Bill Text: CA SB445 | 2013-2014 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Underground storage tanks: hazardous substances: petroleum: groundwater and surface water contamination.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-25 - Chaptered by Secretary of State. Chapter 547, Statutes of 2014. [SB445 Detail]
Download: California-2013-SB445-Amended.html
Bill Title: Underground storage tanks: hazardous substances: petroleum: groundwater and surface water contamination.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-25 - Chaptered by Secretary of State. Chapter 547, Statutes of 2014. [SB445 Detail]
Download: California-2013-SB445-Amended.html
BILL NUMBER: SB 445 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 10, 2014
AMENDED IN ASSEMBLY JANUARY 8, 2014
AMENDED IN ASSEMBLY AUGUST 26, 2013
AMENDED IN ASSEMBLY AUGUST 12, 2013
AMENDED IN ASSEMBLY AUGUST 5, 2013
INTRODUCED BY Senator Hill
FEBRUARY 21, 2013
An act to amend Section 25299.43 of
Sections 25299.32, 25299.43, 25299.50, 25299.50.2, 25299.50.3,
25299.50.4, 25299.51, 25299.57, 25299.70, 25299.78, 25299.81,
25299.101, 25299.104, 25299.105, 25299.106, and 25299.107 of, and to
add Sections 25292.05, 25299.50.6, 25299.71, 25299.80, 25299.80.5,
25299.80.6, and 25299.82 to, the Health and Safety Code,
relating to underground storage tanks
hazardous substances, making an appropriation therefor, and declaring
the urgency thereof, to take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
SB 445, as amended, Hill. Underground storage tanks:
petroleum: charges. hazardous substances: petroleum:
groundwater and surface water contamination.
(1) Existing law provides for the regulation of underground
storage tanks by the State Water Resources Control Board. Existing
law requires underground storage tanks that are used to store
hazardous substances and that are installed after January 1, 1984, to
meet certain requirements, including that the primary containment be
product tight and that the tank's secondary containment meet
specified standards. However, in lieu of these generally applied
requirements, existing law authorizes underground storage tanks for
motor vehicle fuels installed before January 1, 1997, to be designed
and constructed in accordance with alternative requirements. Existing
law imposes various monitoring, inspection, replacement, and
upgrading requirements on underground storage tanks installed on or
before January 1, 1984, and used for the storage of hazardous
substances.
This bill would require the owners or operators of these 2 types
of underground storage tanks to permanently close them by December
31, 2020, or by December 31, 2018, if they are within 1,000 feet of a
public drinking water well, unless the tanks meet specified
requirements.
Under
(2) Under existing law, the Barry
Keene Underground Storage Tank Cleanup Trust Fund Act of 1989,
which is repealed on January 1, 2016, every owner of an
underground storage tank is required to pay a storage fee for each
gallon of petroleum placed in the tank. The fees are required to be
deposited in the Underground Storage Tank Cleanup Fund and the State
Water Resources Control Board is authorized to expend the moneys in
the fund, upon appropriation by the Legislature, for various
purposes, including the payment of claims to aid owners and operators
of petroleum underground storage tanks who take corrective action to
clean up unauthorized releases from those tanks, corrective actions
undertaken by the board, a California regional water quality board,
or a local agency, the cleanup and oversight of unauthorized releases
at abandoned tank sites, and grants to small businesses to retrofit
certain hazardous substance underground storage tanks.
Existing law imposes a $0.001 charge per gallon of a petroleum placed
in an underground storage tank until January 1, 2016, and repeals
the act on that date. Existing law also specifies that
certain associated rights, obligations, and authorities that apply
prior to the January 1, 2016, repeal date do not terminate until the
moneys in the fund are exhausted. Existing law establishes,
until July 1, 2016, the School District Account in the Underground
Storage Tank Cleanup Fund for the payment of claims filed by a school
district that takes corrective action to clean up an unauthorized
release from a petroleum underground storage tank.
This bill would extend the operation of the act and the
School District Account until January 1, 2020. By extending the
operation of the act, the bill would impose a state-mandated local
program by continuing the operation of certain crimes regarding the
furnishing of information under penalty of perjury.
This
The bill would , as of the first day of the first
calendar quarter commencing more than 90 days after the effective
date of this act, require payment of an additional $0.006 per
gallon of petroleum sto red in an underground storage
tank until January 1, 2016. This bill would
constitute a change in state statute that would result in a taxpayer
paying a higher tax within the meaning of Section 3 of Article XIII A
of the California Constitution, and thus would require for passage
the approval of 2 /3 of the membership of each house of the
Legislature. 2020. The bill would require $0.003 of
that $0.006 to be expended only for transfer to the School District
Account, for transfer to the Petroleum Underground Storage Tank
Financing Account, as specified below, or for transfer to the Site
Cleanup Subaccount, which this bill would establish in the
Underground Storage Tank Cleanup Fund. The board would be
authorized to expend the funds from that subaccount, upon
appropriation by the Legislature, to pay for reasonable and necessary
expenditures that the board, a regional board, or a local agency
incurs to identify the source of surface or groundwater
contamination, or to remediate the harm or threat of harm to human
health, safety, and the environment caused by existing or threatened
surface or groundwater contamination, or for the board to make grants
for the reasonable and necessary costs of actions to remediate the
harm or threat of harm to human health, safety, and the environment
caused by existing or threatened surface or groundwater
contamination, as specified . The bill would require the board to
specify the information to be included in a grant application and
would authorize the board to adopt procedures to implement the grant
program.
(3) Existing law establishes the Underground Storage Tank
Petroleum Contamination Orphan Site Cleanup Fund in the State
Treasury, for expenditure by the board, upon appropriation by the
Legislature, for the costs of response actions to remediate the harm
caused by a petroleum contamination from an underground storage tank.
Existing law imposes specified requirements with regard to the
expenditure of those moneys, including that the site meet the
conditions of a brownfield, as defined.
This bill would delete the requirement for the expenditure of
funds from this fund that the site meet the conditions for a
brownfield and would make other conforming changes.
(4) Existing law prohibits the board from reimbursing a claim for
corrective action costs that is received by the board more than 365
days after the date of issuance of a closure letter or after the
issuance or activation of a letter of commitment, except as
specified.
This bill would prohibit the board from reimbursing a claim for a
corrective action costs that is received by the board more than 2
years after the date the cost was incurred or more than 2 years after
the date of issuance or activation of a letter of commitment, except
as specified.
(5) Existing law specifies that the costs incurred by the fund for
corrective action and other expenses are to be recovered by the
Attorney General, upon the request of the board.
This bill would instead authorize the board to recover those
costs.
(6) The Barry Keene Underground Storage Tank Cleanup Trust Fund
Act of 1989 requires an owner or operator to furnish, under penalty
of perjury, any information on fees, financial responsibility,
unauthorized releases, or corrective action as a local agency,
regional board, or the state board may require.
The bill would subject to a civil penalty a person that refuses to
furnish that information. The bill would authorize the executive
director of the board to permanently disqualify a person convicted of
making a false statement to the board, or found civilly liable for
specified conduct relating to any claim, from receiving any moneys
from the fund, if the executive director makes one of a specified set
of findings with regard to claimants. The bill would also impose a
civil penalty upon a person that makes a misrepresentation in a claim
submitted to the fund. The bill would require the Attorney General,
upon the request of the board, to bring an action in superior court
to impose these civil penalties and would authorize the executive
director of the board to impose these civil penalties
administratively.
The bill would also provide that a person who knowingly makes or
causes to be made a false statement, material misrepresentation, or
false certification in support of a claim is punishable by a criminal
fine or imprisonment, or by both that fine and imprisonment.
The bill would authorize the board to review the imposition of
civil penalties by the executive director in a specified manner.
The bill would require that these fines and civil penalties be
deposited into the fund. The bill would authorize the board to expend
the moneys in the fund to pay for the expenditures of the board
associated with investigation and enforcement under the act. The bill
would also make conforming changes with regard to this enforcement.
By creating a new crime with regard to the filing of claims, the
bill would impose a state-mandated local program.
The bill would also make conforming changes with regard to the
amounts deposited in the fund, the purposes for which the money in
the fund would be expended, and the continued existence, after the
repeal of the act, of certain authority in the act to take specified
legal actions. The board would be prohibited from accepting claim
applications for reimbursement for corrective action costs or
compensation of 3rd parties that are submitted to the fund after
January 1, 2019, unless the board makes a specified finding, and
would prohibit the board from accepting requests for reimbursement
for those purposes after July 1, 2019.
