ITEM 3: PROPOSED RESOLUTION AMENDING THE UNDERGROUND STORAGE TANK (UST) CLEANUP FUND PRIORITY LIST - AMENDMENT NO. 42

DISCUSSION: Chapter 6.75 of the Health and Safety Code authorizes creation of the Underground Storage Tank Cleanup Fund (Fund) to reimburse UST owners and operators for the cleanup of contaminated soil and water caused by leaking petroleum USTs. The law established a four-tier priority system setting the order in which the State Water Resources Control Board (SWRCB) shall pay claims from the Fund. The law established a separate priority for joint claim applications to the Commingled Plume Account within the Fund. The law requires the SWRCB to update the list at least annually. The initial priority list was adopted July 16, 1992. This, the 42 amendment of the priority list, would add 142 claims to four-tier priority system and add 8 to the commingled plume priority.

A claim must appear on the list to be considered for funding. However, placement on the priority list does not guarantee that a claim is valid or that it has been assigned the correct priority, and does not constitute a commitment to reimburse costs requested in the claim. These determinations will be made when the claim is taken from the list for detailed processing. Claims will generally be processed and paid by the Division according to Priority Classes and the ranking of claims within each Priority Class.

POLICY ISSUE: Should the SWRCB amend the UST Cleanup Fund Priority List to add 150 claims which, as the result of Division or Board action, have been determined to be eligible for placement on the list, and to authorize the Division to change the priority class of claims when appropriate?

FISCAL ISSUE: The staff effort required to administer claims is funded by the UST Cleanup Fund. Staffing levels approved for the Division for Fiscal Year 1996/97 are sufficient to review and process projects for which grant funds are available. No new funding authority will be required in later fiscal years by this action.

RWQCB IMPACT: Yes - All regions

STAFF RECOMMENDATION: That the SWRCB adopt a resolution amending the UST Cleanup Fund Priority List to add 150 claims which, as the result of Division or Board action, have been determined to be eligible for placement on the list, and to authorize the Division to change the priority class of claims when appropriate.

[The UST Cleanup Fund Priority List is not available electronically but a paper copy can be obtained by calling 1-800-813-3863.]

June 10, 1997 DRAFT

WHEREAS:

1. The Health and Safety Code authorizes the State Water Resources Control Board (SWRCB) to expend money from the UST Cleanup Fund for payment of claims against the Fund;

2. The Health and Safety Code requires the SWRCB to pay claims in accordance with a four-class priority ranking system, and to update the priority list at least annually;

3. The SWRCB adopted its initial priority list on July 16, 1992;

4. The Division of Clean Water Programs (Division) continues to receive claims and make decisions on claims regarding placement on the priority list and or the appropriate priority classification to which a claim belongs.

THEREFORE BE IT RESOLVED THAT:

The SWRCB hereby amends the UST Cleanup Fund Priority List to add the 142 claims to the four-tier priority system and 8 claims to the commingled plume priority shown in the Attachment which, as the result of Division or Board action, have been determined to be eligible for placement on the list, and authorizes the Division to change the priority class of claims when appropriate.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on June 19, 1997.

Maureen Marchè

Administrative Assistant to the Board