CSSB 215(RES): "An Act relating to oil and hazardous substances; redesignating the oil and hazardous substance release response fund and its uses; repealing the authority in law by which marine highway vessels may be designed and constructed to aid in oil and hazardous substance spill cleanup in state marine water using money in the oil and hazardous substance release response fund and the authority of the Department of Environmental Conservation to levy and collect fees for review of certain submissions related to oil; altering requirements applicable to liens for recovery of state expenditures related to oil or hazardous substances; terminating the nickel-per-barrel oil conservation surcharge; levying and collecting two new oil surcharges; and providing for the suspension and reimposition of one of the new surcharges; and providing for an effective date."
00CS FOR SENATE BILL NO. 215(RES) 01 "An Act relating to oil and hazardous substances; redesignating the oil and 02 hazardous substance release response fund and its uses; repealing the authority 03 in law by which marine highway vessels may be designed and constructed to aid 04 in oil and hazardous substance spill cleanup in state marine water using money 05 in the oil and hazardous substance release response fund and the authority of 06 the Department of Environmental Conservation to levy and collect fees for review 07 of certain submissions related to oil; altering requirements applicable to liens for 08 recovery of state expenditures related to oil or hazardous substances; terminating 09 the nickel-per-barrel oil conservation surcharge; levying and collecting two new oil 10 surcharges; and providing for the suspension and reimposition of one of the new 11 surcharges; and providing for an effective date." 12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 13 * Section 1. AS 29.60.510(b) is amended to read: 14 (b) For each release or threatened release of oil or a hazardous substance
01 for which the commissioner of environmental conservation may, under 02 AS 46.08.045(a), expend money from the response account in the fund [DISASTER 03 EMERGENCY DECLARED BY THE GOVERNOR UNDER AS 26.23.020], and 04 subject to agreement with the commissioner of environmental conservation as to the 05 amount of money in the fund that may be used by the department to make grants, the 06 commissioner may expend not more than $10,000,000 [OF THE BALANCE OF THE 07 FUND THAT IS APPROPRIATED TO THE SPILL RESERVE OR] of the 08 unrestricted balance of the response account in the fund for grants authorized under 09 this section. For each release or threatened release of oil or a hazardous substance 10 for which money may not be expended from the response account, and subject to 11 appropriation of money in the fund that may be used by the department to make 12 grants, the commissioner may expend not more than the amount appropriated 13 from the oil and hazardous substances release contingency and abatement account 14 in the fund for grants authorized under this section. If the commissioner and the 15 commissioner of environmental conservation do not agree on the amount of money in 16 the response account in the fund that may be used by the department to make grants 17 under AS 29.60.500 - 29.60.599 for release or threatened release of oil or a 18 hazardous substance, the governor shall make the determination. 19 * Sec. 2. AS 37.14.410 is amended to read: 20 Sec. 37.14.410. REIMBURSED EXPENDITURES. (a) Amounts received by 21 the state as reimbursement for expenses related to the Exxon Valdez oil spill incurred 22 by the state on or before December 31, 1992, shall be deposited in the general fund 23 and, except as required under (b) of this section, may not be credited to the oil and 24 hazardous substance release mitigation account under AS 46.04.010 or to an account 25 established in AS 46.08.020 or 46.08.025. 26 (b) A percentage of each payment deposited in the general fund under (a) of 27 this section shall be credited to the oil and hazardous substances release contingency 28 and abatement mitigation account established in [OIL AND HAZARDOUS 29 SUBSTANCE RELEASE MITIGATION ACCOUNT UNDER AS 46.04.010 OR] 30 AS 46.08.020. That percentage is determined by dividing 31 (1) the amount of the expenses for which the state may be reimbursed
