CHAPTER 6.76. Loans for Replacing, Removing, or Upgrading Underground Storage Tanks [25299.100. - 25299.117.]

Cal. Health and Safety Code - HSC 6.76.

in effect

Cal. Health and Safety Code - HSC § 25299.100. Section 25299.100.

For purposes of this chapter, the following definitions apply: (a) “Board” means the State Water Resources Control Board. (b) “Loan applicant” means a small business that applies to the board for a loan pursuant to this chapter. (c) “Grant applicant” means a small business that applies to the board for a grant pursuant to this chapter. (d) “Tank” means an underground storage tank, as defined in Section 25281, used for the purpose of storing petroleum, as defined in Section 25299.22. “Tank” also includes under-dispenser containment systems, spill containment systems, enhanced monitoring and control systems, and vapor recovery systems and dispensers connected to the underground piping and the underground storage tank. (e) “Project tanks” means tanks that would be upgraded, replaced, or removed with loan or grant funds to comply with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. “Project tanks” also includes tanks that are required to be permanently closed on or before December 31, 2025. (f) Terms defined in Section 25281 and used in this chapter, if not defined in this section, including, but not limited to, “facility,” “local agency,” “owner,“ and “operator,” have the same meanings as specified in Section 25281.

Cal. Health and Safety Code - HSC § 25299.101. Section 25299.101.

(a) The board shall conduct a loan program pursuant to this chapter, to assist small businesses in upgrading, replacing, or removing project tanks to comply with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (b) The board shall also conduct a grant program, pursuant to this chapter, to assist small businesses to upgrade, remove, or replace project tanks to comply with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations.

Cal. Health and Safety Code - HSC § 25299.102. Section 25299.102.

The board shall make loan funds available only to loan applicants that meet all of the following eligibility requirements: (a) The loan applicant is a small business, either as defined in Section 632 of Title 15 of the United States Code, and in the federal regulations adopted to implement that section, as specified in Part 121 (commencing with Section 121.101) of Chapter I of Title 13 of the Code of Federal Regulations, or employs fewer than 500 full-time and part-time employees, is independently owned and operated, and is not dominant in its field of operation. In either case, the principal office of the small business shall be domiciled in the state, and the officers of the small business shall be domiciled in the state. The board shall give priority to awarding loans to small businesses that meet the definition of small business specified in subdivision (d) of Section 14837 of the Government Code. (b) The loan applicant owns or operates project tanks. (c) The loan applicant demonstrates the ability to repay the loan, and the availability of adequate collateral to secure the loan. (d) All tanks, except for project tanks, owned or operated by the loan applicant are in compliance with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (e) The project tanks are in compliance, or will be in compliance after the completion of the project, with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (f) The loan applicant is in compliance with the financial responsibility requirements specified in Sections 25292.2 and 25299.31 and with Subchapter IX (commencing with Section 6991) of Chapter 82 of Title 42 of the United States Code, as it may be amended or supplemented, and the regulations adopted pursuant to that subchapter.

Cal. Health and Safety Code - HSC § 25299.103. Section 25299.103.

A complete loan application shall include all of the following: (a) Evidence that the applicant is a small business, as described in subdivision (a) of Section 25299.102. (b) Evidence that the applicant owns or operates the project tanks. (c) An environmental audit, environmental site assessment, or other documentation acceptable to the board that assesses environmental compliance and risks at the facility. (d) Financial and legal documents necessary to demonstrate the applicant’s ability to repay and provide collateral for the loan. The board shall develop a standard list of documents required of all applicants, and may also request from individual applicants additional financial and legal documents not provided on this list. (e) Evidence that all tanks, except for project tanks, owned or operated by the loan applicant are in compliance with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (f) Evidence that the project tanks are in compliance, or will be in compliance after the completion of the project, with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (g) An explanation of the reasons why the work is necessary in order for the project tanks to be in compliance with, or remain in compliance with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (h) A detailed cost estimate of all of the tasks that are required to complete the project for which the applicant is requesting loan funds, including those tasks that are not eligible for loan funds and all tasks being paid for using other sources of funds. (i) Any other information that the board determines to be necessary to include in an application form.

Cal. Health and Safety Code - HSC § 25299.104. Section 25299.104.