(7) Existing law requires owners and operators of underground
storage tanks systems containing hazardous substances to maintain
evidence of financial responsibility. Existing law also requires
petroleum underground storage tanks to establish and maintain
specified evidence of financial responsibility for taking corrective
action and compensating 3rd parties for bodily injury and property
damage arising from operating an underground storage tank, except
that certain owners or operators eligible for payment of a claim from
the fund are deemed in compliance with those financial
responsibility requirements.
This bill would allow all claimants to use the fund to establish
and maintain evidence of financial responsibility for purposes of the
requirements imposed upon petroleum underground storage tanks but
would prohibit, on and after January 1, 2019, an owner or operator of
a tank for which a permit is in effect from using the fund as a
mechanism to demonstrate compliance with certain financial
responsibility requirements and specified federal statutory
requirements.
(8) Existing law, until January 1, 2022, requires the board to
conduct a loan program to assist small businesses to upgrade,
replace, or remove tanks used for the purpose of storing petroleum to
meet applicable local, state, or federal standards and to conduct a
grant program to assist small businesses to comply with certain
requirements imposed on those tanks with regard to specified testing
and containment systems and enhanced leak detection. Existing law
provides that the maximum amount that the board may grant an
applicant is $50,000.
This bill would expand the purposes for which the board may issue
those grants and loans to include the upgrade, removal, or
replacement of those tanks to meet specified requirements with regard
to the permanent closure of underground storage tanks. The bill
would increase the maximum amount that the board may grant an
applicant to $70,000. The bill would authorize the board to waive
certain permitting and other requirements for a grant applicant that
is ineligible for a loan pursuant to the program and will remove a
tank without replacing it.
(9) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(10) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no yes .
Fiscal committee: yes. State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25292.05 is added to the
Health and Safety Code , to read:
25292.05. (a) On or before December 31, 2018, the owner or
operator of an underground storage tank shall permanently close that
underground storage tank in accordance with Section 25298 and the
regulations adopted pursuant to that section, if the underground
storage tank is located within 1,000 feet of a public drinking water
well identified pursuant to Section 25292.4 and the underground
storage tank meets either of the following conditions:
(1) The underground storage tank is designed and constructed in
accordance with paragraph (7) of subdivision (a) of Section 25291 and
does not meet the requirements of paragraphs (1) to (6), inclusive,
of subdivision (a) of Section 25291.
(2) The underground storage tank was installed on or before
January 1, 1984, and does not meet the requirements of paragraphs (1)
to (6), inclusive, of subdivision (a) of Section 25291.
(b) Except as otherwise provided in subdivision (a), on or before
December 31, 2020, the owner or operator of an underground storage
tank shall permanently close that underground storage tank in
accordance with Section 25298 and the regulations adopted pursuant to
that section, if the underground storage tank is described in either
paragraph (1) or (2) of subdivision (a).
SEC. 2. Section 25299.32 of the Health
and Safety Code is amended to read:
25299.32. (a) (1) Claimants who meet
Except as provided in subdivision (f), a claimant who meets any of
the following requirements may use the fund to establish and maintain
evidence of financial responsibility:
(2) A claimant who meets the
qualifications of paragraph (1) of subdivision (b) of Section
25299.52 shall be deemed in compliance with Section 25299.31 if the
claimant is eligible for reimbursement from the fund pursuant to
Section 25299.54 and 25299.54,
subdivision (d) of Sections 25299.57 and
Section 25299.57, and subdivision (b) of Section 25299.58.
(2) For claimants who meet
(3) If a claimant meets the
qualifications of paragraph (2) or (3) of subdivision (b) of Section
25299.52, the level of financial responsibility required to be
obtained pursuant to Section 25299.31 shall be at least five thousand
dollars ($5,000) for each occurrence and at least five thousand
dollars ($5,000) annual aggregate coverage for taking corrective
action.
(3) For claimants who meet
(4) If a claimant meets the
qualifications of paragraph (4) of subdivision (b) of Section
25299.52, the level of financial responsibility required to be
obtained pursuant to Section 25299.31 shall be at least ten thousand
dollars ($10,000) for each occurrence, and at least ten thousand
dollars ($10,000) annual aggregate coverage for taking corrective
action.
(b) The level of financial responsibility required to be obtained
pursuant to Section 25299.31 for each occurrence for bodily injury
and property damage shall be in the amount specified by the board in
the regulations adopted pursuant to Section 25299.77.
(c) The level of financial responsibility required to be obtained
pursuant to Section 25299.31 shall be in the amount specified by the
board for annual aggregate coverage for both corrective action and
bodily injury and property damage.
(d) The board may periodically increase the minimum level of
financial responsibility specified in subdivision (a) upon its
determination that private insurance is available and affordable.
(e) The changes made to this section by the act adding
this subdivision Chapter 1191 of the Statutes of 1994
shall apply to all claimants with claims, or portions of
claims, for corrective action at sites that have not been completed,
and for which reimbursement by the fund has not been fully paid by
the board.
(f) (1) On and after January 1, 2019, an owner or operator of a
tank for which a permit that is issued pursuant to Section 25284 is
in effect shall not use the fund as a mechanism to demonstrate
compliance with the financial responsibility requirements of Sections
25292.2 and 25299.31 and with the federal act.
(2) On or before December 31, 2018, an owner or operator who
previously used the fund as a mechanism to demonstrate compliance
with financial responsibility requirements shall submit, to the local
agency that issued the permit for the operation of the tank pursuant
to Section 25284, evidence of the alternative financial
responsibility mechanism that will be used, on and after January 1,
2019, to comply with Sections 25292.2 and 25299.31 and with the
federal act.
SEC. 3. Section 25299.43 of the Health
and Safety Code is amended to read:
25299.43. (a) To implement the changes to this chapter made by
Chapter 1191 of the Statutes of 1994, and consistent with Section
25299.40, effective January 1, 1995, every owner subject to Section
25299.41 shall pay a storage fee of one mill ($0.001) for each gallon
of petroleum placed in an underground storage tank that the person
owns, in addition to the fee required by Section 25299.41.
(b) On and after January 1, 1996, the storage fee imposed under
subdivision (a) shall be increased by two mills ($0.002) for each
gallon of petroleum placed in an underground storage tank.
(c) On and after January 1, 1997, the storage fee increased under
subdivision (b) shall be increased by an additional three mills
($0.003) for each gallon of petroleum placed in an underground
storage tank.
(d) On and after January 1, 2005, the storage fee increased under
subdivision (c) shall be increased by an additional one mill ($0.001)
for each gallon of petroleum placed in an underground storage tank.
(e) On and after January 1, 2006, the storage fee increased under
subdivision (d) shall be increased by an additional one mill ($0.001)
for each gallon of petroleum placed in an underground storage tank.
(f) On and after January 1, 2010, the storage fee increased under
subdivision (e) shall be increased by an additional six mills
($0.006) for each gallon of petroleum placed in an underground
storage tank. The increase provided for in this subdivision shall be
effective until January 1, 2014, at which time, the fee shall revert
back to the fee pursuant to subdivision (e).
(g) (1) On and after the first day of the first calendar quarter
commencing 90 days after the effective date of the act adding this
paragraph, the storage fee increased under subdivision (e) shall be
increased by an additional six mills ($0.006) for each gallon of
petroleum placed in an underground storage tank. The increase
provided for in this subdivision shall be effective until January 1,
2020, at which time the fee shall revert back to the fee established
pursuant to subdivision (e).
(2) Three mills ($0.003) of the six mills ($0.006) for each gallon
of petroleum placed in an underground storage tank collected
pursuant to this subdivision shall be available for expenditure by
the board only for purposes provided in subdivision (o) of Section
25299.51.
(g)
(h) The fee imposed under this section shall be paid to
the State Board of Equalization under Part 26 (commencing with
Section 50101) of Division 2 of the Revenue and Taxation Code in the
same manner as, and consistent with, the fees imposed under Section
25299.41.
(h)
(i) The State Board of Equalization shall amend the
regulations adopted under Section 25299.41 to carry out this section.
SEC. 4. Section 25299.50 of the Health
and Safety Code is amended to read:
25299.50. (a) The Underground Storage Tank Cleanup Fund is hereby
created in the State Treasury. The money in the fund may be expended
by the board, upon appropriation by the Legislature, for purposes of
this chapter. From time to time, the board may modify existing
accounts or create accounts in the fund or other funds administered
by the board, which the board determines are appropriate or necessary
for proper administration of this chapter.
(b) Except for funds transferred to the Drinking Water
Treatment and Research Fund created pursuant to subdivision (c) of
Section 116367, all All of the following amounts
shall be deposited in the fund:
(1) Money appropriated by the Legislature for deposit in the fund.
(2) The fees, interest, and penalties collected pursuant to
Article 5 (commencing with Section 25299.40).
(3) Notwithstanding Section 16475 of the Government Code, any
interest earned upon the money deposited in the fund.
