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AB-753 Barry Keene Underground Storage Tank Cleanup Trust Fund Act of 1989: brownfields remediation and redevelopment.(2021-2022)

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Date Published: 04/15/2021 09:00 PM
AB753:v97#DOCUMENT

Amended  IN  Assembly  April 15, 2021
Amended  IN  Assembly  March 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 753


Introduced by Assembly Member Grayson

February 16, 2021


An act to amend Section 25299.81 of, and to add Section 25299.51.5 to, the Health and Safety Code, relating to redevelopment. contamination.


LEGISLATIVE COUNSEL'S DIGEST


AB 753, as amended, Grayson. Barry Keene Underground Storage Tank Cleanup Trust Fund Act of 1989: brownfields remediation and redevelopment.

Existing

(1) Existing law, the Barry Keene Underground Storage Tank Cleanup Trust Fund Act of 1989, of 1989 (act), requires an owner of an underground storage tank, as defined, for which a permit is required by law to pay storage fees for each gallon of petroleum placed in the tank. The act establishes the Underground Storage Tank Cleanup Fund. Fund (fund), and requires the storage fees, among other moneys, to be deposited into the fund. The act authorizes the State Water Resources Control Board to expend the moneys in the fund, upon appropriation by the Legislature, for various purposes relating to underground storage tanks, as defined, containing petroleum. to pay for corrective action in response to an unauthorized release from an underground storage tank and for the cleanup and oversight of unauthorized releases at abandoned tank sites, among other specified purposes. The act requires that certain information be submitted to the state board, and other specified agencies, under penalty of perjury. The act authorizes eligible owners and operators of underground storage tanks containing petroleum to file a claim with the board for reimbursement of corrective action costs, as provided, incurred to address releases of petroleum from those tanks. The act provides for the repeal of certain of its provisions on January 1, 2026, including those related to the fund. 2026, but also provides that certain associated rights, obligations, and authorities that apply before the January 1, 2026, repeal date do not terminate upon repeal of the other provisions of the act.
This bill would postpone the repeal of those provisions to January 1, 2031. By extending the operation of those portions 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.The bill would also include 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.
(2) The act authorizes eligible owners and operators of underground storage tanks containing petroleum to file claims with the state board for reimbursement from the fund of corrective action costs, as provided, incurred to address releases of petroleum from these tanks.
The bill would require, on or before July 1, 2022, the state board to convene a stakeholder group, as provided, for purposes of conducting a study of the fund’s existing eligibility criteria and possible alternative fund eligibility criteria to be implemented on or before January 1, 2026, that would further the expressed intent of the Legislature that all appropriate resources be directed to actions promoting the development of housing, as provided, for purposes of alleviating the state’s housing challenges and furthering attainment of the state’s climate change mitigation objectives. The bill would require the study to include the creation of a fund eligibility scoring matrix pursuant to which property and community attributes would be prioritized, evaluated, and scored to allow for the assessment, remediation, and redevelopment of properties in a manner that furthers the Legislature’s intent and objectives. The bill would require the state board to include in its recommendations changes to statutes and regulations required to implement the findings of the study. The bill would require the state board, on or before July 1, 2024, to prepare, and post on its internet website, a report presenting the results of the study, and to present the report to the Legislature. The bill would require, on or before January 1, 2026, the state board, in accordance with the recommendations of the study, to revise the fund eligibility criteria to facilitate the assessment, remediation, and redevelopment of properties in a manner that furthers the Legislature’s expressed intent and objectives.
(3) 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.
Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Current conditions force California workers to commute great distances between the urban centers in which they work and their affordable residences in communities far away.
(b) These commuter patterns make it impossible for the state to attain its climate change objectives.
(c) The expense associated with these commuter patterns can cause Californians to lose their shelter entirely.
(d) Urban real estate is available for redevelopment, but much of this land is considered brownfields—properties that are contaminated, or perceived to be contaminated, and remain undeveloped or underdeveloped due to perceived remediation costs and liability concerns.
(e) Redevelopment of brownfields not only supports the work of the administration to accelerate the rate at which affordable housing is constructed in the state, redevelopment protects human health and the environment by eliminating or reducing exposure to contaminants, stimulates economic growth, and revitalizes neighborhoods.
(f) The people and the environment of the State of California will substantially benefit from the redevelopment of brownfields.

