Legislature(1993 - 1994)
1994-07-15 Senate Journal
Full Journal pdf1994-07-15 Senate Journal Page 4840 SB 215 Message of July 1 was received, stating: Dear Mr. President: I am allowing the following bill to become law without my signature and am transmitting the engrossed and enrolled copies to the Lieutenant Governor's Office for permanent filing: 1994-07-15 Senate Journal Page 4841 SB 215 HOUSE CS FOR CS FOR SENATE BILL NO. 215 (FIN) am H "An Act relating to oil and hazardous substances; redesignating the oil and hazardous substance release response fund and relating to it; repealing the Citizens' Oversight Council on Oil and Other Hazardous Substances and 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 repealing 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." Chapter 128, SLA 1994 Effective Date: 10/2/94 This bill makes major changes to the Oil and Hazardous Substance Release Response Fund ("Response Fund" or "470 Fund"). It divides the nickel per barrel surcharge, with two cents financing the state's response activities and three cents financing prevention. I supported the 3-2 split concept. As I stated on March 24 of this year, the 5th anniversary of the grounding of the Exxon Valdez, I could not support legislation which weakens Alaska's ability to prevent or respond to an oil or hazardous substance spill. I am pleased that the Legislature amended the bill to provide for the 3-2 split in order to assure adequate funding for the Department of Environmental Conservation's prevention programs. However, I have serious misgivings about two actions the Legislature took, despite concerns expressed by members of my administration, which could diminish our prevention and response capability: 1.The bill creates the false expectation that the prevention account can provide sufficient funding for upgrading above- ground storage tanks. A comprehensive solution is needed. 1994-07-15 Senate Journal Page 4842 SB 215 The Rural Bulk Fuel Task Force I appointed last year estimates a funding need of nearly $300 million to clean up and upgrade Alaska's major rural bulk fuel tanks to meet federal standards. While we did propose a capital appropriation, and received $2.25 million from the general fund to fix those "worst case" tanks that are imminent spill risks this year, the State must not assume the total financial burden for upgrading these fuel tank systems. A key element of the "owner state" concept is that we all bear responsibility to manage our resources. Certainly in the case of above-ground storage tanks, the private sector and the federal government bear some responsibility. To provide for use of the prevention account as a source of funding for upgrading above- ground storage tanks without identifying other funding alternatives, is not responsible. 2.The bill makes restoration authority unclear. The Legislature, by failing to include an express authorization for use of the response account for restoration, regrettably cast doubt on the state's ability to restore and enhance the environment in the aftermath of a spill. This is deeply troubling to me because I believe restoration of the environment is a critical component of our efforts to safeguard our state's wondrous natural environment. However, notwithstanding the ambiguity created by the Legislature on this issue, the Attorney General has assured me that restoration of the environment is a permissible use of the response account. Despite the serious concerns I have about the above-ground storage tanks and restoration issues, I have decided to allow the bill to become law without my signature in recognition of the positive aspects of the bill. For instance, the bill enables the response fund to operate in a manner consistent with what was intended when it was established--a fund available to pay for responses to oil and hazardous substance releases that is financed by a surcharge on the crude oil industry that is partially discontinued when the fund has a $50 million balance. In addition, the bill provides for an ongoing stream of revenue from a three-cent-per-barrel surcharge to fund prevention programs. Finally, the bill still enables the state to respond to threatened and actual spills and clarifies certain reporting and accounting procedures. 1994-07-15 Senate Journal Page 4843 SB 215 Sincerely, /s/ Walter J. Hickel Governor