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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: 06/14/2021 09:00 PM
AB753:v95#DOCUMENT

Amended  IN  Senate  June 14, 2021
Amended  IN  Assembly  May 24, 2021
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 Sections 25299.32, 25299.41, 25299.43, 25299.50.3, 25299.50.7, 25299.51, 25299.81, 25299.82, and 25299.117 of, and to add Section 25299.51.5 to, the Health and Safety Code, relating to 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.
(1) Existing law, the Barry Keene Underground Storage Tank Cleanup Trust Fund Act 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), 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, 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 provides for the repeal of certain of its provisions on January 1, 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. 2036. 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 the purpose of conducting a study of the fund’s fund and its subaccounts and any changes to their existing eligibility criteria and possible alternative fund eligibility criteria to be implemented on or before January 1, 2026, or priority classes 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 be conducted in consultation with the state board and to consider 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 housing and climate change mitigation objectives. The bill would also require the study to consider, among other items, the potential impact of Executive Order No. N-79-20 on the fund, changes to the eligibility criteria or priority classification of claims so as to prioritize assessment and remediation of both petroleum and nonpetroleum hazardous substances, changes to the eligibility criteria or priority classes of loans and grants to better assist small businesses in upgrading, replacing, or removing project tanks, as defined, and additional funding sources 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 bill would require the state board to include in its recommendations proposed changes to statutes and regulations required to implement the findings of the study. The bill would require the state board, stakeholder group, on or before July 1, 2024, to prepare, and post on its internet website, prepare and submit to the state board and the Legislature 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, after considering 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. study.
(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: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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 brownsfields 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 Remediation and redevelopment of brownfields not only supports the work of the administration to accelerate the rate at which affordable housing is constructed in the state, remediation and redevelopment of brownfields 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 remediation and redevelopment of brownfields.

SEC. 2.

 Section 25299.32 of the Health and Safety Code is amended to read:

25299.32.
 (a) 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:
(1) 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, subdivision (d) of Section 25299.57, and subdivision (b) of Section 25299.58.
(2) 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) 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 if the board determines that private insurance is available and affordable.
(e) The changes made to this section by 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, completed and for which reimbursement by the fund has not been fully paid by the board.
(f) (1) On and after January 1, 2025, 2035, 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, 2024, 2034, 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, used on and after January 1, 2025, 2035, to comply with Sections 25292.2 and 25299.31 and with the federal act.

SEC. 3.

 Section 25299.41 of the Health and Safety Code is amended to read:

25299.41.
 For purposes the purpose of implementing this chapter, every owner of an underground storage tank for which a permit is required pursuant to Section 25284 shall pay a storage fee of six mills ($0.006) for each gallon of petroleum placed in an underground storage tank which he or she that the person owns. The fee imposed pursuant to this section shall be paid to the State Board of Equalization California Department of Tax and Fee Administration pursuant to Part 26 (commencing with Section 50101) of Division 2 of the Revenue and Taxation Code.

SEC. 4.

 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 more than 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, 2026, 2036, at which time the increase provided for in this section shall not be operative.
(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.
(3) The board shall annually provide an informational presentation at a board meeting, with the opportunity for public comment, before determining how the funds collected pursuant to this subdivision will be allocated among the purposes provided in subdivision (o) of Section 25299.51.
(h) The fee imposed under this section shall be paid to the State Board of Equalization California Department of Tax and Fee Administration 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.
(i) The State Board of Equalization California Department of Tax and Fee Administration shall amend the regulations adopted under Section 25299.41 to carry out this section.

SEC. 5.

 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 has the same meaning as set forth in Section 80 of the Education Code, or and includes a county office of education.
(b) The School District Account is hereby created in the Underground Storage Tank Cleanup Fund, 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 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 before 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. 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) (1) 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, 2026, 2036, shall be transferred to the Underground Storage Tank Cleanup Fund. fund.
(2) Notwithstanding Section 16304.1 of the Government Code, the board shall encumber the funds appropriated pursuant to this section within three years of the appropriation and the board may make a disbursement in liquidation of an encumbrance before or during the three years following the last day the appropriation is available for encumbrance.
(e) The board shall include in its annual report 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, fund, 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, 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, 2026, 2036, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2026, 2036, deletes or extends that date.