SEC. 2.

 Section 25299.51.5 is added to the Health and Safety Code, to read:

25299.51.5.
 (a) It is the intent of the Legislature that all appropriate resources be directed to actions promoting the development of housing, particularly affordable housing, and amenities, including, but not limited to, parks and recreational space in proximity to new housing projects, for purposes of alleviating the state’s housing challenges and furthering attainment of the state’s climate change mitigation objectives.
(b) On or before January 1, 2026, in accordance with the recommendations of the study described in subdivision (c), the board shall revise the eligibility criteria for claim applicants to facilitate the assessment and remediation of property, the redevelopment of which will further the legislative intent and housing and climate change mitigation objectives stated in subdivision (a).
(c) (1) For purposes of this subdivision, the following terms have the following definitions:
(A) “Existing claimant” means an owner or operator that applied to the board for satisfaction of a claim pursuant to this article on or before January 1, 2026.
(B) “Currently eligible fund claimant” means an owner or operator that is eligible to apply to the board for satisfaction of a claim pursuant to this article on or before January 1, 2026.
(2) On or before July 1, 2022, the board shall convene a stakeholder group for purposes of conducting a study of the fund’s existing eligibility criteria and possible alternative fund eligibility criteria to be implemented on or before January 1, 2026, that would further the legislative intent and housing and climate change mitigation objectives stated in subdivision (a). The timely reimbursement for existing claimants shall remain a programmatic priority.
(3) At a minimum, the stakeholder group convened pursuant to paragraph (2) shall include all of the following:
(A) At least one representative from the board.
(B) Two existing claimant representatives, one from priority Class C and one from priority Class D, as defined in subdivision (a) of Section 2811.1 of Title 23 of the California Code of Regulations.
(C) A housing developer.
(D) A brownfields practitioner.
(E) Any other industry industry, state or local government, or nonprofit representatives whom the board deems qualified and beneficial to the study required by this subdivision.
(4) The study required pursuant to paragraph (2) shall include, but shall not be limited to, the creation of a fund eligibility scoring matrix pursuant to which property and community attributes are prioritized, evaluated, and scored to allow for the assessment, remediation, and redevelopment of properties in a manner that furthers the legislative intent and housing and climate change mitigation objectives stated in subdivision (a). Fund eligibility scoring criteria shall consider, but shall not be limited to consideration of, all of the following:
(A) The degree to which human health, safety, and the environment are threatened by contamination at the property.
(B) The nature of the release, with currently eligible fund claimants given priority.
(C) Whether the property is located in a small or disadvantaged community.
(D) The proximity of the property to public transportation.
(E) Whether the property is located in a priority development area, as defined in subdivision (f) of Section 104.16 of the Streets and Highways Code.
(F) Whether there are other potential sources of funding for the investigation, cleanup, or corrective action necessary at the property.
(G) Any other considerations identified by the board as necessary to ensure that the scoring criteria further the legislative intent and housing and climate change mitigation objectives stated in subdivision (a).
(5) The recommendations in the study required pursuant to paragraph (2) shall include changes to statute and regulations required to implement the findings of the study.
(d) On or before July 1, 2024, the board shall do both of the following:
(1) Prepare, and post on its internet website, a report presenting the results of the study.
(2) (A) Submit to the Legislature the report required pursuant to paragraph (1).
(B) A report to be submitted pursuant to this paragraph shall be submitted in compliance with Section 9795 of the Government Code.
(C) Pursuant to Section 10231.5 of the Government Code, this paragraph shall become inoperative on January 1, 2028.

SEC. 3.

 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, 2031, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2031, 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, 2031.
(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, 2031, 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, 2030, or have become due before January 1, 2031, including any interest or penalties that accrue before, on, or after January 1, 2031, 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, 2031, from the 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 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 the following:
(i) The amount that reverts to the 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, 2031, 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, 2030.
(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 website, 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. 4.

 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.