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AB 2481 Assembly Bill - CHAPTERED

BILL NUMBER: AB 2481	CHAPTERED
	BILL TEXT

	CHAPTER  999
	FILED WITH SECRETARY OF STATE  SEPTEMBER 27, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 27, 2002
	PASSED THE ASSEMBLY  AUGUST 30, 2002
	PASSED THE SENATE  AUGUST 29, 2002
	AMENDED IN SENATE  AUGUST 28, 2002
	AMENDED IN SENATE  AUGUST 22, 2002
	AMENDED IN SENATE  AUGUST 6, 2002
	AMENDED IN SENATE  AUGUST 5, 2002
	AMENDED IN SENATE  JUNE 11, 2002
	AMENDED IN ASSEMBLY  MAY 16, 2002
	AMENDED IN ASSEMBLY  APRIL 30, 2002
	AMENDED IN ASSEMBLY  APRIL 16, 2002

INTRODUCED BY   Assembly Member Frommer

                        FEBRUARY 21, 2002

   An act to amend Section 7058.7 of the Business and Professions
Code, to amend Section 2929.5 of the Civil Code, to amend Sections
564, 726.5, and 736 of the Code of Civil Procedure, to amend Sections
15399.15 and 15399.15.2 of the Government Code, to amend Sections
25150.1, 25187, 25262, 25281, 25281.5, 25284, 25284.1, 25284.4,
25288, 25291, 25292.4, 25297.1, 25299, 25299.4, 25299.7, 25299.36,
25299.39.2, 25299.39.3, 25299.50.1, 25299.51, 25299.53, 25299.54,
25299.55, 25299.57, 25299.58, 25299.70, 25514.5, 25540, and 33459 of,
to amend and renumber Sections 25299.37.1 and 25299.39.1 of, to
amend, repeal, and add Section 25404 of, to add Sections 25284.2,
25290.1, 25292.5, 25296.10, 25296.20, 25296.25, 25296.30, 25296.40,
25299.8, 25299.38, and 25404.1.1 to, and to add and repeal Sections
25404.1.2 and 116367 of, to repeal Sections 25299.37, 25299.37.2,
25299.38.1, 25299.39, and 25514.6 of, and to repeal and add Sections
25292.3 and 25395.44 of, the Health and Safety Code, and to amend
Sections 13269, 13285, 13323, 13365, and 13391.5 of the Water Code,
relating to the environment, and making an appropriation therefor.


	LEGISLATIVE COUNSEL's DIGEST


   AB 2481, Frommer.  Underground storage tanks:  unified program
agencies:  Porter-Cologne Water Quality Control Act:  administrative
civil penalties:  drinking water:  enforcement.
   (1) Existing law generally regulates the storage of hazardous
substances in underground storage tanks and 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.  These
requirements are required to be implemented by the local agency.
Under existing law, with specified exceptions, no person may own or
operate an underground storage tank containing hazardous substances
unless a permit for its operation has been issued.  Existing law
requires a permit issued for a petroleum underground storage tank
system that meets specified requirements to include an upgrade
compliance certificate and no person may deposit petroleum into an
underground storage tank system unless the underground storage tank
system meets those described requirements.  A person depositing
petroleum into an underground storage tank system is required to
verify that the system meets those requirements by taking certain
actions, including viewing the upgrade compliance certificate.
   Existing law defines the term "product tight," for purposes of
those requirements, as being impervious to the substance that is
contained, so as to prevent the seepage of the substance from the
primary containment and specifies that to be product tight, the tank
not be subject to physical or chemical deterioration by the substance
which it contains over the useful life of the tank.  Existing law
requires all tank integrity tests conducted with regard to these
tanks to be performed by a tank tester with a valid tank testing
license.  Existing law requires owners or operators of an underground
storage tank system with a single-walled component that is located
within 1,000 feet of a public drinking water well to implement a
program of enhanced leak detection or monitoring.
   Under the existing Barry Keene Underground Storage Tank Cleanup
Trust Fund Act of 1989, owners and operators of petroleum underground
storage tanks are required to take corrective action to an
unauthorized release of petroleum, including requirements for the
preparation of a work plan.  The act provides for the issuance of a
specified closure letter relative to the completion of an
investigation and corrective action for a petroleum underground
storage tank.  The board is authorized to suspend corrective action
at a site, except for emergency sites.
   This bill would revise and recast the provisions regulating the
storage of hazardous substances in underground storage tanks and
would make conforming changes in that regard.  The bill would revise
the definition of "product tight" to delete the reference to seepage
from the primary containment and would delete the requirement that
the tank not be subject to physical or chemical deterioration over
the useful life of the tank.  The bill would also define the term
"compatible" for purposes of that act.  The bill would exclude
unburied fuel piping connected to an emergency generator tank, as
defined, from the definition of underground storage tank.
   The bill would require the owner or operator of a single-walled
tank system to take appropriate actions if the results of an enhanced
leak detection test indicate that any component of the underground
storage tank system is leaking liquid or vapor, to correct the
leakage, and retest the system.  The bill additionally would require
all other owners and operators of an underground storage tank system
that is located within 1,000 feet of a public drinking water well to
test the system once using enhanced leak detection before January 1,
2005, and if the results of the enhanced leak detection test indicate
that any component of the underground storage tank system is leaking
liquid or vapor, the owner or operator would be required to take
appropriate actions.
   The bill would establish requirements for each underground storage
tank installed on or after July 1, 2003, including a requirement
that the system be tested utilizing a specified method when the tank
is installed.  The bill would define "product tight," for purpose of
those requirements, to mean impervious to the liquid and vapor of the
substance that is contained.
   The bill would delete the provisions requiring an upgraded
certificate of compliance and would instead authorize a local agency,
upon the discovery of a significant violation of any requirement
that poses an imminent threat to human health or safety, to affix a
red tag, in plain view, to the fill pipe of the noncompliant
underground storage tank system.  The bill would also establish a
procedure for the issuance of a notice of significant violation by a
local agency and would allow a local agency to affix a red tag if the
owner or operator does not correct the violation, as specified.  The
bill would prohibit any person from depositing petroleum into, and
would prohibit the owner or operator of a facility from depositing or
allowing the deposit of petroleum into, an underground storage tank
system that has a red tag affixed to its fill pipe.  The bill would
require the owner or operator of an underground storage tank with a
specified spill containment structure to annually test the spill
containment structure to demonstrate that it is capable of containing
the substance until it is detected and cleaned up.
   The bill would require a tank tester who conducts or supervises a
tank or piping integrity test to prepare a report detailing the
results of the tank test and to maintain a record of the report for
at least three years, in a specified manner.
   The bill would expand the corrective action requirements and
related provisions for petroleum underground storage tanks to apply
those requirements to all underground storage tanks and would make
conforming changes.  The bill would impose a civil penalty upon any
person who violates a corrective action requirement.
   The bill would prohibit a person who purchases or acquires real
property on which an underground tank is located from being
reimbursed for a claim, except under specified conditions.
   Since the bill would impose new requirements upon local agencies
with regard to the regulation of underground storage tanks, the bill
would impose a state-mandated local program.
   (2) Existing law, until January 1, 2004, requires the Trade and
Commerce Agency to conduct a program to make loans to small
businesses to upgrade, replace, or remove petroleum underground
storage tanks to meet applicable local, state, or federal standards
and to take corrective actions, and to conduct a grant program to
assist small businesses to comply with the requirements regarding
petroleum underground storage tanks and tanks with single-walled
components that are located, as specified.  Existing law specifies
eligibility requirements for grant applicants and provides that the
minimum amount of those grants is $3,000.
   This bill would revise the requirements for issuance of a grant,
would increase the minimum amount of the grant to $10,000, and would
authorize the grant funds to be used for specified requirements
imposed by the bill.
   (3) Under the Porter-Cologne Water Quality Control Act, the State
Water Resources Control Board and the California regional water
quality control boards are among the principal agencies with
authority over water quality.  Under the act, persons discharging
waste are required to file with the appropriate regional board a
report of the discharge and the discharge is subject to waste
discharge requirements prescribed by that regional board.  Under the
act, persons are prohibited from initiating a new discharge of waste,
or making any material changes in any discharge of waste, prior to
the filing of the waste discharge report, and after the filing of
that report unless waste discharge requirements have been prescribed
or, under certain circumstances, 120 days have elapsed since the
filing of that report.  The act authorizes the regional boards to
waive these requirements as to a specific discharge or type of
discharge, for not more than 5 years, if the waiver is not against
the public interest.  Under these provisions, a waiver that was in
effect on January 1, 2000, remains valid until January 1, 2003,
unless the regional board terminates the waiver.
   This bill would instead provide that a waiver for onsite sewage
treatment systems that is in effect on January 1, 2002, shall remain
valid until June 30, 2004 unless the regional board terminates the
waiver prior to that date.
   (4) Existing law authorizes the executive officer of a regional
board to issue a complaint for an administrative civil penalty under
the Porter-Cologne Water Quality Control Act.  The act authorizes the
complaint to be served by personal notice or certified mail and
requires that a hearing be conducted before at least a 3-member panel
of the regional board not later than 60 days from the date the party
is served.  The act requires that orders imposing administrative
civil liability be served by personal service or registered mail.
The act also authorizes the state board to issue administrative civil
liability for a violation of a waste discharge requirement.
   This bill would revise the procedures for the service of a
complaint for that penalty and the conduct of a hearing by the state
board to instead require that the hearing before the regional board
be conducted not later than 90 days from the date the party is served
and would delete the requirement that the hearing be conducted
before a 3-member panel of the regional board.  The bill would
instead authorize a complaint and an order to be served by certified
mail or in any manner in which a summons may be served.  The bill
would require, in a proceeding before the state board to impose
administrative civil liability for a violation of a waste discharge
requirement, that the executive director of the state board issue the
complaint, and that a hearing be held within 90 days of the date the
party has been served.
   (5) The existing Financial Assurance and Insurance for
Redevelopment Program (FAIR) requires the Secretary for Environmental
Protection to solicit proposals for a package of environmental
insurance products from insurance companies through a competitive
bidding process.  The insurance company selected by the secretary is
required to offer a prenegotiated package of environmental insurance
products to any interested recipient of a loan under the Cleanup
Loans and Environmental Assistance to Neighborhoods (CLEAN) Program,
which provides loans to finance the performance of actions necessary
to respond to the release or threatened release of hazardous material
on an eligible property, and to any other person who conducts a
response action in the state.  Existing law provides that if the
insurance company selected to provide prenegotiated environmental
insurance products under the FAIR program terminates its contract or
otherwise becomes unable to honor written policies, the FAIR program
does not require the state to honor those policies or to pay any
claims made on those policies.
   This bill would, instead, provide immunity to the  California
Environmental Protection Agency, the secretary, the state, their
respective employees and agents, and any of the state's other
political subdivisions or employees thereof, for acts or omissions in
implementing the FAIR program, the acts or omissions by an insurance
company selected under the FAIR program, and any acts or omissions
by any person that purchases a prenegotiated environmental insurance
product.  The bill would specify that this immunity includes, but is
not limited to, immunity if the insurance company cancels, rescinds,
or otherwise terminates its contract with the secretary, fails, for
any reason, to compensate an insured for a loss covered by a policy,
or delays payment to an insured, or otherwise breaches a duty or
covenant.  The bill also would provide that the agency, the
secretary, the state, their respective employees and agents, in
implementing the FAIR program, may not be construed to be an insurer,
an insurance agent, an insurance solicitor, or an insurance broker;
be construed to be transacting insurance; or be required to obtain a
license or other authorization pursuant to specified provisions
regulating insurance.
   (6) Under the existing Barry Keene Underground Storage Tank
Cleanup Trust Fund Act of 1989, 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.  The money in the fund may be
expended by the State Water Resources Control Board, upon
appropriation by the Legislature, for various purposes, including the
payment of claims, pursuant to a specified order of priority, to aid
owners and operators of petroleum underground storage tanks who take
corrective action to clean up unauthorized releases from those
tanks.
   This bill would additionally authorize the money in the fund to be
expended to pay for expenditures by the board associated with
discovering violations of, and enforcing, or assisting in the
enforcement of, the requirements regulating petroleum underground
tanks.
   (7) Existing law requires the Secretary for Environmental
Protection to adopt regulations and implement a unified hazardous
waste and hazardous materials management regulatory program.  A city
or local agency that meets specified requirements is authorized to
apply to the secretary to implement the unified program, and every
county is required to apply to the secretary to be certified to
implement the unified program.
   This bill would define the term "minor violation," for purposes of
the unified program, as the failure of a person to comply with any
requirement or condition of any applicable law, regulation, permit,
information request, order, variance, or other requirement, whether
procedural or substantive, of the unified program that the Unified
Program Agency (UPA) is authorized to implement or enforce pursuant
to the program, excluding certain types of violations.  The bill
would repeal this definition on January 1, 2006.
   This bill would authorize a unified program agency, if it
determines that a person has committed, or is committing, a violation
of any requirement that the UPA is authorized to enforce or
implement pursuant to the unified program, to issue an administrative
enforcement order requiring that the violation be corrected and
imposing an administrative penalty.  The bill would specify
procedures for the conduct of a hearing, upon the request of a person
served with an order, pursuant to one of 2 specified hearing
processes, except under certain conditions.  The bill would require,
if the Unified Program Agency conducts the hearing, that a decision
be issued by the Unified Program Agency within 60 days after the
hearing is conducted by the Unified Program Agency.  The bill would
provide that an order issued by the Unified Program Agency setting a
penalty pursuant to the hearing by the Unified Program Agency is
final upon issuance.
   This bill would require all administrative penalties collected
from actions brought by a UPA to be paid to the UPA that imposed the
penalty, and to deposit the penalties into a special account that
would be required to be expended to fund the activities of the UPA in
enforcing the unified program.
   This bill would require an authorized representative of the UPA,
who, in the course of conducting an inspection, detects a minor
violation, to issue a notice to comply detailing the violation,
thereby imposing a state-mandated local program by imposing new
duties upon local agencies.  The bill would require a person who
receives a notice to comply to take specified actions within 30 days
from the date of the notice and would provide that a false
certification that a violation has been corrected is punishable as a
misdemeanor, thereby imposing a state-mandated local program by
creating a new crime.  The bill would provide that a notice to comply
is the only means by which a UPA may cite a minor violation.
   The bill would repeal the provision requiring the enforcement of
minor violations in this manner on January 1, 2006.
   (8) Existing law requires businesses that handle hazardous
materials to prepare a business plan and submit an annual inventory
form to the administering agency.  Existing law specifies procedures
for the imposition of civil and administrative penalties for a
violation of those provisions and requires the civil penalties
collected to be apportioned in a specified manner, including $200 for
deposit in the Hazardous Materials Enforcement and Training Account,
75% to the administering agency, to reimburse specified local
agencies for expenses, and 25% to the principal agency that assisted
the administering agency.  Existing law provides for the imposition
of civil penalties upon stationary sources with regard to the program
to prevent accidental releases of regulated substances.
   This bill would require the issuance of an enforcement order or
the imposition of an administrative penalty by an administering
agency to instead be conducted using the procedures established by
the bill.  The bill would also repeal those provisions requiring the
apportionment of the civil penalty.  The bill would require the
issuance of enforcement orders or administrative penalties for a
violation of the accidental release prevention program to be
conducted using the procedures established by the bill.
   (9) Existing law provides that the repeal of the Drinking Water
Treatment and Research Fund on January 1, 2002, did not terminate any
rights, obligations or authorities, or any provisions necessary to
carry out these rights or obligations and the filing and payment of
claims in the fund, until the moneys in the fund are exhausted.
Existing law requires the State Water Resources Control Board to
annually transfer $5,000,000 from the Underground Storage Tank
Cleanup Fund to the Drinking Water Treatment and Research Fund to be
expended for specified purposes when a public drinking water well has
been contaminated by an oxygenate and there is substantial evidence
that a release has occurred from an underground storage tank.
   This bill would reestablish the Drinking Water Treatment and
Research Fund in the State Treasury and would continuously
appropriate the money in the fund to the State Department of Health
Services to make payments to public water systems for the costs of
treating contaminated groundwater and surface water for drinking
water purposes, investigating contamination, and acquiring alternate
drinking water supplies.  The bill would also authorize the
department to expend not more than $1,000,000 for research into
treatment technologies and to pay the department's administrative
costs, as specified.  The bill would allow the department to make
payments for treatment, investigation, or alternative water supplies
without requiring the public water system to first incur
expenditures, if the department makes a specified determination.  The
bill would also specify that these payments for treatment,
investigation, or providing alternative water supplies may be made
without regard to when the contamination occurred and would require
the department, when evaluating these claims submitted for payment,
to consider the findings of a specified report.  The bill would
provide for the repeal of the Drinking Water Treatment and Research
Fund, except for specified rights and obligations, on January 1,
2010.
   The bill would require a public water system that determines that
an oxygenate is detected at any level in groundwater supplies
utilized by the public water system for drinking water purposes to
notify the State Department of Health Services and a California
regional water quality control board.  The state department or a
regional board would be required to determine whether to shut down or
curtail the use of a well within 30 days following receipt of this
notification from a public water system.
  (10) 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 specified reasons.
   Appropriation:   yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 7058.7 of the Business and Professions Code is
amended to read:
   7058.7.  (a) No contractor may engage in a removal or remedial
action, as defined in subdivision (d), unless the  qualifier for the
license has passed an approved hazardous substance certification
examination.
   (b) (1) The Contractors\' State License Board, the Division of
Occupational Safety and Health of the Department of Industrial
Relations, and the Department of Toxic Substances Control shall
jointly select an advisory committee, which shall be composed of two
representatives of hazardous substance removal workers in California,
two general engineering contractors in California, and two
representatives of insurance companies in California who shall be
selected by the Insurance Commissioner.
   (2) The Contractors\' State License Board shall develop a written
test for the certification of contractors engaged in hazardous
substance removal or remedial action, in consultation with the
Division of Occupational Safety and Health, the State Water Resources
Control Board, the Department of Toxic Substances Control, and the
advisory committee.
   (c) The Contractors\' State License Board may require additional
updated approved hazardous substance certification examinations of
licensees currently certified based on new public or occupational
health and safety information.  The Contractors\' State License Board,
in consultation with the Department of Toxic Substances Control and
the State Water Resources Control Board, shall approve other initial
and updated hazardous substance certification examinations and
determine whether to require an updated certification examination of
all current certificate holders.
   (d) For purposes of this section "removal or remedial action" has
the same meaning as found in Chapter 6.8 (commencing with Section
25300) of Division 20 of the Health and Safety Code, if the action
requires the contractor to dig into the surface of the earth and
remove the dug material and the action is at a site listed pursuant
to Section 25356 of the Health and Safety Code or any other site
listed as a hazardous substance release site by the Department of
Toxic Substances Control or a site listed on the National Priorities
List compiled pursuant to the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9601 et
seq.).  "Removal or remedial action" does not include
asbestos-related work, as defined in Section 6501.8 of the Labor
Code, or work related to a hazardous substance spill on a highway.
   (e) (1) A contractor may not install or remove an underground
storage tank, unless the contractor has passed the hazardous
substance certification examination developed pursuant to this
section.
   (2) A contractor who is not certified may bid on or contract for
the installation or removal of an underground tank, if the work is
performed by a contractor who is certified pursuant to this section.

   (3) For purposes of this subdivision, "underground storage tank"
has the same meaning as defined in subdivision (y) of Section 25281
of the Health and Safety Code.
  SEC. 2.  Section 2929.5 of the Civil Code is amended to read:
   2929.5.  (a) A secured lender may enter and inspect the real
property security for the purpose of determining the existence,
location, nature, and magnitude of any past or present release or
threatened release of any hazardous substance into, onto, beneath, or
from the real property security on either of the following:
   (1) Upon reasonable belief of the existence of a past or present
release or threatened release of any hazardous substance into, onto,
beneath, or from the real property security not previously disclosed
in writing to the secured lender in conjunction with the making,
renewal, or modification of a loan, extension of credit, guaranty, or
other obligation involving the borrower.
   (2) After the commencement of nonjudicial or judicial foreclosure
proceedings against the real property security.
   (b) The secured lender shall not abuse the right of entry and
inspection or use it to harass the borrower or tenant of the
property.  Except in case of an emergency, when the borrower or
tenant of the property has abandoned the premises, or if it is
impracticable to do so, the secured lender shall give the borrower or
tenant of the property reasonable notice of the secured lender's
intent to enter, and enter only during the borrower's or tenant's
normal business hours.  Twenty-four hours\' notice shall be presumed
to be reasonable notice in the absence of evidence to the contrary.
   (c) The secured lender shall reimburse the borrower for the cost
of repair of any physical injury to the real property security caused
by the entry and inspection.
   (d) If a secured lender is refused the right of entry and
inspection by the borrower or tenant of the property, or is otherwise
unable to enter and inspect the property without a breach of the
peace, the secured lender may, upon petition, obtain an order from a
court of competent jurisdiction to exercise the secured lender's
rights under subdivision (a), and that action shall not constitute an
action within the meaning of subdivision (a) of Section 726 of the
Code of Civil Procedure.
   (e) For purposes of this section:
   (1) "Borrower" means the trustor under a deed of trust, or a
mortgagor under a mortgage, where the deed of trust or mortgage
encumbers real property security and secures the performance of the
trustor or mortgagor under a loan, extension of credit, guaranty, or
other obligation.  The term includes any successor-in-interest of the
trustor or mortgagor to the real property security before the deed
of trust or mortgage has been discharged, reconveyed, or foreclosed
upon.
   (2) "Hazardous substance"  includes all of the following:
   (A) Any "hazardous substance" as defined in subdivision (h) of
Section 25281 of the Health and Safety Code.
   (B) Any "waste" as defined in subdivision (d) of Section 13050 of
the Water Code.
   (C) Petroleum, including crude oil or any fraction thereof,
natural gas, natural gas liquids, liquefied natural gas, or synthetic
gas usable for fuel, or any mixture thereof.
   (3) "Real property security" means any real property and
improvements, other than a separate interest and any related interest
in the common area of a residential common interest development, as
the terms "separate interest," "common area," and "common interest
development" are defined in Section 1351, or real property consisting
of one acre or less which contains 1 to 15 dwelling units.
   (4) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing into the environment, including continuing
migration, of hazardous substances into, onto, or through soil,
surface water, or groundwater.
   (5) "Secured lender" means the beneficiary under a deed of trust
against the real property security, or the mortgagee under a mortgage
against the real property security, and any successor-in-interest of
the beneficiary or mortgagee to the deed of trust or mortgage.
  SEC. 3.  Section 564 of the Code of Civil Procedure is amended to
read:
   564.  (a) A receiver may be appointed, in the manner provided in
this chapter, by the court in which an action or proceeding is
pending in any case in which the court is empowered by law to appoint
a receiver.
   (b) A receiver may be appointed by the court in which an action or
proceeding is pending, or by a judge thereof, in the following
cases:
   (1) In an action by a vendor to vacate a fraudulent purchase of
property, or by a creditor to subject any property or fund to the
creditor's claim, or between partners or others jointly owning or
interested in any property or fund, on the application of the
plaintiff, or of any party whose right to or interest in the property
or fund, or the proceeds thereof, is probable, and where it is shown
that the property or fund is in danger of being lost, removed, or
materially injured.
   (2) In an action by a secured lender for the foreclosure of a deed
of trust or mortgage and sale of property upon which there is a lien
under a deed of trust or mortgage, where it appears that the
property is in danger of being lost, removed, or materially injured,
or that the condition of the deed of trust or mortgage has not been
performed, and that the property is probably insufficient to
discharge the deed of trust or mortgage debt.
   (3) After judgment, to carry the judgment into effect.
   (4) After judgment, to dispose of the property according to the
judgment, or to preserve it during the pendency of an appeal, or
pursuant to the Enforcement of Judgments Law (Title 9 (commencing
with Section 680.010)), or after sale of real property pursuant to a
decree of foreclosure, during the redemption period, to collect,
expend, and disburse rents as directed by the court or otherwise
provided by law.
   (5) Where a corporation has been dissolved, as provided in Section
565.
   (6) Where a corporation is insolvent, or in imminent danger of
insolvency, or has forfeited its corporate rights.
   (7) In an action of unlawful detainer.
   (8) At the request of the Public Utilities Commission pursuant to
Section 855 or 5259.5 of the Public Utilities Code.
   (9) In all other cases where necessary to preserve the property or
rights of any party.
   (10) At the request of the Office of Statewide Health Planning and
Development, or the Attorney General, pursuant to Section 129173 of
the Health and Safety Code.
   (11) In an action by a secured lender for specific performance of
an assignment of rents provision in a deed of trust, mortgage, or
separate assignment document.  The appointment may be continued after
entry of a judgment for specific performance if appropriate to
protect, operate, or maintain real property encumbered by a deed of
trust or mortgage or to collect rents therefrom while a pending
nonjudicial foreclosure under power of sale in a deed of trust or
mortgage is being completed.
   (12) In a case brought by an assignee under an assignment of
leases, rents, issues, or profits pursuant to subdivision (g) of
Section 2938 of the Civil Code.
   (c) A receiver may be appointed, in the manner provided in this
chapter, including, but not limited to, Section 566, by the superior
court in an action brought by a secured lender to enforce the rights
provided in Section 2929.5 of the Civil Code, to enable the secured
lender to enter and inspect the real property security for the
purpose of determining the existence, location, nature, and magnitude
of any past or present release or threatened release of any
hazardous substance into, onto, beneath, or from the real property
security.  The secured lender shall not abuse the right of entry and
inspection or use it to harass the borrower or tenant of the
property.  Except in case of an emergency, when the borrower or
tenant of the property has abandoned the premises, or if it is
impracticable to do so, the secured lender shall give the borrower or
tenant of the property reasonable notice of the secured lender's
intent to enter and shall enter only during the borrower's or tenant\'
s normal business hours.  Twenty-four hours\' notice shall be presumed
to be reasonable notice in the absence of evidence to the contrary.