SEC. 6.

 Section 25299.50.7 of the Health and Safety Code is amended to read:

25299.50.7.
 (a) The Expedited Claim Account is hereby created in the Underground Storage Tank Cleanup Fund fund for expenditure by the board to pay claims that have been selected to participate in the pilot project established by this section.
(b) The sum of one hundred million dollars ($100,000,000) shall be transferred in the 2015–16 fiscal year from the Underground Storage Tank Cleanup Fund fund to the Expedited Claim Account for expenditure, upon appropriation by the Legislature, for the payment of claims pursuant to this section. Claims shall be paid from the Expedited Claim Account until moneys in the account are exhausted.
(c) Funds in the Expedited Claim Account that are not expended in a fiscal year shall remain in the Expedited Claim Account. Funds remaining in the Expedited Claim Account on January 1, 2026, 2036, shall be transferred to the Underground Storage Tank Cleanup Fund. fund.
(d) The board shall, with stakeholder input, establish the Expedited Claim Pilot Project to reduce the overall cost for site cleanup and the time to reach closure by increasing coordination with the responsible party, consultant, regulator, and the fund fund, and by using multiyear budgets.
(1) The board shall, with stakeholder input, investigate potential methods for reducing the overall cost for site cleanup and the time to reach closure including, but not limited to, establishment of multiyear funding for claims, increased collaboration between fund staff, regulatory staff, and claimants and their contractors, establishment of project milestones and cost estimates, and establishment of reimbursement submission schedules.
(2) The board shall solicit fund claims from all priority rankings for participation in the pilot project to implement potential improvement methods. The board shall select a limited number of claims to participate in the pilot project.
(3) The board shall develop criteria for the selection of claims to participate in the pilot project and, at a minimum, shall consider the threat to human health, safety, or the environment caused by contamination at the site that is the subject of the claim, the priority ranking assigned to the claim pursuant to Section 25299.52, and the progress of cleanup at the site that is the subject of the claim.
(4) The development of criteria and procedures pursuant to this subdivision shall not be considered as regulations subject to, and shall be exempt from, Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(e) The board shall include in its annual report information on the expenditure of funds transferred to the Expedited Claim Account, as well as the amount of all claims filed by claimants participating in the Expedited Claim Pilot Project and the amount of reimbursements made to claimants in the pilot project, in its annual report. project.
(f) On or before January 1, 2018, the board shall prepare a report analyzing the effectiveness and efficiency of the Expedited Claim Pilot Project in expediting the funding of claims and completions completion of site cleanups. The board, in consultation with stakeholders, shall work to develop metrics to forecast long-term demand on the fund and shall include this information in the report. This report shall be posted on the board’s Internet Web site, internet website, and updated periodically.
(g) This section shall remain in effect only until January 1, 2026, 2036, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2026, 2036, deletes or extends that date.

SEC. 7.

 Section 25299.51 of the Health and Safety Code is amended to read:

25299.51.
 The board may expend the moneys in the Underground Storage Tank Cleanup Fund, created under subdivision (a) of Section 25299.50, fund for all of 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 California Department of Tax and Fee Administration 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 dollars ($1,000,000) 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, tanks by a local agency, as authorized by Section 25297.1 or by any other law, except that, for the purpose of expenditure of these funds, only underground storage tanks 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 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, 2025, 2035, immediately preceding its repeal.
(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. 2.SEC. 8.

