BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 681|
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                                 THIRD READING


          Bill No:  AB 681
          Author:   Wieckowski (D)
          Amended:  7/7/11 in Senate
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE :  7-0, 06/27/11
          AYES:  Simitian, Strickland, Blakeslee, Hancock, Kehoe, 
            Lowenthal, Pavley

           SENATE APPROPRIATIONS COMMITTEE :  9-0, 08/25/11
          AYES:  Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, 
            Price, Runner, Steinberg

           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    Aboveground storage tanks:  enforcement

           SOURCE  :     California Association of Environmental Health
                        Administrators


           DIGEST  :    This bill revises the definition of aboveground 
          storage tank (AST) found in the Aboveground Petroleum 
          Storage Act, to include tanks located in underground areas, 
          as defined.  The bill requires the Certified Unified 
          Program Agencies (CUPAs) to implement the act in accordance 
          with the regulations adopted by the Office of the State 
          Fire Marshal and authorizes the Office of the State Fire 
          Marshal to adopt these regulations, thereby imposing a 
          state-mandated local program by imposing new requirements 
          upon local agencies with regard to the act.  The bill also 
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          requires the office to interpret the act and oversee the 
          implementation of the act by CUPAs and makes conforming 
          changes in that regard.

           ANALYSIS  :    Existing law:

          1.Under the Aboveground Petroleum Storage Act:

             A.   Provides a definition of ASTs.

             B.   Requires that CUPAs to implement the Act.

             C.   Establishes the Environmental Protection Trust Fund 
               to provide resources to train and assist CUPAs with 
               implementation of the Act and sunsets expenditures on 
               June 1, 2011.

             D.   Establishes civil penalties for violation of the 
               Act and allocates those penalties back to the Fund.

          1.Describes the process for the development of adoption and 
            interpretation of statewide standards and requirements 
            for programs administration by the CUPAs 

          2.Under the federal Spill Prevention Control and 
            Countermeasure rule provided in the U.S. Code of Federal 
            Regulations (40 C.F.R. part 112) establishes requirements 
            regarding storage tanks. 

          This bill:  

          1.Defines "underground area" as an underground room or 
            space, such as a basement, cellar, shaft, pit or vault, 
            providing enough space for physical inspection of the 
            exterior of the tank situation on or above the surface of 
            the floor.

          2.Requires that a tank in an "underground area" that is 
            exempt from underground tank regulation be regulated as 
            an aboveground tank.  

          3.Authorizes the Office of State Fire Marshal (OSFM) to 
            adopt regulations and transfers interpretation and 
            oversight of the AST program from the CUPAs to the OSFM.

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          4.Extends Environmental Protection Trust Fund expenditures 
            until June 1, 2013, and provides that unexpended funds be 
            deposited in the Unified Program Account for further 
            support for CUPAs AST activities.

           Related Legislation
           
          AB 1130 (Laird) Chapter 626, Statutes of 2007, transferred 
          the responsibility for the implementation, enforcement, and 
          administration of the Act from the State Water Resources 
          Control Board to the CUPAs.  AB 1130 authorized the 
          expenditure of a portion of the moneys in the Environmental 
          Protection Trust Fund, upon appropriation by the 
          Legislature, in an amount determined by the Secretary for 
          Environmental Protection in consultation with the CUPAs, to 
          a training account established and maintained by the 
          Secretary to be used for purposes of training CUPA 
          personnel in the requirements of the Act.  AB 1130 also 
          allocates all remaining funds to the CUPAs for expenditure 
          to implement the Act, but limits to 80 percent or less the 
          allocation to a CUPA in advance of actual expenditure by 
          the CUPA.  It made conforming changes to ensure consistency 
          with the federal Spill Prevention Control and 
          Countermeasure rule provided in the U.S. Code of Federal 
          Regulations (40 C.F.R. part 112).

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

          According to the Senate Appropriations Committee, the 
          Office of the State Fire Marshal indicates that the cost to 
          develop and adopt regulations and provide ongoing oversight 
          and assistance to the California Unified Program Agencies 
          will be about $250,000 per year.  Under current law, the 
          California Environmental Protection Agency is authorized to 
          impose fees on tank owners, and additional fees from owners 
          would cover those costs.  The bill also extends the 
          authority of the California Environmental Protection Agency 
          to expend funds from the Environmental Protection Trust 
          Fund for grants to California Unified Program Agencies for 
          training.  The remaining balance in that fund is about $1 
          million.


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           SUPPORT  :   (Verified  8/25/11)

          California Association of Environmental Health 
          Administrators (source) 
          California Fire Chiefs Association
          California Professional Firefighters
          Clean Water Action
          Department of Defense, Regional Environmental Coordinator, 
          Region 9
          Environmental Working Group

           OPPOSITION  :    (Verified  8/25/11)

          California Independent Oil Marketers Association (CIOMA)
          Western States Petroleum Association 

           ARGUMENTS IN SUPPORT  :    According to the sponsor, this 
          bill makes important enhancements which will improve the 
          regulation of aboveground petroleum storage tanks in the 
          State.  This bill aligns the Act with federal requirements 
          by explicitly stating that a tank located in an underground 
          area that is exempt from regulations as an underground 
          storage tank is regulated as an aboveground storage tank 
          under the Act.  This is to ensure that all below grade 
          "vaulted" petroleum tanks not covered by underground 
          storage tanks laws are covered by the Act.  

          This bill designates the Office of the State Fire Marshal 
          as the agency with authority to adopt regulations to 
          implement the Act and interpret and oversee the 
          implementation of this chapter by the CUPAs.  The State 
          Water Resources Control Board had responsibility until the 
          responsibility was granted to the CUPAs.  Because the 
          regulation of these tanks is primarily a fire prevention 
          function, the OSFM is the most appropriate agency to 
          provide oversight

          This bill also extends the date that CUPAs can receive 
          grant allocations from the Environmental Protection Trust 
          Fund which was established to fund initial implementation 
          of the Act by CUPAs.  This is necessary for the California 
          Environmental Protection Agency to be authorized to 
          disperse the balance of the funds to the CUPAs. 


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          This bill also adds criminal and administrative penalties 
          to make the Act penalty provisions consistent with the 
          other laws consolidated in the CUPA program.  This is a 
          cornerstone of the Unified Program consistency.  When the 
          program was transferred to the CUPAs, this authority was 
          not transferred or restated 

           ARGUMENTS IN OPPOSITION  :    CIOMA states that this bill 
          "makes a significant change in the oversight of the state's 
          aboveground storage tanks act; moving oversight from 
          Cal/EPA to the State Fire Marshal's Office.  It also 
          provides new enforcement authority/penalties to local 
          agencies in their role of annual AST inspections.  The 
          author's office has been asked to make this a two-year 
          measure, giving the regulated community adequate time to:  
          (1) determine if the SFM is the best and most-appropriate 
          agency for the oversight obligation; and (2) accomplish 
          review of newly enacted aboveground tank obligations placed 
          on local agencies before new enforcement/penalty provisions 
          are empowered."  
           

          DLW:nl  8/29/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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