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AB-2776 • 2026

Hazardous materials: storage tanks.

Hazardous materials: storage tanks.

Crime Education Energy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Committee on Environmental Safety and Toxic Materials (A) - (Assembly Members Connolly (Chair), Ellis (Vice Chair), Lee, and McKinnor)
Last action
2026-04-15
Official status
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 14). Re-referred to Com. on APPR.
Effective date
Not listed

Plain English Breakdown

The bill summary text was truncated and did not provide complete information about all aspects mentioned in the candidate explanation.

Rules for Storing Hazardous Materials

This legislation updates rules about how hazardous materials and petroleum are stored in tanks to make them safer.

What This Bill Does

  • Excludes the process of compacting solid hazardous waste from being considered 'treatment' if it does not change the waste's physical, chemical, or biological properties except for reducing its volume.
  • Clarifies that oil-filled electrical equipment is exempt from certain storage tank regulations if it meets specific conditions.
  • Requires tanks in underground areas storing less than 55 gallons of petroleum to have secondary containment and monthly inspections.
  • Expands the requirement for underground storage tanks to include constant vacuum or pressure monitoring beneath the ground surface.

Who It Names or Affects

  • Owners and operators of facilities that store hazardous materials
  • Local agencies responsible for inspecting storage tanks

Terms To Know

treatment
A method or process designed to change the physical, chemical, or biological character or composition of hazardous waste.
secondary containment
An additional layer of protection around a storage tank that catches leaks and prevents spills from reaching the environment.

Limits and Unknowns

  • The bill does not specify how local agencies will fund these new requirements.
  • It is unclear if there are any exemptions for small businesses or rural areas.

Bill History

  1. 2026-04-15 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 14). Re-referred to Com. on APPR.

  2. 2026-04-06 California Legislative Information

    Re-referred to Com. on E.S & T.M.

  3. 2026-03-26 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on E.S & T.M. Read second time and amended.

  4. 2026-03-16 California Legislative Information

    Referred to Com. on E.S & T.M.

  5. 2026-02-25 California Legislative Information

    From printer. May be heard in committee March 27.

  6. 2026-02-24 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 2776, as amended, Committee on Environmental Safety and Toxic Materials.
Hazardous materials: storage tanks.
(1) The hazardous waste control laws require the Department of Toxic Substances Control to regulate the handling and management of hazardous waste and hazardous materials.
Existing law prohibits an owner or operator of a storage facility, treatment facility, transfer facility, resource recovery facility, or disposal site from accepting, treating, storing, or disposing of a hazardous waste at the facility, area, or site, unless the owner or operator holds a hazardous waste facilities permit, as provided. For purposes of the hazardous waste laws, “treatment” means any method, technique, or process that is not otherwise excluded from the definition pursuant to these laws and that is designed to change the physical, chemical, or biological character or composition of any hazardous waste or any material contained therein, or
that removes or reduces its harmful properties or characteristics for any purpose. Existing law excludes from that definition of “treatment” specified activities.
This bill would exclude from that definition of “treatment” the compaction of hazardous waste under specified conditions, including requiring that the waste being compacted is not a
liquid and does not result in the production of fugitive dust, fire, or explosion.
liquid, as described, or a solid that meets the ignitability or reactivity characteristic, as defined, and does not alter the physical, chemical or biological character or composition of the waste, other than the reduction in volume of the waste, increase in density, or changes in shape or form.
(2) The Aboveground Petroleum Storage Act (the act) generally regulates aboveground storage tanks that contain petroleum and that meet certain requirements. The act requires its provisions to be implemented by a unified program agency, as provided, and requires the Office of the State Fire Marshal to adopt regulations implementing these provisions. A knowing violation of specified provisions of the act after reasonable notice of the violation is a crime.
The act specifically excludes from the definition of an “aboveground storage tank” for purposes of the act oil-filled electrical equipment if the oil-filled electrical equipment meets specified conditions. The act further excludes from that definition a tank in an underground area that has the capacity to store less than 55 gallons of petroleum, has secondary containment, and is inspected monthly, if a specified condition is met. For purposes of the act, a “tank in an underground area” means a
stationary storage tank that meets specified criteria and, among other things, the structure in which the storage tank is located, at a minimum, provides for secondary containment, as provided. For purposes of this definition, a shop-fabricated double-walled storage tank with a mechanical or electronic device used to detect leaks in the interstitial space meets the requirement for secondary containment of the contents of the tank.
This bill would revise the exemption for oil-filled electrical equipment by clarifying that it applies if the single piece of equipment meets those conditions. The bill would revise the exemption for a tank in an underground area that has the capacity to store less than 55 gallons of petroleum by requiring the tank to have secondary containment of the contents of the tank, associated piping, and ancillary equipment, until cleanup occurs, and if the tank, piping, and ancillary equipment are inspected monthly.
The bill would also revise the
definition of a tank in an underground area by deleting the provision that a shop-fabricated double-walled storage tank, as described above, meets the requirement for secondary containment of the contents of the tank.
To the extent that the revisions to these exemptions would impose a higher level of service on local agencies, the bill would impose a state-mandated local program.
The act further requires each owner or operator of a tank facility to immediately, upon discovery, notify the Office of Emergency Services and the unified program agency of the occurrence of a spill or other release of petroleum, as specified, that is required to be reported pursuant to specified water control laws imposing water discharge notice requirements. Existing water control laws exempt a discharge in compliance with waste discharge requirements or other water control laws from that notification requirement.
This bill would instead
make that notification requirement applicable to a release of any petroleum into or upon any waters of the state. The bill would make the exemption pursuant to the water control laws applicable to that notification requirement. By expanding the scope of a crime, the bill would impose a state-mandated local program.
This bill would also make clarifying changes to the act.
(3) Existing law provides for the regulation of underground storage tanks by the State Water Resources Control Board and the unified program agency. Existing law defines an “underground storage tank” for these purposes. Existing law requires the interstitial space of the underground storage tank to 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.
This bill would make that requirement applicable to the interstitial space of the underground storage tank beneath the surface of the ground.
Existing law requires a local agency to inspect every underground tank system within its jurisdiction at least once every year. Existing law requires a local agency to prepare a compliance report detailing the inspection and to send a copy of this report to the permitholder and the owner or operator, if the owner or operator is not the permitholder. Existing law requires, within 60 days after receiving a compliance report or special inspection report, the permitholder to file with the local agency a plan to implement all recommendations contained in the compliance report or to demonstrate, to the satisfaction of the local agency, why these recommendations should not be implemented.
This bill would instead require the permitholder to return to compliance within 30 days after receiving a compliance report or special inspection report and would eliminate the option to file a plan to implement all recommendations. The bill would authorize the local agency to approve a plan to return to compliance in excess of 30 days, as long as the plan to return to compliance is received by the local agency within 30 calendar days of the permitholder receiving the compliance report or special inspection report.
(4) Existing law requires a business to establish and implement a business plan for emergency response to a release or threatened release of a hazardous material in accordance with prescribed standards if the business meets specified conditions at any unified program facility, including, among other conditions, if the business handles a hazardous material or a mixture
containing a hazardous material that has a quantity at any one time during the reporting year that is equal to, or greater than, 55 gallons for materials that are liquids, 500 pounds for solids, or 200 cubic feet for compressed gas.
This bill would provide that the above provision does not apply to specified gasses, including oxygen, nitrogen, or nitrous oxide, as provided.
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.

Current Bill Text

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