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

25299.51.5.
 (a) (1) Consistent with the declarations in Section 25299.10, it is the intent of the Legislature that the fund continues to satisfy federal requirements that underground storage tank owners and operators demonstrate financial responsibility for corrective action and third-party coverage, that the fund and its subaccounts continue to be available for cleanup of petroleum releases from underground storage tanks, and that grants and loans continue to be available under Chapter 6.76 (commencing with Section 25299.100) to assist small businesses in upgrading, replacing, or removing project tanks, as defined in subdivision (e) of Section 25299.100, to comply with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations.
(2) It also 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, after considering 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)

(b) (1) On or before July 1, 2022, the board shall convene a stakeholder group for purposes the purpose of conducting a study of the fund’s fund and its subaccounts and any changes to their existing eligibility criteria and possible alternative fund eligibility criteria to be implemented on or before January 1, 2026, or priority classes that would further the legislative intent and housing and climate change mitigation objectives stated in paragraph (2) of subdivision (a). The timely reimbursement for existing claimants shall remain a programmatic priority. Consistent with the objectives stated in paragraph (1) of subdivision (a), the use of the fund as a financial responsibility mechanism and for the timely reimbursement of claims, the use of the fund and those fund subaccounts existing on January 1, 2022, for cleanup of contamination at sites, and the availability of financial assistance for small businesses under Chapter 6.76 (commencing with Section 25299.100) shall remain programmatic priorities.

(3)At a minimum,

(2) Except as provided in paragraph (3), the stakeholder group convened pursuant to paragraph (2) (1) shall include consist of all of the following: following members:

(A)At least one representative from the board.

(B)Two existing

(A) Three claimant representatives, one from each of the priority Class C and one from priority Class D, as defined in subdivision (a) of classes specified in paragraphs (2), (3), and (4) of subdivision (b) of Section 2811.1 of Title 23 of the California Code of Regulations. 25299.52.

(C)A housing developer.

(B) Two grantee representatives, one from the Underground Storage Tank Petroleum Contamination Orphan Site Cleanup Fund established pursuant to Section 25299.50.2 and one from the Site Cleanup Subaccount established pursuant to Section 25299.50.6.
(C) One grantee or borrower representative from the grant and loan program established pursuant to Chapter 6.76 (commencing with Section 25299.100).
(D) One representative from an alternative fuels organization.
(E) One representative from an environmental justice organization.
(F) One representative from an organization representing housing developers, including housing developers that focus on affordable housing and sustainable development.

(D)

(G) A brownfields practitioner. practitioner or a representative from an organization representing brownfields practitioners.

(E)

(H) Any other industry, state or local government, or nonprofit representatives whom the board deems qualified for and beneficial to the study required by this subdivision.
(3) (A) Each of the members of the stakeholder group convened pursuant to paragraph (1) shall possess sufficient experience with, or knowledge of, the fund and its subacocunts to be qualified for and beneficial to the study required by this subdivision.
(B) If the board, after a reasonable search, is unable to find a member for one of the categories set forth in paragraph (2) that meets the requirements of subparagraph (A), the board shall convene the stakeholder group without a member in that category.
(4) The study required pursuant to paragraph (2) (1) shall include, be conducted in consultation with the board and shall consider, but shall not be limited to, the to consideration of, all of the following:
(A) 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 paragraph (2) of subdivision (a). Fund eligibility scoring criteria shall consider, but shall not be limited to consideration of, all of the following:

(A)

(i) The degree to which human health, safety, and the environment are threatened by contamination at the property. location, including the threat to current or future water supplies.

(B)

(ii) The nature and extent of all of the release, contamination at the location, including petroleum and nonpetroleum contamination, with currently claimants who are eligible for the fund as of January 1, 2022, and future potential claimants eligible under fund eligibility criteria as of January 1, 2022, given priority.

(C)

(iii) Whether the property location is located in a small or disadvantaged community. For the purpose of this clause, “a disadvantaged community” means a community in which the median household income is less than 80 percent of the statewide annual median household income level.

(D)

(iv) The proximity of the property location to public transportation.

(E)

(v) Whether the property location is located in a priority development area, as defined in subdivision (f) of Section 104.16 of the Streets and Highways Code.

(F)

(vi) Whether there are other potential sources of funding for the investigation, cleanup, or corrective action necessary at the property. location.
(vii) The location’s reasonably foreseeable use and permissible uses under existing zoning restrictions.