(4) Any money recovered by the fund pursuant to Section 25299.70.
(5) Any civil and criminal penalties collected by the
board or regional board pursuant to Section 25299.76 ,
25299.78, 25299.80, or 25299.80.5 .
(6) Money recovered as compensation for expenditures associated
with investigations or enforcement actions pursuant to subdivision
(j) or (n) of Section 25299.51.
(7) Money recovered to correct a previously overpaid expenditure
issued pursuant to this chapter.
(c) Notwithstanding subdivision (a), any funds appropriated by the
Legislature in the annual Budget Act for payment of a claim for the
costs of a corrective action in response to an unauthorized release,
that are encumbered for expenditure for a corrective action pursuant
to a letter of credit issued by the board pursuant to subdivision (e)
of Section 25299.57, but are subsequently not expended for that
corrective action claim, may be reallocated by the board for payment
of other claims for corrective action pursuant to Section 25299.57.
SEC. 5. Section 25299.50.2 of the Health
and Safety Code is amended to read:
25299.50.2. (a) The Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund is hereby established in the
State Treasury.
(b) (1) Except as provided in paragraph (2), the sum of ten
million dollars ($10,000,000) is hereby transferred, for each of the
2008-09, 2009-10, and 2010-11 fiscal years, from the Underground
Storage Tank Cleanup Fund to the Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund.
(2) Available federal moneys may be deposited in the Underground
Storage Tank Petroleum Contamination Orphan Site Cleanup Fund. The
amount transferred pursuant to paragraph (1) in a fiscal year shall
be reduced by the amount of federal moneys deposited in the
Underground Storage Tank Petroleum Contamination Orphan Site Cleanup
Fund in that fiscal year.
(c) The board may expend the moneys in the Underground Storage
Tank Petroleum Contamination Orphan Site Cleanup Fund, upon
appropriation by the Legislature, for the costs of response actions
to remediate the harm caused by a petroleum
contamination, including contamination caused by a refined
product of petroleum or a petroleum derivative,
contamination at a site that meets all of the following
conditions:
(1) The site meets the conditions described in paragraph (2) of
subdivision (a) of Section 25395.20.
(2)
(1) The petroleum contamination is the principal source
of contamination at the site.
(3)
(2) The source of the petroleum contamination is, or
was, an underground storage tank.
(4)
(3) A financially responsible party has not been
identified to pay for remediation at the site.
(5)
(4) If the expenditure includes federal moneys
deposited in the Underground Storage Tank Petroleum Contamination
Orphan Site Cleanup Fund, the expenditure at the site is consistent
with all applicable requirements for expenditure of the federal
moneys.
(d) Any funds in the Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund that are not expended in the
2009-10, 2010-11, or 2011-12 fiscal years shall remain in the
Underground Storage Tank Petroleum Contamination Orphan Site Cleanup
Fund until they are encumbered.
(e) Notwithstanding Section 16304.1 of the Government Code, a
disbursement in liquidation of an encumbrance may be made before or
during the four years following the last day the appropriation is
available for encumbrance.
(f) A recipient of a grant that was awarded pursuant to former
Section 25299.50.2, as that section read on December 31, 2007, and
whose encumbrance under the grant was not liquidated within the time
period prescribed in Section 16304.1 of the Government Code, may
receive the undisbursed balance of the encumbrance from the
Underground Storage Tank Petroleum Contamination Orphan Site Cleanup
Fund consistent with the terms of the grant until June 30, 2011.
SEC. 6. Section 25299.50.3 of the
Health and Safety Code is amended to read:
25299.50.3. (a) For purposes of this section, "school district"
means a school district as defined in Section 80 of the Education
Code, or a county office of education.
(b) The School District Account is hereby created in the
Underground Storage Tank Cleanup Fund, for expenditure by the board
to pay a claim filed by a district that is a school district and has
a priority based on paragraph (2), (3), or (4) of subdivision (b) of
Section 25299.52. Notwithstanding Section 25299.52, in the 2009-10,
2010-11, and 2011-12 fiscal years, the board shall pay a claim filed
by a district that is a school district and has a priority based on
paragraph (4) of subdivision (b) of Section 25299.52 only from funds
appropriated from the School District Account.
(c) (1) The sum of ten million dollars ($10,000,000) per year
shall be transferred, in the 2009-10, 2010-11, and 2011-12 fiscal
years, from the Underground Storage Tank Cleanup Fund to the School
District Account, for expenditure, upon appropriation by the
Legislature, for the payment of claims filed by a district that is a
school district with a priority based on paragraph (2), (3), or (4)
of subdivision (b) of Section 25299.52. The ten million dollars
($10,000,000) shall be transferred to the School District Account
prior to allocating the remaining available funds to each priority
ranking in paragraphs (1), (2), (3), and (4) of subdivision (b) of
Section 25299.52.
(2) The board shall consult with the Department of Toxic
Substances Control in allocating the funds transferred to the School
District Account.
(3) The board shall pay claims from a school district with a
priority based on paragraph (4) of subdivision (b) of Section
25299.52 from the School District Account in the order of the date of
the filing of the claim application to the Underground Storage Tank
Cleanup Fund. In each of the fiscal years identified in subdivision
(b), if the board estimates that money will be available in the
School District Account after the board has allocated funding for all
submitted claims from school districts with a priority based on
paragraph (4) of subdivision (b) of Section 25299.52, School District
Account funds may be used to fund school district claims with a
priority based on paragraph (2) or (3) of subdivision (b) of Section
25299.52.
(d) Funds in the School District Account that are not expended in
a fiscal year shall remain in the School District Account. Funds
remaining in the School District Account on January 1, 2016,
2020, shall be transferred to the Underground
Storage Tank Cleanup Fund.
(e) The board shall include information on the expenditure of the
funds transferred to the School District Account, as well as the
amount of all claims filed by districts that are school districts and
the amount of reimbursements made to districts that are school
districts from the Underground Storage Tank Cleanup Fund, in its
annual report, and shall, in consultation with the Department of
Toxic Substances Control, estimate the amount of funds needed to
reimburse anticipated future claims by districts that are school
districts. The board shall provide a copy of this report to the State
Allocation Board and the State Department of Education.
(f) This section does not affect the priority of a district that
is a school district and has a priority based on paragraph (2) or (3)
of subdivision (b) of Section 25299.52.
(g) The board shall waive the requirements of paragraph (4) of
subdivision (d) of Section 25299.57 for a claim that is reimbursed
from the School District Account pursuant to this section, if the
superintendent of the school district receiving the reimbursement
certifies to the board that petroleum was not delivered on or after
January 1, 2003, to the tank that is the subject of the claim or that
the tank was removed before January 1, 2003.
(h) This section shall remain in effect only until January 1,
2016, 2020, and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2016, 2020, deletes or
extends that date.
SEC. 7. Section 25299.50.4 of the
Health and Safety Code is amended to read:
25299.50.4. (a) It is the intent of the Legislature that the
board and the Department of Toxic Substances Control, using
information gathered and reported pursuant to subdivision (e) of
Section 25299.50.3, propose changes to Section 25299.50.3 that may be
necessary to ensure that adequate funds are available to reimburse
anticipated future claims by districts that are school districts and
have a priority based on paragraph (4) of subdivision (b) of Section
25299.52.
(b) This section shall remain in effect only until July 1,
2014, 2018, and as of that date is
repealed, unless a later enacted statute, that is enacted before July
1, 2014, 2018, deletes or extends that
date.
SEC. 8. Section 25299.50.6 is added to the
Health and Safety Code , to read:
25299.50.6. (a) The Site Cleanup Subaccount is hereby established
in the Underground Storage Tank Cleanup Fund.
(b) The board may expend the funds in the Site Cleanup Subaccount,
upon appropriation by the Legislature, for the following purposes:
(1) To pay for reasonable and necessary expenditures that the
board, a regional board, or a local agency incurs to identify the
source of surface or groundwater contamination.
(2) To pay for reasonable and necessary expenditures that the
board, a regional board, or a local agency incurs to remediate the
harm or threat of harm to human health, safety, and the environment
caused by existing or threatened surface or groundwater
contamination. The board shall consider the following factors when
approving expenditures for specific locations:
(A) The degree to which human health, safety, and the environment
are threatened by contamination at the location.
(B) Whether the location is located in a small or financially
disadvantaged community.
(C) The cost and potential environmental benefit of the
investigation or cleanup.
(D) Whether there are other potential sources of funding for the
investigation or cleanup.
(E) Any other information the board identifies as necessary for
consideration.
