BILL ANALYSIS �
AB 358
Page 1
Date of Hearing: May 11, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 358 (Smyth) - As Amended: April 28, 2011
Policy Committee: Environmental
Safety and Toxic Materials Vote: 9-0
Urgency: Yes State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the State Water Resources Control Board
(SWRCB) to adopt emergency regulations, on or before January 1,
2012, that specify the conditions under which a leaking
underground storage tank (LUST) is 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
contamination or nuisance.
FISCAL EFFECT
One-time costs to the board in 2011-12, in the range of $50,000
to $200,000, to adopt emergency regulations. (Special fund.)
COMMENTS
1)Rationale. The author is concerned the Underground Storage
Tank (UST) Cleanup Fund may run short of funding at the end of
2011, when the fee that generates fund revenue will expire.
Such a situation would place in jeopardy payments or
potentially cancel reimbursement payments to individuals
remediating LUSTs. The author contends this bill will provide
immediate regulatory relief to individuals working to
remediate non-emergency LUST sites who are in peril of not
receiving reimbursement from the fund.
2)Background. The Barry Keene Underground Storage Tank Cleanup
Fund Act of 1989 created the Cleanup 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 subject to regulation under the
AB 358
Page 2
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.
Statute authorizes the board to suspend corrective action at a
LUST site, except for emergency sites, and requires the board
to adopt regulations to specify those conditions where a LUST
poses an immediate threat to public health or safety or the
environment as a result of contamination, nuisance, or
pollution, thereby making it an emergency site for which the
board cannot suspend corrective action.
3)Related Legislation. AB 291(Wieckowski) would require SWRCB
to allocate at least 25% of certain awards from the Cleanup
Fund based upon environmental risk priority. The bill passed
the Assembly Committee on Environmental Safety and Toxic
Materials 9-0 and is pending before this committee.
4)Support. This bill is supported by the Independent Oil
Marketers Association, many of the members of which are
responsible for remediating LUSTs.
5)There is no registered opposition to this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081