(G)

(viii) 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 paragraph (2) of subdivision (a). (a) and to promote consistency with the legislative intent expressed in paragraph (1) of subdivision (a).
(B) An assessment of the potential impact of Executive Order No. N-79-20 on the fund, including underground storage tank owners’ and operators’ existing and future needs for the fund as a financial responsibility mechanism and to assist eligible claimants to cleanup releases of petroleum from underground storage tanks.
(C) Changes to the eligibility criteria or priority classification of claims pursuant to this chapter so as to prioritize assessment and remediation of both petroleum and nonpetroleum hazardous substances to further attainment of the legislative intent and housing and climate change mitigation objectives expressed in paragraph (2) of subdivision (a), including, but not limited to, all of the following:
(i) Prioritizing those claimants who are carrying out a brownfields remediation project and who are either of the following:
(I) A claimant eligible for the fund as of January 1, 2022.
(II) A future potential claimant eligible under fund eligibility criteria as of January 1, 2022.
(ii) Assessment of whether eligibility requirements for the fund should be expanded to include contamination from other petroleum sources, such as aboveground storage tanks.
(iii) Assessment of the amount of costs that a brownfields remediation project should be eligible to receive given consideration of all of the future needs for the fund.
(D) Changes to the eligibility criteria or priority classification of loans and grants pursuant to Chapter 6.76 (commencing with Section 25299.100) to better assist small businesses in upgrading, replacing, or removing project tanks, as defined in subdivision (e) of Section 25299.100, to comply with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations or to further attainment of the legislative intent and housing and climate change mitigation objectives stated in paragraph (2) of subdivision (a).
(E) (i) Additional funding sources for remediating the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination, including funding sources that would provide a long-term source of funding to further the legislative intent and housing and climate change mitigation objectives expressed in paragraph (2) of subdivision (a).
(ii) If the stakeholder group identifies and recommends additional funding sources pursuant to clause (i), the stakeholder group shall also study whether these additional moneys should be administered by the fund or one of its subaccounts, or a newly created account separate from the fund.
(5) The recommendations in the study required pursuant to paragraph (2) (1) shall include proposed changes to statute and regulations statutes required to implement the findings of the study.

(d)

(c) On or before July 1, 2024, the board stakeholder group shall do both of the following:

(1)Prepare, and post on its internet website, a report presenting the results of the study.

(1) (A) Prepare and submit to the board a report presenting the results of the study.
(B) The report required to be submitted by the stakeholder group pursuant to paragraph (1) shall comply with Sections 7405 and 11135 of the Government Code and with the Web Content Accessibility Guidelines published by the Web Accessibility Initiative of the World Wide Web Consortium at a minimum Level AA success criteria.
(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.
(d) Within 15 days of receiving the report required to be submitted by the stakeholder group to the board pursuant to paragraph (1) of subdivision (c), the board shall post the report on its internet website.

SEC. 3.SEC. 9.

 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, 2036, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2031, 2036, 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. 2036.
(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, 2036, 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, 2035, or have become due before January 1, 2031, 2036, including any interest or penalties that accrue before, on, or after January 1, 2031, 2036, 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, 2036, from the fund, 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, 2036, 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. 2035.
(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. 10.

 Section 25299.82 of the Health and Safety Code is amended to read:

25299.82.
 To ensure that the phase out of the Underground Storage Tank Cleanup Fund program, the fund, 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, 2025, 2035, unless the board finds that the unauthorized release that is the subject of the claim was discovered before January 1, 2025, 2035, 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, 2025. 2035.

SEC. 11.

 Section 25299.117 of the Health and Safety Code is amended to read:

25299.117.
 (a) Except as provided in subdivision (b), this chapter is repealed as of January 1, 2026, 2036, unless a later enacted statute that is enacted on or before January 1, 2026, 2036, deletes or extends that date.
(b) Notwithstanding subdivision (a), the repeal of this chapter does not terminate any of the following rights, obligations, authorities, or any provision necessary to carry out these rights, obligations, and authority:
(1) The repayment of loans due and payable to the board.
(2) The resolution of any cost recovery action or the initiation of an action or other collection process to recover defaulted loan moneys due to the board or to recover grant moneys paid but to which the grantee is not entitled.
(3) The resolution of an action taken pursuant to Section 25299.112, 25299.113, or 25299.113.1, or the initiation of one of those actions.

SEC. 4.SEC. 12.

 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.