(3) To issue grants pursuant to this section for the reasonable
and necessary costs of actions to remediate the harm or threat of
harm to human health, safety, and the environment caused by existing
or threatened surface or groundwater contamination at a location that
meets both of the following conditions:
(A) The board, a regional board, or local agency requires the
responsible parties to undertake or contract for investigation or
cleanup, pursuant to an oral or written order, directive,
notification, or approval issued pursuant to Section 25296.10, or
pursuant to a cleanup and abatement order issued under Section 13304
of the Water Code. The board may waive this requirement if the board
finds that it is infeasible for an order to be issued before
initiation of remediation.
(B) The responsible parties lack sufficient financial resources to
pay for the required response actions.
(c) At least annually, the board shall review grant applications
and adopt a list of applicants to be awarded grants pursuant to
paragraph (3) of subdivision (b). In addition to the conditions
specified in paragraph (3) of subdivision (b), the board shall
consider all of the following factors when awarding grants:
(1) The degree to which human health, safety, and the environment
are threatened by surface water or groundwater contamination at the
location.
(2) Whether the location is located in a small or financially
disadvantaged community.
(3) The cost and potential environmental benefit of the
investigation or cleanup.
(4) Whether there are other potential sources of funding for the
investigation or cleanup.
(5) Any other information the board identifies as necessary for
consideration.
(d) (1) The board shall specify the information that shall be
included in a grant application, consistent with this section,
including, but not limited to, a provision requiring the applicant to
make a sworn verification of the information in the application to
the best of the applicant's knowledge.
(2) The board may adopt procedures to implement this section.
(3) The board shall post any procedures or information
requirements adopted pursuant to this section on its Internet Web
site.
(e) (1) The recipient of grant moneys shall expend those funds
only for the reasonable costs necessary to protect human health,
safety, and the environment, incurred on or after the effective date
of the act adding this section.
(2) The board shall not issue a grant for any costs for which the
applicant has been, or will be, paid by another source.
(3) The board may terminate a grant and may bar the applicant from
receiving any future grants from the Site Cleanup Subaccount if the
board finds that the applicant has made a misrepresentation or false
claim.
(f) (1) Any funds in the Site Cleanup Subaccount that are not
expended in a fiscal year shall remain in the subaccount until they
are encumbered.
(2) Notwithstanding Section 16304.1 of the Government Code, a
disbursement in liquidation of an encumbrance may be made before or
during the four years following the last day the appropriation is
available for encumbrance.
(g) The Attorney General may recover the actual, reasonable costs
of investigation or cleanup undertaken pursuant to this section in a
civil action, upon request from the board, from any responsible
party. All money recovered by the Attorney General pursuant to this
section shall be deposited in the fund.
SEC. 9. Section 25299.51 of the Health
and Safety Code is amended to read:
25299.51. The board may expend the money in the fund for all the
following purposes:
(a) In addition to the purposes specified in subdivisions (c),
(d), and (e), for the costs of implementing this chapter and for
implementing Section 25296.10 for a tank that is subject to this
chapter.
(b) To pay for the administrative costs of the State Board of
Equalization in collecting the fee imposed by Article 5 (commencing
with Section 25299.40).
(c) To pay for the reasonable and necessary costs of corrective
action pursuant to Section 25299.36, up to one million five hundred
thousand dollars ($1,500,000) per occurrence. The Legislature may
appropriate the money in the fund for expenditure by the board,
without regard to fiscal year, for prompt action in response to any
unauthorized release.
(d) To pay for the costs of an agreement for the abatement of, and
oversight of the abatement of, an unauthorized release of hazardous
substances from underground storage tanks, by a local agency, as
authorized by Section 25297.1 or by any other provision of law,
except that, for the purpose of expenditure of these funds, only
underground storage tanks, as defined in Section 25299.24, shall be
the subject of the agreement.
(e) To pay for the costs of cleanup and oversight of unauthorized
releases at abandoned tank sites. The board shall not expend more
than 25 percent of the total amount of money collected and deposited
in the fund annually for the purposes of this subdivision and
subdivision (h).
(f) To pay claims pursuant to Section 25299.57.
(g) To pay, upon order of the Controller, for refunds pursuant to
Part 26 (commencing with Section 50101) of Division 2 of the Revenue
and Taxation Code.
(h) To pay for the reasonable and necessary costs of corrective
action pursuant to subdivision (f) of Section 25296.10, in response
to an unauthorized release from an underground storage tank subject
to this chapter.
(i) To pay claims pursuant to Section 25299.58.
(j) To pay for expenditures by the board associated with
discovering violations of, and enforcing, or assisting in the
enforcement of, the requirements of Chapter 6.7 (commencing with
Section 25280) with regard to petroleum underground storage tanks.
(k) For transfer to the Petroleum Underground Storage Tank
Financing Account, for purposes of Chapter 6.76 (commencing with
Section 25299.100).
(l) Upon repeal of Chapter 6.76 (commencing with Section
25299.100), to pay for expenditures authorized by subdivision (b) of
Section 25299.117 as that section reads as of December 31, 2021.
(m) For transfer to the Site Cleanup Subaccount to pay for
expenditures by the board pursuant to Section 25299.50.6, including
costs for regulatory oversight of sites funded pursuant to that
section.
(n) To pay for reasonable
and necessary expenditures by the board associated with discovering
violations of and enforcing, or assisting in the enforcement of, the
requirements of this chapter, including actions relating to the
submission of false information to the fund.
(o) (1) For transfer to the School District Account to pay for
expenditures by the board pursuant to Section 25299.50.3 or for
transfer pursuant to subdivision (k) or (m).
(2) This subdivision shall apply only to the moneys collected
pursuant to paragraph (2) of subdivision (g) of Section 25299.43.
SEC. 10. Section 25299.57 of the Health
and Safety Code is amended to read:
25299.57. (a) If the board makes the determination specified in
subdivision (d), the board may only pay for the costs of a corrective
action that exceed the level of financial responsibility required to
be obtained pursuant to Section 25299.32, but not more than one
million five hundred thousand dollars ($1,500,000) for each
occurrence. In the case of an owner or operator who, as of January 1,
1988, was required to perform corrective action, who initiated that
corrective action in accordance with Division 7 (commencing with
Section 13000) of the Water Code or Chapter 6.7 (commencing with
Section 25280), and who is undertaking the corrective action in
compliance with waste discharge requirements or other orders issued
pursuant to Division 7 (commencing with Section 13000) of the Water
Code or Chapter 6.7 (commencing with Section 25280), the owner or
operator may apply to the board for satisfaction of a claim filed
pursuant to this article. The board shall notify claimants applying
for satisfaction of claims from the fund of eligibility for
reimbursement in a prompt and timely manner and that a letter of
credit or commitment that will obligate funds for reimbursement shall
follow the notice of eligibility as soon thereafter as possible.
(b) (1) For claims eligible for reimbursement pursuant to
subdivision (c) of Section 25299.55, the claimant shall submit the
actual cost of corrective action to the board, which shall either
approve or disapprove the costs incurred as reasonable and necessary.
At least 15 days before the board proposes to disapprove the
reimbursement of corrective action costs that have been incurred on
the grounds that the costs were unreasonable or unnecessary, the
board shall issue a notice advising the claimant and the lead agency
of the proposed disallowance, to allow review and comment.
(2) The board shall not reject any actual costs of corrective
action in a claim solely on the basis that the invoices submitted
fail to sufficiently detail the actual costs incurred, if all of the
following apply:
(A) Auxiliary documentation is provided that documents to the
board's satisfaction that the invoice is for necessary corrective
action work.
(B) The costs of corrective action work in the claim are
reasonably commensurate with similar corrective action work performed
during the same time period covered by the invoice for which
reimbursement is sought.
(C) The invoices include a brief description of the work
performed, the date that the work was performed, the vendor, and the
amount.
(c) (1) For claims eligible for prepayment pursuant to subdivision
(c) of Section 25299.55, the claimant shall submit the estimated
cost of the corrective action to the board, which shall approve or
disapprove the reasonableness of the cost estimate.
(2) If the claim is for reimbursement of costs incurred pursuant
to a performance-based contract, Article 6.5 (commencing with Section
25299.64) shall apply to that claim.
(d) Except as provided in subdivision (j), a claim specified in
subdivision (a) may be paid if the board makes all of the following
findings:
(1) There has been an unauthorized release of petroleum into the
environment from an underground storage tank.
(2) The claimant is required to undertake or contract for
corrective action pursuant to Section 25296.10, under the federal
act, or under Section 6973 of Title 42 of the United States Code, or,
as of January 1, 1988, the claimant has initiated corrective action
in accordance with Division 7 (commencing with Section 13000) of the
Water Code.
(3) The claimant has complied with Section 25299.31.