01 under (a) of this section that were paid from the [OIL AND HAZARDOUS 02 SUBSTANCE RELEASE RESPONSE] fund established under AS 46.08.010, by 03 (2) the total amount of expenses for which the state may be reimbursed 04 under (a) of this section. 05 * Sec. 3. AS 43.55 is amended by adding a new section to read: 06 Sec. 43.55.201. SURCHARGE LEVIED. (a) Every producer of oil shall pay 07 a surcharge of $.025 per barrel of oil produced from each lease or property in the state, 08 less any oil the ownership or right to which is exempt from taxation. 09 (b) The surcharge imposed by (a) of this section is in addition to and shall be 10 paid in the same manner as the tax imposed by AS 43.55.011 - 43.55.150; and is in 11 addition to the surcharge imposed by AS 43.55.300 - 43.55.310. 12 (c) A producer of oil shall make reports of production in the same manner and 13 under the same penalties as required under AS 43.55.011 - 43.55.150. 14 * Sec. 4. AS 43.55 is amended by adding a new section to read: 15 Sec. 43.55.211. USE OF REVENUE DERIVED FROM SURCHARGE. The 16 legislature may appropriate the annual estimated balance of the account maintained 17 under AS 37.05.142 for deposits into the general fund of the proceeds of the surcharge 18 levied under AS 43.55.201 to the response account in the oil and hazardous substance 19 release prevention and response fund established by AS 46.08.010. 20 * Sec. 5. AS 43.55 is amended by adding a new section to read: 21 Sec. 43.55.221. SUSPENSION AND REIMPOSITION OF THE 22 SURCHARGE. (a) Not later than 30 days after the end of each calendar quarter, the 23 commissioner of administration shall determine, as of the end of that quarter, 24 (1) the unreserved and unobligated balance in the response account of 25 the oil and hazardous substance release prevention and response fund established in 26 AS 46.08.010; for purposes of this paragraph, the "unreserved and unobligated balance 27 in the response account" means the cash balance of the account less the sum of 28 (A) reserves for outstanding appropriations from the account; 29 (B) encumbrances of money in the account; and 30 (C) other liabilities of the account; 31 (2) the balance of the account maintained under AS 37.05.142 that is
01 available for appropriation to the response account of the oil and hazardous substance 02 release prevention and response fund established in AS 46.08.010; 03 (3) the balance of the response mitigation account established by 04 AS 46.08.025(b) that originated from the sources described in AS 46.08.025(a)(2) and 05 that is available for appropriation to the response account of the fund established in 06 AS 46.08.010. 07 (b) Within 15 days after making the determinations required by (a) of this 08 section, the commissioner of administration shall 09 (1) add the amounts determined under (a)(1) - (3) of this section; and 10 (2) report the sum calculated under (1) of this subsection to the 11 commissioner. 12 (c) In making the determination required by (a) of this section, the 13 commissioner of administration may not consider money described in (a) of this 14 section that is subject to a dedication imposed by law that restricts the use of the 15 money to a specific purpose for which the response account of the oil and hazardous 16 substance release prevention and response fund established in AS 46.08.010 may not 17 be lawfully expended. 18 (d) If the commissioner of administration reports that the sum reported under 19 (b) of this section equals or exceeds the amount of the unreserved and unobligated 20 balance in the response account, as determined under (e) of this section, the 21 commissioner of revenue shall suspend imposition and collection of the surcharge 22 levied and collected under AS 43.55.201. Suspension of the imposition and collection 23 of the surcharge begins on the first day of the calendar quarter next following the 24 commissioner's receipt of the commissioner of administration's report under (b) of this 25 section. Before the first day of a suspension authorized by this subsection, the 26 commissioner shall make a reasonable effort to notify all persons who are known to 27 the department to be paying the surcharge under AS 43.55.201 that the surcharge will 28 be suspended. 29 (e) The amount of the unreserved and unobligated balance in the catastrophic 30 oil release response account is 31 (1) on the effective date of this Act or on July 1, 1994, whichever is
01 later, $50,000,000; and 02 (2) on the first day of each state fiscal year beginning after July 1, 03 1994, $50,000,000 multiplied by a rate 04 (A) determined by 05 (i) computing the average of the monthly United States 06 Consumer Price Index for all urban consumers for each of the two 07 previous calendar years; and 08 (ii) computing the percentage change between the first 09 and second calendar year average; and 10 (B) applying the rate determined under (A) of this paragraph to 11 the balance of the account on the last day of the fiscal year just ended. 12 (f) Except as provided in AS 43.55.231, if the commissioner of administration 13 reports that the sum reported under (b) of this section is less than the amount 14 determined under (e) of this section, the commissioner of revenue shall require 15 imposition and collection of the surcharge authorized under AS 43.55.201. 