   (d) Any action by a secured lender to appoint a receiver pursuant
to this section shall not constitute an action within the meaning of
subdivision (a) of Section 726.
   (e) For purposes of this section:
   (1) "Borrower" means the trustor under a deed of trust, or a
mortgagor under a mortgage, where the deed of trust or mortgage
encumbers real property security and secures the performance of the
trustor or mortgagor under a loan, extension of credit, guaranty, or
other obligation.  The term includes any successor in interest of the
trustor or mortgagor to the real property security before the deed
of trust or mortgage has been discharged, reconveyed, or foreclosed
upon.
   (2) "Hazardous substance" means any of the following:
   (A) Any "hazardous substance" as defined in subdivision (h) of
Section 25281 of the Health and Safety Code.
   (B) Any "waste" as defined in subdivision (d) of Section 13050 of
the Water Code.
   (C) Petroleum including crude oil or any fraction thereof, natural
gas, natural gas liquids, liquefied natural gas, or synthetic gas
usable for fuel, or any mixture thereof.
   (3) "Real property security" means any real property and
improvements, other than a separate interest and any related interest
in the common area of a residential common interest development, as
the terms "separate interest," "common area," and "common interest
development" are defined in Section 1351 of the Civil Code, or real
property consisting of one acre or less that contains 1 to 15
dwelling units.
   (4) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing into the environment, including continuing
migration, of hazardous substances into, onto, or through soil,
surface water, or groundwater.
   (5) "Secured lender" means the beneficiary under a deed of trust
against the real property security, or the mortgagee under a mortgage
against the real property security, and any successor in interest of
the beneficiary or mortgagee to the deed of trust or mortgage.
  SEC. 4.  Section 726.5 of the Code of Civil Procedure is amended to
read:
   726.5.  (a) Notwithstanding subdivision (a) of Section 726 or any
other provision of law, except subdivision (d) of this section, a
secured lender may elect between the following where the real
property security is environmentally impaired and the borrower's
obligations to the secured lender are in default:
   (1) (A) Waiver of its lien against (i) any parcel of real property
security that is environmentally impaired or is an affected parcel,
and (ii) all or any portion of the fixtures and personal property
attached to the parcels; and
   (B) Exercise of (i) the rights and remedies of an unsecured
creditor, including reduction of its claim against the borrower to
judgment, and (ii) any other rights and remedies permitted by law.
   (2) Exercise of (i) the rights and remedies of a creditor secured
by a deed of trust or mortgage and, if applicable, a lien against
fixtures or personal property attached to the real property security,
and (ii) any other rights and remedies permitted by law.
   (b) Before the secured lender may waive its lien against any
parcel of real property security pursuant to paragraph (1) of
subdivision (a) on the basis of the environmental impairment
contemplated by paragraph (3) of subdivision (e), (i) the secured
lender shall provide written notice of the default to the borrower,
and (ii) the value of the subject real property security shall be
established and its environmentally impaired status shall be
confirmed by an order of a court of competent jurisdiction in an
action brought by the secured lender against the borrower.  The
complaint for a valuation and confirmation action may include causes
of action for a money judgment for all or part of the secured
obligation, in which case the waiver of the secured lender's liens
under paragraph (1) of subdivision (a) shall result only if and when
a final money judgment is obtained against the borrower.
   (c) If a secured lender elects the rights and remedies permitted
by paragraph (1) of subdivision (a) and the borrower's obligations
are also secured by other real property security, fixtures, or
personal property, the secured lender shall first foreclose against
the additional collateral to the extent required by applicable law in
which case the amount of the judgment of the secured lender pursuant
to paragraph (1) of subdivision (a) shall be limited to the extent
Section 580a or 580d, or subdivision (b) of Section 726 apply to the
foreclosures of additional real property security.  The borrower may
waive or modify the foreclosure requirements of this subdivision
provided that the waiver or modification is in writing and signed by
the borrower after default.
   (d) Subdivision (a) shall be inapplicable if all of the following
are true:
   (1) The release or threatened release was not knowingly or
negligently caused or contributed to, or knowingly or willfully
permitted or acquiesced to, by any of the following:
   (A) The borrower or any related party.
   (B) Any affiliate or agent of the borrower or any related party.
   (2) In conjunction with the making, renewal, or modification of
the loan, extension of credit, guaranty, or other obligation secured
by the real property security, neither the borrower, any related
party, nor any affiliate or agent of either the borrower or any
related party had actual knowledge or notice of the release or
threatened release, or if a person had knowledge or notice of the
release or threatened release, the borrower made written disclosure
thereof to the secured lender after the secured lender's written
request for information concerning the environmental condition of the
real property security, or the secured lender otherwise obtained
actual knowledge thereof, prior to the making, renewal, or
modification of the obligation.
   (e) For purposes of this section:
   (1) "Affected parcel" means any portion of a parcel of real
property security that is (A) contiguous to the environmentally
impaired parcel, even if separated by roads, streets, utility
easements, or railroad rights-of-way, (B) part of an approved or
proposed subdivision within the meaning of Section 66424 of the
Government Code, of which the environmentally impaired parcel is also
a part, or (C) within 2,000 feet of the environmentally impaired
parcel.
   (2) "Borrower" means the trustor under a deed of trust, or a
mortgagor under a mortgage, where the deed of trust or mortgage
encumbers real property security and secures the performance of the
trustor or mortgagor under a loan, extension of credit, guaranty, or
other obligation.  The term includes any successor-in-interest of the
trustor or mortgagor to the real property security before the deed
of trust or mortgage has been discharged, reconveyed, or foreclosed
upon.
   (3) "Environmentally impaired" means that the estimated costs to
clean up and remediate a past or present release or threatened
release of any hazardous substance into, onto, beneath, or from the
real property security, not disclosed in writing to, or otherwise
actually known by, the secured lender prior to the making of the loan
or extension of credit secured by the real property security,
exceeds 25 percent of the higher of the aggregate fair market value
of all security for the loan or extension of credit (A) at the time
of the making of the loan or extension of credit, or (B) at the time
of the discovery of the release or threatened release by the secured
lender.  For the purposes of this definition, the estimated cost to
clean up and remediate the contamination caused by the release or
threatened release shall include only those costs that would be
incurred reasonably and in good faith, and fair market value shall be
determined without giving consideration to the release or threatened
release, and shall be exclusive of the amount of all liens and
encumbrances against the security that are senior in priority to the
lien of the secured lender.  Notwithstanding the foregoing, the real
property security for any loan or extension of credit secured by a
single parcel of real property which is included in the National
Priorities List pursuant to Section 9605 of Title 42 of the United
States Code, or in any list published by the Department of Toxic
Substances Control pursuant to subdivision (b) of Section 25356 of
the Health and Safety Code, shall be deemed to be environmentally
impaired.
   (4) "Hazardous substance" means any of the following:
   (A) Any "hazardous substance" as defined in subdivision (h) of
Section 25281 of the Health and Safety Code.
   (B) Any "waste" as defined in subdivision (d) of Section 13050 of
the Water Code.
   (C) Petroleum, including crude oil or any fraction thereof,
natural gas, natural gas liquids, liquefied natural gas, or synthetic
gas usable for fuel, or any mixture thereof.
   (5) "Real property security" means any real property and
improvements, other than a separate interest and any related interest
in the common area of a residential common interest development, as
the terms "separate interest," "common area," and "common interest
development" are defined in Section 1351 of the Civil Code, or real
property which contains only 1 to 15 dwelling units, which in either
case (A) is solely used (i) for residential purposes, or (ii) if
reasonably contemplated by the parties to the deed of trust or
mortgage, for residential purposes as well as limited agricultural or
commercial purposes incidental thereto, and (B) is the subject of an
issued certificate of occupancy unless the dwelling is to be owned
and occupied by the borrower.
   (6) "Related party" means any person who shares an ownership
interest with the borrower in the real property security, or is a
partner or joint venturer with the borrower in a partnership or joint
venture, the business of which includes the acquisition,
development, use, lease, or sale of the real property security.
   (7) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing into the environment, including continuing
migration, of hazardous substances into, onto, or through soil,
surface water, or groundwater.  The term does not include actions
directly relating to the incorporation in a lawful manner of building
materials into a permanent improvement to the real property
security.
   (8) "Secured lender" means the beneficiary under a deed of trust
against the real property security, or the mortgagee under a mortgage
against the real property security, and any successor-in-interest of
the beneficiary or mortgagee to the deed of trust or mortgage.
   (f) This section shall not be construed to invalidate or otherwise
affect in any manner any rights or obligations arising under
contract in connection with a loan or extension of credit, including,
without limitation, provisions limiting recourse.
   (g) This section shall only apply to loans, extensions of credit,
guaranties, or other obligations secured by real property security
made, renewed, or modified on or after January 1, 1992.
  SEC. 5.  Section 736 of the Code of Civil Procedure is amended to
read:
   736.  (a) Notwithstanding any other provision of law, a secured
lender may bring an action for breach of contract against a borrower
for breach of any environmental provision made by the borrower
relating to the real property security, for the recovery of damages,
and for the enforcement of the environmental provision, and that
action or failure to foreclose first against collateral shall not
constitute an action within the meaning of subdivision (a) of Section
726, or constitute a money judgment for a deficiency or a deficiency
judgment within the meaning of Section 580a, 580b, or 580d, or
subdivision (b) of Section 726.  No injunction for the enforcement of
an environmental provision may be issued after (1) the obligation
secured by the real property security has been fully satisfied, or
(2) all of the borrower's rights, title, and interest in and to the
real property security has been transferred in a bona fide
transaction to an unaffiliated third party for fair value.
   (b) The damages a secured lender may recover pursuant to
subdivision (a) shall be limited to reimbursement or indemnification
of the following:
   (1) If not pursuant to an order of any federal, state, or local
governmental agency relating to the cleanup, remediation, or other
response action required by applicable law, those costs relating to a
reasonable and good faith cleanup, remediation, or other response
action concerning a release or threatened release of hazardous
substances which is anticipated by the environmental provision.
   (2) If pursuant to an order of any federal, state, or local
governmental agency relating to the cleanup, remediation, or other
response action required by applicable law which is anticipated by
the environmental provision, all amounts reasonably advanced in good
faith by the secured lender in connection therewith, provided that
the secured lender negotiated, or attempted to negotiate, in good
faith to minimize the amounts it was required to advance under the
order.
   (3) Indemnification against all liabilities of the secured lender
to any third party relating to the breach and not arising from acts,
omissions, or other conduct which occur after the borrower is no
longer an owner or operator of the real property security, and
provided the secured lender is not responsible for the
environmentally impaired condition of the real property security in
accordance with the standards set forth in subdivision (d) of Section
726.5.  For purposes of this paragraph, the term "owner or operator"
means those persons described in Section 101(20)(A) of the
Comprehensive Environmental Response, Compensation, and Liability Act
of 1980, as amended (42 U.S.C. Sec. 9601, et seq.).
   (4) Attorneys\' fees and costs incurred by the secured lender
relating to the breach.
   The damages a secured lender may recover pursuant to subdivision
(a) shall not include (i) any part of the principal amount or accrued
interest of the secured obligation, except for any amounts advanced
by the secured lender to cure or mitigate the breach of the
environmental provision that are added to the principal amount, and
contractual interest thereon, or (ii) amounts which relate to a
release which was knowingly permitted, caused, or contributed to by
the secured lender or any affiliate or agent of the secured lender.
   (c) A secured lender may not recover damages against a borrower
pursuant to subdivision (a) for amounts advanced or obligations
incurred for the cleanup or other remediation of real property
security, and related attorneys\' fees and costs, if all of the
following are true:
   (1) The original principal amount of, or commitment for, the loan
or other obligation secured by the real property security did not
exceed two hundred thousand dollars ($200,000).
   (2) In conjunction with the secured lender's acceptance of the
environmental provision, the secured lender agreed in writing to
accept the real property security on the basis of a completed
environmental site assessment and other relevant information from the
borrower.
                                                                 (3)
The borrower did not permit, cause, or contribute to the release or
threatened release.
   (4) The deed of trust or mortgage covering the real property
security has not been discharged, reconveyed, or foreclosed upon.
   (d) This section is not intended to establish, abrogate, modify,
limit, or otherwise affect any cause of action other than that
provided by subdivision (a) that a secured lender may have against a
borrower under an environmental provision.
   (e) This section shall apply only to environmental provisions
contracted in conjunction with loans, extensions of credit,
guaranties, or other obligations made, renewed, or modified on or
after January 1, 1992.  Notwithstanding the foregoing, this section
shall not be construed to validate, invalidate, or otherwise affect
in any manner the rights and obligations of the parties to, or the
enforcement of, environmental provisions contracted before January 1,
1992.
   (f) For purposes of this section:
   (1) "Borrower" means the trustor under a deed of trust, or a
mortgagor under a mortgage, where the deed of trust or mortgage
encumbers real property security and secures the performance of the
trustor or mortgagor under a loan, extension of credit, guaranty, or
other obligation.  The term includes any successor-in-interest of the
trustor or mortgagor to the real property security before the deed
of trust or mortgage has been discharged, reconveyed, or foreclosed
upon.
   (2) "Environmental provision" means any written representation,
warranty, indemnity, promise, or covenant relating to the existence,
location, nature, use, generation, manufacture, storage, disposal,
handling, or past, present, or future release or threatened release,
of any hazardous substance into, onto, beneath, or from the real
property security, or to past, present, or future compliance with any
law relating thereto, made by a borrower in conjunction with the
making, renewal, or modification of a loan, extension of credit,
guaranty, or other obligation involving the borrower, whether or not
the representation, warranty, indemnity, promise, or covenant is or
was contained in or secured by the deed of trust or mortgage, and
whether or not the deed of trust or mortgage has been discharged,
reconveyed, or foreclosed upon.
   (3) "Hazardous substance" means any of the following:
   (A) Any "hazardous substance" as defined in subdivision (h) of
Section 25281 of the Health and Safety Code.
   (B) Any "waste" as defined in subdivision (d) of Section 13050 of
the Water Code.
   (C) Petroleum, including crude oil or any fraction thereof,
natural gas, natural gas liquids, liquefied natural gas, or synthetic
gas usable for fuel, or any mixture thereof.
   (4) "Real property security" means any real property and
improvements, other than a separate interest and any related interest
in the common area of a residential common interest development, as
the terms "separate interest," "common area," and "common interest
development" are defined in Section 1351 of the Civil Code, or real
property which contains only 1 to 15 dwelling units, which in either
case (A) is solely used (i) for residential purposes, or (ii) if
reasonably contemplated by the parties to the deed of trust or
mortgage, for residential purposes as well as limited agricultural or
commercial purposes incidental thereto, and (B) is the subject of an
issued certificate of occupancy unless the dwelling is to be owned
and occupied by the borrower.
   (5) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing into the environment, including continuing
migration, of hazardous substances into, onto, or through soil,
surface water, or groundwater.  The term does not include actions
directly relating to the incorporation in a lawful manner of building
materials into a permanent improvement to the real property
security.
   (6) "Secured lender" means the beneficiary under a deed of trust
against the real property security, or the mortgagee under a mortgage
against the real property security, and any successor-in-interest of
the beneficiary or mortgagee to the deed of trust or mortgage.
  SEC. 6.  Section 15399.15 of the Government Code is amended to
read:
   15399.15.  (a) The agency 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
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) The grant applicant, the applicant's family, or an affiliated
entity, has owned or operated the project tank since January 1, 1997.

   (4) All tanks owned and operated by the grant applicant are
subject to compliance with Chapter 6.7 (commencing with Section
25280) of Division 20 of the Health and Safety Code, and the
regulations adopted pursuant to that chapter.
   (5) 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
numbers of gallons sold shall be based upon taxable sales figures
provided to the State Board of Equalization for that facility.
   (6) The grant applicant owns or operates a tank that is in
compliance with Section 25290.1 or 25291 of the Health and Safety
Code, or subdivisions (d) and (e) of Section 25292 of the Health and
Safety Code, and the regulations adopted to implement those sections.

   (7) The facility where the project tank is located was legally in
business retailing gasoline after January 1, 1999.
   (b) Grant funds may only be used to pay the costs necessary to
comply with the requirements of Section 25284.1, 25292.4, or 25292.5
of the Health and Safety Code.
   (c) If the total amount of grant requests by eligible grant
applicants to the agency pursuant to this section exceed, or are
anticipated to exceed, the amount in the Petroleum Underground
Storage Tank Financing Account, the agency may adopt a priority
ranking list to award grants based upon the level of demonstrated
financial hardship of the eligible grant applicant, or the relative
impact upon the local community where the project tank is located if
the claim is denied.
  SEC. 7.  Section 15399.15.2 of the Government Code is amended to
read:
   15399.15.2.  (a) The minimum amount that the agency may grant an
applicant is  three thousand dollars ($3,000), and the maximum amount
that the agency may grant an applicant is fifty thousand dollars
($50,000).
   (b) Grant funds may be used to finance up to 100 percent of the
costs necessary to comply with Sections 25284.1, 25292.4, and 25292.5
of the Health and Safety Code.  No person or entity is eligible to
receive more than fifty thousand dollars ($50,000) in grant funds
pursuant to this chapter.
  SEC. 8.  Section 25150.1 of the Health and Safety Code is amended
to read:
   25150.1.  The requirements in Sections 25290.1, 25291, and 25292
apply to the construction, operation, maintenance, monitoring, and
testing of underground storage tanks, as defined in subdivision (y)
of Section 25281, that are required to obtain hazardous waste
facilities permits from the department.  The department shall adopt
regulations implementing the requirements of Sections 25290.1, 25291,
and 25292, for regulating the construction, operation, maintenance,
monitoring, and testing of underground storage tanks used for the
storage of hazardous wastes that are necessary to protect against
hazards to the public health, domestic livestock, wildlife, or the
environment.
  SEC. 9.  Section 25187 of the Health and Safety Code is amended to
read:
   25187.  (a) (1) The department or a unified program agency, in
accordance with subdivision (l), may issue an order requiring that
the violation be corrected and imposing an administrative penalty,
for any violation of this chapter or any permit, rule, regulation,
standard, or requirement issued or adopted pursuant to this chapter,
whenever the department or Unified Program Agency determines that a
person has violated, is in violation of, or threatens, as defined in
subdivision (e) of Section 13304 of the Water Code, to violate, this
chapter or Chapter 6.8 (commencing with Section 25300), or any
permit, rule, regulation, standard, or requirement issued or adopted
pursuant to this chapter or Chapter 6.8 (commencing with Section
25300).
   (2) In an order proposing a penalty pursuant to this section, the
department or Unified Program Agency shall take into consideration
the nature, circumstances, extent, and gravity of the violation, the
violator's past and present efforts to prevent, abate, or clean up
conditions posing a threat to the public health or safety or the
environment, the violator's ability to pay the proposed penalty, and
the prophylactic effect that the imposition of the proposed penalty
would have on both the violator and the regulated community as a
whole.
   (b) The department or a unified program agency, in accordance with
subdivision (l), may issue an order requiring corrective action
whenever the department or Unified Program Agency determines that
there is or has been a release, as defined in Chapter 6.8 (commencing
with Section 25300), of hazardous waste or constituents into the
environment from a hazardous waste facility.
   (1) In the case of a release of hazardous waste or constituents
into the environment from a hazardous waste facility that is required
to obtain a permit pursuant to Article 9 (commencing with Section
25200), the department shall pursue the remedies available under this
chapter, including the issuance of an order for corrective action
pursuant to this section, before using the legal remedies available
pursuant to Chapter 6.8 (commencing with Section 25300), except in
any of the following circumstances:
   (A) Where the person who is responsible for the release
voluntarily requests in writing that the department issue an order to
that person to take corrective action pursuant to Chapter 6.8
(commencing with Section 25300).
   (B) Where the person who is responsible for the release is unable
to pay for the cost of corrective action to address the release.  For
purposes of this  subparagraph, the inability of a person to pay for
the cost of corrective action shall be determined in accordance with
the policies of the Environmental Protection Agency for the
implementation of Section 9605 of Title 42 of the United States Code.

   (C) Where the person responsible for the release is unwilling to
perform corrective action to address the release.  For purposes of
this subparagraph, the unwillingness of a person to take corrective
action shall be determined in accordance with the policies of the
Environmental Protection Agency for the implementation of Section
9605 of Title 42 of the United States Code.
   (D) Where the release is part of a regional or multisite
groundwater contamination problem that cannot, in its entirety, be
addressed using the legal remedies available pursuant to this chapter
and for which other releases that are part of the regional or
multisite groundwater contamination problem are being addressed using
the legal remedies available pursuant to Chapter 6.8 (commencing
with Section 25300).
   (E) Where an order for corrective action has already been issued
against the person responsible for the release, or the department and
the person responsible for the release have, prior to January 1,
1996, entered into an agreement to address the required cleanup of
the release pursuant to Chapter 6.8 (commencing with Section 25300).