(4) (A) Except as provided in subparagraphs (B), (C), and (F), the
claimant has complied with the permit requirements of Chapter 6.7
(commencing with Section 25280). A claimant shall obtain a permit
required by subdivision (a) of Section 25284 for the underground
storage tank that is the subject of the claim when the claimant
becomes subject to subdivision (a) of Section 25284 or when the
applicable local agency begins issuing permits pursuant to
subdivision (a) of Section 25284, whichever occurs later.
(B) A claimant who acquires real property on which an underground
storage tank is situated and, despite the exercise of reasonable
diligence, was unaware of the existence of the underground storage
tank when the real property was acquired, has obtained a permit
required by subdivision (a) of Section 25284 for the underground
storage tank that is the subject of the claim within a reasonable
period, not to exceed one year, from when the claimant should have
become aware of the existence of the underground storage tank, or
when the applicable local agency began issuing permits pursuant to
Section 25284, whichever occurs later.
(C) All claimants who file their claim on or after January 1,
2008, and who do not obtain a permit required by subdivision (a) of
Section 25284 in accordance with subparagraph (A) or (B) may seek a
waiver of the requirement to obtain a permit. The board shall waive
the provisions of subparagraphs (A) and (B) as a condition for
payment from the fund if the board finds all of the following:
(i) The claimant was unaware of the permit requirement, and upon
becoming aware of the permit requirement, the claimant complies with
either subdivision (a) of Section 25284 or Section 25298 and the
regulations adopted to implement those sections within a reasonable
period, not to exceed one year, from when the claimant became aware
of the permit requirement.
(ii) Prior to submittal of the application to the fund, the
claimant has complied with Section 25299.31 and has obtained and paid
for all permits currently required by this paragraph.
(iii) Prior to submittal of the application to the fund, the
claimant has paid all fees, interest, and penalties imposed pursuant
to Article 5 (commencing with Section 25299.40) of this chapter and
Part 26 (commencing with Section 50101) of Division 2 of the Revenue
and Taxation Code for the underground storage tank that is the
subject of the claim.
(D) (i) A claimant exempted pursuant to subparagraph (C) and who
has complied, on or before December 22, 1998, either with subdivision
(a) of Section 25284 or Section 25298 and the regulations adopted to
implement those sections, shall obtain a level of financial
responsibility twice as great as the amount that the claimant is
otherwise required to obtain pursuant to subdivision (a) of Section
25299.32, but not less than ten thousand dollars ($10,000). All other
claimants exempted pursuant to subparagraph (C) shall obtain a level
of financial responsibility that is four times as great as the
amount that the claimant is otherwise required to obtain pursuant to
subdivision (a) of Section 25299.32, but not less than twenty
thousand dollars ($20,000).
(ii) The board may waive the requirements of clause (i) if the
claimant can demonstrate that the conditions specified in clauses (i)
to (iii), inclusive, of subparagraph (C) were satisfied prior to the
causing of any contamination. That demonstration may be made through
a certification issued by the permitting agency based on a site
evaluation and tank tests at the time of permit application or in any
other manner acceptable to the board.
(E) All claimants who file a claim before January 1, 2008, and who
are not eligible for a waiver of the permit requirements pursuant to
applicable statutes or regulations in effect on the date of the
filing of the claim may resubmit a new claim pursuant to subparagraph
(C) on or after January 1, 2008. The board shall rank all claims
resubmitted pursuant to subparagraph (C) lower than all claims filed
before January 1, 2008, within their respective priority classes
specified in subdivision (b) of Section 25299.52.
(F) The board shall waive the provisions of subparagraph (A) as a
condition for payment from the fund for a claimant who filed his or
her claim on or after January 1, 2008, and before July 1, 2009, but
is not eligible for a waiver of the permit requirement pursuant to
the regulations adopted by the board in effect on the date of the
filing of the claim, and who did not obtain or apply for a permit
required by subdivision (a) of Section 25284, if the board finds all
of the following:
(i) The claim is filed pursuant to paragraph (2) of subdivision
(h) of Section 25299.54 and the claim otherwise satisfies the
eligibility requirements of that paragraph.
(ii) The claimant became the owner or de facto owner of an
underground storage tank prior to December 22, 1998.
(iii) The claimant did not, and does not, operate the underground
storage tank.
(iv) Within three years after becoming the owner or de facto owner
of the underground storage tank but not after December 22, 1998, the
claimant caused the underground storage tank to be removed and
closed in accordance with applicable law, and commenced no later than
December 22, 1998, to perform corrective action pursuant to Section
25296.10 of this code or pursuant to Division 7 (commencing with
Section 13000) of the Water Code.
(G) The board shall rank all claims submitted pursuant to
subparagraph (F) in their respective priority classes specified in
subdivision (b) of Section 25299.52 in the order in which the claims
are received by the board, but subsequent to any claim filed on a
previous date in each of those priority classes.
(H) For purposes of clauses (ii) and (iv) of subparagraph (F), "de
facto owner of an underground storage tank" means a person who
purchases or otherwise acquires real property, as defined in
subparagraph (D) of paragraph (5) of subdivision (h) of Section
25299.54, and has actual possession of, and control over, an
underground storage tank that has been abandoned by its previous
owner.
(5) The board has approved either the costs incurred for the
corrective action pursuant to subdivision (b) or the estimated costs
for corrective action pursuant to subdivision (c).
(6) The claimant has paid all fees, interest, and penalties
imposed pursuant to Article 5 (commencing with Section 29299.40) and
Part 26 (commencing with Section 50101) of Division 2 of the Revenue
and Taxation Code for the underground storage tank that is the
subject of the claim.
(e) The board shall provide the claimant, whose cost estimate has
been approved, a letter of commitment authorizing payment of the
costs from the fund.
(f) The claimant may submit a request for partial payment to cover
the costs of corrective action performed in stages, as approved by
the board.
(g) (1) A claimant who submits a claim for payment to the board
shall submit multiple bids for prospective costs as prescribed in
regulations adopted by the board pursuant to Section 25299.77.
(2) A claimant who submits a claim to the board for the payment of
professional engineering and geologic work shall submit multiple
proposals and fee estimates, as required by the regulations adopted
by the board pursuant to Section 25299.77. The claimant's selection
of the provider of these services is not required to be based on the
lowest estimated fee, if the fee estimate conforms with the range of
acceptable costs established by the board.
(3) A claimant who submits a claim for payment to the board for
remediation construction contracting work shall submit multiple bids,
as required in the regulations adopted by the board pursuant to
Section 25299.77.
(4) Paragraphs (1), (2), and (3) do not apply to a tank owned or
operated by a public agency if the prospective costs are for private
professional services within the meaning of Chapter 10 (commencing
with Section 4525) of Division 5 of Title 1 of the Government Code
and those services are procured in accordance with the requirements
of that chapter.
(h) The board shall provide, upon the request of a claimant,
assistance to the claimant in the selection of contractors retained
by the claimant to conduct reimbursable work related to corrective
actions. The board shall develop a summary of expected costs for
common corrective actions. This summary of expected costs may be used
by claimants as a guide in the selection and supervision of
consultants and contractors.
(i) (1) To the extent funding is available, the board shall pay,
within 60 days from the date of receipt of an invoice of
expenditures, all costs specified in the work plan developed pursuant
to Section 25296.10, and all costs that are otherwise necessary to
comply with an order issued by a local, state, or federal agency.
(2) If corrective action costs, third-party compensation costs, or
regulatory technical assistance costs submitted by a claimant are
approved for reimbursement by the board but funding is not available
for payment to the claimant at the time of approval, the board shall
reimburse carrying costs incurred by the claimant after November 7,
2008, but before June 30, 2010, subject to all of the following
limitations:
(A) The reimbursement for carrying costs shall not exceed the
carrying costs actually incurred by the claimant from the date the
corrective action costs, third-party compensation costs, or
regulatory technical assistance costs are approved for payment by the
board until the date that a check for the reimbursement request is
issued by the Controller.
(B) The reimbursement for carrying costs shall not exceed an
amount equivalent to a maximum annual percentage rate of 7 percent as
applied to the amount approved for reimbursement and for the period
calculated pursuant to subparagraph (A).
(C) The board shall not reimburse carrying costs that amount to
less than one hundred dollars ($100) per reimbursement request.
(D) The board shall not reimburse carrying costs that exceed 9
percent of the total amount of costs approved for the reimbursement
to which the carrying costs apply.
(E) A claimant may submit a request for reimbursement of carrying
costs after receipt of fund reimbursement for the corrective action
costs, third-party compensation costs, or regulatory technical
assistance costs to which the carrying costs apply. Additional
carrying costs associated with a reimbursement request for carrying
costs submitted pursuant to this paragraph are not eligible for
payment.
(F) This paragraph does not apply to tank owners or operators that
are not described in paragraphs (1), (2), or (3) of subdivision (b)
of Section 25299.52.