(a) The minimum amount that the board may loan an applicant is ten thousand dollars ($10,000), and the maximum amount that the board may loan an applicant is seven hundred fifty thousand dollars ($750,000). (b) The term of the loan shall be for a maximum of 20 years if secured by real property, and for 10 years if not secured by real property. The interest rate for loans shall be set at the rate equal to one-half of the most recent general obligation bond rate obtained by the office of the Treasurer at the time of the loan commitment. (c) (1) Loan funds may be used to finance up to 100 percent of the costs necessary to upgrade, remove, or replace project tanks, to comply with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (2) If the board received the applicant’s loan application on or before June 30, 2025, loan funds may be used to reimburse up to 100 percent of both of the following costs to comply with Section 25292.05: (A) Costs to remove project tanks incurred by the applicant on or after December 31, 2024, but before January 1, 2026. (B) Costs to replace project tanks incurred by the applicant on or after December 31, 2024, but before January 1, 2027. (d) The board may charge a loan fee to loan applicants of up to 2 percent of the requested loan amount. The loan fee shall be deposited in the Petroleum Underground Storage Tank Financing Account. (e) The inoperation or repeal of this chapter pursuant to Section 25299.117 shall not extinguish a loan obligation and shall not impair the deed of trust or other collateral made pursuant to this chapter or the authority of the state to pursue appropriate action for collection. (f) Notwithstanding Section 16304.1 of the Government Code, the board shall encumber the funds appropriated pursuant to Section 25299.109 for purposes of this section within three years of the appropriation and the board may make a disbursement in liquidation of an encumbrance before or during the three years following the last day the appropriation is available for encumbrance.

Cal. Health and Safety Code - HSC § 25299.105. Section 25299.105.

(a) The board shall make grant funds available from the Petroleum Underground Storage Tank Financing Account to eligible grant applicants who meet all of the following eligibility requirements: (1) The grant applicant is a small business, pursuant to the following requirements: (A) The grant applicant meets the conditions for a small business concern, as defined in Section 632 of Title 15 of the United States Code, and in the federal regulations adopted to implement that section, as specified in Part 121 (commencing with Section 121.101) of Chapter I of Title 13 of the Code of Federal Regulations. (B) The grant applicant employs fewer than 20 full-time and part-time employees, is independently owned and operated, and is not dominant in its field of operation. (2) The principal office of the grant applicant is domiciled in the state and the officers of the grant applicant are domiciled in the state. (3) All tanks, except for project tanks, owned or operated by the grant applicant are in compliance with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (4) (A) The facility where the project tanks are located has sold at retail less than 1,500,000 gallons of gasoline annually for each of the two years preceding the submission of the grant application. Except as provided in subparagraph (B), the number of gallons sold shall be based upon taxable sales figures provided to the California Department of Tax and Fee Administration for that facility. (B) The board may rely on other documentation where taxable sales figures provided to the California Department of Tax and Fee Administration are unavailable because the facility was not in operation for any part of the two years or the grant applicant did not own or operate the underground storage tanks at the facility for any part of the two years. (5) Except as provided in subdivision (b), the facility meets either of the following: (A) The project tanks are in compliance with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (B) All of the following requirements are met: (i) The project tanks will be in compliance with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations after the completion of the project. (ii) The grant applicant submitted the grant application no more than 180 days after the applicable regulatory agency notified the grant applicant that the project tanks are not in compliance with Chapter 6.7 (commencing with Section 25280), Section 41954, or any implementing regulation. (iii) The project tanks are not currently red tagged by the local agency pursuant to Section 25292.3. (iv) The facility, at the time of application, is not subject to any enforcement action seeking to impose administrative civil liability, civil liability, or criminal liability pursuant to this chapter, or a regulation adopted pursuant to this chapter, unless the underlying violations that are the subject of that enforcement action have been corrected. (6) Except as provided in subdivision (b), the facility where the project tanks are located is, or was during any part of the two years preceding the submission of the grant application, legally in the business of retailing motor vehicle fuel. (b) The board may grant a waiver from requirements of paragraphs (5) and (6) of subdivision (a) if the board finds all of the following: (1) The grant applicant owns or operates the project tanks. (2) The project tanks will be removed and will not be replaced with new tanks. (3) The grant applicant does not meet the requirements to obtain a loan pursuant to this chapter. (c) Grant funds may only be used to pay the costs necessary to upgrade, remove, or replace project tanks to comply with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations.

Cal. Health and Safety Code - HSC § 25299.106. Section 25299.106.