16 Reimposition of the surcharge begins on the first day of the calendar quarter next 17 following the commissioner's receipt of the commissioner of administration's report 18 under (b) of this section. Before the first day of reimposition of the surcharge 19 authorized by this subsection, the commissioner shall make a reasonable effort to 20 notify all persons who are known to the department to be required to pay the surcharge 21 under AS 43.55.201 that the surcharge will be reimposed. 22 * Sec. 6. AS 43.55 is amended by adding a new section to read: 23 Sec. 43.55.231. SURCHARGE NOT IMPOSED. (a) The surcharge authorized 24 by AS 43.55.201 is not levied during any fiscal year for which 25 (1) the legislature does not, during the regular or a special legislative 26 session preceding the first day of the fiscal year, appropriate at least an amount equal 27 to the amount determined under (b) of this section from the general fund to the 28 response account in the oil and hazardous substance release prevention and response 29 fund; or 30 (2) the legislature, during the regular or a special legislative session 31 preceding the first day of the fiscal year, appropriates at least the amount of money
01 equal to the amount determined under (b) of this section from the general fund to the 02 response account in the oil and hazardous substance release prevention and response 03 fund and that appropriation is vetoed or reduced by the governor. 04 (b) The amount of money required to be appropriated from the general fund 05 to the response account in the oil and hazardous substance release prevention and 06 response fund by (a) of this section is the amount, determined for the last day of the 07 preceding fiscal year, that is the sum of the actual or estimated balance of 08 (1) the account maintained under AS 37.05.142 to account for all 09 proceeds of the surcharge that are deposited into the general fund; and 10 (2) the portion of the balance of the response account paid into that 11 account under AS 46.08.025(a)(2) and credited to the response mitigation account that 12 represents amounts recovered from parties for which expenditures were originally made 13 from 14 (A) the response account; or 15 (B) the former oil and hazardous substance release response 16 fund if the expenditure was made for a release or threatened release of oil or 17 a hazardous substance before the effective date of this Act. 18 * Sec. 7. AS 43.55 is amended by adding new sections to read: 19 ARTICLE 2A. ADDITIONAL CONSERVATION SURCHARGE ON OIL. 20 Sec. 43.55.300. SURCHARGE LEVIED. (a) Every producer of oil shall pay 21 a surcharge of $.025 per barrel of oil produced from each lease or property in the state, 22 less any oil the ownership or right to which is exempt from taxation. 23 (b) The surcharge imposed by (a) of this section is in addition to and shall be 24 paid in the same manner as the tax imposed by AS 43.55.011 - 43.55.150; and is in 25 addition to the surcharge imposed by AS 43.55.201 - 43.55.231. 26 (c) A producer of oil shall make reports of production in the same manner and 27 under the same penalties as required under AS 43.55.011 - 43.55.150. 28 Sec. 43.55.310. USE OF REVENUE DERIVED FROM SURCHARGE. The 29 legislature may appropriate the annual estimated balance of the account maintained 30 under AS 37.05.142 for deposits into the general fund of the proceeds of the surcharge 31 levied under AS 43.55.300 to the oil and hazardous substances release contingency and
01 abatement account in the oil and hazardous substance release prevention and response 02 fund established by AS 46.08.010. 03 * Sec. 8. AS 43.55.900(15) is amended to read: 04 (15) "surcharge" means 05 (A) when used in AS 43.55.201 - 43.55.231, the surcharge 06 levied by AS 43.55.201 [AS 43.55.200]; 07 (B) when used in AS 43.55.300 - 43.55.310, the surcharge 08 levied by AS 43.55.300; 09 * Sec. 9. AS 46.08.005 is amended to read: 10 Sec. 46.08.005. PURPOSE. The legislature finds and declares that the release 11 of oil or hazardous substances into the environment presents a real and substantial 12 threat to the public health and welfare, to the environment, and to the economy of the 13 state. The legislature therefore concludes that it is in the best interest of the state and 14 its citizens to provide a [READILY AVAILABLE] fund containing two accounts. 15 Within the fund, 16 (1) one account consists of money readily available to the 17 commissioner for the payment of the expenses incurred by the Department of 18 Environmental Conservation during an emergency first response to a release or 19 threatened [AND THE DEPARTMENT OF TRANSPORTATION AND PUBLIC 20 FACILITIES IN THE PROTECTION OF THE ENVIRONMENT OF THE STATE 21 FROM THE] release of oil or hazardous substances and for related purposes 22 intended to address those releases; 23 (2) the other account consists of money that the state may use 24 during a response to a release or threatened release of oil or a hazardous 25 substance, other than a discharge described in (1) of this subsection, to pay the 26 expenses of making preparations for the possibility of a release or threatened 27 release of oil or hazardous substances, to reduce the amount, degree, or intensity 28 of a release or threatened release, and for other related purposes identified in law 29 [OR HAZARDOUS SUBSTANCES]. 30 * Sec. 10. AS 46.08.010(a) is amended to read: 31 (a) There is established in the state general fund the oil and hazardous
