BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 1566 (Wieckowski)
          As Amended  May 25, 2012
          Majority vote 

           ENVIRONMENTAL SAFETY         8-0APPROPRIATIONS      17-0        
           
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          |Ayes:|Wieckowski, Miller,       |Ayes:|Fuentes, Harkey,          |
          |     |Campos, Chesbro, Davis,   |     |Blumenfield, Bradford,    |
          |     |Donnelly, Feuer, Morrell  |     |Charles Calderon, Campos, |
          |     |                          |     |Davis, Donnelly, Gatto,   |
          |     |                          |     |Ammiano, Hill, Lara,      |
          |     |                          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
           ----------------------------------------------------------------- 
           
          SUMMARY  :  Authorizes the Office of the State Fire Marshal (State 
          Fire Marshal) to regulate the Aboveground Petroleum Storage Act 
          (APSA) and makes conforming changes to the APSA.  Specifically, 
           this bill  :  
           
          1)Redefines "aboveground storage tank" (AST) or "storage tank" 
            as a tank that has the capacity to store 55 gallons or more of 
            petroleum and that is substantially or totally above the 
            surface of the ground including a tank located in an 
            underground area.

          2)Defines "tank in an underground area," including specifying 
            requirements for the structure in which the tank is located, 
            secondary containment, physical location, and tank contents. 

          3)Requires the State Fire Marshal to establish an advisory 
            committee that includes representatives from regulated 
            entities, appropriate trade associations, fire service 
            organizations, federal, state and local organizations, 
            including Unified Program Agencies (UPAs), and other 
            interested parties.  

          4)Requires the State Fire Marshal to ensure consistency with 
            state law and federal enforcement guidance issued by federal 
            agencies and to provide outreach to regulated persons 
            regarding compliance with local, state and federal regulations 
            relevant to the APSA.








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          5)Exempts from the definition of "underground storage tank" 
            (UST) a tank, and associated piping, in an underground area 
            that is subject to the APSA.

          6)Authorizes the State Fire Marshal to adopt regulations to 
            implement the APSA.  Requires the State Fire Marshal to 
            provide interpretation of the APSA to the Certified Unified 
            Program Agencies (CUPAs), and to oversee the implementation of 
            the APSA by the CUPAs.

          7)Requires regulations adopted by the State Fire Marshal 
            pursuant to the APSA to ensure consistency with the 
            requirements for spill prevention, control, and countermeasure 
            (SPCC) plans under the U.S. Code of Federal Regulations (40 
            C.F.R. part 112), and to include any more stringent 
            requirements necessary to implement the APSA.

          8)Establishes, for violation of the APSA, an administrative 
            penalty of no more than $5,000 for each day on which the 
            violation continues.  Authorizes, if the owner or operator 
            commits a second or subsequent violation, an administrative 
            penalty to be imposed of not more than $10,000 for each day on 
            which the violation continues.

          9)Requires the administrative penalties assessed by a CUPA to be 
            deposited into a unified program account established by the 
            CUPA for the purpose of carrying out the functions of the 
            unified program.

          10)Provides that the penalties specified in this section are in 
            addition to any other penalties provided by law.

          11)Provides that a person who knowingly violates the APSA, after 
            reasonable notice of the violation, is, upon conviction, 
            guilty of a misdemeanor.

          12)Clarifies that this section does not preempt any other 
            applicable criminal or civil penalties.

          13)Makes other conforming changes.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, enactment of this bill could have the following 








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          fiscal impact:

          1)Ongoing costs of approximately $225,000, to $300,000, 
            equivalent to two scientific positions (about $200,000 
            annually) plus administrative costs such as travel and 
            equipment, to State Fire Marshal to oversee local 
            implementation of the APST Program, provide outreach, 
            establish and administer advisory committee and adopt 
            regulations, if necessary (Unified Program Account).

          2)Annual APSA surcharge revenue, paid by regulated parties, 
            sufficient to cover State Fire Marshal's annual costs (Unified 
            Program Account).  

          3)Potential annual administration penalty revenue of an unknown 
            amount (Local revenue).

           COMMENTS  :
           
          Statewide oversight  :  As established in 1988, the APSA required 
          Regional Water Quality Control Boards (RWQCBs) to oversee 
          inspections of AST facilities to ensure that a federally 
          mandated spill prevention, control and countermeasure (SPCC) 
          plan was in place, that tanks were not leaking, and that a 
          monitoring program was undertaken, if necessary.  It also 
          required owners and operators of ASTs to submit documents and 
          fees to the State Water Resources Control Board (SWRCB).  The 
          APSA also required CUPAs to enforce the requirements of the APSA 
          regarding the SPCCs.  

          According to the SWRCB, in fiscal year 2002-03, due to the 
          state's fiscal crisis, the funding authority and positions for 
          the AST inspection program were eliminated from the SWRCB's and 
          RWQCBs' budgets.  As a result, the SWRCB and the RWQCBs 
          discontinued the AST inspection program.  While the intent of 
          the budget change was to transfer the inspection program to the 
          CUPAs, complementary statutory changes were not made and no 
          inspections by any agency were conducted.   AB 1130 (Laird), 
          Chapter 626, Statutes of 2007, attempted to repair the AST 
          program by transferring the responsibility for the 
          implementation, enforcement, and administration of the APSA from 
          the SWRCB and RWQCBs to local environmental health and fire 
          departments sanctioned under law as CUPAs.   









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          According to the sponsor, the California Association of 
          Environmental Health Administrators, currently the APSA is the 
          only local environmental health program lacking state oversight. 
           Because there are 83 CUPAs, at times they differ in their 
          interpretation of the APSA.  Therefore, this bill provides 
          statewide consistency and one point of contact for the AST 
          program by assigning regulatory authority of the program to the 
          State Fire Marshal.  The State Fire Marshal was selected as the 
          appropriate oversight agency because many of the aspects of AST 
          regulations are similar to other regulatory programs implemented 
          by the State Fire Marshal, such as fire codes and pipeline 
          safety.

           Penalty provisions  :  Current AST law provides for civil 
          penalties, but does not explicitly authorize administrative or 
          criminal penalties.  In contrast, UST law, in addition to 
          providing for civil penalties, provides for criminal penalties 
          for specified violations.  Also, CUPAs are authorized to impose 
          an administrative penalty for specified violations of UST law.  
          This bill makes AST penalty provisions consistent with the other 
          laws consolidated in the Unified Program, including UST law, by 
          authorizing CUPAs to levy criminal penalties and administrative 
          penalties.

           Conformance with federal law  :  According to the sponsor, 
          currently there are more than 1,000 facilities with lubricating 
          oil and used oil tanks able to be visually inspected in 
          basements or underground areas statewide that fall under the 
          definition of an UST.  Because UST requirements are designed for 
          monitoring buried tanks, applying UST rules to tanks in 
          underground areas is typically an expensive engineering 
          challenge combined with the difficulty of meeting varying and 
          inconsistent CUPA requirements.  Further, because authority for 
          the federal SPCC program is not delegated to the CUPAs, 
          enforcement is confused.  This bill redefines aboveground 
          storage tanks in California law in order to align state statute 
          with the Code of Federal Regulations and to better streamline 
          oversight and enforcement of the AST program.  

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










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