(3) For the purposes of paragraph (2), "carrying cost" means the
interest expense incurred by a claimant to acquire money to pay costs
approved for reimbursement by the board but for which reimbursement
is delayed because funds are unavailable.
(j) (1) The board shall pay a claim of not more than three
thousand dollars ($3,000) per occurrence for regulatory technical
assistance to an owner or operator who is otherwise eligible for
reimbursement under this chapter.
(2) For the purposes of this subdivision, regulatory technical
assistance is limited to assistance from a person, other than the
claimant, in the preparation and submission of a claim to the fund.
Regulatory technical assistance does not include assistance in
connection with proceedings under Section 25296.40, 25299.39.2, or
25299.56 or any action in court.
(k) (1) Notwithstanding any other provision of this section, the
board shall pay a claim for the costs of corrective action to a
person who owns property on which is located a release from a
petroleum underground storage tank that has been the subject of a
completed corrective action and for which additional corrective
action is required because of additionally discovered contamination
from the previous release, only if the person who carried out the
earlier and completed corrective action was eligible for, and applied
for, reimbursement pursuant to subdivision (b), and only to the
extent that the amount of reimbursement for the earlier corrective
action did not exceed the amount of reimbursement authorized by
subdivision (a). Reimbursement to a claimant on a reopened site shall
occur when funds are available, and reimbursement commitment shall
be made ahead of any new letters of commitment to be issued, as of
the date of the reopening of the claim, if funding has occurred on
the original claim, in which case funding shall occur at the time it
would have occurred under the original claim.
(2) For purposes of this subdivision, a corrective action is
completed when the local agency or regional board with jurisdiction
over the site or the board issues a closure letter pursuant to
subdivision (g) of Section 25296.10.
( l ) (1) Claims Except as
provided in subdivision (m), claims for
reimbursement of corrective action costs that are received by the
board more than 365 days after the date of issuance of a closure
letter issued pursuant to subdivision (g) of Section 25296.10 or
after the issuance or activation of a letter of commitment, whichever
occurs later, shall not be reimbursed unless either of the following
applies:
(A) Claims for corrective action costs are submitted to the board
pursuant to paragraph (1) of subdivision (k).
(B) The board finds that submission within the time period
specified in this paragraph was beyond the claimant's reasonable
control, ongoing work is required for closure that will result in
submission of claims beyond that time period, or that under the
circumstances of the particular case, it would be unreasonable or
inequitable to impose the time period specified in this paragraph.
(2) This section does not limit or abrogate the rights of a
claimant in disputing reimbursement determinations or suspension of
claims.
(3) For cases that have been issued a closure letter pursuant to
subdivision (g) of Section 25296.10 prior to January 1, 2012, the
board shall notify claimants of the 365-day filing deadline specified
in paragraph (1) on or before March 31, 2012, or upon issuance of a
letter of commitment, whichever occurs later.
(m) (1) The board shall not reimburse a claim for reimbursement of
a corrective action cost that is received by the board more than two
years after the date the cost was incurred or more than two years
after the date of the issuance or activation of a letter of
commitment, whichever occurs later, except under one or both of the
following conditions:
(A) The board may reimburse a claim for a cost incurred before
January 1, 2015, by a claimant that has an active letter of
commitment on January 1, 2015, that was received by the board on or
before December 31, 2015, or within two years of the date the cost
was incurred, whichever occurs later.
(B) The executive director finds that submission within the time
period specified in this subdivision was beyond the claimant's
reasonable control or that, under the circumstances of the particular
case, it would be unreasonable or inequitable to impose the time
period specified in this subdivision.
(2) For the purposes of this subdivision, a cost is incurred on
the date that the task to be paid for is completed.
SEC. 11. Section 25299.70 of the Health
and Safety Code is amended to read:
25299.70. (a) Any The board may recover
any costs incurred and payable from the fund pursuant to
subdivisions (c), (e), and (h) (h), and (n)
of Section 25299.51 shall be recovered by the Attorney
General, upon request of the board, from the owner or
operator of the underground storage tank which released the petroleum
and which is the subject of those costs or from any other
responsible party.
(b) The liability of an owner or operator shall be the full and
total costs specified in subdivision (a) if the owner or operator has
not complied with the requirements of Article 3 (commencing with
Section 25299.30) or has violated Section 25296.10 or any corrective
action order, directive, notification or approval order issued
pursuant to this chapter, Chapter 6.7 (commencing with Section
25280), or Division 7 (commencing with Section 13000) of the Water
Code. The liability of a responsible party who is not an owner or
operator shall be the full and total costs specified in subdivision
(a).
(c) The amount of costs determined pursuant to this section shall
be recoverable in a civil action. This section does not deprive a
party of any defense the party may have.
(d) All money recovered by the Attorney General
board pursuant to this section shall be deposited in the
fund.
(e) The amount of the costs constitutes a lien on the affected
property upon service of a copy of the notice of lien on the owner
and upon the recordation of a notice of lien, if the notice
identifies the property on which the condition was abated, the amount
of the lien, and the owner of record of the property, in the office
of the county recorder of the county in which the property is
located. Upon recordation, the lien shall have the same force,
effect, and priority as a judgment lien, except that it attaches only
to the property posted and described in the notice of lien, and
shall continue for 10 years from the time of the recording of the
notice, unless sooner released or otherwise discharged. Not later
than 45 days from the date of receipt of a notice of lien, the owner
may petition the court for an order releasing the property from the
lien or reducing the amount of the lien. In that court action, the
governmental agency that incurred the cleanup costs shall establish
that the costs were reasonable and necessary. The lien may be
foreclosed by an action brought by the board for a money judgment.
SEC. 12. Section 25299.71 is added to the
Health and Safety Code , to read:
25299.71. (a) (1) Except as provided in subdivisions (b) and (c),
if a person is convicted under Section 25299.80.5 or is found to be
civilly liable under Section 25299.78 or 25299.80, the executive
director of the board may permanently disqualify that person from
receiving any moneys from the fund. If the executive director of the
board determines that the disqualified person is a contractor or
consultant, a claimant shall not submit invoices to the fund for any
work performed or directed by that person.
(2) For purposes of this section, "contractor or consultant" means
a person whose professional services are engaged to perform work
that is the subject of a claim specified in paragraph (2) of
subdivision (d) of Section 25299.57.
(b) If the person convicted under Section 25299.80.5 or found to
be civilly liable under Section 25299.78 or 25299.80 is a claimant,
the executive director of the board may permanently disqualify the
claimant from further participation in the fund, with respect to the
fund claims that are the subject of that conviction under Section
25299.80.5 or that civil liability under Section 25299.78 or
25299.80, only if the executive director makes a finding that the
alleged violation is knowing, willful, or intentional.
(c) If the person convicted under Section 25299.80.5 or found to
be civilly liable under Section 25299.78 or 25299.80 is a claimant,
the executive director of the board may permanently disqualify the
claimant from further participation in the fund, including fund
claims that are not the subject of that conviction under Section
25299.80.5 or civil liability under Section 25299.78 or 25299.80,
only if the executive director makes one of the following findings:
(1) The alleged violation is knowing, willful, or intentional.
(2) The claimant received a material economic benefit from the
action which caused the violation.
(3) The alleged violation is chronic or the claimant is a
recalcitrant violator, as determined pursuant to subdivision (g) of
Section 13399 of the Water Code.
(d) In addition to the requirements of subdivisions (b) and (c),
in determining the extent to which a person, including, but not
limited to, a claimant, convicted under Section 25299.80.5 or found
to be civilly liable under Section 25299.78 or 25299.80 may be
disqualified from receiving any money from the fund, including the
extent to which the person may be reimbursed for pending or future
claims from the fund, the executive director of the board, or the
court, as the case may be, shall take into account the nature,
circumstances, extent, and gravity of the violation, the person's
ability to pay, any prior history of misrepresentations by the person
to the board, or local agency, any economic benefits or savings that
resulted or would have resulted from the false statement, and any
other matters as justice may require.
SEC. 13. Section 25299.78 of the Health
and Safety Code is amended to read:
25299.78. (a) To carry out the purposes of this chapter, any
authorized representative of the local agency, regional board, or
board shall have the authority specified in Section 25185, with
respect to any place where underground storage tanks are located, and
in Section 25185.5, with respect to any real property which is
within 2,000 feet of any place where underground storage tanks are
located.
(b) An owner or operator shall furnish, under penalty of perjury,
any information on fees imposed pursuant to Article 5 (commencing
with Section 25299.40), financial responsibility, unauthorized
releases, or corrective action as the local agency, regional board,
or board may require.