01 substance release prevention and response fund. The fund shall be administered by 02 the commissioner. The fund is composed of two accounts, 03 (1) the oil and hazardous substances release contingency and 04 abatement account; 05 (2) the response account. 06 * Sec. 11. AS 46.08.010(b) is amended to read: 07 (b) Money from an appropriation made to an account in the fund remaining 08 in that account [THE FUND] at the end of a fiscal year does not lapse and remains 09 available for expenditure in successive fiscal years. 10 * Sec. 12. AS 46.08.010(c) is amended to read: 11 (c) The fund shall be used for actual expenses incurred under AS 46.08.040. 12 Except as provided in AS 46.08.040(a)(2)(D)(ii) for the equipment that is required 13 for and placed in the oil and hazardous substance response depots 14 [AS 46.08.040(d)(2)], the fund may not be used for capital improvements. 15 * Sec. 13. AS 46.08.020 is amended to read: 16 Sec. 46.08.020. FINANCING OF THE OIL AND HAZARDOUS 17 SUBSTANCES RELEASE CONTINGENCY AND ABATEMENT ACCOUNT 18 [FUND]. (a) The legislature may appropriate from the following sources to the oil 19 and hazardous substances release contingency and abatement account in the fund: 20 (1) money received from federal, state, or other sources or from a 21 private donor; 22 (2) money recovered or otherwise received from parties responsible for 23 the containment and cleanup of oil or a hazardous substance at a specific site for the 24 costs of the containment and cleanup incurred by the state, a municipality, or a 25 village, to the extent that the money recovered or otherwise received had been 26 paid out of the oil and hazardous substances release contingency and abatement 27 account, but excluding 28 (A) money recovered or otherwise received due to a 29 catastrophic oil discharge; and 30 (B) money [FUNDS] from performance bonds and other forms 31 of financial responsibility held in escrow pending satisfactory performance of
01 a privately financed response action; and 02 (3) fines, penalties, or damages recovered [UNDER AS 46.08.005 - 03 46.08.080 OR OTHER LAW] for costs incurred by the state as a result of the release 04 or threatened release of oil or a hazardous substance, but excluding 05 (A) fines, penalties, or damages recovered or otherwise 06 received due to a discharge the costs of containment and cleanup of which 07 were paid from the account established in AS 46.08.025; and 08 (B) money described in (2) of this subsection; 09 (4) interest accrued on 10 (A) the balance of the fund; 11 (B) the account maintained under AS 37.05.142 for deposits 12 into the general fund from the proceeds of the surcharge levied under 13 AS 43.55.201; and 14 (C) the oil and hazardous substances release contingency 15 and abatement mitigation account described in (b) of this section; 16 (5) fees for services collected under AS 44.46.025(a)(8), to the extent 17 those fees involve certification of laboratories conducting environmental analyses 18 of oil or hazardous substances or other related analyses required by the 19 department; and 20 (6) fees collected by the department for the registration of oil spill 21 response action contractors under AS 46.04.035. 22 (b) Money received by the state under (a)(2) - (6) [(a)(2) AND (a)(3)] of this 23 section shall be deposited in the general fund and credited to a special account called 24 the "oil and hazardous substances [SUBSTANCE] release contingency and 25 abatement mitigation account." The legislature may annually appropriate to the oil 26 and hazardous substances release contingency and abatement account in the fund 27 from the oil and hazardous substances release contingency and abatement 28 mitigation [THIS] account a sum equal to the amount received under (a)(2) - (6) 29 [(a)(2) AND (a)(3)] of this section during the calendar year preceding the legislative 30 session in which the appropriations are to be made. 31 * Sec. 14. AS 46.08 is amended by adding a new section to read:
01 Sec. 46.08.025. FINANCING OF THE RESPONSE ACCOUNT. (a) The 02 legislature may appropriate from the following sources to the response account in the 03 fund: 04 (1) money received from federal, state, or other sources or from a 05 private donor; 06 (2) money recovered or otherwise received from parties responsible for 07 the containment and cleanup of a catastrophic oil discharge or a discharge for the 08 containment and cleanup of which the governor issued an administrative order under 09 AS 46.08.045(a)(2), for the costs of the containment and cleanup incurred by the state, 10 a municipality, or a village, but excluding money from performance bonds and other 11 forms of financial responsibility held in escrow pending satisfactory performance of 12 a privately financed response action; 13 (3) fines, penalties, or damages recovered for costs incurred by the state 14 as a result of a catastrophic oil discharge or a discharge for the containment and 15 cleanup of which the governor issued an administrative order under 16 AS 46.08.045(a)(2). 17 (b) Money received by the state under (a)(2) and (a)(3) of this section shall 18 be deposited in the general fund and credited to a special account called the "response 19 mitigation account." The legislature may annually appropriate to the response account 20 in the fund from the response mitigation account a sum equal to the amount received 21 under (a)(2) and (a)(3) of this section during the calendar year preceding the legislative 22 session in which the appropriations are to be made. 23 * Sec. 15. AS 46.08.040(a) is amended to read: 24 (a) In addition to money in the fund that is transferred to the commissioner of 25 community and regional affairs to make grants under AS 29.60.510 and to pay for 26 impact assessments under AS 29.60.560, the commissioner of environmental 27 conservation may use money 28 (1) from the response account in the fund, when authorized by 29 AS 46.08.045, to 30 (A) [(1)] investigate and evaluate the release or threatened 31 release of oil or a hazardous substance, and [CONTAIN, CLEAN UP, AND]
01 take containment and cleanup and other necessary action, such as monitoring 02 and assessing, to address a release or threatened release of oil or a hazardous 03 substance that poses an imminent and substantial threat to the public health or 04 welfare, or to the environment; 05 (B) [(2) PAY ALL COSTS INCURRED TO 06 (A) ESTABLISH AND MAINTAIN THE OIL AND 07 HAZARDOUS SUBSTANCE RESPONSE OFFICE; 08 (B) REVIEW OIL DISCHARGE PREVENTION AND 09 CONTINGENCY PLANS SUBMITTED UNDER AS 46.04.030; 10 (C) CONDUCT TRAINING, RESPONSE EXERCISES, 11 INSPECTIONS, AND TESTS, IN ORDER TO VERIFY EQUIPMENT 12 INVENTORIES AND ABILITY TO PREVENT AND RESPOND TO OIL 13 AND HAZARDOUS SUBSTANCE RELEASE EMERGENCIES, AND TO 14 UNDERTAKE OTHER ACTIVITIES INTENDED TO VERIFY OR 15 ESTABLISH THE PREPAREDNESS OF THE STATE, A MUNICIPALITY, 16 OR A PARTY REQUIRED BY AS 46.04.030 TO HAVE AN APPROVED 17 CONTINGENCY PLAN TO ACT IN ACCORDANCE WITH THAT PLAN; 18 AND 19 (D) VERIFY OR ESTABLISH PROOF OF FINANCIAL 20 RESPONSIBILITY REQUIRED BY AS 46.04.040; 21 (3) PAY THE EXPENSES INCURRED BY THE ALASKA DIVISION 22 OF EMERGENCY SERVICES FOR THE OIL AND HAZARDOUS SUBSTANCE 23 RESPONSE CORPS AND THE OIL AND HAZARDOUS SUBSTANCE RESPONSE 24 DEPOTS WHEN PRESENTED WITH APPROPRIATE DOCUMENTATION BY 25 THE DIVISION; 26 (4)] provide matching funds in the event of an oil release for 27 participation 28 (i) in federal oil discharge cleanup activities; and 29 (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 30 Environmental Response, Compensation, and Liability Act of 1980); 31 and
01 (C) [(5)] recover the costs to the state, a municipality, or a 02 village of a containment and cleanup resulting from the release or the 03 threatened release of oil or a hazardous substance; 04 (2) from the oil and hazardous substances release contingency and 05 abatement account in the fund to 06 (A) investigate and evaluate the release or threatened release 07 of oil or a hazardous substance, except a release described in 08 AS 46.08.045(a), and contain, clean up, and take other necessary action, 09 such as monitoring and assessing, to address a release or threatened 10 release of oil or a hazardous substance, except a release described in 11 AS 46.08.045(a); 12 (B) recover the costs to the state, a municipality, or a village 13 of a containment and cleanup resulting from the release or the threatened 14 release of oil or a hazardous substance, except a release described in 15 AS 46.08.045(a); 16 (C) pay all costs incurred to 17 (i) establish and maintain the oil and hazardous 18 substance response office; 19 (ii) review oil discharge prevention and contingency 20 plans submitted under AS 46.04.030; 21 (iii) conduct training, response exercises, inspections, 22 and tests, in order to verify equipment inventories and ability to 23 prevent and respond to oil and hazardous substance release 24 emergencies, and to undertake other activities intended to verify or 25 establish the preparedness of the state, a municipality, or a party 26 required by AS 46.04.030 to have an approved contingency plan to 27 act in accordance with that plan; and 28 (iv) verify or establish proof of financial 29 responsibility required by AS 46.04.040; 30 (D) pay the expenses incurred by the division of emergency 31 services for
