Lower California Funding Expected in 2012


The current .02 per gallon fee on petroleum stored in underground storage tanks will drop to 1.4 cents per gallon in January 2012, making less money available for reimbursements in 2012 and beyond. 

This fee reduction will happen unless current proposed legislation, AB 291 (Assemblyman Wieckowski) is passed.  AB 291 provides a 2-year extension for the .02 per gallon fee until January 2014.  But before the California Legislature’s summer break, AB 291 was “double-joined” with AB 358 (Assemblyman Smyth).  AB 358 establishes that the State Water Board has final authority over sites administered under any local agency cleanup oversight authority.  Presently, LIA’s (a subset of local agencies) do not have to abide by Water Board decisions about their sites.  Double-joining means that both must pass and be signed into law for either of them to go into effect.

The Legislature is set to reconvene Monday, August 15, 2011, after summer break. 

In an effort to prepare for the upcoming fee reduction, the Underground Storage Tank Cleanup Fund (USTCF) has taken measures to notify all affected parties of the anticipated available funding and has implemented new steps regarding obtaining budgets for all work performed on or after July 1, 2011.  If higher revenues are realized by the passing of AB291/AB358, the USTCF will simply have more funding  available to allow for increasing budgets (through change order requests) and/or allow additional sites on the Priority List into the Program.

Click below to find out more about UST funding revenues.

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