(c) A person who fails or refuses to furnish information
under subdivision (b) or furnishes false information to the fund is
subject, in accordance with the requirements of subdivision (d), to
civil liability of not more than ten thousand dollars ($10,000) for
each violation of this subdivision.
(d) (1) Except as provided in subdivision (2), a claimant shall
not be liable under subdivision (c) unless one of the following is
established by the court, if the action is brought pursuant to
subdivision (e), or the executive director, if the action is brought
pursuant to subdivision (f):
(A) The alleged violation is knowing, willful, or intentional.
(B) The claimant received a material economic benefit from the
action which caused the alleged violation.
(C) The alleged violation is chronic or that the claimant is a
recalcitrant violator, as determined pursuant to subdivision (g) of
Section 13399 of the Water Code.
(2) If a claimant is in violation of subdivision (c), but does not
meet any of the conditions specified in paragraph (1), the claimant
may be held liable only if the board or an authorized representative
of the board issues a notice to comply pursuant to Chapter 5.8
(commencing with Section 13399) of Division 7 of the Water Code
before an action is taken pursuant to subdivision (e) or (f).
(e) The Attorney General, upon request of the board, shall bring
an action in superior court to impose the civil liability specified
in subdivision (c).
(f) The executive director of the board may impose the civil
liability specified in subdivision (c) administratively in the same
manner as the executive director of the board is authorized to impose
civil liability pursuant to Article 2.5 (commencing with section
13323) of Chapter 5 of Division 7 of the Water Code.
(g) In determining the amount of any civil liability imposed under
this section, the executive director of the board, or the court, as
the case may be, shall take into account the nature, circumstances,
extent, and gravity of the false statement or refusal or failure to
furnish information, the person's ability to pay, any prior history
by the person of misrepresentations to or noncooperation with the
board or local agency, any economic benefits or savings that resulted
or would have resulted from the false statement or refusal or
failure to furnish information, and other matters as justice may
require.
(h) Remedies under this section are in addition to, and do not
supersede or limit, any other civil, administrative or criminal
remedies.
(i) All funds collected pursuant to this section shall be
deposited into the fund.
SEC. 14. Section 25299.80 is added to the
Health and Safety Code , to read:
25299.80. (a) A person who makes a misrepresentation in any
claim, including, but not limited to, a record, report,
certification, application, invoice, form, or other document that is
submitted to the fund relating to a claim, is subject to civil
liability of not more than five hundred thousand dollars ($500,000)
for each violation of this subdivision.
(b) Except as provided in subdivision (d), the Attorney General,
upon request of the state board, shall bring an action in superior
court to impose the civil liability specified in subdivision (a).
(c) Except as provided in subdivision (d), the executive director
of the board may impose the civil liability specified in subdivision
(a) administratively in the same manner as the executive director of
the board is authorized to impose civil liability pursuant to Article
2.5 (commencing with section 13323) of Chapter 5 of Division 7 of
the Water Code.
(d) If the violation by a claimant of subdivision (a) is not
knowing, willful, or intentional, the board or an authorized
representative shall first issue a notice to comply pursuant to
Chapter 5.8 (commencing with Section 13399) of Division 7 of the
Water Code before an action may be taken pursuant to subdivision (b)
or (c).
(e) In determining the amount of civil liability imposed under
this section, the executive director of the board, or the court, as
the case may be, shall take into account the nature, circumstance,
extent, and gravity of the violation, the person's ability to pay,
any prior history of misrepresentations by the person to the board or
local agency, any economic benefits or savings that resulted or
would have resulted from the false statement, and other matters as
justice may require.
(f) Remedies under this section are in addition to, and do not
supersede or limit, any other civil, administrative, or criminal
remedies.
(g) All money collected pursuant to this section shall be
deposited into the fund.
(h) The board shall file a complaint with any applicable licensing
board against any person licensed or otherwise regulated by that
licensing board who is found to be liable under this section.
SEC. 15. Section 25299.80.5 is added to the
Health and Safety Code , to read:
25299.80.5. (a) A person who knowingly makes or causes to be made
any false statement, material misrepresentation, or false
certification in support of any claim under this chapter, including,
but not limited to, in an application, record, report, certification,
plan, invoice, form, or other document that is submitted, filed, or
required to be maintained under this chapter for purposes of a claim,
shall, upon conviction, be punished by a fine of not more than ten
thousand dollars ($10,000), or by imprisonment in a county jail for
not more than one year, or in the state prison for 16 months, two, or
three years, or by both that fine and imprisonment.
(b) The Attorney General, upon request of the board, may bring an
action in superior court to impose the criminal penalty specified in
subdivision (a).
(c) Remedies under this section are in addition to, and do not
supersede or limit, any other civil or criminal remedies.
(d) All funds collected pursuant to this section shall be
deposited into the fund.
(e) The board shall file a complaint with any applicable licensing
board against any person licensed or otherwise regulated by that
licensing board who is convicted under this section.
SEC. 16. Section 25299.80.6 is added to the
Health and Safety Code , to read:
25299.80.6. An action by the executive director to impose civil
liability under this chapter is subject to review by the board in the
same manner as provided for the review by the State Water Resources
Control Board of actions of a regional board under Section 13320 of
the Water Code.
SEC. 17. Section 25299.81 of the Health
and Safety Code is amended to read:
25299.81. (a) Except as provided in subdivisions (b) and (c),
this chapter shall remain in effect only until January 1,
2016, 2020, and as of that date is repealed,
unless a later enacted statute, which is enacted before January 1,
2016, 2020, deletes or extends that
date.
(b) Notwithstanding subdivision (a), Article 1 (commencing with
Section 25299.10), Article 2 (commencing with Section 25299.11), and
Article 4 (commencing with Section 25299.36) shall not be repealed
and shall remain in effect on January 1, 2016
2020 .
(c) The repeal of certain portions of this chapter does not
terminate any of the following rights, obligations, or authorities,
or any provision necessary to carry out these rights and obligations:
(1) The filing and payment of claims against the fund, including
the costs specified in subdivisions (c), (e), and (h) of Section
25299.51, claims filed under Section 25299.50.3, and claims for
commingled plumes, as specified in Article 11 (commencing with
Section 25299.90), until the moneys in the fund are exhausted. Upon
exhaustion of the fund, any remaining claims shall be invalid.
(2) The repayment of loans, outstanding as of January 1,
2016, 2020, due and payable to the board.
(3) The recovery of moneys reimbursed to a claimant to which the
claimant is not entitled, or the resolution of any cost recovery
action.
(4) The collection of unpaid fees that are imposed pursuant to
Article 5 (commencing with Section 25299.40), as that article read on
December 31, 2015, 2019, or have become
due before January 1, 2016, 2020,
including any interest or penalties that accrue before, on, or after
January 1, 2016, 2020, associated with
those unpaid fees.
(5) (A) The filing of an application for funds from, and the
making of payments from, the Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund pursuant to Section
25299.50.2, any action for the recovery of moneys paid pursuant to
Section 25299.50.2 to which the recipient is not entitled, and the
resolution of that cost recovery action.
(B) Upon liquidation of funds in the Underground Storage Tank
Petroleum Contamination Orphan Site Cleanup Fund, the obligation to
make a payment from the Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund is terminated.
(6) (A) The payment of loans and grants, consistent with the terms
of agreements that were effective prior to January 1, 2016,
2020, from the Underground Storage Tank Cleanup
Fund, pursuant to this chapter or the Petroleum Underground Storage
Tank Financing Account pursuant to Chapter 6.76 (commencing with
Section 25299.100). Upon exhaustion of the Underground Storage Tank
Cleanup Fund, any remaining claims for payment of grants or loans
shall be invalid.
(B) The amount of money disbursed for grants and loans pursuant to
Chapter 6.76 (commencing with Section 25299.100) shall not exceed
the sum of following:
(i) The amount that reverts to the Underground Storage Tank
Cleanup Fund pursuant to Section 25299.111.
(ii) Amounts recovered through the repayment of loans granted
pursuant to Chapter 6.76 (commencing with Section 25299.100).
(iii) The resolution of any cost recovery action filed prior to
January 1, 2016, 2020, or the
initiation of an action or other collection process to recover
defaulted loan moneys due to the board or to recover money paid to a
grant or loan recipient pursuant to Chapter 6.76 (commencing with
Section 25299.100) to which the recipient is not entitled.
(7) (A) The imposition and collection of civil liability pursuant
to Article 7 (commencing with Section 25299.70), as that article read
on December 31, 2019.
(B) Subparagraph (A) shall not be construed as extending or
modifying any applicable statute of limitations.
(d) The board shall continuously post and update on its Internet
Web site, but at a minimum, annually on or before September 30,
information that describes the status of the fund and shall make
recommendations, when appropriate, to improve the efficiency of the
program.