01 (i) the oil and hazardous substance response corps; 02 and 03 (ii) the oil and hazardous substance response depots; 04 (E) pay, when presented with appropriate documentation by 05 the Alaska State Emergency Response Commission, expenses incurred by 06 the commission for 07 (i) its activities, including staff support, when the 08 activities and staff support relate to oil or hazardous substances; 09 and 10 (ii) the costs of being prepared for and responding to 11 a request by the department for support in activities that relate to 12 response to and restoration of the effects of an oil or hazardous 13 substance release; 14 (F) provide matching funds in the event of the release of oil 15 or a hazardous substance, except a catastrophic oil release or a release for 16 the containment and cleanup of which the governor issued an 17 administrative order under AS 46.08.045(a)(2), for participation 18 (i) in federal oil discharge cleanup activities; and 19 (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 20 Environmental Response, Compensation, and Liability Act of 1980); 21 (G) [(6)] prepare, review, and revise 22 (i) [(A)] the state's master oil and hazardous substance 23 discharge prevention and contingency plan required by AS 46.04.200; 24 and 25 (ii) [(B)] a regional master oil and hazardous substance 26 discharge prevention and contingency plan required by AS 46.04.210; 27 and 28 (H) [(7)] restore the environment by addressing the effects of 29 an oil or hazardous substance release. 30 * Sec. 16. AS 46.08.040(a)(2)(E) is repealed and reenacted to read: 31 (E) pay, when presented with appropriate documentation by the
01 Department of Military and Veterans' Affairs, expenses incurred by the 02 Department of Military and Veterans' Affairs for 03 (i) Alaska State Emergency Response Commission 04 activities, including staff support, when the activities and staff support 05 relate to oil or hazardous substances; and 06 (ii) the costs to the Department of Military and 07 Veterans' Affairs of being prepared for and responding to a request by 08 the department for support in activities that relate to response to and 09 restoration of the effects of an oil or hazardous substance release; 10 * Sec. 17. AS 46.08.040(c) is amended to read: 11 (c) Notwithstanding other provisions of this section, money from the fund may 12 not be used for a purpose specified in (a)(1)(B) and (C) or (a)(2) [(a)(2) - (7) AND 13 (d)(2)] of this section unless money is available from an appropriation made 14 specifically for that purpose. 15 * Sec. 18. AS 46.08.040(d) is amended to read: 16 (d) Upon a request from 17 [(1)] the Alaska Legislative Council, the commissioner shall use money 18 from the fund to reimburse the Alaska Legislative Council for expenditures that it 19 makes for the operation of the Citizens' Oversight Council on Oil and Other 20 Hazardous Substances, established under AS 24.20.600 [; AND 21 (2) THE COMMISSIONER OF TRANSPORTATION AND PUBLIC 22 FACILITIES, THE COMMISSIONER SHALL TRANSFER MONEY FROM THE 23 FUND TO THE DEPARTMENT OF TRANSPORTATION AND PUBLIC 24 FACILITIES TO PAY FOR THE CONSTRUCTION OR REFURBISHMENT OF 25 ONE OR MORE VESSELS OF THE ALASKA MARINE HIGHWAY SYSTEM 26 THAT HAVE THE CAPABILITY TO ASSIST IN RESPONDING TO SPILLS OF 27 OIL AND HAZARDOUS SUBSTANCES; IN EXPENDING MONEY IN THE FUND 28 WHOSE USE FOR VESSELS OF THE MARINE HIGHWAY SYSTEM IS 29 AUTHORIZED BY AS 19.65.025 AND THIS PARAGRAPH, THE COMMISSIONER 30 SHALL GIVE PRIORITY TO CONSTRUCTION OF ONE OR MORE NEW 31 VESSELS THAT HAVE THE CHARACTERISTICS REQUIRED BY THIS
01 PARAGRAPH]. 02 * Sec. 19. AS 46.08 is amended by adding a new section to read: 03 Sec. 46.08.045. USE OF THE BALANCE OF THE RESPONSE ACCOUNT. 04 (a) The commissioner may use money from the response account in the fund to 05 respond to a release or threatened release when 06 (1) the release or threatened release is a catastrophic oil release or 07 catastrophic oil discharge; or 08 (2) the release or threatened release of oil or a hazardous substance 09 presents a threat to the economy, the environment, or public health if 10 (A) within 120 hours of being advised of a release or threatened 11 release, the commissioner prepares and provides to the governor a written 12 report relating to the release or threatened release; 13 (B) not later than 120 hours after the commissioner is advised 14 of the release or threatened release, the governor issues an administrative order 15 approving the commissioner's use of the money in the account; in issuing the 16 administrative order, the governor shall approve or modify and approve the 17 state's response to the release or threatened release as set out in the 18 commissioner's report and may, at any time during the period of the state's 19 response to the release or threatened release, approve, disapprove, or modify 20 action taken or expected to be taken by the department in its use of money in 21 the response account to respond to the release or threatened release. 