BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2224
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2224 (Ruskin) - As Amended:  March 25, 2010 

          Policy Committee:                              Environmental  
          Safety and Toxic Materials                    Vote: 9-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This Bill requires the California Environmental Protection  
          Agency (Cal EPA), by January 1, 2011, to develop a process by  
          which local agencies can verify that the number identifying an  
          underground storage tank is the number assigned to that tank by  
          the Board of Equalization (BOE).  Requires the local agency  
          responsible for annual inspection of an underground storage tank  
          to use Cal EPA's process to verify the accuracy of the tank  
          number. 

           FISCAL EFFECT  

          1)Minor, absorbable one-time costs to Cal EPA to develop  
            process.

          2)Minor, absorbable one-time costs to BOE and local agencies to  
            consult with Cal EPA in developing the tank number  
            verification process.

           COMMENTS 

           1)Rationale  .  The author contends this bill will allow  
            permitting agencies to better ensure all tank owners have  
            established accounts with BOE for remitting related fees  
            before the agencies approve or renew tank permits.  The author  
            intends this bill to fulfill a recommendation made in a recent  
            audit of the Underground Storage Tank Cleanup Fund program.

           2)Background  .
           
             a)   Underground Storage Tank Cleanup Fund Program  .   








                                                                  AB 2224
                                                                  Page  2

               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).  The program  
               enables petroleum underground storage tank owners and  
               operators to meet the federal and state financial  
               responsibility requirements; reimburses eligible owners for  
               costs of cleanup of contaminated soil and groundwater  
               caused by an unauthorized release of petroleum from  
               underground storage tanks; and require owners of  
               underground storage tanks to pay a fee of 2 mils per gallon  
               of petroleum stored in an underground tank.

              b)   Recent Audit of Program Recommend  .  In February of this  
               year, Sjoberg Evashenk Consulting, on behalf of the State  
               Water Resources Control Board, completed an audit of the  
               underground storage tank program.  The report made numerous  
               recommendations to improve the program. Among those  
               recommendations was that Cal EPA and local agencies should  
               work to develop procedures that require and ensure all  
               permitting agencies verify that tank owners have  
               established accounts with BOE for remitting required tank  
               maintenance fees before approving or renewing permits.

           3)Supporters  include the California Independent Oil Marketers  
            Association (the bill's sponsor) and a number of related  
            industry groups.

           4)There is no registered opposition to this bill.  

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081