BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 291
                                                                  Page 1

          Date of Hearing:   April 26, 2011

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                Bob Wieckowski, Chair
                 AB 291 (Wieckowski) - As Introduced:  April 12, 2011
           
          SUBJECT  :   Underground Storage Tanks:  Corrective Action Claims

           SUMMARY  :   Requires the State Water Resources Control Board 
          (SWRCB) to allocate 25% of the Underground Storage Tank (UST) 
          Cleanup Funds that have been authorized for the 2nd and 3rd 
          priority rankings to fund USTs that pose the greatest 
          environmental risk.

           EXISTING LAW:
           
          1)Generally regulates the storage of hazardous substances in 
            USTs and requires USTs that are used to store hazardous 
            substances to meet certain requirements, including that the 
            primary containment be product tight and that the tank's 
            secondary containment meet specified standards.

          2)Under the existing Barry Keene Underground Storage Tank 
            Cleanup Trust Fund Act of 1989 (Act), requires owners and 
            operators of petroleum underground storage tanks to take 
            corrective action on an unauthorized release of petroleum, 
            including requirements for the preparation of a work plan.  
            The Act provides for the issuance of a specified closure 
            letter relative to the completion of an investigation and 
            corrective action for a petroleum underground storage tank.

          3)Authorizes the SWRCB to suspend corrective action at a site, 
            except for emergency sites. Requires the SWRCB to adopt 
            regulations to specify those conditions where a leaking 
            underground storage tank (LUST) poses an immediate threat to 
            public health or safety of the environment as a result of 
            contamination, nuisance, or pollution.

          4)Requires the UST Fund to pay claims of owners and operators in 
            accordance with a specified order of priority.  Claims are 
            classified into Priority Class A, B, C and D based upon 
            claimant type, revenue and business size:  Priority Class A is 
            residential claimants, Priority Class B is small 
            businesses/owners below a revenue threshold, Priority Class C 
            is small to medium businesses above a revenue threshold, and 








                                                                  AB 291
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            Priority Class D is large businesses with over 500 employees.

           FISCAL EFFECT  :   Not known

           COMMENTS  :  Existing law does not allow the SWRCB to prioritize 
          payment of claims based on potential risk to human health and/or 
          the environment.  The current specified order of priority is 
          based on date of receipt of claim and based upon priority 
          classification of the claimant.  This bill allows a government 
          agency, the SWRCB, to prioritize a small amount of available 
          funds for cleanup of gasoline release that pose the greatest 
          risk to human health and/or the environment, rather than 
          providing all funds based on being first in line.

           

          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file.

           Opposition 
           
          None on file
           

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