BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1566|
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                                 THIRD READING


          Bill No:  AB 1566
          Author:   Wieckowski (D)
          Amended:  8/21/12 in Senate
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  6-1, 7/2/12
          AYES:  Simitian, Blakeslee, Hancock, Kehoe, Lowenthal, 
            Pavley
          NOES:  Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 8/16/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg

           ASSEMBLY FLOOR  :  77-0, 5/30/12 - See last page for vote


           SUBJECT  :    Aboveground storage tanks:  enforcement

           SOURCE  :     California Association of Environmental Health 
          Administrators


           DIGEST  :    This bill authorizes the Office of the State 
          Fire Marshal to regulate the Aboveground Petroleum Storage 
          Act (APSA) and makes conforming changes to the APSA.

           ANALYSIS  :    The APSA defines an "aboveground 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, except as specified.  Existing law 
          requires every county to apply to the Secretary for 
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          Environmental Protection to be certified to implement the 
          unified hazardous waste and hazardous materials management 
          regulatory program (unified program) and allows a city or 
          local agency to implement the unified program.  Existing 
          law requires the unified program agencies (UPAs) to 
          implement the APSA.

          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 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. 

            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. 








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            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. Increases the maximum cumulative capacity of 
              specified tanks exempted from requirements imposed on 
              underground storage tanks from 1,100 gallons to 1,320 
              gallons.

            14. Makes other conforming changes. 

           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 







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          federally mandated 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. 

          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 







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          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. 

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

          According to the Senate Appropriations Committee, $225,000 
          to $300,000 annually to the Unified Program Account for the 
          State Fire Marshal to oversee local implementation of the 
          aboveground storage tank (AST) program, provide outreach, 
          establish and administer an advisory committee, and adopt 
          regulations, if necessary.

           Costs to the State Fire Marshal are offset an existing 
            annual surcharge paid by regulated parties.

           Minor, if any, penalty revenue split between the local 
            certified unified program agency (CUPA) and the district 
            attorney.

           SUPPORT  :   (Verified  8/20/12)

          California Association of Environmental Health 
          Administrators (source) 

           ARGUMENTS IN SUPPORT  :    The California Association of 







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          Environmental Health Administrators, states that "this 
          measure will clarify the definition of what is commonly 
          referred to a 'vaulted tank' and will establish the �OSFM] 
          as the oversight agency for the aboveground tank program 
          element within the Unified Program.  There exists tension 
          and confusion over exactly how these below-grade but not 
          'underground' or 'in-the-ground' tanks should be regulated. 
           This bill clarifies the distinction between these two 
          types of petroleum storage tanks.  Furthermore, AB 1566 
          designates the �OSFM] as the State oversight agency for the 
          aboveground tank program element that was transferred from 
          SWRCB to the certified unified program agencies (CUPAs) 
          some years back.  As in all the other elements of the 
          Unified Program, the State oversight agencies assist in 
          providing training and offering interpretation in program 
          implementation - thus enhancing consistency and 
          coordination in program management."


           ASSEMBLY FLOOR  :  77-0, 5/30/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Dickinson, 
            Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth 
            Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, 
            Hagman, Halderman, Hall, Harkey, Hayashi, Roger 
            Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones, 
            Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, 
            Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, 
            Nielsen, Norby, Olsen, Pan, Perea, V. Manuel P�rez, 
            Portantino, Silva, Skinner, Smyth, Solorio, Swanson, 
            Torres, Wagner, Wieckowski, Williams, Yamada, John A. 
            P�rez
          NO VOTE RECORDED:  Davis, Fletcher, Valadao


          DLW:n   8/21/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****









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