of compliance  
              with 25291.

            

           SOURCE  :        Industrial Environmental Association
                          California Association of Environmental Health  
                          Administrators  

           SUPPORT  :       County of San Diego 

           OPPOSITION  :    None on file