BILL ANALYSIS �
AB 291
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Date of Hearing: May 11, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 291 (Wieckowski) - As Amended: April 12, 2011
Policy Committee: Environmental
Safety and Toxic Materials Vote: 9-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the State Water Resources Control Board
(SWRCB) to allocate at least 25% of Class B and Class C awards
from the Underground Storage Tank Cleanup Fund based upon
environmental risk priority.
FISCAL EFFECT
1)One-time costs to SWRCB in 2011-12 of $50,000 to $150,000 to
develop and adopt regulations that, among other things, define
"environmental risk priority." (Underground Storage Tank
Cleanup Fund (USTCF).)
2)One-time costs to SWRCB in 2012-13 of between $300,000 and
$650,000 to review thousands of UST claims, rank them based on
their relative environmental risk and consider appeals of
applicants' rankings. (USTCF.)
3)Ongoing annual costs to SWRCB starting in 2012-13000 in the
tens of thousands of dollars to review new UST claims and rank
them based on their relative environmental risk, consider
appeals of applicants' rankings and track spending. (USTCF.)
COMMENTS
1)Rationale . The author contends it appropriate to allow SWRCB
to prioritize claim awards upon potential risk to human health
and the environment.
2)Background. The Barry Keene Underground Storage Tank Cleanup
Fund Act of 1989 created the Underground Storage Tank Cleanup
AB 291
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Fund Program to help owners and operators of petroleum USTs
satisfy federal and state financial responsibility
requirements. The act requires every owner of a petroleum UST
that is subject to regulation under the Health and Safety Code
to pay a per-gallon fee to the fund. This fee, which began on
January 1, 1991, has increased over time and currently
generates in excess of $180 million annually. The fee is set
to expire at the end of this year.
To be eligible to file a claim with the fund, the claimant
must be a current or past owner or operator of the UST from
which an unauthorized release of petroleum has occurred and be
required to undertake corrective action as directed by the
regulatory agency. Other eligibility conditions include
compliance with applicable state UST permitting requirements
and regulatory agency cleanup orders. The act sets forth a
claim priority system based on claimant characteristics, which
is formalized in the Priority List, as follows:
a) Class A is reserved for residential tank owners.
b) Class B is reserved for small California businesses,
nonprofit organizations and governmental agencies with
gross receipts below a specified maximum.
c) Class C is for certain California businesses, nonprofit
organizations and governmental agencies not meeting the
criteria for Class B.
d) Class D is open to all other eligible claimants.
3)Related Legislation . AB 358 (Smyth) would require the board
to adopt emergency regulations, on or before January 1, 2012,
that specify the conditions under which a leaking underground
storage tank (LUST) is an emergency site, meaning the site is
an imminent threat to public health or safety or to the
environment or poses a substantial probability of causing a
condition of contamination or nuisance. The bill passed the
Assembly Committee on Environmental Safety and Toxic Materials
9-0 and is pending action before this committee.
AB 291
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4)This bill has no registered support or opposition.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081