   (F) Where the hazardous waste facility is owned or operated by the
federal government.
   (2) The order shall include a requirement that the person take
corrective action with respect to the release of hazardous waste or
constituents, abate the effects thereof, and take any other necessary
remedial action.
   (3) If the order requires corrective action at a hazardous waste
facility, the order shall require that corrective action be taken
beyond the facility boundary, where necessary to protect human health
or the environment.
   (4) The order shall incorporate, as a condition of the order, any
applicable waste discharge requirements issued by the State Water
Resources Control Board or a California regional water quality
control board, and shall be consistent with all applicable water
quality control plans adopted pursuant to Section 13170 of the Water
Code and Article 3 (commencing with Section 13240) of Chapter 4 of
Division 7 of the Water Code and state policies for water quality
control adopted pursuant to Article 3 (commencing with Section 13140)
of Chapter 3 of Division 7 of the Water Code existing at the time of
the issuance of the order, to the extent that the department or
Unified Program Agency determines that those plans and policies are
not less stringent than this chapter and regulations adopted pursuant
to this chapter.  The order may include any more stringent
requirement that the department or Unified Program Agency determines
is necessary or appropriate to protect water quality.
   (5) Persons who are subject to an order pursuant to this
subdivision include present and prior owners, lessees, or operators
of the property where the hazardous waste is located, present or past
generators, storers, treaters, transporters, disposers, and handlers
of hazardous waste, and persons who arrange, or have arranged, by
contract or other agreement, to store, treat, transport, dispose of,
or otherwise handle hazardous waste.
   (6) For purposes of this subdivision, "hazardous waste facility"
includes the entire site that is under the control of an owner or
operator engaged in the management of hazardous waste.
   (c) Any order issued pursuant to this section shall be served by
personal service or certified mail and shall inform the person so
served of the right to a hearing.  If the Unified Program Agency
issues the order pursuant to this section, the order shall state
whether the hearing procedure specified in paragraph (2) of
subdivision (f) may be requested by the person receiving the order.
   (d) Any person served with an order pursuant to this section who
has been unable to resolve any violation or deficiency on an informal
basis with the department or Unified Program Agency may, within 15
days after service of the order, request a hearing pursuant to
subdivision (e) or (f) by filing with the department or Unified
Program Agency a notice of defense.  The notice shall be filed with
the office that issued the order.  A notice of defense shall be
deemed filed within the 15-day period provided by this subdivision if
it is postmarked within that 15-day period.  If no notice of defense
is filed within the time limits provided by this subdivision, the
order shall become final.
   (e) Any hearing requested on an order issued by the department
shall be conducted within 90 days after receipt of the notice of
defense by an administrative law judge of the Office of
Administrative Hearings of the Department of General Services in
accordance with Chapter  4.5 (commencing with Section 11400) of Part
1 of Division 3 of Title 2 of the Government Code, and the department
shall have all the authority granted to an agency by those
provisions.
   (f) Except as provided in subparagraph (B) of paragraph (2), a
person requesting a hearing on an order issued by a unified program
agency may select the hearing process specified in either paragraph
(1) or (2) in the notice of defense filed with the Unified Program
Agency pursuant to subdivision (d).  Within 90 days of receipt of the
notice of defense by the Unified Program Agency, the hearing shall
be conducted using one of the following procedures:
   (1) An administrative law judge of the Office of Administrative
Hearings of the Department of General Services shall conduct the
hearing in accordance with Chapter 4.5 (commencing with Section
11400) of Part 1 of Division 3 of Title 2 of the Government Code.
   (2) (A) A hearing officer designated by the Unified Program Agency
shall conduct the hearing in accordance with Chapter 4.5 (commencing
with Section 11400) of Part 1 of Division 3 of Title 2 of the
Government Code, and the Unified Program Agency shall have all the
authority granted to an agency by those provisions.  When a hearing
is conducted by a unified program agency pursuant to this paragraph,
the Unified Program Agency shall, within 60 days of the hearing,
issue a decision.
   (B) A person requesting a hearing on an order issued by a unified
program agency may select the hearing process specified in this
paragraph in a notice of defense filed pursuant to subdivision (d)
only if the Unified Program Agency has, as of the date the order is
issued pursuant to subdivision (c), selected a designated hearing
officer and established a program for conducting a hearing in
accordance with this paragraph.
   (g) The hearing decision issued pursuant to subdivision (f) shall
be effective and final upon issuance.  Copies of the decision shall
be served by personal service or by certified mail upon the party
served with the order and upon other persons who appeared at the
hearing and requested a copy.
   (h) Any provision of an order issued under  this section, except
the imposition of an administrative penalty, shall take effect upon
issuance by the department or Unified Program Agency if the
department or Unified Program Agency finds that the violation or
violations of law associated with that provision may pose an imminent
and substantial endangerment to the public health or safety or the
environment, and a request for a hearing shall not stay the effect of
that provision of the order pending a hearing decision.  However, if
the department or Unified Program Agency determines that any or all
provisions of the order are so related that the public health or
safety or the environment can be protected only by immediate
compliance with the order as a whole, then the order as a whole,
except the imposition of an administrative penalty, shall take effect
upon issuance by the department or Unified Program Agency.  A
request for a hearing shall not stay the effect of the order as a
whole pending a hearing decision.
   (i) A decision issued pursuant to this section may be reviewed by
the court pursuant to Section 11523 of the Government Code.  In all
proceedings pursuant to this  section, the court shall uphold the
decision of the department or Unified Program Agency if the decision
is based upon substantial evidence in the whole record.  The filing
of a petition for writ of mandate shall not stay any action required
pursuant to this chapter or the accrual of any penalties assessed
pursuant to this chapter.  This subdivision does not prohibit the
court from granting any appropriate relief within its jurisdiction.
   (j) All administrative penalties collected from actions brought by
the department pursuant to this section shall be placed in a
separate subaccount in the Toxic Substances Control Account and shall
be available only for transfer to the Site Remediation Account or
the Expedited Site Remediation Trust Fund and for expenditure by the
department upon appropriation by the Legislature.
   (k) All administrative penalties collected from an action brought
by a unified program agency pursuant to this section shall be paid to
the Unified Program Agency that imposed the penalty, and shall be
deposited into a special account that shall be expended to fund the
activities of the Unified Program Agency in enforcing this chapter
pursuant to Section 25180.
   (l) The authority granted under this section to a unified program
agency is limited to both of the following:
   (1) The issuance of orders to impose penalties and to correct
violations of the requirements of this chapter and its implementing
regulations, only when the violations are violations of requirements
applicable to hazardous waste generators and persons operating
pursuant to a permit-by-rule, conditional authorization, or
conditional exemption, when the violations occur at a unified program
facility within the jurisdiction of the CUPA.
   (2) The issuance of orders to require corrective action when there
has been a release of hazardous waste or constituents only when the
Unified Program Agency is authorized to do so pursuant to Section
25404.1.
   (m) The CUPA shall annually submit a summary report to the
department on the status of orders issued by the unified program
agencies under this section and Section 25187.1.
   (n) The CUPA shall consult with the district attorney for the
county on the development of policies to be followed in exercising
the authority delegated pursuant to this section and Section 25187.1,
as they relate to the authority of unified program agencies to issue
orders.
   (o) The CUPA shall arrange to have appropriate legal
representation in administrative hearings that are conducted by an
administrative law judge of the Office of Administrative Hearings of
the Department of General Services, and when a decision issued
pursuant to this section is appealed to the superior court.
   (p) The department may adopt regulations to implement this section
and paragraph (2) of subdivision (a) of Section 25187.1 as they
relate to the authority of unified program agencies to issue orders.
The regulations shall include, but not be limited to, all of the
following requirements:
   (1) Provisions to ensure coordinated and consistent application of
this section and Section 25187.1 when both the department and the
Unified Program Agency have or will be issuing orders under one or
both of these sections at the same facility.
   (2) Provisions to ensure that the enforcement authority granted to
the unified program agencies will be exercised consistently
throughout the state.
   (3) Minimum training requirements for staff of the Unified Program
Agency relative to this section and Section 25187.1.
   (4) Procedures to be followed by the department to rescind the
authority granted to a unified program agency under this section and
Section 25187.1, if the department finds that the Unified Program
Agency is not exercising that authority in a manner consistent with
this chapter and Chapter 6.11 (commencing with Section 25404) and the
regulations adopted pursuant thereto.
   (q) Except for an enforcement action taken pursuant to this
chapter or Chapter 6.8 (commencing with Section 25300), this section
does not otherwise affect the authority of a local agency to take any
action under any other provision of law.
  SEC. 10.  Section 25262 of the Health and Safety Code is amended to
read:
   25262.  (a) A responsible party for a hazardous materials release
site may request the committee at any time to designate an
administering agency to oversee a site investigation and remedial
action at the site.  The committee shall designate an administering
agency as responsible for the site within 45 days of the date the
request is received.  A request to designate an administering agency
may be denied only if the committee makes one of the following
findings:
   (1) No single agency in state or local government has the
expertise needed to adequately oversee a site investigation and
remedial action at the site.
   (2) Designating an administering agency will have the effect of
reversing a regulatory or enforcement action initiated by an agency
that has jurisdiction over the site, a facility on the site, or an
activity at the site.
   (3) Designating an administering agency will prevent a regulatory
or enforcement action required by federal law or regulations.
   (4) The administering agency and the responsible party are local
agencies formed, in whole or in part, by the same political
subdivision.
   (b) A responsible party who requests the designation of an
administering agency for a hazardous materials release site shall
provide the committee with a brief description of the site, an
analysis of the known or suspected nature of the release or
threatened release that is the subject of required site investigation
or remedial action, a description of the type of facility from which
the release occurred or the type of activity that caused the
release, a specification of the regulatory or enforcement actions
that have been taken, or are pending, with respect to the release,
and a statement of which agency the responsible party believes should
be designated as administering agency for the site.
   (c) (1) The committee shall take all of the following factors into
account in determining which agency to designate as administering
agency for a site:
   (A) The type of release that is the subject of site investigation
and remedial action.
   (B) The nature of the threat that the release poses to human
health and safety or to the environment.
   (C) The source of the release, the type of facility or activity
from which the release occurred, the regulatory programs that govern
the facility or activity involved, and the agency or agencies that
administer those regulatory programs.
   (D) The regulatory history of the site, the types of regulatory
actions or enforcement actions that have been taken with respect to
the site or the facility or activity from which the release occurred,
and the experience and involvement that various agencies have had
with the site.
   (E) The capabilities and expertise of the agencies that are
candidates for designation as the administering agency for the site
and the degree to which those capabilities and that expertise are
applicable to the type of release at the site, the nature of the
threat that the release poses to health and safety or the environment
and the probable remedial measures that will be required.
   (2) After weighing the factors described in paragraph (1) as they
apply to the site, the committee shall use the criteria specified in
subparagraphs (A), (B), (C), and (D) as guidelines for designating
the administering agency.  If more than one of the criteria apply to
the site, the committee shall use its best judgment,
                             taking into account the known facts
concerning the hazardous materials release at the site and its
regulatory history, in determining which agency may best serve as the
administering agency.  The criteria are as follows:
   (A) The administering agency shall be the Department of Toxic
Substances Control if one of the following applies:
   (i) The department has issued an order, or otherwise initiated
action, with respect to the release at the site pursuant to Section
25355, 25355.5, or 25358.3.
   (ii) The department has issued an order for corrective action at
the site pursuant to Section 25187.
   (iii) The source of the release is a facility or hazardous waste
management unit or an activity that is, or was, regulated by the
department pursuant to Chapter 6.5 (commencing with Section 25100).
   (iv) The department is conducting, or has conducted, oversight of
the site investigation and remedial action at the site at the request
of the responsible party.
   (B) The administering agency shall be the California regional
water quality control board for the region in which the site is
located, if one of the following applies:
   (i) The California regional water quality control board has issued
a cease and desist order pursuant to Section 13301, or a cleanup and
abatement order pursuant to Section 13304 of the Water Code in
connection with the release at the site.
   (ii) The source of the release is a facility or an activity that
is subject to waste discharge requirements issued by the California
regional water quality control board pursuant to Section 13263 of the
Water Code or that is regulated by the California regional water
quality control board pursuant to Article 5.5 (commencing with
Section 25159.10) of, or Article 9.5 (commencing with Section 25208)
of, Chapter 6.5, or pursuant to Chapter 6.67 (commencing with Section
25270).
   (iii) The California regional water quality control board has
jurisdiction over the site pursuant to Chapter 5.6 (commencing with
Section 13390) of Division 7 of the Water Code.
   (C) The administering agency shall be the Department of Fish and
Game if the release has polluted or contaminated the waters of the
state and the department has taken action against the responsible
party pursuant to Section 2014 or 12015 of, or Article 1 (commencing
with Section 5650) of Chapter 2 of Part 1 of Division 6 of, the Fish
and Game Code, subsection (f) of Section 107 of the Comprehensive
Environmental Response, Compensation, and Liability Act, as amended,
(42 U.S.C. Sec. 9607 (f)), or Section 311 of the Federal Water
Pollution Act, as amended (33 U.S.C. Sec. 1321).
   (D) The administering agency shall be a local agency if any one of
the following circumstances is applicable:
   (i) The source of the release at the site is an underground
storage tank, as defined in subdivision (y) of Section 25281, the
local agency is the agency described in subdivision (i) of Section
25281, and there is no evidence of any extensive groundwater
contamination at the site.
   (ii) The local agency has accepted responsibility for overseeing
the site investigation or remedial action at the site and a state
agency is not involved.
   (iii) The local agency has agreed to oversee the site
investigation or remedial action at the site and is certified, or has
been approved, by a state agency to conduct that oversight.
   (d) A responsible party for a hazardous materials release site may
request the designation of an administering agency for the site
pursuant to this section only once.  The action of the committee on
the request is a final action and is not subject to further
administrative or judicial review.
  SEC. 11.  Section 25281 of the Health and Safety Code is amended to
read:
   25281.  For purposes of this chapter, the following definitions
apply:
   (a) "Automatic line leak detector" means any method of leak
detection, as determined in regulations adopted by the board, that
alerts the owner or operator of an underground storage tank to the
presence of a leak.  "Automatic line leak detector" includes, but is
not limited to, any device or mechanism that alerts the owner or
operator of an underground storage tank to the presence of a leak by
restricting or shutting off the flow of a hazardous substance through
piping, or by triggering an audible or visual alarm, and that
detects leaks of three gallons or more per hour at 10 pounds per
square inch line pressure within one hour.
   (b) "Board" means the State Water Resources Control Board.
"Regional board" means a California regional water quality control
board.
   (c) "Compatible" means the ability of two or more substances to
maintain their respective physical and chemical properties upon
contact with one another for the design life of the tank system under
conditions likely to be encountered in the tank system.
   (d) (1) "Certified Unified Program Agency" or "CUPA" means the
agency certified by the Secretary for Environmental Protection to
implement the unified program specified in Chapter 6.11 (commencing
with Section 25404) within a jurisdiction.
   (2) "Participating Agency" or "PA" means an agency that has a
written agreement with the CUPA pursuant to subdivision (d) of
Section 25404.3, and is approved by the secretary to implement or
enforce the unified program element specified in paragraph (3) of
subdivision (c) of Section 25404, in accordance with Sections 25404.1
and 25404.2.
   (3) "Unified Program Agency" or "UPA" means the CUPA, or its
participating agencies to the extent each PA has been designated by
the CUPA, pursuant to a written agreement, to implement or enforce
the unified program element specified in paragraph (3) of subdivision
(c) of Section 25404.  For purposes of this chapter, a UPA has the
responsibility and authority, to the extent provided by this chapter
and Sections 25404.1 and 25404.2, to implement and enforce only those
requirements of this chapter listed in paragraph (3) of subdivision
(c) of Section 25404 and the regulations adopted to implement those
requirements.  After a CUPA has been certified by the secretary, the
UPA shall be the only local agency authorized to enforce the
requirements of this chapter listed in paragraph (3) of subdivision
(c) of Section 25404 within the jurisdiction of the CUPA.  This
paragraph shall not be construed to limit the authority or
responsibility granted to the board and the regional boards by this
chapter to implement and enforce this chapter and the regulations
adopted pursuant to this chapter.
   (e) "Department" means the Department of Toxic Substances Control.

   (f) "Facility" means any one, or combination of, underground
storage tanks used by a single business entity at a single location
or site.
   (g) "Federal act" means Subchapter IX (commencing with Section
6991) of Chapter 82 of Title 42 of the United States Code, as added
by the Hazardous and Solid Waste Amendments of 1984 (P.L. 98-616), or
as it may subsequently be amended or supplemented.
   (h) "Hazardous substance" means either of the following:
   (1)  All of the following liquid and solid substances, unless the
department, in consultation with the board, determines that the
substance could not adversely affect the quality of the waters of the
state:
   (A) Substances on the list prepared by the Director of Industrial
Relations pursuant to Section 6382 of the Labor Code.
   (B) Hazardous substances, as defined in Section 25316.
   (C) Any substance or material that is classified by the National
Fire Protection Association (NFPA) as a flammable liquid, a class II
combustible liquid, or a class III-A combustible liquid.
   (2) Any regulated substance, as defined in subsection (2) of
Section 6991 of Title 42 of the United States Code, as that section
reads on January 1, 1989, or as it may subsequently be amended or
supplemented.
   (i) "Local agency" means the local agency authorized, pursuant to
Section 25283, to implement this chapter.
   (j) "Operator" means any person in control of, or having daily
responsibility for, the daily operation of an underground storage
tank system.
   (k) "Owner" means the owner of an underground storage tank.
   (l) "Person" means an individual, trust, firm, joint stock
company, corporation, including a government corporation,
partnership, limited liability company, or association.  "Person"
also includes any city, county, district, the state, another state of
the United States, any department or agency of this state or another
state, or the United States to the extent authorized by federal law.

   (m) "Pipe" means any pipeline or system of pipelines that is used
in connection with the storage of hazardous substances and that is
not intended to transport hazardous substances in interstate or
intrastate commerce or to transfer hazardous materials in bulk to or
from a marine vessel.
   (n) "Primary containment" means the first level of containment,
such as the portion of a tank that comes into immediate contact on
its inner surface with the hazardous substance being contained.
   (o) "Product tight" means impervious to the substance that is
contained, or is to be contained, so as to prevent the seepage of the
substance from the containment.
   (p) "Release" means any spilling, leaking, emitting, discharging,
escaping, leaching, or disposing from an underground storage tank
into or on the waters of the state, the land, or the subsurface
soils.
   (q) "Secondary containment" means the level of containment
external to, and separate from, the primary containment.
   (r) "Single walled" means construction with walls made of only one
thickness of material.  For the purposes of this chapter, laminated,
coated, or clad materials are considered single walled.
   (s) "Special inspector" means a professional engineer, registered
pursuant to Chapter 7 (commencing with Section 6700) of Division 3 of
the Business and Professions Code, who is qualified to attest, at a
minimum, to structural soundness, seismic safety, the compatibility
of construction materials with contents, cathodic protection, and the
mechanical compatibility of the structural elements of underground
storage tanks.
   (t) "Storage" or "store" means the containment, handling, or
treatment of hazardous substances, either on a temporary basis or for
a period of years.  "Storage" or "store" does not include the
storage of hazardous wastes in an underground storage tank if the
person operating the tank has been issued a hazardous waste
facilities permit by the department pursuant to Section 25200 or
granted interim status under Section 25200.5.
   (u) "Tank" means a stationary device designed to contain an
accumulation of hazardous substances which is constructed primarily
of nonearthen materials, including, but not limited to, wood,
concrete, steel, or plastic that provides structural support.
   (v) "Tank integrity test" means a test method capable of detecting
an unauthorized release from an underground storage tank consistent
with the minimum standards adopted by the board.
   (w) "Tank tester" means an individual who performs tank integrity
tests on underground storage tanks.
   (x) "Unauthorized release" means any release of any hazardous
substance that does not conform to this chapter, including, but not
limited to, an unauthorized release specified in Section 25295.5,
unless this release is authorized by the board or a regional board
pursuant to Division 7 (commencing with Section 13000) of the Water
Code.
   (y) (1) "Underground storage tank" means any one or combination of
tanks, including pipes connected thereto, that is used for the
storage of hazardous substances and that is substantially or totally
beneath the surface of the ground.  "Underground storage tank" does
not include any of the following:
   (A) A tank with a capacity of 1,100 gallons or less that is
located on a farm and that stores motor vehicle fuel used primarily
for agricultural purposes and not for resale.
   (B) A tank that is located on a farm or at the residence of a
person, that has a capacity of 1,100 gallons or less, and that stores
home heating oil for consumptive use on the premises where stored.
   (C) Structures, such as sumps, separators, storm drains, catch
basins, oil field gathering lines, refinery pipelines, lagoons,
evaporation ponds, well cellars, separation sumps, lined and unlined
pits, sumps and lagoons. A sump that is a part of a monitoring system
required under Section 25290.1, 25291, or 25292 and sumps or other
structures defined as underground storage tanks under the federal act
are not exempted by this subparagraph.
   (D) A tank holding hydraulic fluid for a closed loop mechanical
system that uses compressed air or hydraulic fluid to operate lifts,
elevators, and other similar devices.
   (2) Structures identified in subparagraphs (C) and (D) of
paragraph (1) may be regulated by the board and any regional board
pursuant to the Porter-Cologne Water Quality Control Act (Division 7
(commencing with Section 13000) of the Water Code) to ensure that
they do not pose a threat to water quality.
   (z) "Underground tank system" or "tank system" means an
underground storage tank, connected piping, ancillary equipment, and
containment system, if any.
   (aa) (1) "Unified program facility" means all contiguous land and
structures, other appurtenances, and improvements on the land that
are subject to the requirements of paragraph (3) of subdivision (c)
of Section 25404.
   (2) "Unified program facility permit" means a permit issued
pursuant to Chapter 6.11 (commencing with Section 25404), and that
encompasses the permitting requirements of Section 25284.
   (3) "Permit" means a permit issued pursuant to Section 25284 or a
unified program facility permit as defined in paragraph (2).
  SEC. 12.  Section 25281.5 of the Health and Safety Code is amended
to read:
   25281.5.  (a) Notwithstanding subdivision (m) of Section 25281,
for purposes of this chapter "pipe" means all parts of any pipeline
or system of pipelines, used in connection with the storage of
hazardous substances, including, but not limited to, valves and other
appurtenances connected to the pipe, pumping units, fabricated
assemblies associated with pumping units, and metering and delivery
stations and fabricated assemblies therein, but does not include any
of the following:
   (1) An interstate pipeline subject to Part 195 (commencing with
Section 195.0) of Subchapter D of Chapter 1 of Title 49 of the Code
of Federal Regulations.
   (2) An intrastate pipeline subject to Chapter 5.5 (commencing with
Section 51010) of Part 1 of Division 1 of Title 5 of the Government
Code.
   (3) Unburied delivery hoses, vapor recovery hoses, and nozzles
that are subject to unobstructed visual inspection for leakage.
   (4) Vent lines, vapor recovery lines, and fill pipes which are
designed to prevent, and do not hold, standing fluid in the pipes or
lines.
   (b) In addition to the exclusions specified in subdivision (y) of
Section 25281, "underground storage tank" does not include any of the
following:
   (1) Vent lines, vapor recovery lines, and fill pipes that are
designed to prevent, and do not hold, standing fluid in the pipes or
lines.
   (2) Unburied fuel delivery piping at marinas if the owner or
operator conducts daily visual inspections of the piping and
maintains a log of inspection results for review by the local agency.
  The exclusion provided by this paragraph shall not be applicable if
the board adopts regulations pursuant to Section 25299.3 that
address the design, construction, upgrade, and monitoring of unburied
fuel delivery piping at marinas.
   (3) Unburied fuel piping connected to an emergency generator tank
system, if the owner or operator conducts visual inspections of the
piping each time the tank system is operated, but no less than
monthly, and maintains a log of inspection results for review by the
local agency.  The exclusion provided by this paragraph does not
apply if the board adopts regulations pursuant to Section 25299.3
that address the design, construction, upgrade, and monitoring of
unburied fuel supply and return piping connected to emergency
generator tank systems.
   (c) For purposes of this chapter, "emergency generator tank system"
means an underground storage tank system that provides power supply
in the event of a commercial power failure, stores diesel fuel, and
is used solely in connection with an emergency system, legally
required standby system, or optional standby system, as defined in
Articles 700, 701, and 702 of the National Electrical Code of the
National Fire Protection Association.
  SEC. 13.  Section 25284 of the Health and Safety Code is amended to
read:
   25284.  (a) (1) Except as provided in subdivision (c), no person
may own or operate an underground storage tank unless a permit for
its operation has been issued by the local agency to the owner or
operator of the tank, or a unified program facility permit has been
issued by the local agency to the owner or operator of the unified
program facility on which the tank is located.
   (2) If the operator is not the owner of the tank, or if the permit
is issued to a person other than the owner or operator of the tank,
the permittee shall ensure that both the owner and the operator of
the tank are provided with a copy of the permit.
   (3) If the permit is issued to a person other than the operator of
the tank, that person shall do all of the following:
   (A) Enter into a written agreement with the operator of the tank
to monitor the tank system as set forth in the permit.
   (B) Provide the operator with a copy or summary of Section 25299
in the form that the board specifies by regulation.
   (C) Notify the local agency of any change of operator.
   (b) Each local agency shall prepare a form that provides for the
acceptance of the obligations of a transferred permit by any person
who is to assume the ownership of an underground storage tank from
the previous owner and is to be transferred the permit to operate the
tank.  That person shall complete the form accepting the obligations
of the permit and submit the completed form to the local agency
within 30 days from the date that the ownership of the underground
storage tank is to be transferred.  A local agency may review and
modify, or terminate, the transfer of the permit to operate the
underground storage tank, pursuant to the criteria specified in
subdivision (a) of Section 25295, upon receiving the completed form.

   (c) Any person assuming ownership of an underground storage tank
used for the storage of hazardous substances for which a valid
operating permit has been issued shall have 30 days from the date of
assumption of ownership to apply for an operating permit pursuant to
Section 25286 or, if accepting a transferred permit, shall submit to
the local agency the completed form accepting the obligations of the
transferred permit, as specified in subdivision (b).  During the
period from the date of application until the permit is issued or
refused, the person shall not be held to be in violation of this
section.
   (d) A permit issued pursuant to this section shall apply and
require compliance with all applicable regulations adopted by the
board pursuant to Section 25299.3.
  SEC. 14.  Section 25284.1 of the Health and Safety Code is amended
to read:
   25284.1.  (a) The board shall take all of the following actions
with regard to the prevention of unauthorized releases from petroleum
underground storage tanks:
   (1) On or before June 1, 2000, initiate a field-based research
program to quantify the probability and environmental significance of
releases from underground storage tank systems meeting the 1998
upgrade requirements specified in Section 25284, as that section read
on January 1, 2002.  The research program shall do all of the
following:
   (A) Seek to identify the source and causes of releases and any
deficiencies in leak detection systems.
   (B) Include single-walled, double-walled, and hybrid tank systems,
and avoid bias towards known leaking underground storage tank
systems by including a statistically valid sample of all operating
underground storage tank systems.
   (C) Include peer review.
   (2) Complete the research program on or before June 1, 2002.
   (3) Use the results of the research program to develop appropriate
changes in design, construction, monitoring, operation, and
maintenance requirements for tank systems.
   (4) On or before  January 1, 2001, adopt regulations to do all of
the following:
   (A) (i) Require underground storage tank owners, operators,
service technicians, installers, and inspectors to meet minimum
industry-established training standards and require tank facilities
to be operated in a manner consistent with industry-established best
management practices.
   (ii) The board shall implement an outreach effort to educate small
business owners or operators on the importance of the regulations
adopted pursuant to this subparagraph.
   (B) (i) Except as provided in clauses (ii) and (iii), require
testing of the secondary containment components, including
under-dispenser and pump turbine containment components, upon initial
installation of a secondary containment component and periodically
thereafter, to ensure that the system is capable of containing
releases from the primary containment until a release is detected and
cleaned up.  The board shall consult with the petroleum industry and
local government to assess the appropriate test or tests that would
comply with this subparagraph.
   (ii) Secondary containment components that are part of an
emergency generator tank system may be tested using enhanced leak
detection, if the test is performed at the frequency specified by the
board for testing of secondary containment pursuant to Section
2644.1 of Title 23 of the California Code of Regulations.  If the
results of the enhanced leak detection test indicate that any
component of the emergency generator tank system is leaking liquid or
vapor, the owner or operator shall take appropriate actions to
correct the leakage, and the owner or operator shall retest the
system using enhanced leak detection until the system is no longer
leaking liquid or vapor.
   (iii) Any tank or piping that is part of an emergency generator
tank system and located within a structure as described in paragraph
(2) of subdivision (a) of Section 25283.5 is exempt from the
secondary containment testing required by clause (i) of subparagraph
(B) of paragraph (4), if the owner or operator conducts visual
inspections of tank or piping each time the tank system is operated,
but no less than monthly, and maintains a log of inspection results
for review by the local agency.  The provisions of this clause are
not applicable if the board adopts regulations pursuant to Section
25299.3 that address the design, construction, upgrade, and
monitoring of unburied tanks that are part of an emergency generator
tank system.
   (C) Require annual testing of release detection sensors and
alarms, including under-dispenser and pump turbine containment
sensors and alarms.  The board shall consult with the petroleum
industry and local government to assess the appropriate test or tests
that would comply with this subparagraph.
   (5) (A) Require an owner or operator of an underground storage
tank installed after July 1, 1987, if a tank is located within 1,000
feet of a public drinking water well, as identified pursuant to the
state GIS mapping database, to have the underground storage tank
system fitted, on or before July 1, 2001, with under-dispenser
containment or a spill containment or control system that is approved
by the board as capable of containing any accidental release.
   (B) Require all underground storage tanks installed after January
1, 2000, to have the tank system fitted with under-dispenser
containment or a spill containment or control system to meet the
requirements of subparagraph (A).
   (C) Require an owner or operator of an underground storage tank
that is not otherwise subject to subparagraph (A), and not subject to
subparagraph (B), to have the underground storage tank system fitted
to meet the requirements of subparagraph (A), on or before December
31, 2003.
   (D) On and after January 1, 2002, no person shall install, repair,
maintain, or calibrate monitoring equipment for an underground
storage tank unless that person satisfies both of the following
requirements:
   (i) The person has fulfilled training standards identified by the
board in regulations adopted pursuant to this section.
   (ii) The person possesses a tank testing license issued by the
board pursuant to Section 25284.4, or a Class "A" General Engineering
Contractor License, C-10 Electrical Contractor License, C-34
Pipeline Contractor License, C-36 Plumbing Contractor License, or
C-61 (D40) Limited Specialty Service Station Equipment and
Maintenance Contractor License issued by the Contractors\' State
License Board.
   (E) Loans and grants for the installation of under-dispenser
containment or a spill containment or control system shall be made
available pursuant to Chapter 8.5 (commencing with Section 15399.10)
of Part 6.7 of Division 3 of Title 2 of the Government Code.
   (6) Convene a panel of local agency and regional board
representatives to review existing enforcement authority and
procedures and to advise the board of any changes that are needed to
enable local agencies to take adequate enforcement action against
owners and operators of noncompliant underground storage tank
facilities.  The panel shall make its recommendations to the board on
or before September 30, 2001.  Based on the recommendations of the
panel, the board shall also establish effective enforcement
procedures in cases involving fraud.
   (b) On or before July 1, 2001, the Contractors\' State License
Board, in consultation with the board, the petroleum industry, air
pollution control districts, air quality management districts, and
local government, shall review its requirements for petroleum
underground storage tank system installation and removal contractors
and make changes, where appropriate, to ensure these contractors are
qualified.
  SEC. 15.  Section 25284.2 is added to the Health and Safety Code,
to read:
   25284.2.  The owner or operator of an underground storage tank
with a spill containment structure designed to prevent a release in
the event of a spill or overfill while a hazardous substance is being
placed in the tank shall annually test the spill containment
structure to demonstrate that it is capable of containing the
substance until it is detected and cleaned up.
                               SEC. 16.  Section 25284.4 of the
Health and Safety Code is amended to read:
   25284.4.  (a) All tank integrity tests required by this chapter or
pursuant to any local ordinance in compliance with Section 25299.1
shall be performed only by, or under the direct and personal
supervision of, a tank tester with a currently valid tank testing
license issued pursuant to this section.  No person shall engage in
the business of tank integrity testing, or act in the capacity of a
tank tester, within this state without first obtaining a tank testing
license from the board.  Any person who violates this subdivision is
guilty of a misdemeanor and may be subject to civil liability
pursuant to subdivision (g).
   (b) Any person proposing to conduct tank integrity testing within
the state shall apply to the board for a tank testing license, and
shall pay the appropriate fee established by the board.  A license
issued pursuant to this section shall expire three years after the
date of issuance and shall be subject to renewal, except as specified
in this section.  If the tank tester fails to renew the tank tester\'
s license within three years of the license's expiration date, the
license shall lapse and the person shall apply for a new tank testing
license and shall meet the same requirements of this section for a
new applicant.  A tank tester shall pay a fee to the board at the
time of licensing and at the time of renewal.  The board shall adopt
a fee schedule for the issuance and renewal of tank testing licenses
to cover the necessary and reasonable costs of administering and
enforcing this section.
   (c) (1) The board may establish any additional qualifications and
standards for the licensing of tank testers.  Each applicant for
licensing as a tank tester shall pass an examination specified by the
board and shall have completed a minimum of either of the following:

   (A) One year of qualifying field experience by personally testing
a number of underground storage tanks specified by the board.
   (B) Completed six months of field experience by personally testing
a number of underground storage tanks specified by the board and
have successfully completed a course of study applicable to tank
testing that is satisfactory to the board.
   (2) The examination required by paragraph (1) shall, at a minimum,
test the applicant's knowledge of all of the following:
   (A) General principles of tank and pipeline testing.
   (B) Basic understanding of the mathematics relating to tank
testing.
   (C) Understanding of the specific test procedures, principles, and
equipment for which the tank tester will be qualified to operate.
   (D) Knowledge of the regulations and laws governing the regulation
of underground storage tanks.
   (E) Proper safety procedures.
   (d) The board shall maintain a current list of all persons
licensed pursuant to this section, including a record of enforcement
actions taken against these persons.  This list shall be made
available to local agencies and the public on request.
   (e) A tank tester may be liable civilly in accordance with
subdivision (g) and, in addition, may be subject to administrative
sanctions pursuant to subdivision  (f) for performing or causing
another to perform, any of the following actions:
   (1) Willfully or negligently violating, or causing, or allowing
the violation of, this chapter or any regulations adopted pursuant to
this chapter.
   (2) Willfully or negligently failing to exercise direct and
personal control over an unlicensed employee, associate, assistant,
or agent during any phase of tank integrity testing.
   (3) Without regard to intent or negligence, using or permitting a
licensed or unlicensed employee, associate, assistant, or agent to
use any method or equipment that is demonstrated to be unsafe or
unreliable for tank integrity testing.
   (4) Submitting false or misleading information on an application
for license.
   (5) Using fraud or deception in the course of doing business as a
tank tester.
   (6) Failing to use reasonable care, or judgment, while performing
tank integrity tests.
   (7) Failing to maintain competence in approved tank testing
procedures.
   (8) Failing to use proper tests or testing equipment to conduct
tank integrity tests.
   (9) Any other action that the board may, by regulation, prescribe.

   (f) (1) The board may suspend the license of a tank tester for a
period of up to one year, and may revoke, or refuse to grant or
renew, a license and may place on probation, or reprimand, the
licensee upon any reasonable ground, including, but not limited to,
those violations specified in subdivision (e).  The board may
investigate any licensed tank tester after receiving a written
request from a local agency.
   (2) The board shall notify the tank tester of any alleged
violations and of proposed sanctions, before taking any action
pursuant to this subdivision.  The tank tester may request a hearing,
or submit a written response within 30 days of the date of notice.
Any hearing conducted pursuant to this subdivision shall be conducted
in accordance with the hearing procedure specified in subdivision
(g).  After the hearing, or at a time after the 30-day response
period, the board may impose the appropriate administrative sanctions
authorized by this subdivision if it finds that the tank tester has
committed any of the alleged violations specified in the notice.
   (g) (1) The board may impose civil liability for a violation of
subdivision (a) or (e) in accordance with Article 2.5 (commencing
with Section 13323) of Chapter 5 of Division 7 of the Water Code, in
an amount that shall not exceed five hundred dollars ($500) for each
day in which the violation occurs, except that the chief of the
division of water quality of the board or any other person designated
by the board shall issue the complaint to the violator.  The
complaint shall be issued based on information developed by board
staff or local agencies.  Any hearing on the complaint shall be made
before the board, or a panel thereof, consisting of one or more board
members.  The decision of the board shall be final upon issuance and
may be reviewed pursuant to Article 3 (commencing with Section
13330) of Chapter 5 of Division 7 of the Water Code within 30 days
following issuance of the order.
   (2) Civil liability for a violation of subdivision (a) or (e) may
be imposed by a superior court at the request of the board in an
amount which shall not exceed two thousand five hundred dollars
($2,500) for each day in which the violation occurs.
   (h) Any fees or civil liability collected pursuant to this section
shall be deposited in the Underground Storage Tank Tester Account
which is hereby created in the General Fund.  The money in this
account is available for expenditure by the board, upon appropriation
by the Legislature, for purposes of implementing the tank tester
licensing program established by this section and for repayment of
the loan made by Section 13 of Chapter 1372 of the Statutes of 1987.

   (i) A tank tester who conducts or supervises a tank or piping
integrity test shall prepare a report detailing the results of the
tank test and shall maintain a record of the report for at least
three years, or as otherwise required by the board.  The tank tester
shall type or print his or her name and include his or her license
number on the report and shall endorse the report under penalty of
perjury by original signature.
  SEC. 17.  Section 25288 of the Health and Safety Code is amended to
read:
   25288.  (a) The local agency shall inspect every underground tank
system within its jurisdiction at least once every  year.  The
purpose of the inspection is to determine whether the tank system
complies with the applicable requirements of this chapter and the
regulations adopted by the board pursuant to Section 25299.3,
including the design and construction standards of Section 25290.1,
25291, or 25292, whichever is applicable, whether the operator has
monitored and tested the tank system as required by the permit, and
whether the tank system is in a safe operating condition.
   (b) After an inspection conducted pursuant to subdivision (a), the
local agency shall prepare a compliance report detailing the
inspection and shall send a copy of this report to the permitholder
and the owner or operator, if the owner or operator is not the
permitholder.  Any report prepared pursuant to this section shall be
consolidated into any other inspection reports required pursuant to
Chapter 6.11 (commencing with Section 25404), the requirements listed
in subdivision (c) of Section 25404, and the regulations adopted to
implement the requirements listed in subdivision (c) of Section
25404.
   (c) In lieu of the annual local agency inspections, the local
agency may require the permitholder to employ a special inspector to
conduct the annual inspection.  The local agency shall supply the
permitholder with a list of at least three special inspectors that
are qualified to conduct the inspection.  The permitholder shall
employ a special inspector from the list provided by the local
agency.  The special inspector's authority shall be the same as that
of the local agency as set forth in subdivision (a).
   (d) Within 60 days after receiving a compliance report or special
inspection report prepared in accordance with subdivision (b) or (c),
respectively, the permitholder shall file with the local agency a
plan to implement all recommendations contained in the compliance
report or shall demonstrate, to the satisfaction of the local agency,
why these recommendations should not be implemented.  Any corrective
action conducted pursuant to the recommendations in the report shall
be taken pursuant to Sections 25296.10 and 25299.36.
  SEC. 18.  Section 25290.1 is added to the Health and Safety Code,
to read:
   25290.1.  (a) Notwithstanding subdivision (o) of Section 25281,
for purposes of this section, "product tight" means impervious to the
liquid and vapor of the substance that is contained, or is to be
contained, so as to prevent the seepage of the substance from the
containment.
   (b) Notwithstanding Section 25291, every underground storage tank
installed on or after July 1, 2003, shall meet the requirements of
this section.
   (c) The underground storage tank shall be designed and constructed
to provide primary and secondary levels of containment of the
hazardous substances stored in it in accordance with the following
performance standards:
   (1) Primary containment shall be product tight and compatible with
stored product.
   (2) Secondary containment shall be product tight and constructed
to prevent structural weakening as a result of contact with any
hazardous substances released from the primary containment, and also
shall be capable of storing the hazardous substances for the maximum
anticipated period of time necessary for the recovery of any released
hazardous substance.
   (3) Secondary containment shall be constructed to prevent any
water intrusion into the system by precipitation, infiltration, or
surface runoff.
   (4) In the case of an installation with one primary tank, the
secondary containment shall be large enough to contain at least 100
percent of the volume of the primary tank.
   (5) In the case of multiple primary tanks, the secondary
containment shall be large enough to contain 150 percent of the
volume of the largest primary tank placed in it, or 10 percent of the
aggregate internal volume of all primary tanks, whichever is
greater.
   (d) The underground tank system shall be designed and constructed
with a continuous monitoring system capable of detecting the entry of
the liquid- or vapor-phase of the hazardous substance stored in the
primary containment into the secondary containment and capable of
detecting water intrusion into the secondary containment.
   (e) The interstitial space of the underground storage tank shall
be maintained under constant vacuum or pressure such that a breach in
the primary or secondary containment is detected before the liquid-
or vapor-phase of the hazardous substance stored in the underground
storage tank is released into the environment.  The use of
interstitial liquid level measurement methods satisfies the
requirements of this subdivision.
   (f) The underground storage tank shall be provided with equipment
to prevent spills and overfills from the primary tank.
   (g) If different substances are stored in the same tank and in
combination may cause a fire or explosion, or the production of
flammable, toxic, or poisonous gas, or the deterioration of a primary
or secondary container, those substances shall be separated in both
the primary and secondary containment so as to avoid potential
intermixing.
   (h) Underground pressurized piping that conveys a hazardous
substance shall be equipped with an automatic line leak detector.
   (i) Before the underground storage tank is covered, enclosed, or
placed in use, the standard installation testing requirements for
underground storage systems specified in Section 2.4 of the Flammable
and Combustible Liquids Code, adopted by the National Fire
Protection Association (NFPA 30), as amended and published in the
respective edition of the Uniform Fire Code, shall be followed.
   (j) Before the underground storage tank is placed in use, the
underground storage tank shall be tested after installation using one
of the following methods to demonstrate that the tank is product
tight:
   (1) Enhanced leak detection.
   (2) An inert gas pressure test that has been certified by a third
party and approved by the board.
   (3) A test method deemed equivalent to enhanced leak detection or
an inert gas pressure test by the board in regulations adopted
pursuant to this chapter.  An underground storage tank installed and
tested in accordance with this subdivision is exempt from the
requirements of Section 25292.5.
   (k) Notwithstanding Section 25281.5, for any system installed to
meet the requirements of this section, those portions of vent lines,
vapor recovery lines, and fill pipes that are beneath the surface of
the ground are "pipe" as the term is defined in subdivision (m) of
Section 25281, and therefore part of the underground storage tank
system.
  SEC. 18.5.  Section 25291 of the Health and Safety Code is amended
to read:
   25291.  Every underground storage tank installed after January 1,
1984, shall meet all of the following requirements:
   (a) The underground storage tank shall be designed and constructed
to provide primary and secondary levels of containment of the
hazardous substances stored in it in accordance with the following
performance standards:
   (1) Primary containment shall be product-tight and compatible with
the substance stored.
   (2) Secondary containment shall be constructed to prevent
structural weakening as a result of contact with any released
hazardous substances, and also shall be capable of storing the
hazardous substances for the maximum anticipated period of time
necessary for the recovery of any released hazardous substance.
   (3) In the case of an installation with one primary container, the
secondary containment shall be large enough to contain at least 100
percent of the volume of the primary tank.
   (4) In the case of multiple primary tanks, the secondary container
shall be large enough to contain 150 percent of the volume of the
largest primary tank placed in it, or 10 percent of the aggregate
internal volume of all primary tanks, whichever is greater.
   (5) If the facility is open to rainfall, then the secondary
containment shall be able to additionally accommodate the maximum
volume of a 24-hour rainfall as determined by a 25-year storm
history.
   (6) Single-walled containers do not fulfill the requirement of an
underground storage tank providing both a primary and a secondary
containment.  However, an underground storage tank with a primary
container constructed with a double complete shell shall be deemed to
have met the requirements for primary and secondary containment set
forth in this section if all of the following criteria are met:
   (A) The outer shell is constructed primarily of nonearthen
materials, including, but not limited to, concrete, steel, and
plastic, which provide structural support and a continuous leak
detection system with alarm is located in the space between the
shells.
   (B) The system is capable of detecting the entry of hazardous
substances from the inner container into the space.
   (C) The system is capable of detecting water intrusion into the
space from the outer shell.
   (7) Underground storage tanks for motor vehicle fuels installed
before January 1, 1997, may be designed and constructed in accordance
with this paragraph in lieu of the requirements of paragraphs (1) to
(6), inclusive, if all of the following conditions exist:
   (A) The primary containment construction is of glass fiber
reinforced plastic, cathodically protected steel, or steel clad with
glass fiber reinforced plastic.
   (B) Any alternative primary containment is installed in
conjunction with a system that will intercept and direct a leak from
any part of the underground storage tank to a monitoring well to
detect any release of motor vehicle fuels.
   (C) The system is designed to provide early leak detection and
response, and to protect the groundwater from releases.
   (D) The monitoring is in accordance with the alternative method
identified in paragraph (4) of subdivision (b) of Section 25292.
This subparagraph does not apply to tanks designed, constructed, and
monitored in accordance with paragraph (6).
   (E) Pressurized piping systems connected to tanks used for the
storage of motor vehicle fuels and monitored in accordance with
paragraph (4) of subdivision (b) of Section 25292 also meet the
conditions of this subdivision if the tank meets the conditions of
subparagraphs (A) to (D), inclusive.  However, any pipe connected to
an underground storage tank installed after July 1, 1987, shall be
equipped with secondary containment that complies with paragraphs (1)
to (6), inclusive.
   (b) The underground tank system shall be designed and constructed
with a monitoring system capable of detecting the entry of the
hazardous substance stored in the primary containment into the
secondary containment.
   (c) The underground storage tank shall be provided with equipment
to prevent spills and overflows from the primary tank.
   (d) If different substances are stored in the same tank and in
combination may cause a fire or explosion, or the production of
flammable, toxic, or poisonous  gas, or the deterioration of a
primary or secondary container, those substances shall be separated
in both the primary and secondary containment to avoid potential
intermixing.
   (e) If water could enter into the secondary containment by
precipitation or infiltration, the facility shall contain a means of
monitoring for water intrusion and for removing the water by the
owner or operator.  This removal system shall also prevent
uncontrolled removal of this water and provide for a means of
analyzing the removed water for hazardous substance contamination and
a means of disposing of the water, if so contaminated, at an
authorized disposal facility.
   (f) Underground pressurized piping that conveys a hazardous
substance shall be equipped with an automatic line leak detector and
shall be tightness tested annually.
   (g) Before the underground storage tank is covered, enclosed, or
placed in use, the standard installation testing for requirements for
underground storage systems specified in Section 2-7 of the
Flammable and Combustible Liquids Code, adopted by the National Fire
Protection Association, (NFPA 30) as amended and published in the
respective edition of the Uniform Fire Code, shall be followed.
   (h) Before the underground storage tank is placed in service, the
underground tank system shall be tested in operating condition using
a tank integrity test.
   (i) If the underground storage tank is designed to maintain a
water level in the secondary containment, the tank shall be equipped
with a safe method of removing any excess water to a holding facility
and the owner or operator shall inspect the holding facility monthly
for the presence of excess water overflow.  If excess water is
present in the holding facility, the permitholder shall provide a
means to analyze the water for hazardous substance contamination and
a means to dispose of the water, if so contaminated, at an authorized
disposal facility.
  SEC. 19.  Section 25292.3 of the Health and Safety Code is
repealed.
  SEC. 20.  Section 25292.3 is added to the Health and Safety Code,
to read:
   25292.3.  (a) Upon the discovery of a significant violation of any
requirement in this chapter that poses an imminent threat to human
health or safety or the environment or of any regulation adopted
pursuant to this chapter, the local agency may affix a red tag, in
plain view, to the fill pipe of the noncompliant underground storage
tank system in order to provide notice that delivery of petroleum
into the system is prohibited.
   (b) Upon the discovery of a significant violation of any
requirement in this chapter or of any regulation adopted pursuant to
this chapter, the local agency may issue a notice of significant
violation to the owner or operator.  The owner or operator who
receives a notice of significant violation shall, within seven days
from receipt of the notice, correct the violation to the satisfaction
of the local agency.  If the owner or operator does not correct the
violation within seven days, the local agency may affix a red tag, in
plain view, to the fill pipe of the noncompliant underground storage
tank system to provide notice that delivery of petroleum into the
system is prohibited.
   (c) No owner or operator of a facility may deposit or allow the
deposit of petroleum into an underground storage tank system that has
a red tag affixed to the system's fill pipe.
   (d) No person may deposit petroleum into an underground storage
tank system that has a red tag affixed to its fill pipe.
   (e) No person shall remove, deface, alter, or otherwise tamper
with a red tag so that the information contained on the tag is not
legible.
   (f) Upon notification by the owner or operator that the violation
has been corrected, the local agency shall inspect the underground
storage tank system within five days to determine whether the system
continues to be in significant violation.  If the local agency
determines that the system is no longer in significant violation, the
local agency shall immediately remove the red tag.
   (g) The board shall adopt regulations to define significant
violations for purposes of this section.
  SEC. 21.  Section 25292.4 of the Health and Safety Code is amended
to read:
   25292.4.  (a) On and after November 1, 2000, an owner or operator
of an underground storage tank system with a single-walled component
that is located within 1,000 feet of a public drinking water well, as
identified pursuant to the state GIS mapping database, shall
implement a program of enhanced leak detection or monitoring, in
accordance with the regulations adopted by the board pursuant to
subdivision (c).
   (b) The board shall notify the owner and operator of each
underground storage tank system that is located within 1,000 feet of
a public drinking water well, as identified pursuant to the state GIS
mapping database, of the owner's and operator's responsibilities
pursuant to this section.  The board shall provide each local agency
with a list of tank systems within the local agency's jurisdiction
that are located within 1,000 feet of a public drinking water well,
as identified pursuant to the state GIS mapping database.
   (c) The board shall adopt regulations to implement the enhanced
leak detection and monitoring program required by subdivision (a).
Before adopting these regulations, the board shall consult with the
petroleum industry, local governments, environmental groups, and
other interested parties to assess the appropriate technology and
procedures to implement the enhanced leak detection and monitoring
program required by subdivision (a).  In adopting these regulations,
the board shall consider existing leak detection technology and
external monitoring techniques or procedures for underground storage
tanks.
   (d) If the results of the enhanced leak detection test indicate
that any component of the underground storage tank system is leaking
liquid or vapor, the owner or operator shall take appropriate actions
to correct the leakage, and the owner or operator shall retest the
system using enhanced leak detection until the system is no longer
leaking liquid or vapor.
  SEC. 22.  Section 25292.5 is added to the Health and Safety Code,
to read:
   25292.5.  (a) On or before January 1, 2005, the owner or operator
of an underground storage tank system that is located within 1,000
feet of a public drinking water well, as identified pursuant to the
state GIS mapping database, and that is not otherwise subject to
subdivision (j) of Section 25290.1 or Section 25292.4, shall test the
system once using an enhanced leak detection test.  The enhanced
leak detection test shall meet the requirements of subsection (e) of
Section 2640 of, and Section 2644.1 of, Title 23 of the California
Code of Regulations, as those regulations read on January 1, 2003,
except that the requirement in those regulations to repeat the test
every 36 months shall not apply.
   (b) On or before June 1, 2003, the board shall notify the owner
and operator of each underground storage tank system that is located
within 1,000 feet of a public drinking water well, as identified
pursuant to the state GIS mapping database, of the owner's and
operators\' responsibilities pursuant to this section.  The board
shall provide each local agency with a list of tank systems within
the local agency's jurisdiction that are within 1,000 feet of a
public drinking water well, as identified pursuant to the state GIS
mapping database.
   (c) Notwithstanding subdivision (a), if the results of the
enhanced leak detection test indicate that any component of the
underground storage tank system is leaking liquid or vapor, the owner
or operator shall take appropriate actions to correct the leakage,
and the owner or operator shall retest the system using enhanced leak
detection until the system is no longer leaking liquid or vapor.
  SEC. 23.  Section 25296.10 is added to the Health and Safety Code,
to read:
   25296.10.  (a) Each owner, operator, or other responsible party
shall take corrective action in response to an unauthorized release
in compliance with this chapter
       and the regulations adopted pursuant to Section 25299.3.  In
adopting corrective action regulations, the board shall develop
corrective action requirements for health hazards and protection of
the environment, based on the severity of the health hazards and the
other factors listed in subdivision (b).  The corrective action
regulations adopted by the board pursuant to Section 25299.77 to
implement Section 25299.37, as that section read on January 1, 2002,
that were in effect before January 1, 2003, shall continue in effect
on and after January 1, 2003, until revised by the board to implement
this section and shall be deemed to have been adopted pursuant to
Section 25299.3.
   (b) Any corrective action conducted pursuant to this chapter shall
ensure protection of human health, safety, and the environment.  The
corrective action shall be consistent with any applicable waste
discharge requirements or other order issued pursuant to Division 7
(commencing with Section 13000) of the Water Code, all applicable
state policies for water quality control adopted pursuant to Article
3 (commencing with Section 13140) of Chapter 3 of Division 7 of the
Water Code, and all applicable water quality control plans adopted
pursuant to Section 13170 of the Water Code and Article 3 (commencing
with Section 13240) of Chapter 4 of Division 7 of the Water Code.
   (c) (1) When a local agency, the board, or a regional board
requires an owner, operator, or other responsible party to undertake
corrective action, including preliminary site assessment and
investigation, pursuant to an oral or written order, directive,
notification, or approval issued pursuant to this section, or
pursuant to a cleanup and abatement order or other oral or written
directive issued pursuant to Division 7 (commencing with Section
13000) of the Water Code, the owner, operator, or other responsible
party shall prepare a work plan that details the corrective action
the owner, operator, or other responsible party shall take to comply
with the requirements of subdivisions (a) and (b) and the corrective
action regulations adopted pursuant to Section 25299.3.
   (2) The work plan required by paragraph (1) shall be prepared in
accordance with the regulations adopted pursuant to Section 25299.3.
The work plan shall include a schedule and timeline for corrective
action.
   (3) At the request of the owner, operator, or other responsible
party, the local agency, the board, or the regional board shall
review a work plan prepared pursuant to paragraph (1) and either
accept the work plan, if it meets the requirements of the section, or
disapprove the work plan if it does not meet those requirements.  If
the local agency, board, or the regional board accepts the work
plan, it shall indicate to the owner, operator, or other responsible
party, the actions or other elements of the work plan that are, in
all likelihood, adequate and necessary to meet the requirements of
this section, and the actions and elements that may be unnecessary.
If the local agency, board, or regional board disapproves the work
plan, it shall state the reasons for the disapproval.
   (4) In the interests of minimizing environmental contamination and
promoting prompt cleanup, the responsible party may begin
implementation of the proposed action after the work plan has been
submitted but before the work plan has received regulatory agency
acceptance, except that implementation of the work plan may not begin
until 60 calendar days from the date of submittal, unless the
responsible party is otherwise directed in writing by the regulatory
agency.  However, before beginning implementation pursuant to this
paragraph, the responsible party shall notify the regulatory agency
of the intent to initiate proposed actions set forth in the submitted
work plan.
   (5) The owner, operator, or other responsible party shall conduct
corrective actions in accordance with the work plan approved pursuant
to this section.
   (6) When the local agency, the board, or the regional board
requires a responsible party to conduct corrective action pursuant to
this section, it shall inform the responsible party of its right to
request the designation of an administering agency to oversee the
site investigation and remedial action at its site pursuant to
Section 25262 and, if requested to do so by the responsible party,
the local agency shall provide assistance to the responsible party in
preparing and processing a request for that designation.
   (d) (1) This subdivision applies only to an unauthorized release
from a petroleum underground storage tank that is subject to Chapter
6.75 (commencing with Section 25299.10).
   (2) Notwithstanding Section 25297.1, the board shall implement a
procedure that does not assess an owner, operator, or responsible
party taking corrective action pursuant to this chapter for the costs
of a local oversight program pursuant to paragraph (4) of
subdivision (d) of Section 25297.1.  The board shall institute an
internal procedure for assessing, reviewing, and paying those costs
directly between the board and the local agency.
   (e) A person to whom an order is issued pursuant to subdivision
(c), shall have the same rights of administrative and judicial appeal
and review as are provided by law for cleanup and abatement orders
issued pursuant to Section 13304 of the Water Code.
   (f) (1) If a person to whom an order is issued pursuant to
subdivision (c) does not comply with the order, the board, a regional
board, or the local agency may undertake or contract for corrective
action.
   (2) The board, a regional board, or local agency shall be
permitted reasonable access to property owned or possessed by an
owner, operator, or responsible party as necessary to perform
corrective action pursuant to this subdivision.  The access shall be
obtained with the consent of the owner or possessor of the property
or, if the consent is withheld, with a warrant duly issued pursuant
to the procedure described in Title 13 (commencing with Section
1822.50) of Part 3 of the Code of Civil Procedure.  However, if there
is an emergency affecting public health or safety, or the
environment, the board, a regional board, or local agency may enter
the property without consent or the issuance of a warrant.
   (3) The board, a regional board, or local agency may recover its
costs incurred under this subdivision pursuant to Section 13304 of
the Water Code.  If the unauthorized release is from an underground
storage tank that is subject to Chapter 6.75 (commencing with Section
25299.10), the board, a regional board, or local agency may also
recover its costs pursuant to Section 25299.70.
   (g) The following uniform closure letter shall be issued to the
owner, operator, or other responsible party taking corrective action
at an underground storage tank site by the local agency or the
regional board with jurisdiction over the site, or the board, upon a
finding that the underground storage tank site is in compliance with
the requirements of subdivisions (a) and (b) and with any corrective
action regulations adopted pursuant to Section 25299.3 and that no
further corrective action is required at the site:

   "(Case File Number)
   Dear (Responsible Party)
   This letter confirms the completion of a site investigation and
corrective action for the underground storage tank(s) formerly
located at the above-described location.  Thank you for your
cooperation throughout this investigation.  Your willingness and
promptness in responding to our inquiries concerning the former
underground storage tank(s) are greatly appreciated.
   Based on information in the above-referenced file and with the
provision that the information provided to this agency was accurate
and representative of site conditions, this agency finds that the
site investigation and corrective action carried out at your
underground storage tank(s) site is in compliance with the
requirements of subdivisions (a) and (b) of Section 25296.10 of the
Health and Safety Code and with corrective action regulations adopted
pursuant to Section 25299.3 of the Health and Safety Code and that
no further action related to the petroleum release(s) at the site is
required.
   This notice is issued pursuant to subdivision (g) of Section
25296.10 of the Health and Safety Code.
   Please contact our office if you have any questions regarding this
matter.
   Sincerely,
   (Name of Board Executive Director, Regional Board Executive
Officer, or Local Agency Director)"

   (h) Any order, directive, notification, or approval issued under
Section 25299.37 as that section read on January 1, 2002, that was
issued on or before January 1, 2003, shall be deemed to have been
issued pursuant to this section.
  SEC. 24.  Section 25296.20 is added to the Health and Safety Code,
to read:
   25296.20.  (a) The local agency, the board, or a regional board
shall not consider corrective action or site closure proposals from
the primary or active responsible party, issue a closure letter, or
make a determination that no further corrective action is required
with respect to a site upon which there was an unauthorized release
from an underground storage tank unless all current record owners of
fee title to the site of the proposed action have been notified of
the proposed action by the local agency, board, or regional board.
   (b) The local agency, board, or regional board shall take all
reasonable steps necessary to accommodate responsible landowner
participation in the cleanup or site closure process and shall
consider all input and recommendations from any responsible landowner
wishing to participate.
  SEC. 25.  Section 25296.25 is added to the Health and Safety Code,
to read:
   25296.25.  (a) (1) Unless the board, in consultation with local
agencies and the regional board, determines that a site is an
emergency site, the board, at the request of a responsible party who
is eligible for reimbursement of corrective action costs under
Chapter 6.75 (commencing with Section 25299.10), may suspend
additional corrective action or investigation work at a site, based
on a preliminary site assessment conducted in accordance with the
corrective action regulations adopted by the board, but the board
shall not suspend any of the following activities pursuant to this
section:
   (A) Removal of, or approved modifications of, existing tanks.
   (B) Excavation of petroleum saturated soil or removal of excess
petroleum from saturated soil.
   (C) Removal of free product from the saturated and unsaturated
zones.
   (D) Periodic monitoring to ensure that released petroleum is not
migrating in an uncontrolled manner that will cause the site to
become an emergency site.
   (2) For purposes of this subdivision, "emergency site" means a
site that, because of an unauthorized release of petroleum, meets one
of the following conditions:
   (A) The site presents an imminent threat to public health or
safety or the environment.
   (B) The site poses a substantial probability of causing a
condition of contamination or nuisance, as defined in Section 13050
of the Water Code, or of causing pollution of a source of drinking
water at a level that is a violation of a primary or secondary
drinking water standard adopted by the State Department of Health
Services pursuant to Chapter 4 (commencing with Section 116270) of
Part 12 of Division 104.
   (b) The suspension shall continue until one of the following
occurs:
   (1) The board provides the eligible responsible party with a
letter of commitment pursuant to Chapter 6.75 (commencing with
Section 25299.10) that the party will receive reimbursement for the
corrective action.
   (2) The responsible party requests in writing that the suspension
be terminated and that the work continue.
   (3) The fund established pursuant to Article 6 (commencing with
Section 25299.50) of Chapter 6.75 is no longer in existence.
   (c) The board shall adopt regulations pursuant to Section 25299.3
that specify the conditions under which a site is an imminent threat
to public health or safety or to the environment or poses a
substantial probability of causing a condition of contamination,
nuisance, or pollution as specified in paragraph (2) of subdivision
(a).  The board shall not suspend corrective action or investigation
work at any site pursuant to this section until the effective date of
the regulations adopted by the board pursuant to this subdivision.
  SEC. 26.  Section 25296.30 is added to the Health and Safety Code,
to read:
   25296.30.  (a) The board, in consultation with the State
Department of Health Services, shall develop guidelines for the
investigation and cleanup of methyl tertiary-butyl ether (MTBE) and
other ether-based oxygenates in groundwater.  The guidelines shall
include procedures for determining, to the extent practicable,
whether the contamination associated with an unauthorized release of
MTBE is from the tank system prior to the system's most recent
upgrade or replacement or if the contamination is from an
unauthorized release from the current tank system.
   (b) The board, in consultation with the State Department of Health
Services, shall develop appropriate cleanup standards for
contamination associated with a release of methyl tertiary-butyl
ether.
  SEC. 27.  Section 25296.40 is added to the Health and Safety Code,
to read:
   25296.40.  (a) (1) Any owner or operator, or other responsible
party who has a tank case and who believes that the corrective action
plan for the site has been satisfactorily implemented, but where
closure has not been granted, may petition the board for a review of
the case.
   (2) Upon receipt of a petition pursuant to paragraph (1), the
board may close the tank case or require closure, if the tank case is
at a site under the jurisdiction of a regional board or a local
agency that is implementing a local oversight program under Section
25297.1 and if the board determines that corrective action at the
site is in compliance with all of the requirements of subdivisions
(a) and (b) of Section 25296.10 and the corrective action regulations
adopted pursuant to Section 25299.3.  If a tank case is at a site
under the jurisdiction of a local agency that is not implementing a
local oversight program pursuant to Section 25297.1, the board may
recommend to the local agency that the tank case be closed.
   (b) Any aggrieved person may, not later than 30 days from the date
of final action by the board, pursuant to subdivision (a), file with
the superior court a petition for writ of mandate for review of the
decision.  If the aggrieved person does not file a petition for writ
of mandate within the time provided by this subdivision, a board
decision shall not be subject to review by any court.  Section 1094.5
of the Code of Civil Procedure shall govern proceedings for which
petitions are filed pursuant to this subdivision.  For purposes of
subdivision (c) of Section 1094.5 of the Code of Civil Procedure, the
court shall uphold the decision if the decision is based upon
substantial evidence in light of the whole record.
   (c) The authority provided under this section does not limit a
person's ability to petition the board for review under any other
state law.
  SEC. 28.  Section 25297.1 of the Health and Safety Code is amended
to read:
   25297.1.  (a) In addition to the authority granted to the board
pursuant to Division 7 (commencing with Section 13000) of the Water
Code and to the department pursuant to Chapter 6.8 (commencing with
Section 25300), the board, in cooperation with the department, shall
develop and implement a local oversight program for the abatement of,
and oversight of the abatement of, unauthorized releases of
hazardous substances from underground storage tanks by local
agencies.  In implementing the local oversight program, the agreement
specified in subdivision (b) shall be between the board and the
local agency.  The board shall select local agencies for
participation in the program from among those local agencies which
apply to the board, giving first priority to those local agencies
which have demonstrated prior experience in cleanup, abatement, or
other actions necessary to remedy the effects of unauthorized
releases of hazardous substances from underground storage tanks.  The
board shall select only those local agencies which have implemented
this chapter and that, except as provided in Section 25404.5, have
begun to collect and transmit to the board the surcharge or fees
pursuant to subdivision (b) of Section 25287.
   (b) In implementing the local oversight program described in
subdivision (a), the board may enter into an agreement with any local
agency to perform, or cause to be performed, any cleanup, abatement,
or other action necessary to remedy the effects of a release of
hazardous substances from an underground storage tank with respect to
which the local agency has enforcement authority pursuant to this
section.  The board may not enter into an agreement with a local
agency for soil contamination cleanup or for groundwater
contamination cleanup unless the board determines that the local
agency has a demonstrated capability to oversee or perform the
cleanup.  The implementation of the cleanup, abatement, or other
action shall be consistent with procedures adopted by the board
pursuant to subdivision (d) and shall be based upon cleanup standards
specified by the board or regional board.
   (c) The board shall provide funding to a local agency that enters
into an agreement pursuant to subdivision (b) for the reasonable
costs incurred by the local agency in overseeing any cleanup,
abatement, or other action taken by a responsible party to remedy the
effects of unauthorized releases from underground storage tanks.
   (d) The board shall adopt administrative and technical procedures,
as part of the state policy for water quality control adopted
pursuant to Section 13140 of the Water Code, for cleanup and
abatement actions taken pursuant to this section.  The procedures
shall include, but not be limited to, all of the following:
   (1) Guidelines as to which sites may be assigned to the local
agency.
   (2) The content of the agreements which may be entered into by the
board and the local agency.
   (3) Procedures by which a responsible party may petition the board
or a regional board for review, pursuant to Article 2 (commencing
with Section 13320) of Chapter 5 of Division 7 of the Water Code, or
pursuant to Chapter 9.2 (commencing with Section 2250) of Division 3
of Title 23 of the California Code of Regulations, or any successor
regulation, as applicable, of actions or decisions of the local
agency in implementing the cleanup, abatement, or other action.
   (4) Protocols for assessing and recovering money from responsible
parties for any reasonable and necessary costs incurred by the local
agency in implementing this section, as specified in subdivision (i),
unless the cleanup or abatement action is subject to subdivision (d)
of Section 25296.10.
   (5) Quantifiable measures to evaluate the outcome of a pilot
program established pursuant to this section.
   (e) Any agreement between the regional board and a local agency to
carry out a local oversight program pursuant to this section shall
require both of the following:
   (1) The local agency shall establish and maintain accurate
accounting records of all costs it incurs pursuant to this section
and shall periodically make these records available to the board.
The Controller may annually audit these records to verify the hourly
oversight costs charged by a local agency.  The board shall reimburse
the Controller for the cost of the audits of a local agency's
records conducted pursuant to this section.
   (2) The board and the department shall make reasonable efforts to
recover costs incurred pursuant to this section from responsible
parties, and may pursue any available legal remedy for this purpose.

   (f) The board shall develop a system for maintaining a database
for tracking expenditures of funds pursuant to this section, and
shall make this data available to the Legislature upon request.
   (g) (1) Sections 25355.5 and 25356 do not apply to expenditures
from the Hazardous Substance Cleanup Fund for oversight of abatement
of releases from underground storage tanks as part of the local
oversight program established pursuant to this section.
   (2) A local agency that enters into an agreement pursuant to
subdivision (b), shall notify the responsible party, for any site
subject to a cleanup, abatement, or other action taken pursuant to
the local oversight program established pursuant to this section,
that the responsible party is liable for not more than 150 percent of
the total amount of site-specific oversight costs actually incurred
by the local agency.
   (h) Any aggrieved person may petition the board or regional board
for review of the action or failure to act of a local agency, which
enters into an agreement pursuant to subdivision (b), at a site
subject to cleanup, abatement, or other action conducted as part of
the local oversight program established pursuant to this section, in
accordance with the procedures adopted by the board or regional board
pursuant to subdivision (d).
   (i) (1) For purposes of this section, site-specific oversight
costs include only the costs of the following activities, when
carried out by technical program staff of a local agency and their
immediate supervisors:
   (A) Responsible party identification and notification.
   (B) Site visits.
   (C) Sampling activities.
   (D) Meetings with responsible parties or responsible party
consultants.
   (E) Meetings with the regional board or with other affected
agencies regarding a specific site.
   (F) Review of reports, workplans, preliminary assessments,
remedial action plans, or postremedial monitoring.
   (G) Development of enforcement actions against a responsible
party.
   (H) Issuance of a closure document.
   (2) The responsible party is liable for the site-specific
oversight costs, calculated pursuant to paragraphs (3) and (4),
incurred by a local agency, in overseeing any cleanup, abatement, or
other action taken pursuant to this section to remedy an unauthorized
release from an underground storage tank.
   (3) Notwithstanding the requirements of any other provision of
law, the amount of liability of a responsible party for the oversight
costs incurred by the local agency and by the board and regional
boards in overseeing any action pursuant to this section shall be
calculated as an  amount not more than 150 percent of the total
amount of the site-specific oversight costs actually incurred by the
local agency and shall not include the direct or indirect costs
incurred by the board or regional boards.
   (4) (A) The total amount of oversight costs for which a local
agency may be reimbursed shall not exceed one hundred fifteen dollars
($115) per hour, multiplied by the total number of site-specific
hours performed by the local agency.
   (B) The total amount of the costs per site for administration and
technical assistance to local agencies by the board and the regional
board entering into agreements pursuant to subdivision (b) shall not
exceed a combined total of thirty-five dollars ($35) for each hour of
site-specific oversight.  The board shall base its costs on the
total hours of site-specific oversight work performed by all
participating local agencies.  The regional board shall base its
costs on the total number of hours of site-specific oversight costs
attributable to the local agency which received regional board
assistance.
   (C) The amounts specified in subparagraphs (A) and (B) are base
rates for the 1990-91 fiscal year.  Commencing July 1, 1991, and for
each fiscal year thereafter, the board shall adjust the base rates
annually to reflect increases or decreases in the cost of living
during the prior fiscal year, as measured by the implicit price
deflator for state and local government purchases of goods and
services, as published by the United States Department of Commerce or
by a successor agency of the federal government.
   (5) In recovering costs from responsible parties for costs
incurred under this section, the local agency shall prorate any costs
identifiable as startup costs over the expected number of cases
which the local agency will oversee during a 10-year period.  A
responsible party who has been assessed startup costs for the cleanup
of any unauthorized release that, as of January 1, 1991, is the
subject of oversight by a local agency, shall receive an adjustment
by the local agency in the form of a credit, for the purposes of cost
recovery.  Startup costs include all of the following expenses:
   (A) Small tools, safety clothing, cameras, sampling equipment, and
other similar articles necessary to investigate or document
pollution.
   (B) Office furniture.
   (C) Staff assistance needed to develop computer tracking of
financial and site-specific records.
   (D) Training and setup costs for the first six months of the local
agency program.
   (6) This subdivision does not apply to costs that are required to
be recovered pursuant to Article 7.5 (commencing with Section 25385)
of Chapter 6.8.
  SEC. 29.  Section 25299 of the Health and Safety Code is amended to
read:
   25299.  (a) Any operator of an underground tank system shall be
liable for a civil penalty of not less than five hundred dollars
($500) or more than five thousand dollars ($5,000) for each
underground storage tank for each day of violation for any of the
following violations:
   (1) Operating an underground tank system which has not been issued
a permit, in violation of this chapter.
   (2) Violation of any of the applicable requirements of the permit
issued for the operation of the underground tank system.
   (3) Failure to maintain records, as required by this chapter.
   (4) Failure to report an unauthorized release, as required by
Sections 25294 and 25295.
   (5) Failure to properly close an underground tank system, as
required by Section 25298.
   (6) Violation of any applicable requirement of this chapter or any
regulation adopted by the board pursuant to Section 25299.3.
   (7) Failure to permit inspection or to perform any monitoring,
testing, or reporting required pursuant to Section 25288 or 25289.
   (8) Making any false statement, representation, or certification
in any application, record, report, or other document submitted or
required to be maintained pursuant to this chapter.
   (9) Tampering with or otherwise disabling automatic leak detection
devices or alarms.
     (b) Any owner of an underground tank system shall be liable for
a civil penalty of not less than five hundred dollars ($500) or more
than five thousand dollars ($5,000) per day for each underground
storage tank, for each day of violation, for any of the following
violations:
   (1) Failure to obtain a permit as specified by this chapter.
   (2) Failure to repair or upgrade an underground tank system in
accordance with this chapter.
   (3) Abandonment or improper closure of any underground tank system
subject to this chapter.
   (4) Knowing failure to take reasonable and necessary steps to
assure compliance with this chapter by the operator of an underground
tank system.
   (5) Violation of any applicable requirement of the permit issued
for operation of the underground tank system.
   (6) Violation of any applicable requirement of this chapter or any
regulation adopted by the board pursuant to Section 25299.3.
   (7) Failure to permit inspection or to perform any monitoring,
testing, or reporting required pursuant to Section 25288 or 25289.
   (8) Making any false statement, representation, or certification
in any application, record, report, or other document submitted or
required to be maintained pursuant to this chapter.
   (c) Any person who intentionally fails to notify the board or the
local agency when required to do so by this chapter or who submits
false information in a permit application, amendment, or renewal,
pursuant to Section 25286, is liable for a civil penalty of not more
than five thousand dollars ($5,000) for each underground storage tank
for which notification is not given or false information is
submitted.
   (d) (1) Any person who violates any corrective action requirement
established by, or issued pursuant to, Section 25296.10 is liable for
a civil penalty of not more than ten thousand dollars ($10,000) for
each underground storage tank for each day of violation.
   (2) A civil penalty under this subdivision may be imposed in a
civil action under this chapter, or may be administratively imposed
by the board or a regional board pursuant to Article 2.5 (commencing
with Section 13323) of Chapter 5 of Division 7 of the Water Code.
   (e) Any person who violates Section 25292.3 is liable for a civil
penalty of not more than five thousand dollars ($5,000) for each
underground storage tank for each day of violation.
   (f) (1) Any person who falsifies any monitoring records required
by this chapter, or knowingly fails to report an unauthorized
release, shall, upon conviction, be punished by a fine of not less
than five thousand dollars ($5,000) or more than ten thousand dollars
($10,000), by imprisonment in the county jail for not to exceed one
year, or by both that fine and imprisonment.
   (2) Any person who intentionally disables or tampers with an
automatic leak detection system in a manner that would prevent the
automatic leak detection system from detecting a leak or alerting the
owner or operator of the leak, shall, upon conviction, be punished
by a fine of not less than five thousand dollars ($5,000) or more
than ten thousand dollars ($10,000), by imprisonment in the county
jail for not more than one year, or by both the fine and
imprisonment.
   (g) In determining both the civil and criminal penalties imposed
pursuant to this section, the board, a regional board or the court,
as the case may be, shall consider all relevant circumstances,
including, but not limited to, the extent of harm or potential harm
caused by the violation, the nature of the violation and the period
of time over which it occurred, the frequency of past violations, and
the corrective action, if any, taken by the person who holds the
permit.
   (h) Each civil penalty or criminal fine imposed pursuant to this
section for any separate violation shall be separate, and in addition
to, any other civil penalty or criminal fine imposed pursuant to
this section or any other provision of law, except that no civil
penalty shall be recovered under subdivision (d) for violations for
which a civil penalty is recovered pursuant to Section 13268 or 13350
of the Water Code.  The penalty or fine shall be paid to the
treasury of the local agency or state, whichever is represented by
the office of the city attorney, district attorney, or Attorney
General bringing the action.  All penalties or fines collected by the
board or a regional board or collected on behalf of the board or a
regional board by the Attorney General shall be deposited in the
State Water Pollution Cleanup and Abatement Account in the State
Water Quality Control Fund, and are available for expenditure by the
board, upon appropriation, pursuant to Section 13441 of the Water
Code.
   (i) Paragraph (9) of subdivision (a) does not prohibit the owner
or operator of an underground storage tank, or his or her designee,
from maintaining, repairing, or replacing automatic leak detection
devices or alarms associated with that tank.
  SEC. 30.  Section 25299.4 of the Health and Safety Code is amended
to read:
   25299.4.  (a) (1) Any local agency may apply to the board for
authority to implement design and construction standards for the
containment of a hazardous substance in underground storage tanks
which are in addition to those set forth in this chapter.  The
application shall include a description of the additional standards
and a discussion of the need to implement them.  The board shall
approve the application if it finds, after an investigation and
public hearing, that the local agency has demonstrated by clear and
convincing evidence that the additional standards are necessary to
adequately protect the soil and the beneficial uses of the waters of
the state from unauthorized releases.
   (2) The board shall make its determination within six months of
the date of application for authority to implement additional
standards.  If the board's determination upholds the  application for
authority to implement additional standards, the standards shall be
effective as of the date of the determination.  If the board's
determination does not uphold the application, the additional
standards shall not go into effect.
   (b) (1) Any permitholder or permit applicant may apply to the
regional board having jurisdiction over the location of the
permitholder's or applicant's facility for a site-specific variance
from Section 25290.1, 25291, or 25292.  A site-specific variance is
an alternative procedure which is applicable in one local agency
jurisdiction.  Prior to applying to the regional board, the
permitholder shall first contact the local agency pursuant to
paragraph (5).
   (2) The regional board shall hold a public hearing 60 days after
the completion of any documents required by the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code).
   (3) The regional board shall consider the local agency's and the
city's, county's, or city and county's recommendations in rendering
its decision.  Failure of the local agency or city, county, or city
and county to join in the variance application pursuant to paragraph
(5) shall not affect the request of the applicant to proceed with the
variance application.
   (4) The regional board shall approve the variance if it finds,
after investigation and public hearing, that the applicant has
demonstrated by clear and convincing evidence either of the
following:
   (A) Because of the facility's special circumstances, not generally
applicable to other facilities\' property, including size, shape,
design, topography, location, or surroundings, the strict application
of Sections 25290.1, 25291, and 25292 is unnecessary to adequately
protect the soil and beneficial uses of the waters of the state from
an unauthorized release.
   (B) Strict application of the standards of Sections 25290.1,
25291, and 25292 would create practical difficulties not generally
applicable to other facilities or property and that the proposed
alternative will adequately protect the soil and beneficial uses of
the waters of the state from an unauthorized release.
   (5) Before applying for a variance, the applicant shall contact
the local agency to determine if a site-specific variance is
required.  If the local agency determines that a site-specific
variance is required or does not act within 60 days, the applicant
may proceed with the variance procedure in subdivision (a).
   (6) At least 30 days before applying to the appropriate regional
board, the applicant shall notify and request the city, county, or
city and county to join the applicant in the variance application
before the regional board.
   (A) The city, county, or city and county shall provide notice of
the receipt of that request to any person who has requested the
notice.
   (B) The local agency within the city, county, or city and county
which has the jurisdiction for land use decisions shall have 30 days
from completion of any documents required by the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code) to act on the applicant's
request to join the applicant.
   (c) Applicants requesting a variance pursuant to subdivision (b)
shall pay a fee determined by the board to be necessary to recover
the reasonable cost of administering subdivision (b).
   (d) The permit issued for any underground storage tank issued a
variance pursuant to subdivision (b) shall require compliance with
any conditions prescribed by the board or a regional board in issuing
the variance.  The conditions prescribed by the board or regional
board in the permit shall include any conditions necessary to assure
compliance with any applicable requirements of the federal act.
   (e) This section does not apply to or within any city or county
which was exempt from implementing this chapter as of December 31,
1984.
  SEC. 31.  Section 25299.7 of the Health and Safety Code is amended
to read:
   25299.7.  (a) The board is designated as the lead agency in the
state for all purposes stated in the federal act and may exercise any
powers which a state may exercise pursuant to the federal act.
   (b) The board may prepare, as part of any program application
submitted to the Environmental Protection Agency for state program
approval pursuant to Section 6991c of Title 42 of the United States
Code, any procedures and implementation plans necessary to assure
compliance with the requirements for a state program implementing the
federal act.  These procedures and implementation plans may include,
but are not limited to, procedures or implementation plans with
respect to investigation, compliance monitoring, enforcement, public
participation, and sharing of information among local agencies, the
board, and the Environmental Protection Agency.  If the Environmental
Protection Agency approves of the state program, the board, the
regional boards, and each local agency shall administer this chapter
in accordance with these procedures and implementation plans where
required by the memorandum of agreement executed by the board and the
Environmental Protection Agency.  These procedures and
implementation plans shall also apply to any public agency or
official who brings a civil enforcement action pursuant to this
chapter, and to any city or county specified in Section 25299.1, to
the extent required by the memorandum of agreement.  The board's
approval of the program application and memorandum of agreement is
not subject to Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
   (c) The board shall adopt, pursuant to Section 25299.3, any
regulations necessary to obtain state program approval pursuant to
Section 6991c of Title 42 of the United States Code.  The board shall
adopt these regulations as emergency regulations in accordance with
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code, and for the purposes of that
chapter, including Section 11349.6 of the Government Code, the
adoption of these regulations is an emergency and shall be considered
by the Office of Administrative Law as necessary for the immediate
preservation of the public peace, health and safety, and general
welfare.  Notwithstanding Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code, any
emergency regulations adopted by the board in furtherance of this
section shall be filed with, but may not be repealed by, the Office
of Administrative Law and shall remain in effect until revised by the
board.
  SEC. 32.  Section 25299.8 is added to the Health and Safety Code,
to read:
   25299.8.  The repeal and addition of Section 25292.3 and the
amendment of Section 25284 by the act adding this section during the
2002 portion of the 2001-02 Regular Session, to eliminate the
requirement to acquire and display an upgrade compliance certificate,
do not constitute a bar to any action, whether administrative,
civil, or criminal, brought for a violation of the law that occurred
prior to January 1, 2003.
  SEC. 33.  Section 25299.36 of the Health and Safety Code is amended
to read:
   25299.36.  The board, a regional board, or a local agency may
undertake or contract for corrective action in response to an
unauthorized release from an underground storage tank that is subject
to this chapter, pursuant to subdivision (f) of Section 25296.10 or
if a situation exists that requires prompt action by the board, a
regional board, or local agency to protect human health or the
environment.  At the request of the board or a regional board, the
Department of General Services may enter into a contract on behalf of
the board or a regional board and acting as the agent of the board
or a regional board.  Notwithstanding any other provision of law, if
a situation requires prompt action by the board or a regional board
to protect human health or the environment, the board or a regional
board may enter into oral contracts for this work, and the contracts,
whether written or oral, may include provisions for equipment rental
and, in addition, the furnishing of labor and materials necessary to
accomplish the work.  These contracts for corrective action by the
board or a regional board are exempt from approval by the Department
of General Services if the situation requires prompt action to
protect human health or the environment.
  SEC. 34.  Section 25299.37 of the Health and Safety Code is
repealed.
  SEC. 35.  Section 25299.37.1 of the Health and Safety Code is
amended and renumbered to read:
   25296.15.  (a) No closure letter shall be issued pursuant to this
chapter unless all of the following conditions are met:
   (1) The soil or groundwater, or both, where applicable, at the
site have been tested for MTBE.
   (2) The results of that testing are known to the regional board.
   (3) The board, the regional board, or the local agency makes the
finding specified in subdivision (g) of Section 25296.10.
   (b) Paragraphs (1) and (2) of subdivision (a) do not apply to a
closure letter for a tank case for which the board, a regional board,
or local agency determines that the tank has only contained diesel
or jet fuel.
  SEC. 36.  Section 25299.37.2 of the Health and Safety Code is
repealed.
  SEC. 37.  Section 25299.38 is added to the Health and Safety Code,
to read:
   25299.38.  (a) The local agency, the board, or the regional board
shall advise and work with the owner, operator, or other responsible
party on the opportunity to seek preapproval of corrective action
costs pursuant to Section 2811.4 of Title 23 of the California Code
of Regulations or any successor regulation.  Regional board staff and
local agency staff shall work with the responsible party and fund
staff to obtain preapproval for the responsible party.  The fund
staff shall grant or deny a request for preapproval within 30
calendar days after the date a request is received.  If fund staff
denies a request for preapproval or fails to act within 30 calendar
days after receiving the request, an owner, operator, or other
responsible party who has prepared a work plan that has been reviewed
and accepted pursuant to paragraph (3) of subdivision (c) of Section
25296.10, and is denied preapproval of corrective action costs for
one or more of the actions required by the work plan, may petition
the board for review of the request for preapproval.  The board shall
review the petition pursuant to Section 25299.56, and for that
purpose the petition for review of a request for preapproval of
corrective action costs shall be reviewed by the board in the same
manner as a petition for review of an unpaid claim.
   (b) If the board receives a petition for review pursuant to
subdivision (a), the board shall review the request for preapproval
and grant or deny the request pursuant to this subdivision and
subdivision (c).  The board shall deny the request for preapproval if
the board makes one of the following findings:
   (1) The petitioner is not eligible to file a claim pursuant to
Article 6 (commencing with Section 25299.50).
   (2) The petitioner failed to submit one or more of the documents
required by the regulations adopted by the board governing
preapproval.
   (3) The petitioner failed to obtain three bids or estimates for
corrective action costs and, under the circumstances pertaining to
the corrective action, there is no valid reason to waive the
three-bid requirement pursuant to the regulations adopted by the
board.
   (c) If the board does not deny the request for preapproval
pursuant to subdivision (b), the board shall grant the request for
preapproval.  However, the board may modify the request by denying
preapproval of corrective action costs or reducing the preapproval
amount of those costs for any action required by the work plan, if
the board finds that the fund staff has demonstrated either of the
following:
   (1) The amount of corrective action reimbursement requested for
the action is not reasonable.  In determining if the fund staff has
demonstrated that the amount of reimbursement requested for an action
is not reasonable, the board shall use, when available, recent
experience with bids or estimates for similar actions.
   (2) The action required in the work plan is, in all likelihood,
not necessary for the corrective action to comply with the
requirements of subdivisions (a) and (b) of Section 25296.10 and the
corrective action regulations adopted pursuant to Section 25299.3.
  SEC. 38.  Section 25299.38.1 of the Health and Safety Code is
repealed.
  SEC. 39.  Section 25299.39 of the Health and Safety Code is
repealed.
  SEC. 40.  Section 25299.39.1 of the Health and Safety Code is
amended and renumbered to read:
   25296.35.  (a) The board shall develop, implement, and maintain a
system for storing and retrieving data from cases involving
discharges of petroleum from underground storage tanks to allow
regulatory agencies and the general public to use historic data in
making decisions regarding permitting, land use, and other matters.
The system shall be accessible to government agencies and the general
public.  A site included in the data system shall be clearly
designated as having no residual contamination if, at the time a
closure letter is issued for the site pursuant to Section 25296.10 or
at any time after that closure letter is issued, the board
determines that no residual contamination remains on the site.
   (b) For purposes of this section, "residual contamination" means
the petroleum that remains on a site after a corrective action has
been carried out and the cleanup levels established by the corrective
action plan for the site, pursuant to subdivision (g) of Section
2725 of Title 23 of the California Code of Regulations, have been
achieved.
  SEC. 41.  Section 25299.39.2 of the Health and Safety Code is
amended to read:
   25299.39.2.  (a) The manager responsible for the fund shall notify
tank owners or operators who have an active letter of commitment
that has been in an active status for five years or more and shall
review the case history of their tank case on an annual basis unless
otherwise notified by the tank owner or operator within 30 days of
the notification.  The manager, with approval of the tank owner or
operator, may make a recommendation to the board for closure.  The
board may close the tank case or require the closure of a tank case
at a site under the jurisdiction of a regional board or a local
agency implementing a local oversight program under Section 25297.1
if the board determines that corrective action at the site is in
compliance with all of the requirements of subdivisions (a) and (b)
of Section 25296.10 and the corrective action regulations adopted
pursuant to Section 25299.3.  If a tank case is at a site under the
jurisdiction of a local agency that is not implementing a local
oversight program under Section 25297.1, the board may recommend to
the local agency that the case be closed.
   (b) Any aggrieved person may, not later than 30 days from the date
of final action by the board, pursuant to subdivision (a), file with
the superior court a petition for writ of mandate for review of the
decision.  If the aggrieved person does not file a petition for writ
of mandate within the time provided by this subdivision, a board
decision shall not be subject to review by any court.  Section 1094.5
of the Code of Civil Procedure shall govern proceedings for which
petitions are filed pursuant to this subdivision.  For purposes of
subdivision (c) of Section 1094.5 of the Code of Civil Procedure, the
court shall uphold the decision if the decision is based upon
substantial evidence in light of the whole record.
   (c) The authority provided under this section does not limit a
person's ability to petition the board for review under any other
state law.
  SEC. 42.  Section 25299.39.3 of the Health and Safety Code is
amended to read:
   25299.39.3.  The board, a regional board, or local agency shall be
permitted reasonable access to property owned or possessed by an
owner, operator, or responsible party as necessary to perform
corrective action pursuant to Section 25299.36.  The access shall be
obtained with the consent of the owner or possessor of the property
or, if the consent is withheld, with a warrant duly issued pursuant
to the procedure described in Title 13 (commencing with Section
1822.50) of Part 3 of the Code of Civil Procedure.  However, in the
event of an emergency affecting public health or safety, or the
environment, the board, a regional board, or local agency may enter
the property without consent or the issuance of a warrant.
  SEC. 43.  Section 25299.50.1 of the Health and Safety Code is
amended to read:
   25299.50.1.  (a) For purposes of this section, "fire safety agency"
means a city fire department, county fire department, city and
county fire department, fire protection district, a joint powers
authority formed for the purpose of providing fire protection
services, or any other local agency that normally provides fire
protection services.
   (b) The Fire Safety Subaccount is hereby created in the
Underground Storage Tank Cleanup Fund, for expenditure by the board
to pay a claim described in paragraph (4) of subdivision (b) of
Section 25299.52 that was filed before January 1, 2000, by a fire
safety agency.  Except as provided in subdivision (d), the board
shall pay a claim filed by a fire safety agency only from funds
appropriated from the Fire Safety Subaccount.
   (c) The sum of five million dollars ($5,000,000) of the moneys in
the fund derived from the sources described in paragraphs (1) to (4),
inclusive, of subdivision (b) of Section 25299.50 is hereby
transferred from the fund to the Fire Safety Subaccount, and
appropriated therefrom to the board, for expenditure pursuant to this
section for a claim filed by a fire safety agency specified in
subdivision (b).
   (d) The unpaid amount of any claim filed by a fire safety agency
specified in subdivision (b), for which a closure letter has not been
issued pursuant to subdivision (g) of Section 25296.10 on or before
January 1, 2006, shall not be payable from the Fire Safety Subaccount
but shall revert to the priority ranking for claims specified in
Section 25299.52.
   (e) The payment of claims pursuant to this section shall not
affect the board's payment of claims filed pursuant to paragraph (1),
(2), or (3) of subdivision (b) of Section 25299.52.
   (f) Any funds remaining in the Fire Safety Subaccount on January
1, 2006, shall be transferred to the fund.
   (g) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
  SEC. 44.  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.
  SEC. 45.  Section 25299.53 of the Health and Safety Code is amended
to read:
   25299.53.  (a) A regional board or a local agency taking, or
contracting for, 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 shall, before
commencing the corrective action, take both of the following actions:

