Legislature(1993 - 1994)

1994-07-15 Senate Journal

Full Journal pdf

1994-07-15                     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