A complete grant application shall include all of the following information: (a) Evidence that the grant applicant is a small business, as described in subdivision (a) of Section 25299.102. (b) Evidence that the principal office of the grant applicant is domiciled in the state and the officers of the grant applicant are domiciled in the state. (c) Evidence that all tanks, except for project tanks, owned or operated by the grant applicant are in compliance with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (d) Except as provided in subdivision (f), evidence that the project tanks are in compliance with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations, or that the grant applicant meets all of the requirements in subparagraph (B) of paragraph (5) of subdivision (a) of Section 25299.105. (e) Except as provided in subdivision (f), evidence that the facility where the project tanks are located is, or was during any part of the two years preceding the submission of the grant application, legally in the business of retailing motor vehicle fuel. (f) A grant applicant that does not meet the requirements of subdivision (d) or (e), or both, shall instead provide evidence that the grant applicant meets all of the requirements for a waiver pursuant to subdivision (b) of Section 25299.105. (g) An explanation of the actions the grant applicant is required to take to comply with the requirements of Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (h) A detailed cost estimate of all of the actions that are required to complete the project for which the grant applicant is requesting grant funds, including those tasks that are not eligible for grant funds and all tasks being paid for using other sources of funds. (i) Any other information that the board determines to be necessary to include in an application form.

Cal. Health and Safety Code - HSC § 25299.107. Section 25299.107.

(a) Except as provided in subdivision (e), the minimum amount that the board may grant an applicant is three thousand dollars ($3,000), and the maximum amount that the board may grant an applicant is seventy thousand dollars ($70,000). (b) Grant funds may be used to finance up to 100 percent of the costs necessary to upgrade, remove, or replace project tanks to comply with Chapter 6.7 (commencing with Section 25280), Section 41954, and implementing regulations. (c) If the board received the applicant’s grant application on or before June 30, 2025, grant funds may be used to reimburse up to 100 percent of both of the following costs to comply with Section 25292.05: (1) Costs to remove project tanks incurred by the applicant on or after December 31, 2024, but before January 1, 2026. (2) Costs to replace project tanks incurred by the applicant on or after December 31, 2024, but before January 1, 2027. (d) Except as provided in subdivision (e), a person or entity is not eligible to receive more than seventy thousand dollars ($70,000) in grant funds pursuant to this chapter. (e) (1) Notwithstanding subdivisions (a) and (d), if the project tanks are located at a fueling station that is available for public use and there is no other fueling station available for public use within a radius of 15 miles from the fueling station, the board may make a grant in the maximum amount of one hundred forty thousand dollars ($140,000) to assist the grant applicant to remove and replace tanks that are required to be permanently closed pursuant to Section 25292.05. (2) Any grant issued pursuant to paragraph (1) shall not be included in the maximum amount that a person or entity may receive in grant funds pursuant to subdivision (d).

Cal. Health and Safety Code - HSC § 25299.108. Section 25299.108.

The board shall adopt regulations necessary to implement and make specific this chapter as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of the Government Code, and for purposes of that chapter, including Section 11349.6, the adoption of the regulations shall be considered by the Office of Administrative Law to be necessary for the immediate preservation of the public peace, health and safety, and general welfare. Notwithstanding subdivision (e) of Section 11346.1 of the Government Code, the regulations shall be repealed 180 days after their effective date unless the board complies with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 pursuant to subdivision (e) of Section 11346.1 of the Government Code.

Cal. Health and Safety Code - HSC § 25299.109. Section 25299.109.

(a) The Petroleum Underground Storage Tank Financing Account is hereby created in the State Treasury. All of the following moneys shall be deposited in the Petroleum Underground Storage Tank Financing Account: (1) Federal, state, and local funds transferred for deposit in the account. (2) Repayments of loans and interest and late fees on loans issued pursuant to this chapter. (3) Repayments of loans and interest and late fees on loans issued pursuant to former Chapter 8.5 (commencing with Section 15399.10) of Part 6.7 of Division 3 of Title 2 of the Government Code, as that chapter existed on December 31, 2003. (4) Moneys collected pursuant to Section 25299.110 and subdivision (d) of Section 25299.104. (5) Repayments of loan and grant moneys paid to a loan or grant applicant to which the applicant is not entitled. (6) Notwithstanding Section 16305.7 of the Government Code, all interest earned upon moneys that are deposited in the account. (7) All unexpended moneys in a subaccount of the account that is consolidated into the account by the act adding this paragraph. (8) All unexpended moneys in the Petroleum Financing Collection Account established pursuant to Section 25299.110, as added by Section 1 of Chapter 624 of the Statutes of 2004. (b) Upon appropriation by the Legislature, funds in the account shall be used by the board to make loans and grants, service loans, recover defaulted loan moneys due, protect the state’s position as a lender creditor, and administer this chapter. (c) The board shall annually make available not more than 25 percent of the available funds from the account for the purposes of providing grants pursuant to this chapter. (d) Eight million dollars ($8,000,000) is hereby transferred from the portion of the fees collected pursuant to subdivisions (a) to (e), inclusive, of Section 25299.43 in the Underground Storage Tank Cleanup Fund, to the Petroleum Underground Storage Tank Financing Account, and is hereby appropriated for the purposes of making grants and loans pursuant to this chapter and administering this chapter.