22 (b) The report of the commissioner required by (a)(2)(A) of this section 23 (1) must summarize 24 (A) the nature and extent of the release; 25 (B) the response action by the state, whether actually taken or 26 expected; and 27 (C) the costs to the state of the action actually taken or expected 28 to be taken; and 29 (2) may provide other information about the discharge that the 30 commissioner believes may be relevant. 31 * Sec. 20. AS 46.08.060(a) is amended to read:
01 (a) The commissioner shall submit a report to the legislature not later than the 02 10th day following the convening of each regular session of the legislature. The report 03 may include information considered significant by the commissioner but must include: 04 (1) the amount of money expended by the department under 05 AS 46.08.040(a) during the preceding fiscal year; 06 (2) the amount and source of money received and money recovered by 07 or on behalf of the department during the preceding fiscal year as specified in 08 AS 46.08.020 and 46.08.025; 09 (3) a summary of municipal participation in the department's responses 10 that were paid for [FUNDED] by the fund; 11 (4) a detailed summary of department activities in responses paid for 12 [FUNDED] by the fund during the preceding fiscal year, including response 13 descriptions and statements outlining the nature of the threat; [IN THIS PARAGRAPH, 14 "DETAILED" INCLUDES INFORMATION DESCRIBING EACH PERSONAL 15 SERVICES POSITION AND TOTAL COMPENSATION FOR THAT POSITION, 16 EACH CONTRACT IN EXCESS OF $20,000, AND EACH PURCHASE IN EXCESS 17 OF $10,000;] and 18 (5) the projected cost to the department for the next fiscal year of 19 monitoring, operating, and maintaining sites where response has been completed or is 20 expected to be continued during the fiscal year. 21 * Sec. 21. AS 46.08.060(c) is amended to read: 22 (c) In addition to the department's report required under (a) of this section, the 23 governor shall submit a report about use of the fund during the previous fiscal year to 24 the legislature not later than the 10th day following the convening of each regular 25 session of the legislature. In the report, the governor shall describe in detail the 26 governor's use of money from the fund, with separate explanations, by agency, of the 27 activities that were paid for [FUNDED] under the authority of AS 46.08.045 28 [AS 46.08.040(b)]. 29 * Sec. 22. AS 46.08.075(a) is amended to read: 30 (a) The state has a lien for expenditures by the state from the oil and 31 hazardous substance release prevention and response fund, or from any other state
01 fund, for the costs of response, containment, removal, or remedial action resulting from 02 an oil or hazardous substance release [SPILL], or, with respect to response costs, for 03 the costs of response to a threatened [THE SUBSTANTIAL THREAT OF A] release 04 of oil or a hazardous substance, against all property owned by a person who is 05 determined by the commissioner to be liable for the expenditures under this chapter, 06 AS 46.03, AS 46.04, 42 U.S.C. 9607, or other state or federal law. The lien includes 07 interest, at the maximum rate allowable under AS 45.45.010(a), from the date of the 08 expenditures. The state may file an action in a court of competent jurisdiction in order 09 to foreclose on the lien. 10 * Sec. 23. AS 46.08.075(e) is amended to read: 11 (e) A person with an ownership interest in property against which a lien is 12 recorded may bring an action in a court of competent jurisdiction to require that the 13 lien be released. The lien may be released to the extent of that person's ownership 14 interest if the court finds that the person is not liable for the expenses incurred by the 15 state in connection with the costs of response, containment, removal, or remedial 16 action resulting from the [OIL OR HAZARDOUS SUBSTANCE] release, or from the 17 threatened [THREAT OF] release, of oil or a hazardous substance. 18 * Sec. 24. AS 46.08.900(9) is amended to read: 19 (9) "release" 20 (A) means any spilling, leaking, pumping, pouring, emitting, 21 emptying, discharging, injecting, escaping, leaching, dumping, or disposing into 22 the environment; 23 (B) [, EXCEPT THAT "RELEASE"] does not include 24 (i) a permitted release; or 25 (ii) an act of nature; 26 * Sec. 25. AS 46.08.900(11) is amended to read: 27 (11) "threatened release" means [AN IMMINENT DANGER] that a 28 release is imminent; a release is imminent if 29 (A) it is impending, or on the point of happening; or 30 (B) though not impending, in the judgment of the 31 commissioner