SEC. 18. Section 25299.82 is added to the
Health and Safety Code , to read:
25299.82. To ensure that the phase out of the Underground Storage
Tank Cleanup Fund program, as provided in Section 25299.81, is
achieved in an orderly manner that enables owners and operators to
maintain continuous coverage for financial responsibility obligations
required by Sections 25292.2 and 25299.31 and the federal act, the
board shall take the following actions:
(a) The board shall not accept claim applications submitted to the
fund pursuant to Section 25299.57 or 25299.58 after January 1, 2019,
unless the board finds that the unauthorized release that is the
subject of the claim was discovered before January 1, 2019, and the
submission of a claim application by that date was beyond the
claimant's reasonable control.
(b) The board shall not accept requests for reimbursements
submitted to the fund pursuant to Section 25299.57 or 25299.58 after
July 1, 2019.
SEC. 19. Section 25299.101 of the
Health and Safety Code is amended to read:
25299.101. (a) The board shall conduct a loan program pursuant to
this chapter, to assist small businesses in upgrading, replacing, or
removing tanks to meet applicable local, state, or federal
standards. Loan funds may also be used for corrective actions, as
defined in Section 25299.14.
(b) The board shall also conduct a grant program, pursuant to this
chapter, to assist small businesses to comply with Sections
25284.1 and 25292.4 upgrade, remove, or replace
project tanks to comply with Section 25284.1, 25292.05, 25292.4
, or 41954 .
SEC. 20. Section 25299.104 of the Health
and Safety Code is amended to read:
25299.104. (a) The minimum amount that the board may loan an
applicant is ten thousand dollars ($10,000), and the maximum amount
that the board may loan an applicant is seven hundred fifty thousand
dollars ($750,000).
(b) The term of the loan shall be for a maximum of 20 years if
secured by real property, and for 10 years if not secured by real
property. The interest rate for loans shall be set at the rate equal
to one-half of the most recent general obligation bond rate obtained
by the office of the Treasurer at the time of the loan commitment.
(c) Loan funds may be used to finance up to 100 percent of the
costs necessary to upgrade, remove, or replace project tanks,
including corrective actions, to meet applicable local, state, or
federal standards, including, but not limited to, any design,
construction, monitoring, operation, or maintenance requirements
adopted pursuant to Sections Section
25284.1, 25292.05, 25292.4, and or
41954.
(d) The board may charge a loan fee to loan applicants of up to 2
percent of the requested loan amount. The loan fee shall be deposited
in the Petroleum Underground Storage Tank Financing Account.
(e) The inoperation or repeal of this chapter pursuant to Section
25299.117 shall not extinguish a loan obligation and shall not impair
the deed of trust or other collateral made pursuant to this chapter
or the authority of the state to pursue appropriate action for
collection.
SEC. 21. Section 25299.105 of the Health
and Safety Code is amended to read:
25299.105. (a) The board shall make grant funds available from
the Petroleum Underground Storage Tank Financing Account to eligible
grant applicants who meet all of the following eligibility
requirements:
(1) The grant applicant is a small business, pursuant to the
following requirements:
(A) The grant applicant meets the conditions for a small business
concern as defined in Section 632 of Title 15 of the United States
Code, and in the federal regulations adopted to implement that
section, as specified in Part 121 (commencing with Section 121.101)
of Chapter I of Title 13 of the Code of Federal Regulations.
(B) The grant applicant employs fewer than 20 full-time and
part-time employees, is independently owned and operated, and is not
dominant in its field of operation.
(2) The principal office of the grant applicant is domiciled in
the state and the officers of the grant applicant are domiciled in
this state.
(3) All tanks owned and operated by the grant applicant are
subject to compliance with Chapter 6.7 (commencing with Section
25280) and the regulations adopted pursuant to that chapter.
(4) The facility where the project tank is located has sold at
retail less than 900,000 gallons of gasoline annually for each of the
two years preceding the submission of the grant application. The
number of gallons sold shall be based upon taxable sales figures
provided to the State Board of Equalization for that facility.
(5) The Except as provided in subdivision
(b), the grant applicant owns or operates a tank that is in
compliance with all of the following:
(A) Section 41954.
(B) Any of the following:
(i) Section 25290.1.
(ii) Section 25290.2.
(iii) Section 25291.
(iv) Subdivisions (d) and (e) of Section 25292.
(C) Any regulation implementing the applicable sections required
for compliance with subparagraphs (A) and (B).
(6) The facility where the project tank is located was legally in
business retailing gasoline after January 1, 1999.
(b) The board may grant a waiver from requirements of paragraph
(5) of subdivision (a) if the board finds all of the following:
(1) The grant applicant owns or operates a project tank.
(2) The project tank will be removed and will not be replaced with
another tank.
(3) The grant applicant does not meet the requirements to obtain a
loan pursuant to this chapter.
(b)
(c) Grant funds may only be used to pay the costs
necessary to comply with the requirements of Section
25284.1, 25292.4, 25292.5, or 41954 upgrade, remove,
or replace project tanks to comply with Section 25284.1, 25292.05,
25292.4, 25292.5, or 41954 .
SEC. 22. Section 25299.106 of the
Health and Safety Code is amended to read:
25299.106. A complete grant application shall include all of the
following information:
(a) Evidence of eligibility.
(b) The board shall develop a standard list of documents required
of all applicants, and may also request from individual applicants
additional financial and legal documents not provided on this list.
(c) An explanation of the actions the applicant is required to
take to comply with the requirements of Sections
Section 25284.1 and 25292.4 or Section 41954
, 25292.05, 25292.4, 25292.5, or 41954
.
(d) A detailed cost estimate of the actions that are required to
be completed for the project tanks to comply with applicable local,
state, or federal standards, if applicable.
(e) Any other information that the board determines to be
necessary to include in an application form.
SEC. 23. Section 25299.107 of the
Health and Safety Code is amended to read:
25299.107. (a) The minimum amount that the board may grant an
applicant is three thousand dollars ($3,000), and the maximum amount
that the board may grant an applicant is fifty thousand
dollars ($50,000) seventy thousand dollars ($70,000)
.
(b) Grant funds may be used to finance up to 100 percent of the
costs necessary to comply with Sections 25284.1,
upgrade, remove, or replace project tanks to comply with Section
25284.1, 25292.05, 25292.4, 25292.5, and
or 41954.
(c) If the board received the applicant's grant application on or
before April 1, 2009, grant funds may be used to reimburse up to 100
percent of the costs that the applicant incurred after the board
received the grant application to comply with the Enhanced Vapor
Recovery Phase II regulations.
(d) A person or entity is not eligible to receive more than
fifty thousand dollars ($50,000) seventy
thousand dollars ($70,000) in grant funds pursuant to this
chapter.
SEC. 24. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 25. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to protect the health and safety of the people of the
state from the dangers of surface water and groundwater contamination
and protect the environment from hazardous substance releases, it is
necessary that this act take effect immediately.
SECTION 1. Section 25299.43 of the Health and
Safety Code is amended to read:
25299.43. (a) To implement the changes to this chapter made by
Chapter 1191 of the Statutes of 1994, and consistent with Section
25299.40, effective January 1, 1995, every owner subject to Section
25299.41 shall pay a storage fee of one mill ($0.001) for each gallon
of petroleum placed in an underground storage tank that the person
owns, in addition to the fee required by Section 25299.41.
(b) On and after January 1, 1996, the storage fee imposed under
subdivision (a) shall be increased by two mills ($0.002) for each
gallon of petroleum placed in an underground storage tank.
(c) On and after January 1, 1997, the storage fee increased under
subdivision (b) shall be increased by an additional three mills
($0.003) for each gallon of petroleum placed in an underground
storage tank.
(d) On and after January 1, 2005, the storage fee increased under
subdivision (c) shall be increased by an additional one mill ($0.001)
for each gallon of petroleum placed in an underground storage tank.
(e) On and after January 1, 2006, the storage fee increased under
subdivision (d) shall be increased by an additional one mill ($0.001)
for each gallon of petroleum placed in an underground storage tank.
(f) On and after January 1, 2010, the storage fee increased under
subdivision (e) shall be increased by an additional six mills
($0.006) for each gallon of petroleum placed in an underground
storage tank. The increase provided for in this subdivision shall be
effective until January 1, 2016, at which time, the fee shall revert
back to the fee pursuant to subdivision (e).
(g) The fee imposed under this section shall be paid to the State
Board of Equalization under Part 26 (commencing with Section 50101)
of Division 2 of the Revenue and Taxation Code in the same manner as,
and consistent with, the fees imposed under Section 25299.41.
(h) The State Board of Equalization shall amend the regulations
adopted under Section 25299.41 to carry out this section.