Cal. Health and Safety Code - HSC § 25299.110. Section 25299.110.

To defray the costs of the board in administering the loan program created pursuant to this chapter, the board may do all of the following: (a) Impose reasonable charges on all applications and impose the loan fee specified in subdivision (d) of Section 25299.104. (b) Recover collection costs from the borrower or other party. (c) Earn income on any asset recovered pursuant to a loan default.

Cal. Health and Safety Code - HSC § 25299.111. Section 25299.111.

If this chapter is repealed pursuant to Section 25299.117, then following the day on which the authority ceases to exist, all moneys in the Petroleum Underground Storage Tank Financing Account and all moneys due that account shall revert to, and accrue to the benefit of, the Underground Storage Tank Cleanup Fund in the State Treasury.

Cal. Health and Safety Code - HSC § 25299.112. Section 25299.112.

(a) To carry out the purposes of this chapter, an authorized representative of the local agency or board shall have the authority specified in Section 25185, with respect to any place where project tanks are or have been located, and in Section 25185.5, with respect to any real property that is within 2,000 feet of any place where project tanks are or have been located. (b) A person shall furnish, under penalty of perjury, any information on grants or loans issued, or applied for, under this chapter or requested for disbursement of funds pursuant to a grant or loan issued under this chapter that the local agency or board may require. (c) A person who fails or refuses to furnish information pursuant to subdivision (b) or furnishes false information required or requested in connection with a grant or loan issued under this chapter is subject, in accordance with the requirements of subdivision (d) or (e), as applicable, to civil liability of not more than ten thousand dollars ($10,000) for each violation of this subdivision. (d) (1) Except as provided in paragraph (2), a person shall not be liable pursuant to subdivision (c) unless one of the following is established by the court, if the action is brought pursuant to subdivision (e), or by the executive director of the board, if the action is brought pursuant to subdivision (f): (A) The alleged violation is knowing, willful, or intentional. (B) The person received a material economic benefit from the action that caused the alleged violation. (C) The alleged violation is chronic or that person is a recalcitrant violator, as determined pursuant to subdivision (g) of Section 13399 of the Water Code. (2) If a person is in violation of subdivision (c), but does not meet any of the conditions specified in paragraph (1), the person may be held liable only if the board or an authorized representative of the board issues a notice to comply pursuant to Chapter 5.8 (commencing with Section 13399) of Division 7 of the Water Code before an action is taken pursuant to subdivision (e) or (f). (e) The Attorney General, upon request of the board, shall bring an action in superior court to impose the civil liability specified in subdivision (c). (f) The executive director of the board may impose the civil liability specified in subdivision (c) administratively in the same manner as the executive director of the board is authorized to impose civil liability pursuant to Article 2.5 (commencing with Section 13323) of Chapter 5 of Division 7 of the Water Code. (g) In determining the amount of any civil liability imposed pursuant to this section, the executive director of the board or the court shall take into account the nature, circumstances, extent, and gravity of the false statement or refusal or failure to furnish information, the person’s ability to pay, any prior history by the person of misrepresentations to or noncooperation with the board or local agency, any economic benefits or savings that resulted or would have resulted from the false statement or refusal or failure to furnish information, and other matters as justice may require. (h) Remedies under this section are in addition to, and do not supersede or limit, any other civil, administrative, or criminal remedies. (i) A penalty collected pursuant to this section shall be deposited in the Petroleum Underground Storage Tank Financing Account.

Cal. Health and Safety Code - HSC § 25299.113. Section 25299.113.

