BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1701
                                                                  Page  1

          Date of Hearing:   April 18, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 1701 (Wieckowski) - As Amended: March 27, 2012 

          Policy Committee:                              Environmental 
          Safety and Toxic Materials                    Vote: 8-0

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill authorizes the State Water Resources Control Board 
          (state board) to enter into an agreement for oversight of 
          abatement of leaking underground storage tanks (LUSTs) only with 
          a city or a county certified by the state board.  Specifically, 
          this bill:

          1)Defines a "local agency," for purposes of implementing local 
            oversight of LUST abatement and cleanup, as (a) before July 1, 
            2013, a city or a county and (b) after July 1, 2013, a city or 
            a county certified by the state board.

          2)Authorizes the state board to certify a city or county for 
            purposes of implementing the local oversight of LUST program 
            and provides criteria by which the board is to do so.

          3)Authorize the state board, after January 1, 2013, to enter 
            into an agreement for local oversight of LUST abatement only 
            with a city or a county certified by the state board.  

          4)Requires the state board, as of July 1, 2013, if it has not 
            certified a city or county that had been overseeing local LUST 
            abatement prior to this date, to assign LUST abatement 
            oversight cases to a regional water board or to another city 
            or county that has been certified by the board. 

          5)Requires the state board to review, at least once every three 
            years, the ability of a certified city or county to implement 
            local oversight of LUST abatement and authorizes the state 
            board to decertify a city or county, following review.

           FISCAL EFFECT  







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          Minor, absorbable net costs to the state board.  The board will 
          incur workload, approximately equivalent to one staff member 
          annually, to certify cities and counties and to review 
          qualifications for certification.  The state board expects this 
          workload largely to be offset by a reduction in workload 
          resulting from replacement of the existing, and time-consuming, 
          contract-by-contract-based local programs with more-standardized 
          state certification.

           COMMENTS  

           1)Rationale  .  The author intends this bill to standardize local 
            oversight of LUST abatement and cleanup, thereby speeding 
            cleanup of hazardous substances and better protecting 
            groundwater resources while reducing the cost of compliance.
           2)Background.   

            Regulation of Water Quality.  The State Water Resources 
            Control Board, in conjunction with nine semiautonomous 
            regional boards, regulates water quality in the state. The 
            regional boards-which are funded by the state board and are 
            under the state board's oversight-implement water quality 
            programs in accordance with policies, plans and standards 
            developed by the state board.  Current law also requires every 
            petroleum underground storage tank (UST) owner to pay a 
            fee-known as the UST Maintenance Fee and set, as of January 
            2012, at 1.4 cents per gallon. UST fee revenue is placed in 
            the UST Cleanup Fund and is available to assist eligible 
            businesses and individuals pay for unexpected and catastrophic 
            expenses associated with the cleanup of leaking petroleum 
            USTs.  The fund also provides money to regional water boards 
            and local regulatory agencies to abate emergency situations or 
            to cleanup abandoned sites that pose a threat to human health, 
            safety and the environment as a result of a petroleum release 
            from a UST.

            LUSTs, LIAs and LOPs.  The state board is required to 
            implement a local oversight program for the abatement of, and 
            oversight of the abatement of, unauthorized releases of 
            hazardous substances, such as petroleum, from leaking 
            underground storage tanks.  The program is implemented by the 
            regional boards and numerous local agencies with varying 
            requirements.

            Generally, there are two categories of local agencies that 







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            oversee abatement and cleanup of LUSTs.  The first category is 
            known as local implementation agencies (LIAs).  LIAs are 
            mostly cities and counties, or their subdivisions, whose 
            oversight of LUSTs and other hazardous substance regulation 
            predates the state's uniform program for the management of 
            hazardous substances, which began in 1996.  LIAs are not 
            directly responsible to any state agency.  Some UST owners 
            complain LIA requirements sometimes vary substantially from 
            state requirements, leading to confusion and delay in LUST 
            abatement and cleanup. Some contend LIAs lack legal authority 
            to oversee LUST abatement.

            The second category of local agencies overseeing LUST 
            abatement is local oversight programs (LOPs).  Like LIAs, LOPs 
            are generally comprised of cities and counties or their 
            subdivisions.  LOPs, however, operate according to a contract 
            with the state board.  LOPs, therefore, receive their LUST 
            oversight authority directly from, and are accountable to, a 
            state agency.  Some UST owners contend LOP requirements, when 
            compared to those of LIAs, are consistent and predictable.

           3)Support.   This bill is supported by the California Independent 
            Oil Marketers Association, an industry group representing many 
            UST owners.  

          4)Opposition.   As this analysis is being written, there is no 
            formal opposition registered to this bill.  However, some 
            local agencies acting as LIAs, including some of the state's 
            largest municipalities, may object to the requirement to be 
            certified by the state board.  
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081