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SR-080527-1JCity Council Meeting: May 27, 2008 Agenda Item: I ^~ To: Mayor and City Council From: Joan Akins, Acting Director -Environmental and Public Works Management Subject: Aboveground Petroleum Storage Tank Act Grant Program Recommended Action Staff recommends that the City Council: 1. adopt a resolution authorizing the City Manager to submit and execute agreements and any amendments thereto to implement the Aboveground Petroleum Storage Tank Act Grant Program; and 2. authorize the appropriation of the grant funds. Executive Summary Recent Assembly Bill 1130, chaptered on October 13, 2007, and effective as of January 1, 2008, formally vested Certified Unified Program Agencies (CUPA's) with the responsibility and authority to implement the Aboveground Petroleum Storage Act (APSA) program. In order to receive grant funds to assist CUPAs with implementing the AST program, the grantees must complete a grant application, adopt a local resolution to accept the funds; and submit a signed grant agreement by June 2, 2008. On March 3, 2008, the City submitted a grant application and was awarded $40;340.56 by the California Environmental Protection Agency (CaIEPA) to implement the aboveground petroleum storage tank act grant program. Background. In 1997, the City Council authorized the City of Santa Monica to become a CUPA in order to administer the consolidation and coordination of six specific hazardous material control programs including the Underground Storage Tank (UST) program, the Aboveground Storage Tank (AST) program, the Business Plan Program, the California Accidental Release Prevention Program, the Hazardous Materials Management PlanlHazardous Materials Inventory Statement Program, and the Hazardous Waste 1 Generatorlfiered Permitting Program. These programs are currently administered by the City of Santa Monica Environmental Programs Division in conjunction with the City of Santa Monica Fire Department and Los Angeles County Fire Department. Under the CUPA program the City is responsible for permitting, inspecting, and collecting fees from approximately 240 businesses. Assembly Bill. 1130 transfers the responsibility for the implementation, enforcement, and administration of the APSA from the State Water Resources Control Board (SWRCB) to the CUPA's. Amongst many other provisions of the new bill, CUPA's are eligible to receive funds to assist with training personnel in the requirements of the act including completing a training program and passing an examination developed by the secretary of the CaIEPA. Other provisions of the bill require owners and operators of aboveground tank facilities, with an aggregate storage capacity of 1,320 gallons of petroleum, to prepare and implement a Spill Prevention Control and Countermeasure (SPCC) plah in accordance with federal law. AST facilities will also be responsible for submitting proof of their SPCC plan to the local CUPA agency. Discussion Staff with the Environmental Programs Division and the Fire Department will utilize the APSA grant funds to incorporate and implement the APSA program into the existing structure of the CUPA program as outlined in the APSA grant application work plan and associated timeline for completion. In its work plan from January 1, 2008 through December 31, 2009 the City has outlined its approach for incorporating the APSA program into the existing fee accountability system, accounting for the fee schedule, the actual amount billed, and the revenue collected; for adopting the APSA program fee. as a part of the Single Fee system at a level sufficient to pay the necessary and reasonable costs incurred by the CUPA in administering the APSA program; implementing a staffing plan to redirect existing CUPA staff; identification of the regulated universe of aboveground tank facilities in the City of Santa Monica; a training plan; development of an inspection and compliance plan; adoption of administrative 2 procedures including the submittal of progress reports; and outreach to the regulated business community. Financial Impacts & Budget Actions The City will receive an advance of 80% with approval of the grant agreement, and final reimbursement of the 20% upon submittal of the final report. Upon grant award, the following budget changes are needed to record receipt of the grant funds and make them available for program use: 1. Establish a revenue budget in the amount of $40,341 at account number 20662.407510; and 2. Appropriate $40,341 in operating account number 20662.570240. Prepared by: James Conway, Senior Environmental Analyst Approved: Forwarded to Council: Joa Akins P. ont Ewell Acting Director, Environmental and City Manager Public Works Management Attachment: Resolution 3 Reference Resolution No. 10293 (CCS).