01 (i) the incident or occurrence may reasonably be 02 expected to culminate in an actual release; and 03 (ii) that actual release may reasonably be expected to 04 cause personal injury, other injury to life, or loss of or damage to 05 property, including the environment [WILL OCCUR]; 06 * Sec. 26. AS 46.08.900 is amended by adding a new paragraph to read: 07 (13) "catastrophic oil discharge" and "catastrophic oil release" have the 08 meaning given the term "catastrophic oil discharge" in AS 46.04.900. 09 * Sec. 27. AS 46.09.900(8) is amended to read: 10 (8) "threatened release" means [AN IMMINENT DANGER] that a 11 release is imminent; a release is imminent if 12 (A) it is impending, or on the point of happening; or 13 (B) though not impending, in the judgment of the 14 commissioner 15 (i) the incident or occurrence may reasonably be 16 expected to culminate in an actual release; and 17 (ii) that actual release may reasonably be expected to 18 cause personal injury, other injury to life, or loss of or damage to 19 property, including the environment [WILL OCCUR]. 20 * Sec. 28. AS 19.65.025; AS 43.55.200, 43.55.210, 43.55.220, 43.55.230, 43.55.240; 21 AS 44.46.025(a)(4) and (5); AS 46.08.040(b), and sec. 3, ch. 112, SLA 1989 are repealed. 22 * Sec. 29. REVISOR OF STATUTES TO REVISE REFERENCES. In each of the 23 following, the revisor of statutes shall delete references to "oil and hazardous substance release 24 response fund" and insert in place of each deletion a reference to "oil and hazardous substance 25 release prevention and response fund": AS 26.23.020(g)(11), 26.23.050(b); AS 29.60.510(a), 26 29.60.560(e)(1), 29.60.599(4); AS 46.08.900(5). 27 * Sec. 30. TREATMENT OF APPROPRIATION TO FORMER SPILL RESERVE FOR 28 PURPOSES OF AS 43.55.230. For the purpose of former AS 43.55.230(a)(2), repealed by 29 this Act, an appropriation to the former spill reserve referred to in AS 29.60.510(b), the 30 reference to which is deleted by sec. 1 of this Act, is not an expenditure. 31 * Sec. 31. SURCHARGE IMPOSED BY AS 43.55.201 - 43.55.231 NOT LEVIED. In
01 addition to the circumstances set out in AS 43.55.231, the surcharge authorized by 02 AS 43.55.201 is not levied on or after the effective date of this section if 03 (1) the Eighteenth Alaska State Legislature does not, during the Second 04 Regular Session or during any special session held before the effective date of this section, 05 appropriate at least an amount equal to the balance, on the day before the effective date of this 06 section, of the former spill reserve referred to in AS 29.60.510(b), to the response account in 07 the oil and hazardous substance release prevention and response fund; or 08 (2) the governor vetoes or reduces the amount appropriated under (1) of this 09 section. 10 * Sec. 32. TRANSITIONAL PROVISIONS APPLICABLE TO CONSERVATION 11 SURCHARGE ON OIL IMPOSED BY AS 43.55.200 AFTER JUNE 30, 1994, AND 12 BEFORE THE EFFECTIVE DATE OF THIS SECTION. After June 30, 1994, and before the 13 effective date of this section, every producer of oil who is required by AS 43.55.200 - 14 43.55.240, repealed by this Act, to pay the oil conservation surcharge of $.05 per barrel of oil 15 shall pay that levy. The provisions of AS 43.55.210 - 43.55.240, repealed by this Act, apply 16 to the amounts received by the state under AS 43.55.200 - 43.55.240, but as to the amounts 17 received after June 30, 1994, and before the effective date of this section, if so appropriated 18 by the legislature and notwithstanding any other provision of law relating to the deposit of and 19 accounting for those receipts, 20 (1) on the effective date of this section, the commissioner of revenue shall 21 allocate 22 (A) 50 percent of the amount received to the response account 23 established by AS 46.08.010(a)(2), as amended by sec. 10 of this Act; and 24 (B) 50 percent of the amount received to the oil and hazardous 25 substances release contingency and abatement account established by 26 AS 46.08.010(a)(1), as amended by sec. 10 of this Act; and 27 (2) the allocations made under (1) of this section are credited to the respective 28 accounts for purposes of determination of the suspension and reimposition of the surcharge 29 under AS 43.55.221 and 43.55.231, added by secs. 5 and 6 of this Act. 30 * Sec. 33. Section 16 of this Act takes effect on the effective date of a version of Senate 31 Bill 33 enacted by the Eighteenth Alaska State Legislature transferring the Alaska State
01 Emergency Response Commission from the Department of Environmental Conservation to the 02 Department of Military and Veterans' Affairs. 03 * Sec. 34. Except as provided in sec. 33 of this Act, this Act takes effect July 1, 1994.