   (1) The regional board or local agency shall notify the board of
the planned corrective action.  If an owner, operator, or other
responsible party is taking the corrective action in accordance with
Section 25296.10, the regional board or local agency shall not
initiate a corrective action pursuant to this chapter or Chapter 6.7
(commencing with Section 25280).
   (2) If an owner, operator, or other responsible party is not
taking or has not taken the action specified in paragraph (1), the
regional board or local agency shall submit the estimated cost of the
corrective action to the board, which shall approve or disapprove
the reasonableness of the cost estimate.  The regional board or local
agency shall obtain approval of the corrective action and the cost
estimate before taking, or contracting for, any corrective action.
   (b) If the board approves the request of the regional board or
local agency made pursuant to paragraph (2) of subdivision (a), the
board shall, after making the determination specified in subdivision
(c), pay for the costs of corrective action performed by a regional
board, local agency, or qualified contractor.
   (c) The board shall not make any payment pursuant to subdivision
(b) unless the board determines that the owner, operator, or other
responsible party of the tank has failed or refused to comply with a
final order for corrective action issued pursuant to Section 25296.10
with respect to the unauthorized release of petroleum from the tank.

   (d) Upon making any payment to a regional board or local agency
pursuant to subdivision (b), the board shall recover the amount of
payment pursuant to Section 25299.70.
  SEC. 46.  Section 25299.54 of the Health and Safety Code is amended
to read:
   25299.54.  (a) Except as provided in subdivisions (b), (c), (d),
(e), (g), and (h), an owner or operator, required to perform
corrective action pursuant to Section 25296.10, or an owner or
operator who, as of January 1, 1988, is required to perform
corrective action, who has initiated this action in accordance with
Division 7 (commencing with Section 13000) of the Water Code, who is
undertaking 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), may apply to the board for
satisfaction of a claim filed pursuant to this article.
   (b) A person who has failed to comply with Article 3 (commencing
with Section 25299.30) is ineligible to file a claim pursuant to this
section.
   (c) Any owner or operator of an underground storage tank
containing petroleum is ineligible to file a claim pursuant to this
section if the person meets both of the following conditions:
   (1) The person knew, before January 1, 1988, of the unauthorized
release of petroleum which is the subject of the claim.
   (2) The person did not initiate, on or before June 30, 1988, any
corrective action in accordance with Division 7 (commencing with
Section 13000) of the Water Code concerning the release, or the
person did not, on or before June 30, 1988, initiate corrective
action in accordance with Chapter 6.7 (commencing with Section 25280)
or the person did not initiate action on or before June 30, 1988, to
come into compliance with waste discharge requirements or other
orders issued pursuant to Division 7 (commencing with Section 13000)
of the Water Code concerning the release.
   (d) An owner or operator who violates 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, is liable for any corrective action costs that result from the
owner's or operator's violation and is ineligible to file a claim
pursuant to this section.
   (e) Notwithstanding this chapter, a person who owns a tank located
underground that is used to store petroleum may apply to the board
for satisfaction of a claim, and the board may pay the claim pursuant
to Section 25299.57 without making the findings specified in
paragraph (3) of subdivision (d) of Section 25299.57 if all of the
following apply:
   (1) The tank meets one of the following requirements:
   (A) The tank is located at the residence of a person on property
used exclusively for residential purposes at the time of discovery of
the unauthorized release of petroleum.
   (B) The tank owner demonstrates that the tank is located on
property that, on and after January 1, 1985, is not used for
agricultural purposes, the tank is of a type specified in
subparagraph (B) of paragraph (1) of subdivision (y) of Section
25281, and the petroleum in the tank is used solely for the purposes
specified in subparagraph (B) of paragraph (1) of subdivision (y) of
Section 25281 on and after January 1, 1985.
   (2) The tank is not a tank described in subparagraph (A) of
paragraph (1) of subdivision (y) of Section 25281 and the tank is not
used on or after January 1, 1985, for the purposes specified in that
subparagraph.
   (3) The claimant has complied with Section 25299.31 and the permit
requirements of Chapter 6.7 (commencing with Section 25280), or the
claimant is not subject to the requirements of those provisions.
   (f) Whenever the board has authorized the prepayment of a claim
pursuant to Section 25299.57, and the amount of money available in
the fund is insufficient to pay the claim, the owner or operator
shall remain obligated to undertake the corrective action in
accordance with Section 25296.10.
   (g) The board shall not reimburse a claimant for any eligible
costs for which the claimant has been, or will be, compensated by
another person.  This subdivision does not affect reimbursement of a
claimant from the fund under either of the following circumstances:
   (1) The claimant has a written contract, other than an insurance
contract, with another person that requires the claimant to reimburse
the person for payments the person has provided the claimant pending
receipt of reimbursement from the fund.
   (2) An insurer has made payments on behalf of the claimant
pursuant to an insurance contract and either of the following apply:

   (A) The insurance contract explicitly coordinates insurance
benefits with the fund and requires the claimant to do both of the
following:
   (i) Maintain the claimant's eligibility for reimbursement of costs
pursuant to this chapter by complying with all applicable
eligibility requirements.
   (ii) Reimburse the insurer for costs paid by the insurer pending
reimbursement of those costs by the fund.
   (B) The claimant received a letter of commitment prior to June 30,
1999, for the occurrence and the claimant is required to reimburse
the insurer for any costs paid by the insurer pending reimbursement
of those costs by the fund.
   (h) (1) Except as provided in paragraph (2), a person who
purchases or otherwise acquires real property on which an underground
storage tank or tank specified in subdivision (e) is situated shall
not be reimbursed by the board for a cost attributable to an
occurrence that commenced prior to the acquisition of the real
property if both of the following conditions apply:
   (A) The purchaser or acquirer knew, or in the exercise of
reasonable diligence would have discovered, that an underground
storage tank or tank specified in subdivision (e) was located on the
real property being acquired.
   (B) Any person who owned the site or owned or operated an
underground storage tank or tank specified in subdivision (e) at the
site during or after the occurrence and prior to acquisition by the
purchaser or acquirer would not have been eligible for reimbursement
from the fund.
   (2) Notwithstanding paragraph (1), if the claim is filed on or
after January 1, 2003, the board may reimburse the eligible costs
claimed by a person who purchases or otherwise acquires real property
on which an underground storage tank or tank specified in
subdivision (e) is situated, if all of the following conditions
apply:
   (A) The claimant is the owner or operator of the tank that had an
occurrence that commenced prior to the owner's acquisition of the
real property.
   (B) The claimant satisfies all eligibility requirements, other
than those specified in paragraph (1).
   (C) The claimant is not an affiliate of any person whose act or
omission caused or would cause ineligibility for the fund.
   (3) If the board reimburses a claim pursuant to paragraph (2), any
person specified in subparagraph (B) of paragraph (1), other than a
person who is ineligible for reimbursement from the fund solely
because the property was acquired from another person who was
ineligible for reimbursement from the fund, shall be liable for the
amount paid from the fund.  The Attorney General, upon request of the
board, shall bring a civil action to recover the liability imposed
under this paragraph.  All money recovered by the Attorney General
under this paragraph shall be deposited in the fund.
   (4) The liability established pursuant to paragraph (3) does not
limit or supersede liability under any other provision of state or
federal law, including common law.
   (5) For purposes of this subdivision, the following definitions
shall apply:
   (A) "Affiliate" means a person who has one or more of the
following relationships with another person:
   (i) Familial relationship.
   (ii) Fiduciary relationship.
   (iii) A relationship of direct or indirect control or shared
interests.
   (B) Affiliates include, but are not limited to, any of the
following:
   (i) Parent corporation and subsidiary.
   (ii) Subsidiaries that are owned by the same parent corporation.
   (iii) Business entities involved in a reorganization, as defined
in Section 181 of the Corporations Code.
   (iv) Corporate officer and corporation.
   (v) Shareholder that owns a controlling block of voting stock and
the corporation.
   (vi) Partner and the partnership.
   (vii) Member and a limited liability company.
   (viii) Franchiser and franchisee.
   (ix) Settlor, trustee, and beneficiary of a trust.
   (x) Debtor and bankruptcy trustee or debtor-in-possession.
   (xi) Principal and agent.
   (C) "Familial relationship" means relationships between family
members, including, and limited to, a husband, wife, child,
stepchild, parent, grandparent, grandchild, brother, sister,
stepbrother, stepsister, stepmother, stepfather, mother-in-law,
father-in-law, brother-in-law, sister-in-law, daughter-in-law,
son-in-law, and, if related by blood, uncle, aunt, niece, or nephew.

   (i) The Legislature finds and declares that the changes made to
subparagraph (A) of paragraph (1) of subdivision (e) by Chapter 1290
of the Statutes of 1992 is declaratory of existing law.
   (j) The Legislature finds and declares that the amendment of
subdivisions (a) and (g) by Chapter 328 of the Statutes of 1999 is
declaratory of existing law.
  SEC. 47.  Section 25299.55 of the Health and Safety Code is amended
to read:
   25299.55.  The board shall prescribe appropriate forms and
procedures for claims filed pursuant to Section 25299.54 that shall
include, at a minimum, all of the following:
   (a) A provision requiring the claimant to make a sworn
verification of the claim to the best of the claimant's knowledge.
   (b) A full description, supported by appropriate evidence from
government agencies, of the unauthorized release of petroleum into
the environment from an underground storage tank claimed to be the
subject of the third-party judgment specified in Section 25299.58 or
the corrective action performed pursuant to Section 25296.10.
   (c) Certification by the claimant of all costs that have been, or
will be, incurred in undertaking corrective action after January 1,
1988.
  SEC. 48.  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 exceeds 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 applies:
   (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) 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.
   (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, 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) (A) Except as provided in subparagraph (B), the claimant has
complied with Section 25299.31 and the permit requirements of Chapter
6.7 (commencing with Section 25280).
   (B) All claimants who file their claim on or after January 1,
1994, and all claimants who filed their claim prior to that date but
are not eligible for a waiver of the permit requirement pursuant to
board regulations in effect on the date of the filing of the claim,
and who did not obtain or apply for any permit required by
subdivision (a) of Section 25284 by January 1, 1990, shall be subject
to subparagraph (A) regardless of the reason or reasons that the
permit was not obtained or applied for.  However, on and after
January 1, 1994, the board may waive the provisions of subparagraph
(A) 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 prior to
January 1, 1990, and there was no intent to intentionally avoid the
permit requirement or the fees associated with the permit.
   (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) 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.
   (C) (i) A claimant exempted pursuant to subparagraph (B) shall
obtain a level of financial responsibility twice as great as the
amount which the claimant is otherwise required to obtain pursuant to
subdivision (a) of Section 25299.32.
   (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 (B) were satisfied prior to the
causing of any contamination.  That demonstration may be made
through a certification issued by the permitting agency based on site
and tank tests at the time of permit application or in any other
manner acceptable to the board.
   (D) The board shall rank all claims resubmitted pursuant to
subparagraph (B) lower than all claims filed before January 1, 1994,
within their respective priority classes specified in subdivision (b)
of Section 25299.52.
   (4) 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).
   (5) 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 credit 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) Any 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) Any 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) Any 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 remedial actions.  This summary of expected costs may be used
by claimants as a guide in the selection and supervision of
consultants and contractors.
   (i) 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.
   (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.
  SEC. 49.  Section 25299.58 of the Health and Safety Code is amended
to read:
   25299.58.  (a) Except as provided in subdivision (d), if the board
makes the determination specified in subdivision (b), the board may
only reimburse those costs that are related to the compensation of
third parties for bodily injury and property damages and that exceed
the level of financial responsibility required to be obtained
pursuant to Section 25299.32, but not more than one million dollars
($1,000,000) for each occurrence.
   (b) A claim 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 has been ordered to pay a settlement or final
judgment for third-party bodily injury or property damage arising
from operating an underground storage tank.
   (3) (A) Except as provided in subparagraph (B), the claimant has
complied with Section 25299.31 and the permit requirements of Chapter
6.7 (commencing with Section 25280).
   (B) All claimants who file their claim on or after January 1,
1994, and all claimants who filed their claim prior to that date but
are not eligible for a waiver of the permit requirement pursuant to
board regulations in effect on the date of the filing of the claim,
and who did not obtain or apply for any permit required by
subdivision (a) of Section 25284 by January 1, 1990, shall be subject
to subparagraph (A) regardless of the reason or reasons that the
permit was not obtained or applied for.  However, on and after
January 1, 1994, the board may waive the provisions of subparagraph
(A) 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 prior to
January 1, 1990, and there was no intent to intentionally avoid the
permit requirement or the fees associated with the permit.
   (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) 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.
   (C) (i) A claimant exempted pursuant to subparagraph (B) shall
obtain a level of financial responsibility in an amount twice as
great as the amount which the claimant is otherwise required to
obtain pursuant to subdivision (a) of Section 25299.32.
   (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 (B) were satisfied prior to any
contamination having been caused.  That demonstration may be made
through a certification issued by the permitting agency based on site
and tank tests at the time of permit application or in any other
manner as may be acceptable to the board.
   (D) The board shall rank all claims resubmitted pursuant to
subparagraph (B) lower than all claims filed before January 1, 1994,
within their respective priority classes specified in subdivision (b)
of Section 25299.52.
   (4) The claimant is required to undertake or contract for
corrective action pursuant to Section 25296.10, 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 or Chapter 6.7
(commencing with Section 25280).
   (5) 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.
   (c) A claimant may be reimbursed by the fund for compensation of
third parties for only the following:
   (1) Medical expenses.
   (2) Actual lost wages or business income.
   (3) Actual expenses for remedial action to remedy the effects of
damage to the property of the third party caused by the unauthorized
release of petroleum from an underground storage tank.
   (4) The fair market value of the property rendered permanently
unsuitable for use by the unauthorized release of petroleum from an
underground storage tank.
   (d) The board shall pay a claim submitted pursuant to subdivision
(e) of Section 25299.54 for the costs related to the compensation of
third parties for bodily injury and property damages that exceed the
level of financial responsibility required to be obtained pursuant to
paragraph (2) of subdivision (a) of Section 25299.32, but not more
than one million dollars ($1,000,000) for each occurrence.
  SEC. 50.  Section 25299.70 of the Health and Safety Code is amended
to read:
   25299.70.  (a) Any costs incurred and payable from the fund
pursuant to subdivisions (c), (e), and (h) 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 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. 51.  Section 25395.44 of the Health and Safety Code is
repealed.
  SEC. 52.  Section 25395.44 is added to the Health and Safety Code,
to read:
   25395.44.  (a) Notwithstanding any other provision of law, the
agency, the secretary, the state, their respective employees and
agents, and any of the state's other political subdivisions or
employees thereof, shall not be liable to any person for any of the
following:
   (1) Any acts or omissions by the agency, the secretary, the state,
their respective employees and agents, and any of the state's other
political subdivisions or employees thereof, in implementing this
article.
   (2) Any acts or omissions by an insurance company selected to
provide prenegotiated environmental insurance products pursuant to
subdivision (b) of Section 25395.41.
   (3) Any acts or omissions by any person that purchases a
prenegotiated environmental insurance product made available pursuant
to this article.
   (b) The immunity from liability set forth in subdivision (a)
specifically includes, but is not limited to, immunity if an
insurance company selected to provide prenegotiated environmental
insurance products pursuant to subdivision (b) of Section 25395.41
does any of the following:
   (1) Cancels, rescinds, or otherwise terminates its contract with
the secretary.
   (2) Fails, for any reason, to compensate an insured for a loss
covered by a policy.
   (3) Delays payment to an insured, or otherwise breaches a duty or
covenant imposed by law or required by a policy or contract with an
insured that purchased an environmental insurance product pursuant to
this article.
   (c) The immunity set forth in this section is in addition to other
immunities and defenses otherwise available to the agency, the
secretary, the state, their respective employees and agents, and any
of the state's political subdivisions and employees thereof.
   (d) In implementing this article, the agency, the secretary, the
state, their respective employees and agents, and any of the state's
other political subdivisions and employees thereof, may not:
   (1) Be construed to be an insurer, as defined in Section 23 of the
Insurance Code, an insurance agent, as defined in Sections 31 and
1621 of the Insurance Code, an insurance solicitor, as defined in
Sections 34 and 1624 of the Insurance Code, or an insurance broker,
as defined in Sections 33 and 1623 of the Insurance Code.
   (2) Be construed to be transacting insurance, as defined in
Section 35 of the Insurance Code.
   (3) Be required to obtain a license or other authorization
pursuant to any provision of the Insurance Code.
  SEC. 53.  Section 25404 of the Health and Safety Code is amended to
read:
   25404.  (a) For purposes of this chapter, the following terms
shall have the following meanings:
   (1) (A) "Certified Unified Program Agency" or "CUPA" means the
agency certified by the secretary to implement the unified program
specified in this chapter within a jurisdiction.
   (B) "Participating Agency" or "PA" means a state or local agency
that has a written agreement with the CUPA pursuant to subdivision
(d) of Section 25404.3, and is approved by the secretary, to
implement or enforce one or more of the unified program elements
specified in subdivision (c), in accordance with Sections 25404.1 and
25404.2.
   (C) "Unified Program Agency" or "UPA" means the CUPA, or its
participating agencies to the extent each PA has been designated by
the CUPA, pursuant to a written agreement, to implement or enforce a
particular unified program element specified in subdivision (c).  The
UPAs have the responsibility and authority to implement and enforce
the requirements listed in subdivision (c), and the regulations
adopted to implement the requirements listed in subdivision (c), to
the extent provided by Chapter 6.5 (commencing with Section 25100),
Chapter 6.67 (commencing with Section 25270), Chapter 6.7 (commencing
with Section 25280), Chapter 6.95 (commencing with Section 25500),
and Sections 25404.1 and 25404.2.  After a CUPA has been certified by
the secretary, the unified program agencies and the state agencies
carrying out responsibilities under this chapter shall be the only
agencies authorized to enforce the requirements listed in subdivision
(c) within the jurisdiction of the CUPA.
   (2) "Department" means the Department of Toxic Substances Control.

