BILL ANALYSIS �
SB 445
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Date of Hearing: July 2, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 445 (Hill) - As Amended: June 10, 2014
Policy Committee: Environmental
Safety and Toxic Materials Vote: 5-1
Urgency: Yes State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill extends the current State Water Resources Control
Board (SWRCB) program for the clean-up of Underground Storage
Tanks (USTs) from 2016 to 2020. Specifically, this bill:
1)Authorizes a two-cent per gallon fee on petroleum products
until 2020. Increases the maximum amount for replacing,
removing, or upgrading USTs program grants from $50,000 to
$70,000. Dedicates $0.003 (3 mils) of the assessment for the
SWRC B to use for specified purposes relating to small
businesses, schools, and sites without a viable responsible
party.
2)Requires owners and operators of single-walled USTs to
permanently close their single-wall tanks by December 31,
2020. Single-wall tanks near public drinking water wells must
be closed by December 31, 2018.
3)Provides that before December 31, 2018, the owner or operator
of an UST must demonstrate that they will meet the financial
responsibility requirements of state and federal laws with an
alternative to the existing UST clean-up fund (Fund).
Beginning on January 1, 2019, UST owners or operators must
meet existing federal and state financial assurance
requirements without relying on the Fund.
4)Authorizes the SWRCB to impose administrative civil liability
on persons who make fraudulent claims and misrepresentations
to the Fund.
5)Authorizes the SWRCB to recover the costs associated with
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investigating and prosecuting fraud cases against the Fund
from persons who were proven to have engaged in fraud. Bars
claimants and consultants convicted of fraud against the Fund
from further participation in the Fund.
6)Establishes a new Site Cleanup Subaccount in the Fund which
can be used to pay for the costs of investigating and
remediating sites with surface or groundwater contamination.
FISCAL EFFECT
1)Increased fee revenues of $79 million per year for four years
from extending the $.02 assessment
2)Unknown increased costs to state agencies who own
single-walled tanks for the removal, replacement or permanent
closure of the tanks.
3)Unknown potential increased civil liability revenue resulting
from increased enforcement authority.
COMMENTS
1)Rationale. According to the author, leaks from underground
storage tanks represent an ongoing threat to California
groundwater and land resources. Even a small amount of
petroleum released from a leaking tank can contaminate
groundwater. This bill will continue the important work that
the state has done to address the threat from underground
tanks and allow businesses, local agencies, and schools to
clean up the legacy of past practices that poses a threat to
public health and the environment.
This bill also provides new direction for the state to address
the issue of single-walled tanks and begin to address
groundwater contamination from a wider range of toxic
chemicals.
2)Background. Currently, the UST program is supported by a 1.6
cent per gallon fee collected quarterly from petroleum UST
owner or operators by the State Board of Equalization. The
fee currently generates about $270 million per year for claims
reimbursement and disbursement. An additional storage fee six
mills ($0.006) per gallon expired on January 1, 2014.
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Claims are paid in priority order based on criteria
established in statute. First priority is given to
homeowners, second priority to small business, non-profit or
small local agencies, third priority to business with less
than 500 employees, and the lowest priority is given to major
corporations and larger local government agencies.
3)Related Legislation. AB 282 (Wieckowski), 2013, extends the
sunset date of the Underground Storage Tank (UST) Cleanup
Program from 2016 until 2018, and extends the sunset of a
$0.006 surcharge on petroleum stored in an UST from 2014 until
2016. This bill was held in the Senate Appropriations
Committee.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081