(a) A person who makes a misrepresentation in a document relating to a grant or loan issued under this chapter, including, but not limited to, a record, report, certification, application, invoice, form, or other document, that is submitted to the board is subject to civil liability of not more than five hundred thousand dollars ($500,000) for each violation of this subdivision. (b) Except as provided in subdivision (d), the Attorney General, upon request of the state board, shall bring an action in superior court to impose the civil liability specified in subdivision (a). (c) Except as provided in subdivision (d), the executive director of the board may impose the civil liability specified in subdivision (a) administratively in the same manner as the executive director of the board is authorized to impose civil liability pursuant to Article 2.5 (commencing with Section 13323) of Chapter 5 of Division 7 of the Water Code. (d) If a violation of subdivision (a) by a person is not knowing, willful, or intentional, the board or an authorized representative of the board, before an action may be taken pursuant to subdivision (b) or (c), shall issue a notice to comply pursuant to Chapter 5.8 (commencing with Section 13399) of Division 7 of the Water Code. (e) In determining the amount of civil liability imposed pursuant to this section, the executive director of the board, or the court shall take into account the nature, circumstance, extent, and gravity of the violation, the person’s ability to pay, any prior history of misrepresentations by the person to the board or local agency, any economic benefits or savings that resulted or would have resulted from the false statement, and other matters as justice may require. (f) Remedies under this section are in addition to, and do not supersede or limit, any other civil, administrative, or criminal remedies. (g) A penalty collected pursuant to this section shall be deposited in the Petroleum Underground Storage Tank Financing Account. (h) The board shall file a complaint with any applicable licensing board against any person licensed or otherwise regulated by that licensing board who is found to be liable under this section.

Cal. Health and Safety Code - HSC § 25299.113.1. Section 25299.113.1.

(a) A person who knowingly makes or causes to be made a false statement, material misrepresentation, or false certification in support of a grant or loan under this chapter, including, but not limited to, in an application, record, report, certification, plan, invoice, form, or other document that is submitted, filed, or required to be maintained under this chapter for purposes of a grant or loan, shall, upon conviction, be punished by a fine of not more than ten thousand dollars ($10,000), or by imprisonment in a county jail for not more than one year, or in the state prison for 16 months, two years, or three years, or by both that fine and imprisonment. (b) The Attorney General, upon request of the board, may bring an action in superior court to impose the criminal penalty specified in subdivision (a). (c) Remedies under this section are in addition to, and do not supersede or limit, any other civil or criminal remedies. (d) A fine collected pursuant to this section shall be deposited in the Petroleum Underground Storage Tank Financing Account. (e) The board shall file a complaint with any applicable licensing board against any person licensed or otherwise regulated by that licensing board who is convicted under this section.

Cal. Health and Safety Code - HSC § 25299.113.2. Section 25299.113.2.

An action by the executive director of the board to impose civil liability under this chapter is subject to review by the board in the same manner as provided for the review by the board of actions of a regional board under Section 13320 of the Water Code.

Cal. Health and Safety Code - HSC § 25299.114. Section 25299.114.

All persons serving in an exempt position engaged in the performance of a function described in former Chapter 8.5 (commencing with Section 15399.10) of Part 6.7 of Division 3 of Title 2 of the Government Code as repealed by Chapter 229 of the Statutes of 2003 or the administration of the program described in that chapter shall be transferred to the board subject to approval by the Department of Finance. This transfer shall not affect the status, positions, and rights of these persons. Section 19050.9 of the Government Code shall apply to the transfer of persons serving in state civil service who are engaged in the performance of a function or the administration of that chapter.

Cal. Health and Safety Code - HSC § 25299.115. Section 25299.115.

The repeal of former Chapter 8.5 (commencing with Section 15399.10) of Part 6.7 of Division 3 of Title 2 of the Government Code by Chapter 229 of the Statutes of 2003 shall not be construed to terminate any obligation to pay claims filed, repay loans outstanding, or resolve any cost recovery action filed on or before January 1, 2004.

Cal. Health and Safety Code - HSC § 25299.116. Section 25299.116.

A recipient of a grant that was awarded pursuant to former Chapter 8.5 (commencing with Section 15399.10) of Part 6.7 of Division 3 of Title 2 of the Government Code, as that chapter existed on December 31, 2003, and that expired after December 31, 2003, may receive grant funds from the Petroleum Underground Storage Tank Financing Account consistent with the terms of the grant, for one year following enactment of this chapter, notwithstanding expiration of the grant.

Cal. Health and Safety Code - HSC § 25299.117. Section 25299.117.

(a) Except as provided in subdivision (b), this chapter shall remain in effect only until January 1, 2036, and as of that date is repealed. (b) Notwithstanding subdivision (a), the repeal of this chapter does not terminate any of the following rights, obligations, authorities, or any provision necessary to carry out these rights, obligations, and authority: (1) The repayment of loans due and payable to the board. (2) The resolution of any cost recovery action or the initiation of an action or other collection process to recover defaulted loan moneys due to the board or to recover grant moneys paid but to which the grantee is not entitled. (3) The resolution of an action taken pursuant to Section 25299.112, 25299.113, or 25299.113.1, or the initiation of one of those actions.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026