   (3) "Minor violation" means the failure of a person to comply with
any requirement or condition of any applicable law, regulation,
permit, information request, order, variance, or other requirement,
whether procedural or substantive, of the unified program that the
UPA is authorized to implement or enforce pursuant to this chapter,
and that does not otherwise include any of the following:
   (A) A violation that results in injury to persons or property, or
that presents a significant threat to human health or the
environment.
   (B) A knowing willful or intentional violation.
   (C) A violation that is a chronic violation, or that is committed
by a recalcitrant violator.  In determining whether a violation is
chronic or a violator is recalcitrant, the UPA shall consider whether
there is evidence indicating that the violator has engaged in a
pattern of neglect or disregard with respect to applicable regulatory
requirements.
   (D) A violation that results in an emergency response from a
public safety agency.
   (E) A violation that enables the violator to benefit economically
from the noncompliance, either by reduced costs or competitive
advantage.
   (F) A class I violation as provided in Section 25117.6.
   (G) A class II violation committed by a chronic or a recalcitrant
violator, as provided in Section 25117.6.
   (H) A violation that hinders the ability of the UPA to determine
compliance with any other applicable local, state, or federal rule,
regulation, information request, order, variance, permit, or other
requirement.
   (4) "Secretary" means the Secretary for Environmental Protection.

   (5) "Unified program facility" means all contiguous land and
structures, other appurtenances, and improvements on the land that
are subject to the requirements listed in subdivision (c).
   (6) "Unified program facility permit" means a permit issued
pursuant to this chapter.  For the purposes of this chapter, a
unified program facility permit encompasses the permitting
requirements of Section 25284, and any permit or authorization
requirements under any local ordinance or regulation relating to the
generation or handling of hazardous waste or hazardous materials, but
does not encompass the permitting requirements of a local ordinance
that incorporates provisions of the Uniform Fire Code or the Uniform
Building Code.
   (b) The secretary shall adopt implementing regulations and
implement a unified hazardous waste and hazardous materials
management regulatory program, which shall be known as the unified
program, after holding an appropriate number of public hearings
throughout the state.  The unified program shall be developed in
close consultation with the director, the Director of the Office of
Emergency Services, the State Fire Marshal, the executive officers
and chairpersons of the State Water Resources Control Board and the
California regional water quality control boards, the local health
officers, local fire services, and other appropriate officers of
interested local agencies, and affected businesses and interested
members of the public, including environmental organizations.
   (c) The unified program shall consolidate the administration of
the following requirements, and shall, to the maximum extent feasible
within statutory constraints, ensure the coordination and
consistency of any regulations adopted pursuant to those
requirements:
   (1) (A) Except as provided in subparagraphs (B) and (C), the
requirements of Chapter 6.5 (commencing with Section 25100), and the
regulations adopted by the department pursuant thereto, applicable to
hazardous waste generators, and persons operating pursuant to a
permit-by-rule, conditional authorization, or conditional exemption,
pursuant to Chapter 6.5 (commencing with Section 25100) or the
regulations adopted by the department.
   (B) The unified program shall not include the requirements of
paragraph (3) of subdivision (c) of Section 25200.3, the requirements
of Sections 25200.10 and 25200.14, and the authority to issue an
order under Sections 25187 and 25187.1, with regard to those portions
of a unified program facility that are subject to one of the
following:
   (i) A corrective action order issued by the department pursuant to
Section 25187.
   (ii) An order issued by the department pursuant to Chapter 6.8
(commencing with Section 25300) or Chapter 6.85 (commencing with
Section 25396).
   (iii) A remedial action plan approved pursuant to Chapter 6.8
(commencing with Section 25300) or Chapter 6.85 (commencing with
Section 25396).
   (iv) A cleanup and abatement order issued by a California regional
water quality control board pursuant to Section 13304 of the Water
Code, to the extent that the cleanup and abatement order addresses
the requirements of the applicable section or sections listed in this
subparagraph.
   (v) Corrective action required under subsection (u) of Section
6924 of Title 42 of the United States Code or subsection (h) of
Section 6928 of Title 42 of the United States Code.
   (vi) An environmental assessment pursuant to Section 25200.14 or a
corrective action pursuant to Section 25200.10 or paragraph (3) of
subdivision (c) of Section 25200.3, that is being overseen by the
department.
   (C) The unified program shall not include the requirements of
Chapter 6.5 (commencing with Section 25100), and the regulations
adopted by the department pursuant thereto, applicable to persons
operating transportable treatment units, except that any required
notice regarding transportable treatment units shall also be provided
to the CUPAs.
   (2) The requirement of subdivision (c) of Section 25270.5 for
owners and operators of aboveground storage tanks to prepare a spill
prevention control and countermeasure plan.
   (3) The requirements of Chapter 6.7 (commencing with Section
25280) concerning underground storage tanks, except for the
responsibilities assigned to the State Water Resources Control Board
pursuant to Section 25297.1, and the requirements of any underground
storage tank ordinance adopted by a city or county.
   (4) The requirements of Article 1 (commencing with Section 25500)
of Chapter 6.95 concerning hazardous material release response plans
and inventories.
   (5) The requirements of Article 2 (commencing with Section 25531)
of Chapter 6.95, concerning the accidental release prevention
program.
   (6) The requirements of subdivisions (b) and (c) of Section 80.103
of the Uniform Fire Code, as adopted by the State Fire Marshal
pursuant to Section 13143.9 of the Health and Safety Code, concerning
hazardous material management plans and inventories.
   (d) To the maximum extent feasible within statutory constraints,
the secretary shall consolidate, coordinate, and make consistent
these requirements of the unified program with other requirements
imposed by other federal, state, regional, or local agencies upon
facilities regulated by the unified program.
   (e) (1) The secretary shall establish standards applicable to
CUPAs, participating agencies, state agencies, and businesses
specifying the data to be collected and submitted by unified program
agencies in administering the programs listed in subdivision (c).
Those standards shall incorporate any standard developed under
Section 25503.3.
   (2) The secretary shall establish an electronic geographic
information management system capable of receiving all data collected
by the unified program agencies pursuant to paragraph (1).  The
secretary shall make all nonconfidential data available on the
Internet.
   (f) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
  SEC. 54.  Section 25404 is added to the Health and Safety Code, to
read:
   25404.  (a) For purposes of this chapter, the following terms
shall have the following meanings:
   (1) (A) "Certified Unified Program Agency" or "CUPA" means the
agency certified by the secretary to implement the unified program
specified in this chapter within a jurisdiction.
   (B) "Participating Agency" or "PA" means a state or local agency
that has a written agreement with the CUPA pursuant to subdivision
(d) of Section 25404.3, and is approved by the secretary, to
implement or enforce one or more of the unified program elements
specified in subdivision (c), in accordance with Sections 25404.1 and
25404.2.
   (C) "Unified Program Agency" or "UPA" means the CUPA, or its
participating agencies to the extent each PA has been designated by
the CUPA, pursuant to a written agreement, to implement or enforce a
particular unified program element specified in subdivision (c).  The
UPAs have the responsibility and authority to implement and enforce
the requirements listed in subdivision (c), and the regulations
adopted to implement the requirements listed in subdivision (c), to
the extent provided by Chapter 6.5 (commencing with Section 25100),
Chapter 6.67 (commencing with Section 25270), Chapter 6.7 (commencing
with Section 25280), Chapter 6.95 (commencing with Section 25500),
and Sections 25404.1 and 25404.2.  After a CUPA has been certified by
the secretary, the unified program agencies and the state agencies
carrying out responsibilities under this chapter shall be the only
agencies authorized to enforce the requirements listed in subdivision
(c) within the jurisdiction of the CUPA.
   (2) "Department" means the Department of Toxic Substances Control.

   (3) "Secretary" means the Secretary for Environmental Protection.

   (4) "Unified program facility" means all contiguous land and
structures, other appurtenances, and improvements on the land that
are subject to the requirements listed in subdivision (c).
   (5) "Unified program facility permit" means a permit issued
pursuant to this chapter.  For the purposes of this chapter, a
unified program facility permit encompasses the permitting
requirements of Section 25284, and any permit or authorization
requirements under any local ordinance or regulation relating to the
generation or handling of hazardous waste or hazardous materials, but
does not encompass the permitting requirements of a local ordinance
that incorporates provisions of the Uniform Fire Code or the Uniform
Building Code.
   (b) The secretary shall adopt implementing regulations and
implement a unified hazardous waste and hazardous materials
management regulatory program, which shall be known as the unified
program, after holding an appropriate number of public hearings
throughout the state.  The unified program shall be developed in
close consultation with the director, the Director of the Office of
Emergency Services, the State Fire Marshal, the executive officers
and chairpersons of the State Water Resources Control Board and the
California regional water quality control boards, the local health
officers, local fire services, and other appropriate officers of
interested local agencies, and affected businesses and interested
members of the public, including environmental organizations.
   (c) The unified program shall consolidate the administration of
the following requirements, and shall, to the maximum extent feasible
within statutory constraints, ensure the coordination and
consistency of any regulations adopted pursuant to those
requirements:
   (1) (A) Except as provided in subparagraphs (B) and (C), the
requirements of Chapter 6.5 (commencing with Section 25100), and the
regulations adopted by the department pursuant thereto, applicable to
hazardous waste generators, and persons operating pursuant to a
permit-by-rule, conditional authorization, or conditional exemption,
pursuant to Chapter 6.5 (commencing with Section 25100) or the
regulations adopted by the department.
   (B) The unified program shall not include the requirements of
paragraph (3) of subdivision (c) of Section 25200.3, the requirements
of Sections 25200.10 and 25200.14, and the authority to issue an
order under Sections 25187 and 25187.1, with regard to those portions
of a unified program facility that are subject to one of the
following:
   (i) A corrective action order issued by the department pursuant to
Section 25187.
   (ii) An order issued by the department pursuant to Chapter 6.8
(commencing with Section 25300) or Chapter 6.85 (commencing with
Section 25396).
   (iii) A remedial action plan approved pursuant to Chapter 6.8
(commencing with Section 25300) or Chapter 6.85 (commencing with
Section 25396).
   (iv) A cleanup and abatement order issued by a California regional
water quality control board pursuant to Section 13304 of the Water
Code, to the extent that the cleanup and abatement order addresses
the requirements of the applicable section or sections listed in this
subparagraph.
   (v) Corrective action required under subsection (u) of Section
6924 of Title 42 of the United States Code or subsection (h) of
Section 6928 of Title 42 of the United States Code.
   (vi) An environmental assessment pursuant to Section 25200.14 or a
corrective action pursuant to Section 25200.10 or paragraph (3) of
subdivision (c) of Section 25200.3, that is being overseen by the
department.
   (C) The unified program shall not include the requirements of
Chapter 6.5 (commencing with Section 25100), and the regulations
adopted by the department pursuant thereto, applicable to persons
operating transportable treatment units, except that any required
notice regarding transportable treatment units shall also be provided
to the CUPAs.
   (2) The requirement of subdivision (c) of Section 25270.5 for
owners and operators of aboveground storage tanks to prepare a spill
prevention control and countermeasure plan.
   (3) The requirements of Chapter 6.7 (commencing with Section
25280) concerning underground storage tanks, except for the
responsibilities assigned to the State Water Resources Control Board
pursuant to Section 25297.1, and the requirements of any underground
storage tank ordinance adopted by a city or county.
   (4) The requirements of Article 1 (commencing with Section 25501)
of Chapter 6.95 concerning hazardous material release response plans
and inventories.
   (5) The requirements of Article 2 (commencing with Section 25531)
of Chapter 6.95, concerning the accidental release prevention
program.
   (6) The requirements of subdivisions (b) and (c) of Section 80.103
of the Uniform Fire Code, as adopted by the State Fire Marshal
pursuant to Section 13143.9 of the Health and Safety Code, concerning
hazardous material management plans and inventories.
   (d) To the maximum extent feasible within statutory constraints,
the secretary shall consolidate, coordinate, and make consistent
these requirements of the unified program with other requirements
imposed by other federal, state, regional, or local agencies upon
facilities regulated by the unified program.
   (e) (1) The secretary shall establish standards applicable to
CUPAs, participating agencies, state agencies, and businesses
specifying the data to be collected and submitted by unified program
agencies in administering the programs listed in subdivision (c).
Those standards shall incorporate any standard developed under
Section 25503.3.
   (2) The secretary shall establish an electronic geographic
information management system capable of receiving all data collected
by the unified program agencies pursuant to paragraph (1).  The
secretary shall make all nonconfidential data available on the
Internet.
   (f) This section shall become operative January 1, 2006.
  SEC. 55.  Section 25404.1.1 is added to the Health and Safety Code,
to read:
   25404.1.1.  (a) If the unified program agency determines that a
person has committed, or is committing, a violation of any law,
regulation, permit, information request, order, variance, or other
requirement that the UPA is authorized to enforce or implement
pursuant to this chapter, the UPA may issue an administrative
enforcement order requiring that the violation be corrected and
imposing an administrative penalty, in accordance with the following:

   (1) Except as provided in paragraph (5), if the order is for a
violation of Chapter 6.5 (commencing with Section 25100), the
violator shall be subject to the applicable administrative penalties
provided by that chapter.
   (2) If the order is for a violation of Chapter 6.7 (commencing
with Section 25280), the violator shall be subject to the applicable
civil penalties provided in subdivisions (a), (b), and (c) of Section
25299.
   (3) If the order is for a violation of Article 1 (commencing with
Section 25500) of Chapter 6.95, the violator shall be subject to a
penalty that is consistent with the administrative penalties imposed
pursuant to Section 25514.5.
   (4) If the order is for a violation of Article 2 (commencing with
Section 25531) of Chapter 6.95, the violator shall be subject to a
penalty that is consistent with the administrative penalties imposed
pursuant to Section 25540 or 25540.5.
   (5) If the order is for a violation of Section 25270.5, the
violator shall be liable for a penalty of not more than five thousand
dollars ($5,000) for each day on which the violation continues.  If
the violator commits a second or subsequent violation, a penalty of
not more than ten thousand dollars ($10,000) for each day on which
the violation continues may be imposed.
   (b) In establishing a penalty amount and ordering that the
violation be corrected pursuant to this section, the UPA shall take
into consideration the nature, circumstances, extent, and gravity of
the violation, the violator's past and present efforts to prevent,
abate, or clean up conditions posing a threat to the public health or
safety or the environment, the violator's ability to pay the
penalty, and the deterrent effect that the imposition of the penalty
would have on both the violator and the regulated community.
   (c) Any order issued pursuant to this section shall be served by
personal service or certified mail and shall inform the person served
of the right to a hearing.  If the UPA issues an order pursuant to
this section, the order shall state whether the hearing procedure
specified in paragraph (2) of subdivision (e) may be requested by the
person receiving the order.
   (d) Any person served with an order pursuant to this section who
has been unable to resolve any violation with the UPA, may within 15
days after service of the order, request a hearing pursuant to
subdivision (e) by filing with the UPA a notice of defense.  The
notice shall be filed with the
    office that issued the order.  A notice of defense shall be
deemed filed within the 15-day period provided by this subdivision if
it is postmarked within that 15-day period.  If no notice of defense
is filed within the time limits provided by this subdivision, the
order shall become final.
   (e) Except as provided in subparagraph (B) of paragraph (2), a
person requesting a hearing on an order issued by the UPA under this
section may select the hearing officer specified in either paragraph
(1) or (2) in the notice of defense filed with the UPA pursuant to
subdivision (d).  If a notice of defense is filed but no hearing
officer is selected, the UPA may select the hearing officer.  Within
90 days of receipt of the notice of defense by the UPA, the hearing
shall be scheduled using one of the following:
   (1) An administrative law judge of the Office of Administrative
Hearings of the Department of General Services, who shall conduct the
hearing in accordance with Chapter 4.5 (commencing with Section
11400) of Part 1 of Division 3 of Title 2 of the Government Code, and
the UPA shall have all the authority granted to an agency by those
provisions.
   (2) (A) A hearing officer designated by the UPA, who shall conduct
the hearing in accordance with Chapter 4.5 (commencing with Section
11400) of Part 1 of Division 3 of Title 2 of the Government Code, and
the UPA shall have all the authority granted to an agency by those
provisions.  When a hearing is conducted by a UPA hearing officer
pursuant to this paragraph, the UPA shall issue a decision within 60
days after the hearing is conducted.  Each hearing officer designated
by a UPA shall meet the requirements of Section 11425.30 of the
Government Code and any other applicable restriction.
   (B) A UPA, or a person requesting a hearing on an order issued by
a UPA may select the hearing process specified in this paragraph in a
notice of defense filed pursuant to subdivision (d) only if the UPA
has, as of the date the order is issued pursuant to subdivision (c),
selected a designated hearing officer and established a program for
conducting a hearing in accordance with this paragraph.
   (f) The hearing decision issued pursuant to paragraph (2) of
subdivision (e) shall be effective and final upon issuance by the
UPA.  A copy of the decision shall be served by personal service or
by certified mail upon the party served with the order, or their
representative, if any.
   (g) Any provision of an order issued under this section, except
the imposition of an administrative penalty, shall take effect upon
issuance by the UPA if the UPA finds that the violation or violations
of law associated with that provision may pose an imminent and
substantial endangerment to the public health or safety or the
environment.  A request for a hearing shall not stay the effect of
that provision of the order pending a hearing decision.  However, if
the UPA determines that any or all provisions of the order are so
related that the public health or safety or the environment can be
protected only by immediate compliance with the order as a whole, the
order as a whole, except the imposition of an administrative
penalty, shall take effect upon issuance by the UPA.  A request for a
hearing shall not stay the effect of the order as a whole pending a
hearing decision.
   (h) A decision issued pursuant to paragraph (2) of subdivision (e)
may be reviewed by a court pursuant to Section 11523 of the
Government Code.  In all proceedings pursuant to this section, the
court shall uphold the decision of the UPA if the decision is based
upon substantial evidence in the record as a whole.  The filing of a
petition for writ of mandate shall not stay any action required
pursuant to this chapter or the accrual of any penalties assessed
pursuant to this chapter.  This subdivision does not prohibit the
court from granting any appropriate relief within its jurisdiction.
   (i) All administrative penalties collected from actions brought by
a UPA pursuant to this section shall be paid to the UPA that imposed
the penalty, and shall be deposited into a special account that
shall be expended to fund the activities of the UPA in enforcing this
chapter.
   (j) The UPA shall consult with the district attorney, county
counsel, or city attorney on the development of policies to be
followed in exercising the authority delegated pursuant to this
section as it relates to the authority of the UPA to issue orders.
   (k) This section does not do any of the following:
   (1) Otherwise affect the authority of a UPA to take any other
action authorized by any other provision of law, except the UPA shall
not require a person to pay a penalty pursuant to this section and
pursuant to a local ordinance for the same violation.
   (2) Restrict the power of a city attorney, district attorney,
county counsel, or the Attorney General to bring, in the name of the
people of California, any criminal proceeding otherwise authorized by
law.
   (3) Prevent the UPA from cooperating with, or participating in, a
proceeding specified in paragraph (2).
  SEC. 56.  Section 25404.1.2 is added to the Health and Safety Code,
to read:
   25404.1.2.  (a) (1) An authorized representative of the UPA, who
in the course of conducting an inspection, detects a minor violation,
shall take an enforcement action as to the minor violation only in
accordance with this section.
   (2) In any proceeding concerning an enforcement action taken
pursuant to this section, there shall be a rebuttable presumption
upholding the determination made by the UPA regarding whether the
violation is a minor violation.
   (b) A notice to comply shall be the only means by which a UPA may
cite a minor violation, unless the person cited fails to correct the
violation or fails to submit the certification of correction within
the time period prescribed in the notice, in which case the UPA may
take any enforcement action, including imposing a penalty, as
authorized by this chapter.
   (c) (1) A person who receives a notice to comply detailing a minor
violation shall have not more than 30 days from the date of the
notice to comply in which to correct any violation cited in the
notice to comply.  Within five working days of correcting the
violation, the person cited or an authorized representative shall
sign the notice to comply, certifying that any violation has been
corrected, and return the notice to the UPA.
   (2) A false certification that a violation has been corrected is
punishable as a misdemeanor.
   (3) The effective date of the certification that any violation has
been corrected shall be the date that it is postmarked.
   (d) If a notice to comply is issued, a single notice to comply
shall be issued for all minor violations noted during the inspection,
and the notice to comply shall list all of the minor violations and
the manner in which each of the minor violations may be brought into
compliance.
   (e) If a person who receives a notice to comply pursuant to
subdivision (a) disagrees with one or more of the alleged violations
listed on the notice to comply, the person shall provide the UPA a
written notice of disagreement along with the returned signed notice
to comply.  If the person disagrees with all of the alleged
violations, the written notice of disagreement shall be returned in
lieu of the signed certification of correction within 30 days of the
date of issuance of the notice to comply.  If the issuing agency
takes administrative enforcement action on the basis of the disputed
violation, that action may be appealed in the same manner as any
other alleged violation under Section 25404.1.1.
   (f) This section may not be construed as doing any of the
following:
   (1) Preventing the reinspection of a facility to ensure compliance
with this chapter or to ensure that minor violations cited in a
notice to comply have been corrected and that the facility is in
compliance with those laws and regulations within the jurisdiction of
the UPA.
   (2) Preventing the UPA from requiring a person to submit necessary
documentation needed to support the person's claim of compliance
pursuant to subdivision (c).
   (3) Restricting the power of a city attorney, district attorney,
county counsel, or the Attorney General to bring, in the name of the
people of California, any criminal proceeding otherwise authorized by
law.
   (4) Preventing the UPA from cooperating with, or participating in,
a proceeding specified in paragraph (3).
   (g) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
  SEC. 57.  Section 25514.5 of the Health and Safety Code is amended
to read:
   25514.5.  (a) Notwithstanding Section 25514, any business that
violates this article is liable to an administering agency for an
administrative penalty, in an amount which shall be set by the
governing body of the administering agency, but not greater than two
thousand dollars ($2,000) for each day in which the violation occurs.
  If the violation results in, or significantly contributes to, an
emergency, including a fire or health or medical problem requiring
toxicological, health, or medical consultation, the business shall
also be assessed the full cost of the county, city, fire district,
local EMS agency designated pursuant to Section 1797.200, or poison
control center as defined by Section 1797.97, emergency response, as
well as the cost of cleaning up and disposing of the hazardous
materials, or acutely hazardous materials.
   (b) Notwithstanding Section 25514, any business that knowingly
violates this article after reasonable notice of the violation is
liable for an administrative penalty, in an amount which shall be set
by the governing body of the administering agency, but not greater
than five thousand dollars ($5,000) for each day in which the
violation occurs.
   (c) When an administering agency issues an enforcement order or
assesses an administrative penalty, or both, for a violation of this
article, the administering agency shall utilize the administrative
enforcement procedures specified in Sections 25404.1.1 and 25404.1.2.

