Legislature(1993 - 1994)
05/04/1994 01:50 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 215 An Act relating to and redesignating the oil and hazardous substance release response fund and to its use in the event of a disaster emergency; 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; amending requirements relating to the revision of state and regional master prevention and contingency plans; altering requirements applicable to liens for recovery of state expenditures related to oil or hazardous substances; amending the authority to contract to provide personnel to respond to a release or threatened release of oil or a hazardous substance and to contract to conduct spill related research; reassigning responsibility for the oil and hazardous substance response corps and for the emergency response depots to the Department of Environmental Conservation, and for the operation of the state emergency response commission and its attendant responsibilities for the local emergency planning commissions to the Department of Military and Veterans' Affairs; and modifying definitions of terms relating to the preceding provisions; 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. 2 CS SB 215 (FIN)am (efd fld) was HELD in Committee for further consideration. SENATE BILL 215 "An Act relating to and redesignating the oil and hazardous substance release response fund and to its use in the event of a disaster emergency; 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; amending requirements relating to the revision of state and regional master prevention and contingency plans; altering requirements applicable to liens for recovery of state expenditures related to oil or hazardous substances; amending the authority to 8 contract to provide personnel to respond to a release or threatened release of oil or a hazardous substance and to contract to conduct spill related research; reassigning responsibility for the oil and hazardous substance response corps and for the emergency response depots to the Department of Environmental Conservation, and for the operation of the state emergency response commission and its attendant responsibilities for the local emergency planning commissions to the Department of Military and Veterans' Affairs; and modifying definitions of terms relating to the preceding provisions; 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." Representative Therriault MOVED to adopt 8-LS1107\T, Chenoweth, 5/02/94, as the version before the Committee. Co-Chair MacLean OBJECTED stating that the Governor's Office would not support that version. Representative Therriault advised that he would be offering two amendments to the draft which would remedy the concerns of the Administration. He distributed and explained a spread sheet "Summary of Changes - CSSB 215 (FIN) am, HCS CS SB 215 (RES), HCS CS SB 215 (STA), and the proposed work draft". [Copy on file]. BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, addressed concerns of the Department resulting from the work draft. He pointed out that there are a number of changes made to that version which warrant concern. He clarified that there exists only one situation in which DEC could spend money from the current response fund or the future response account within the response fund. This would occur when a spill is eminent. Over the entire history of that fund, only $1.9 million dollars of the total $122 million dollars has been spent. The remaining portion of the fund was appropriated by the Legislature. The original intention of the prevention account was to provide funds to DEC and other state agencies to both prevent spills and to be better prepared to respond to spills. The response account, as passed by the Senate and the House Resources Committee, is intended to deal with all spills, including the small spills. Mr. Poe pointed out that most of the spills which DEC responds to are well under 2,500 barrels. Under the bills passed from the Senate and House Resources Committees, there is no threshold used to determine when the response money could be used in order to respond to a spill. He added that the work draft version 9 would establish an artificial threshold which would be of great concern to the Department. Mr. Poe continued that the work draft would establish a special account in the prevention account which would be used for the smaller spills. He explained that the problem is that a large fund would be necessary in order to address those times when a responsible party creates a spill. The party would then be forced to clean it up appropriately or the fund money would be used for litigation. Mr. Poe stressed that the State does not know what future spills will occur. The work draft also would require that the Governor be informed of a spill within 72 hours of the spill at which time he would provide specific instruction regarding action to take to address that spill. Mr. Poe emphasized that requiring the Governor's approval to act could be harmful timing for the State. Representative Therriault interjected that a proposed amendment would address that concern. (Tape Change, HFC 94-158, Side 1). GINNY FAY, PRINCE WILLIAM SOUND REGIONAL CITIZENS ADVISORY COUNCIL, JUNEAU, briefed the Committee on the development of the legislation. The bill was originally drafted from a research analysis completed in 1992, which erroneously stated that the response fund was empty. At that time, there remained $27 million dollars in that account. Ms. Fay emphasized that the bill gained momentum based on incorrect information. She added that the bill would not protect the coastal communities nor public interest. SB 215 is an industry bill, emphasizing that based on a Department of Revenue's fiscal note, the legislation would be worth $50 million dollars over the next six years in lower surcharge payments. Ms. Fay concluded that the legislation as passed through the Senate and the House Resources Committees continued to allow the response account to be used for spill response. The proposed work draft would make the prevention account also serve for the response fund and would also lower the surcharge payment from five cents to three cents. She stressed that the work draft was unacceptable. RUSSEL HEATH, EXECUTIVE DIRECTOR, ALASKA ENVIRONMENTAL LOBBY, JUNEAU, encouraged the Committee to adopt the House Resources version of the bill. He pointed out that the Resources committee substitute places the entire $37 million dollars into the response account. The Alaska Environmental 10 Lobby (AEL) would recommend that balance to be split 60/40 percent between prevention and response accounts. He noted concern in adding the underground storage tanks to the prevention account. He thought that action would encourage money to be taken from the prevention account program and would drain money from other necessary prevention accounts. REPRESENTATIVE DAVID FINKELSTEIN reiterated that the tax levied should be used for the concerns which created that tax. He spoke against splitting the fund. Currently enough money does not exist to address the needs of the original program, whereas, the proposed legislation would add more obligations from that fund. Representative Finkelstein encouraged implementing an increased gas tax in order to make the programs balance. A roll call vote was taken on the MOTION. IN FAVOR: Hanley, Martin, Parnell, Therriault, Foster, Larson. OPPOSED: Hoffman, Navarre, Brown, Grussendorf, MacLean. The MOTION PASSED (6-5). Representative Therriault MOVED to adopt Amendment #1 which would eliminate the 72 hour notice and approval requirement. There being NO OBJECTION, it was adopted. Representative Therriault MOVED to adopt Amendment #2 which would delete "threatened release". Representative Martin OBJECTED. Mr. Poe noted that the Department would support Amendment A roll call vote was taken on the MOTION. IN FAVOR: Hoffman, Navarre, Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, Larson, MacLean. OPPOSED: Martin. The MOTION PASSED (10-1). CS SB 215 (FIN) am (efd fld) was HELD in Committee for further consideration.
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