ITEM 3: CONSIDERATION OF AUTHORIZATION TO ACCEPT FEDERAL TRUST FUNDS FOR LEAKING PETROLEUM UNDERGROUND STORAGE TANKS (PETROLEUM TRUST FUND)

DISCUSSION: The Environmental Protection Agency (EPA), Region 9, is offering up to $17,000,000 to the State Water Resources Control Board (State Water Board) from the Petroleum Trust Fund over the next three (3) years beginning in Federal Fiscal Year 1999.

The purpose of this Petroleum Trust Fund is to finance the oversight of leak identification and corrective action at petroleum underground storage tank (UST) sites. Since 1988, California has used the Trust Fund primarily in the Local Oversight Program. The State Water Board contracts with 20 agencies in the Local Oversight Program. These agencies hire technical staff to oversee site investigation and remediation at leaking UST sites. Currently, over 6,800 sites are being managed in the Program.

The following agencies participate in the Local Oversight Program:

Alameda County Humboldt County

Kern County Merced County

Napa County Orange County

Riverside County Sacramento County

San Bernardino County San Diego County

San Francisco City & County San Joaquin County

San Mateo County Santa Barbara County

Santa Clara Valley Water District Solano County

Sonoma County Stanislaus County

Tulare County Ventura County

The specific uses of the Petroleum Trust Fund are described in a Cooperative Agreement signed by both the State Water Board and EPA. The agreement details specific responsibilities of the State Water Board, the Regional Water Quality Control Boards (Regional Water Boards) and the local implementing agencies participating in the Local Oversight Program.

The major activities include:

1. Contract with 20 local agencies to oversee and enforce cleanup of leaking petroleum USTs.

2. Provide corrective action and training for Regional Water Board and local agency staff.

3. Provide technical assistance on environmental chemistry, hydrogeology, sample data quality assurance, and data management for petroleum sites. The State and Regional Water Boards will perform this activity.

4. Manage the Local Oversight Program data system to track expenditures of Petroleum Trust Fund monies and to provide technical, budgetary and cost recovery data required by EPA. The State Water Board will perform this activity.

5. Fund Regional Water Board staff to oversee cleanup of UST sites in non-Local Oversight Program counties.

6. Provide MTBE, UST Remediation, and Risk and Decision-Making Approaches training.

POLICY ISSUES: Should the State Water Board accept the Petroleum Trust Fund grants and any subsequent amendments or fund augmentations, and authorize the Executive Director, or his designee, to execute the Petroleum Trust Fund Cooperative Agreement with EPA, Region 9?

FISCAL IMPACT: An amount not to exceed $17,000,000 over the next three (3) years will be made available to California. A ten percent state match will be required. The current funding level of the State Underground Storage Tank Cleanup Fund will meet the matching requirement. The State Water Board has requested approval of the State Clearinghouse to proceed with the grant application.

RWQCB IMPACT: Yes. All Regions.

STAFF RECOMMENDATION: That the State Water Board adopt the proposed resolution authorizing the Executive Director, or his designee, to accept the Petroleum Trust Fund grants and any subsequent amendments or fund augmentations, and to execute the Cooperative Agreement with EPA, Region 9.

DRAFT March 23, 1998

WHEREAS:

1. Leaking underground storage tank (UST) sites require cleanup to protect drinking water supplies and other beneficial uses of ground and surface waters;

2. The State Water Resources Control Board's policy on USTs encourages local agencies to play a strong role in supervising the investigation and cleanup of leaking USTs;

3. The Local Oversight Program has been established to provide funds to local agencies for the oversight of investigation and cleanup at leaking UST sites; and

4. The Petroleum Trust Fund provides a major portion of the funding for the local agency contracts in the Local Oversight Program. It also provides a source of revenue for the Regional Water Quality Control Boards to oversee leaking UST cleanups at sites within the Regional Water Boards' jurisdiction.

THEREFORE BE IT RESOLVED:

That the State Water Board:

1. Authorizes the Executive Director, or his designee, to accept the Petroleum Trust Fund grants not to exceed $17,000,000 over the next three (3) years beginning in FFY 1999 and any subsequent amendments or fund augmentations; and

2. Authorizes the Executive Director, or his designee, to execute a Cooperative Agreement with EPA, Region 9.

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 April 16, 1998.

________________

Maureen Marché

Administrative Assistant to the Board