  SEC. 58.  Section 25514.6 of the Health and Safety Code is
repealed.
  SEC. 59.  Section 25540 of the Health and Safety Code is amended to
read:
   25540.  (a) Any stationary source that violates this article shall
be civilly liable to the administering agency in an amount of not
more than two thousand dollars ($2,000) for each day in which the
violation occurs.  If the violation results in, or significantly
contributes to, an emergency, including a fire, the stationary source
shall also be assessed the full cost of the county or city emergency
response, as well as the cost of cleaning up and disposing of the
hazardous materials.  When an administering agency issues an
enforcement order or assesses an administrative penalty, or both, for
a violation of this chapter, the administering agency shall utilize
the administrative enforcement procedures specified in Sections
25404.1.1 and 25404.1.2.
   (b) Any stationary source that knowingly violates this article
after reasonable notice of the violation shall be civilly liable to
the administering agency in an amount not to exceed twenty-five
thousand dollars ($25,000) for each day in which the violation occurs
and upon conviction, may be punished by imprisonment in the county
jail for not more than one year.
  SEC. 60.  Section 33459 of the Health and Safety Code is amended to
read:
   33459.  For purposes of this article, the following terms shall
have the following meanings:
   (a) "Department" means the Department of Toxic Substances Control.

   (b) "Director" means the Director of Toxic Substances Control.
   (c) "Hazardous substance" means any hazardous substance as defined
in subdivision (h) of Section 25281, and any reference to hazardous
substance in the definitions referenced in this section shall be
deemed to refer to hazardous substance, as defined in this
subdivision.
   (d) "Local agency" means a single local agency that is one of the
following:
   (1) A local agency authorized pursuant to Section 25283 to
implement Chapter 6.7 (commencing with Section 25280) of, and Chapter
6.75 (commencing with Section 25299.10) of, Division 20.
   (2) A local officer who is authorized pursuant to Section 101087
to supervise a remedial action.
   (e) "Qualified independent contractor" means an independent
contractor who is any of the following:
   (1) An engineering geologist who is certified pursuant to Section
7842 of the Business and Professions Code.
   (2) A geologist who is registered pursuant to Section 7850 of the
Business and Professions Code.
   (3) A civil engineer who is registered pursuant to Section 6762 of
the Business and Professions Code.
   (f) "Release" means any release, as defined in Section 25320.
   (g) "Remedy" or "remove" means any action to assess, evaluate,
investigate, monitor, remove, correct, clean up, or abate a release
of a hazardous substance or to develop plans for those actions.
"Remedy" includes any action set forth in Section 25322 and "remove"
includes any action set forth in Section 25323.
   (h) "Responsible party" means any person described in subdivision
(a) of Section 25323.5 of this code or any person specified in
subdivision (a) of Section 13304 of the Water Code who is subject to
an order issued pursuant to that section.
  SEC. 61.  Section 116367 is added to the Health and Safety Code, to
read:
   116367.  (a) The Legislature finds and declares that oxygenated
gasoline has contaminated groundwater and surface water used for
drinking water purposes.  The Legislature further declares that it is
in the public interest to provide funding to pay for corrective
action needed to protect public health and the environment as a
result of oxygenate contamination of drinking water.
   (b) For the purposes of this section, the following terms have the
following meanings:
   (1) "Drinking water fund" or "fund" means the Drinking Water
Treatment and Research Fund created pursuant to subdivision (c).
   (2) "Financial hardship" means a public water system does not have
sufficient resources not otherwise dedicated for a specified
purpose, including, but not limited to, debt service requirements, to
pay for necessary treatment works, conduct an investigation into the
source of contamination, or acquire alternate drinking water
supplies and leave sufficient reserves available to enable the system
owner or operator to address economic uncertainties to pay for
contingencies.
   (3) "Oxygenate" has the same meaning as oxygenate as defined in
Section 25299.97.
   (4) "Public water system" means a public water system, as defined
in Section 116275.
   (5) "Drinking water supply" means a source of drinking water that
has been approved by the department.
   (c) The Drinking Water Treatment and Research Fund is hereby
created in the State Treasury.
   (d) Notwithstanding Section 13340 of the Government Code, moneys
in the fund are continuously appropriated, without regard to fiscal
years, to the department for all of the following purposes:
   (1) To make payments to a public water system for the incremental
costs of treating groundwater and surface water used for drinking
water purposes that has been contaminated by an oxygenate if the
level of contamination exceeds the lowest of any primary or secondary
drinking water standard adopted pursuant to Section 116365 or
116610.  Treatment for surface water shall be for surface water that
supplies water to a treatment facility for a water supply system that
serves domestic uses.
   (2) To make payments to a public water system for the costs of
investigating the possible source and extent of contamination when
the department determines that an oxygenate is detected at any level
in groundwater supplies utilized by a public water system for
drinking water purposes as provided in subdivision (k).  Costs
eligible for payment under this paragraph may include the costs of
acquiring alternate drinking water supplies if the well is required
by the department or a California regional water quality control
board to be shut down or its use curtailed during the investigation.
Costs eligible for payment under this paragraph include the costs of
connecting a public water system to another public water system or
constructing a new drinking water well.
   (3) To make payments to a public water system for the incremental
costs of acquiring alternate drinking water supplies to replace
supplies contaminated by an oxygenate at a level that exceeds the
lowest of any primary or secondary drinking water standard adopted
pursuant to Section 116365 or 116610.  Costs eligible for payment
under this paragraph include the costs of connecting a public water
system to another public water system or constructing a new drinking
water well.
   (4) To conduct research and develop cost-effective treatment
technologies to treat drinking water contaminated by an oxygenate to
meet primary or secondary drinking water standards and effective
strategies to protect drinking water sources from contamination by
oxygenates.  The department shall not expend more than one million
dollars ($1,000,000) annually for these purposes and may enter into
cooperative agreements with federal and state agencies, local
agencies, or other persons to conduct research and development
activities.
   (5) To pay the administrative costs, not to exceed 5 percent, for
the department to administer this section.
   (6) To make payments to a public water system for the incremental
costs of acquiring an alternate drinking water supply where the
department has determined that a drinking water supply would become
contaminated by an oxygenate at a level that exceeds the lowest of
any primary or secondary drinking water standard if the public water
system continues to use the drinking water supply.
   (e) The department shall report annually to the Governor and to
the Legislature on any moneys provided to a public water system
pursuant to this section.
   (f) (1) The department shall be reimbursed by a public water
system that has received funds pursuant to this section, to the
extent that the public water system receives payment from any source
to cover the costs for which it received funding under this section.
The public water system shall aggressively pursue cost recovery from
responsible persons and, upon recovery, or within five years from
the date on which the initial payment is received, whichever occurs
first, shall reimburse the department for funds received pursuant to
this section, unless the public water system demonstrates that
despite all reasonable efforts, recovery from a responsible party is
not possible, or that a responsible party cannot be identified.  The
department shall transfer any reimbursements received from a public
water system into the fund or the Underground Storage Tank Cleanup
Fund, whichever fund provided the moneys.
   (2) Notwithstanding paragraph (1), the department may not require
a public water system to pursue cost recovery from responsible
persons for funds received pursuant to this section that total one
million dollars ($1,000,000) or less.
   (g) The department may make payments pursuant to paragraphs (1),
(2), and (3) of subdivision (d) without regard to when the
contamination occurred or when costs for treating or investigating
the source of contamination or acquiring replacement water were
incurred, except that a public water system may not receive more than
three million dollars ($3,000,000) from the drinking water fund in
any fiscal year unless the public water system makes a showing of
financial hardship.
   (h) (1) The department may make payments pursuant to paragraphs
(1), (2), (3), and (6) of subdivision (d), without requiring a public
water system to first incur expenditures, if the department
determines that a situation exists that requires prompt action by the
public water system to protect human health or the environment, or
the public water system makes a showing of financial hardship.
   (2) Upon a showing of financial hardship, pursuant to paragraph
(1), the public water system shall present the department with a work
plan that specifies the estimated costs of treatment, constructing a
new drinking water well, or obtaining an alternate water supply.
The estimated costs of treatment or constructing a new well to
provide replacement water shall be prepared by a registered civil
engineer or other registered professional.  The estimated costs for
acquiring an alternate water supply, other than a new well, shall be
substantiated by an identification of necessary capital facilities to
convey the water to the public water system and a written offer by
another entity to provide the alternate water supply.
   (3) The department shall prescribe forms and procedures for claims
filed pursuant to this section as necessary to ascertain eligibility
for payment and validity of incremental costs based on generally
accepted accounting principles.  The department shall not require an
applicant to prepare an economic feasibility study regarding the
acquisition of an alternate water supply.  The department may require
a description of site-specific information, including the origin of
contamination, the petroleum products released, and the status of
cleanup and abatement activities at potential leaking underground
storage tank sites if that information is available to the applicant.

   (4) The department shall provide payment within 60 days of
receiving a claim filed pursuant to this section.
   (5) A claim shall be deemed true and correct if not audited by the
department within three years of payment.
   (i) The department, in evaluating claims submitted for payment
from the fund, shall consider the findings of the University of
California report regarding the assessment undertaken pursuant to
Section 3 of Chapter 816 of the Statutes of 1997, as those findings
relate to the assessment of the human health and environmental risks
and benefits, if any, associated with the use of MTBE in gasoline.
In particular, the department shall consider findings in the report
regarding the evaluations of the costs and effectiveness of treatment
technologies available to remove MTBE from drinking water.
   (j) Any funds transferred to the fund pursuant to Section
25299.99.1 may be used for the purposes of this section only if a
public drinking water well has been contaminated by an oxygenate or
if the department has determined that a drinking water supply would
become contaminated by an oxygenate at a level that exceeds the
lowest of any primary or secondary drinking water standard if the
public water system continues to use the drinking supply and there is
substantial evidence that the contamination was caused by a release
from an underground storage tank.
   (k) A public water system that determines that an oxygenate is
detected at any level in groundwater supplies utilized by the public
water system for drinking water purposes shall notify the department
and a California regional water quality control board.  The
department or a regional board shall determine whether to shut down
or curtail the use of a well within 30 days following receipt of
notification from a public water system.
   (l)(1) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2010, deletes or extends
that date.
   (2) The repeal of this section does not terminate any of the
following rights, obligations or authorities, or any provision
necessary to carry out these rights or obligations:
   (A) The filing and payment of claims in the fund, until the moneys
in the fund are exhausted.  Upon exhaustion of the fund, any
remaining claims shall be invalid.
   (B) The resolution of any cost recovery action.
   (m) Any commitment made by the department on or after January 1,
2001, to expend funds pursuant to former Section 116367, as it read
on December 31, 2001, is hereby ratified.  The department may approve
any expenses incurred by water systems pursuant to these
commitments.
  SEC. 62.  Section 13269 of the Water Code is amended to read:
   13269.  (a) On and after January 1, 2000, the provisions of
subdivisions (a) and (b) of Section 13260, subdivision (a) of Section
13263, or subdivision (a) of Section 13264 may be waived by a
regional board as to a specific discharge or a specific type of
discharge if the waiver is not against the public interest.  Waivers
for specific types of discharges may not exceed five years in
duration, but may be renewed by a regional board.  The waiver shall
be conditional and may be terminated at any time by the board.
   (b) (1) A waiver in effect on January 1, 2000, shall remain valid
until January 1, 2003, unless the regional board terminates that
waiver prior to that date.  All waivers that were valid on January 1,
2000, and granted an extension until January 1, 2003, and not
otherwise terminated, may be renewed by a regional board in five-year
increments.
   (2) Notwithstanding paragraph (1), a waiver for an onsite sewage
treatment system that is in effect on January 1, 2002, shall remain
valid until June 30, 2004, unless the regional board terminates the
waiver prior to that date.  Any waiver for onsite sewage treatment
systems adopted or renewed after June 30, 2004, shall be consistent
with the applicable regulations or standards for onsite sewage
treatment systems adopted or retained in accordance with Section
13291.
   (c) Upon notification of the appropriate regional board of the
discharge or proposed discharge, except as provided in subdivision
(d), the provisions of subdivisions (a) and (b) of Section 13260,
subdivision (a) of Section 13263, and subdivision (a) of Section
13264 shall not apply to discharge resulting from any of the
following emergency activities:
   (1) Immediate emergency work necessary to protect life or property
or immediate emergency repairs to public service facilities
necessary to maintain service as a result of a disaster in a
disaster-stricken area in which a state of emergency has been
proclaimed by the Governor pursuant to Chapter 7 (commencing with
Section 8550) of Division 1 of Title 2 of the Government Code.
   (2) Emergency projects undertaken, carried out, or approved by a
public agency to maintain, repair, or restore an existing highway, as
defined in Section 360 of the Vehicle Code, except for a highway
designated as an official state scenic highway pursuant to Section
262 of the Streets and Highways
      Code, within the existing right-of-way of the highway, damaged
as a result of fire, flood, storm, earthquake, land subsidence,
gradual earth movement, or landslide within one year of the damage.
This paragraph does not exempt from this section any project
undertaken, carried out, or approved by a public agency to expand or
widen a highway damaged by fire, flood, storm, earthquake, land
subsidence, gradual earth movement, or landslide.
   (d) Subdivision (c) is not a limitation of the authority of a
regional board under subdivision (a) to determine that any provision
of this division shall not be waived or to establish conditions of a
waiver.  Subdivision (c) shall not apply to the extent that it is
inconsistent with any waiver or other order or prohibition issued
under this division.
   (e) The regional boards and the state board shall require
compliance with the conditions pursuant to which waivers are granted
under this section.
   (f) Prior to renewing any waiver for a specific type of discharge
established under this section, the regional boards shall review the
terms of the waiver policy at a public hearing.  At the hearing, a
regional board shall determine whether the discharge for which the
waiver policy was established should be subject to general or
individual waste discharge requirements.
  SEC. 63.  Section 13285 of the Water Code is amended to read:
   13285.  (a) Any discharge from a storage tank, pipeline, or other
container of methyl tertiary-butyl ether (MTBE), or of any pollutant
that contains MTBE, that poses a threat to drinking water, or to
groundwater or surface water that may reasonably be used for drinking
water, or to coastal waters shall be cleaned up to a level
consistent with subdivisions (a) and (b) of Section 25296.10 of the
Health and Safety Code.
   (b) (1) No public water system, or its customers, shall be
responsible for remediation or treatment costs associated with MTBE,
or a product that contains MTBE.  However, the public water system
may, as necessary, incur MTBE remediation and treatment costs and
include those costs in its customer rates and charges that are
necessary to comply with drinking water standards or directives of
the State Department of Health Services or other lawful authority.
Any public water system that incurs MTBE remediation or treatment
costs may seek recovery of those costs from parties responsible for
the MTBE contamination, or from other available alternative sources
of funds.
   (2) If the public water system has included the costs of MTBE
treatment and remediation in its customer rates and charges, and
subsequently recovers all, or a portion of, its MTBE treatment and
remediation costs from responsible parties or other available
alternative sources of funds, it shall make an adjustment to its
schedule of rates and charges to reflect the amount of funding
received from responsible parties or other available alternative
sources of funds for MTBE treatment or remediation.
   (3) Paragraph (1) shall not prevent the imposition of liability on
any person for the discharge of MTBE if that liability is due to the
conduct or status of that person independently of whether the person
happens to be a customer of the public water system.
  SEC. 64.  Section 13323 of the Water Code is amended to read:
   13323.  (a) Any executive officer of a regional board may issue a
complaint to any person on whom administrative civil liability may be
imposed pursuant to this article.  The complaint shall allege  the
act or failure to act that constitutes a violation of law, the
provision of law authorizing civil liability to be imposed pursuant
to this article, and the proposed civil liability.
   (b) The complaint shall be served by certified mail or in
accordance with Article 3 (commencing with Section 415.10) of, and
Article 4 (commencing with Section 416.10) of, Chapter 4 of Title 5
of Part 2 of the Code of Civil Procedure, and shall inform the party
so served that a hearing before the regional board shall be conducted
within 90 days after the party has been served.  The person who has
been issued a complaint may waive the right to a hearing.
   (c) In proceedings under this article for imposition of
administrative civil liability by the state board, the executive
director of the state board shall issue the complaint and any hearing
shall be before the state board, or before a member of the state
board in accordance with Section 183, and shall be conducted not
later than 90 days after the party has been served.
   (d) Orders imposing administrative civil liability shall become
effective and final upon issuance thereof, and are not subject to
review by any court or agency except as provided by Sections 13320
and 13330.  Payment shall be made not later than 30 days from the
date on which the order is issued.  The time for payment is extended
during the period in which a person who is subject to an order seeks
review under Section 13320 or 13330.  Copies of these orders shall be
served by certified mail or in accordance with Article 3 (commencing
with Section 415.10) of, and Article 4 (commencing with Section
416.10) of, Chapter 4 of Title 5 of Part 2 of the Code of Civil
Procedure upon the party served with the complaint and shall be
provided to other persons who appeared at the hearing and requested a
copy.
  SEC. 65.  Section 13365 of the Water Code is amended to read:
   13365.  (a) (1) For purposes of this article, unless the context
otherwise requires, "agency" means the state board or a regional
board.
   (2) The terms used in this article shall have the same meaning as
the definitions specified in the statutory authority under which the
agency takes any action subject to this article, except that,
notwithstanding Section 25317 of the Health and Safety Code, for
purposes of this article, "hazardous substance" includes a hazardous
substance specified in subdivision (h) of Section 25281 of the Health
and Safety Code.
   (b) On or before July 1, 1997, the agency shall adopt a billing
system for the agency's cost recovery of investigation, analysis,
planning, implementation, oversight, or other activity related to the
removal or remedial or corrective action of a release of a hazardous
substance that includes both of the following:
   (1) Billing rates and overhead rates by employee job
classification.
   (2) Standardized description of work tasks.
   (c) Notwithstanding any other provision of law, after July 1,
1997, any charge imposed upon a responsible party by the agency, to
compensate the agency for some, or all, of its costs incurred in
connection with the agency's investigation, analysis, planning,
implementation, oversight, or other activity related to a removal or
remedial action or a corrective action to a release of a hazardous
substance, shall not be assessed or collected unless all of the
following requirements are met:
   (1) Except as provided in subdivision (f), prior to commencing the
work or service for which the charge is assessed, and at least
annually thereafter if the work or service is continuing, the agency
shall provide all of the following information to the responsible
party:
   (A) A detailed estimate of the work to be performed or services to
be provided, including a statement of the expected outcome of that
work, based upon data available to the agency at the time.
   (B) The billing rates for all individuals and classes of employees
expected to engage in the work or service.
   (C) An estimate of all expected charges to be  billed to the
responsible party by the agency, including, but not limited to, any
overhead assessments that the agency may be authorized to levy.
   (2) (A) Invoices shall be issued not less than semiannually with
appropriate incentives for prompt payment.
   (B) Invoices shall be mailed to the correct person or persons for
the responsible party or parties.
   (C) Invoices shall provide a daily detail of work performed and
time spent by each employee and contractor employee using the billing
and overhead rates and the standardized description of work tasks
adopted pursuant to subdivision (b).
   (D) Invoices shall include the source and amount of all other
charges.
   (E) Invoices shall be supplemented with statements of any changes
in rates and a justification for any changes.
   (F) Invoices shall be reviewed for accuracy and appropriateness.
   (3) Upon request and within a reasonable time, not to exceed  30
working days from the date of receipt of a request, the agency shall
provide the responsible party  with copies of time records and other
materials supporting the invoice described in paragraph (2).  No fees
or charges may be assessed for the preparation and delivery of those
copies pursuant to this section.
   (4) The agency shall identify a party who is responsible for
resolving disputes regarding the charges subject to this section and
who is not responsible for, or performing, the work or service for
which the charges are assessed.
   (d) The agency may adjust the scope of the work or service, type
of studies, or other tasks to be performed, based upon analyses
necessary to accommodate new information regarding the extent of
contamination of the site, and only after providing written notice of
the change to the responsible party containing the information
specified in paragraph (1) of subdivision (c).
   (e) The agency may increase billing rates not more than once each
calendar year, to the extent authorized by law.  Any increase in
billing rates or other charges, including, but not limited to,
overhead charges, shall operate prospectively only, and shall take
effect not sooner than 10 days from the date that written notice has
been provided to the responsible party.
   (f) (1) Paragraph (1) of subdivision (c) shall not apply when a
situation exists that requires prompt action to protect human health
or safety or the environment.
   (2) Paragraph (1) of subdivision (c) does not apply with respect
to those responsible parties who are not identified until after the
beginning of a removal or remedial action or corrective action to a
release of a hazardous substance.
  SEC. 66.  Section 13391.5 of the Water Code is amended to read:
   13391.5.  The definitions in this section govern the construction
of this chapter.
   (a) "Enclosed bays" means indentations along the coast which
enclose an area of oceanic water within distinct headlands or harbor
works.  "Enclosed bays" include all bays where the narrowest distance
between the headlands or outermost harbor works is less than 75
percent of the greatest dimension of the enclosed portion of the bay.
  "Enclosed bays" include, but are not limited to, Humboldt Bay,
Bodega Harbor, Tomales Bay, Drake's Estero, San Francisco Bay, Morro
Bay, Los Angeles-Long Beach Harbor, Upper and Lower Newport Bay,
Mission Bay, and San Diego Bay.  For the purposes of identifying,
characterizing, and ranking toxic hot spots pursuant to this chapter,
Monterey Bay and Santa Monica Bay shall also be considered to be
enclosed bays.
   (b) "Estuaries" means waters, including coastal lagoons, located
at the mouths of streams which serve as mixing zones for fresh and
ocean waters.  Coastal lagoons and mouths of streams which are
temporarily separated from the ocean by sandbars shall be considered
as estuaries.  Estuarine waters shall be considered to extend from a
bay or the open ocean to a point upstream where there is no
significant mixing of fresh water and sea water.  Estuarine waters
include, but are not limited to, the Sacramento-San Joaquin Delta, as
defined in Section 12220, Suisun Bay, Carquinez Strait downstream to
the Carquinez Bridge, and appropriate areas of the Smith, Mad, Eel,
Noyo, Russian, Klamath, San Diego, and Otay Rivers.
   (c) "Health risk assessment" means an analysis which evaluates and
quantifies the potential human exposure to a pollutant that
bioaccumulates or may bioaccumulate in edible fish, shellfish, or
wildlife.  "Health risk assessment" includes an analysis of both
individual and population wide health risks associated with
anticipated levels of human exposure, including potential synergistic
effects of toxic pollutants and impacts on sensitive populations.
   (d) "Sediment quality objective" means that level of a constituent
in sediment which is established with an adequate margin of safety,
for the reasonable protection of the beneficial uses of water or the
prevention of nuisances.
   (e) "Toxic hot spots" means locations in enclosed bays, estuaries,
or any adjacent waters in the "contiguous zone" or the "ocean," as
defined in Section 502 of the Clean Water Act (33 U.S.C. Sec. 1362),
the pollution or contamination of which affects the interests of the
state, and where hazardous substances have accumulated in the water
or sediment to levels which (1) may pose a substantial present or
potential hazard to aquatic life, wildlife, fisheries, or human
health, or (2) may adversely affect the beneficial uses of the bay,
estuary, or ocean waters as defined in water quality control plans,
or (3) exceeds adopted water quality or sediment quality objectives.

   (f) "Hazardous substances" has the same meaning as defined in
subdivision (h) of Section 25281 of the Health and Safety Code.
  SEC. 67.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the 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, or
because a local agency or school district has the authority to levy
service charges, fees, or assessments sufficient to pay for the
program or level of service mandated by this act, within the meaning
of Section 17556 of the Government Code.