BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2224
                                                                  Page 1

          Date of Hearing:   April 13, 2010

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Pedro Nava, Chair
                    AB 2224 (Ruskin) - As Amended:  March 25, 2010
           
          SUBJECT  :   Underground storage tanks (USTs).


           SUMMARY  :  Requires validation of UST tax identification numbers.  
            Specifically,  this bill  :


          1)Requires the California Environmental Protection Agency  
            (Cal-EPA) to implement a process for local agencies to  
            annually verify the accuracy of the USTs number issued by the  
            State Board of Equalization.


          2)Requires Cal-EPA to consult with the State Board of  
            Equalization, local agencies, regulated parties, and other  
            interested parties.


          3)Provides that local environmental health departments shall  
            verify annually that the tank number issued by the State Board  
            of Equalization (BOE) for the permitted tank is correct and  
            accurate.

           
          EXISTING LAW  :   California's Underground Storage Tank Cleanup  
          Fund program was established by the Barry Keene Underground  
          Storage Tank Cleanup Fund Act of 1989 (Senate Bill 299) to: 

          1)Provide a means for petroleum UST owners and operators to meet  
            the federal and state financial responsibility requirements, 

          2)Reimburse eligible owners for corrective action costs  
            associated with the cleanup of contaminated soil and  
            groundwater caused by an unauthorized release of petroleum  
            from underground storage tanks; and

          3)Require owners of USTs to pay a fee of 2 mils per gallon of  
            motor vehicle fuel for each gallon of petroleum that is stored  
            in an underground tank.








                                                                  AB 2224
                                                                  Page 2


           FISCAL EFFECT  :   Unknown.

           COMMENTS  

           1)Need for the bill:   According to the author this bill is  
            designed to increase the efficiency of collection for the  
            current UST fee which funds the UST clean-up program.  The  
            current Board of Equalization collection process will be  
            enhanced by verifying and updating the information for each  
            UST.

           2)Audit of the Underground Storage Tank Cleanup Fund (USTCF):    
            In February of 2010, Sjoberg Evashenk Consulting, working on  
            behalf of the State Water Resources Control Board, completed a  
            performance audit of the USTCD program.  Among the findings  
            and recommendations was the suggestion that a program be  
            established by the CalEPA and the California Unified Program  
            Agencies forum to develop procedures that require and ensure  
            all UST permitting agencies in the State to verify tank owners  
            have established accounts with BOE for the purpose of  
            remitting the required UST maintenance fee before approving or  
            renewing UST permits. 
           

          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Independent Oil Marketers Association (Sponsor)
          Alta Em
          Downey Brand Attorneys
          PANGEA Environmental Services
          Van De Pol Enterprises

           Opposition 
           
          None received.
           

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