Legislature(2003 - 2004)
04/07/2003 01:42 PM House FIN
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HOUSE BILL NO. 187
An Act extending the termination date of the Board of
Storage Tank Assistance; and providing for an effective
date.
LAURA ACHEE, STAFF, REPERSENTATIVE RALPH SAMUELS, stated
that under AS 46.03.010(18), the Board of Storage Tank
Assistance (BSTA) will sunset on June 30, 2003, unless the
Legislature acts to extend the Board. HB 187 would extend
that Board to June 30, 2007.
The Board was created in 1990 to help the owners and
operators of underground storage tanks (UST) to comply with
the State and federal regulations enacted in response to
nationwide concern over possible contamination of drinking
water from leaking tanks. The new regulations cover areas
of design, construction and installation of new tanks, and
tighten standards for retrofitting existing tanks.
Ms. Achee discussed that Board members have extensive UST
knowledge and experience, allowing the Board to act as a
valuable liaison between the Department of Environmental
Conservation and UST owner/operators. BSTA helped the
Department of Environmental Conservation to draft reasonable
regulations and has helped owner/operators interpret and
comply with regulations, saving the State the cost of
seizing and cleaning-up contaminated sites caused by non-
compliance.
The Department provides financial assistance to UST
owner/operators, previously through grant programs and the
Storage Tank Assistance Loan Fund revolving loan fund. BSTA
has been instrumental in mediating disputes between the
Department and UST owner/operators over financial assistance
determinations and allowable costs, helping avoid the need
for formal appeals in some cases.
The Board of Storage Tank Assistance has a proven value, and
it is in the best interest of UST owner/operators, the State
and the general public to extend the Board's sunset date for
four years.
JOHN BARNETT, DIRECTOR, EXECUTIVE DIRECTOR, BOARD OF STORAGE
TANK ASSISTANCE, testified that the Board of Storage
Assistance was stated in 1990 as an all-volunteer board
consisting of regulated tank owners, operators, contractors
and engineering representatives. The group acts as a forum
for the mediation of disputes between regulated tank owners
and the Department of Environmental Conservation.
Additionally, they act as a regulatory oversight Board,
assuring that regulations in regard to underground storage
tanks are more stringent than federal law and not too
economically costly. Also, the role of the Board is to
mediate disputes and clean up plans.
The underground tank owners and operators requested that a
Board be put in place when the State program was initially
enabled in 1990. They pay a registration fee, which goes to
support the Board's activities.
Representative Stoltze asked about previous extension
lengths.
Mr. Barnett replied that the Board has gone through major
changes, beginning as an exclusive grant program in which
all applicants were eligible. After that, it went through
changes identifying fiscal responsibility issues regarding
who could receive the funds. The Board's renewal then was
limited to a couple years. A Legislative Budget and Audit
(LBA) review recommended extending the Board for four years.
Co-Chair Harris asked how many commercial underground tanks
would qualify for the program. Mr. Barrett replied that
there are over 1000 tanks still underground throughout the
State. The eligible number at this time for financial
assistance is limited. There are approximately 50
facilities that qualify for the grant program and around 200
facilities eligible for the loan program. The grant program
ends June 2003.
Co-Chair Harris questioned the inclusion of service
stations. Mr. Barnett responded that the program does
address the cost of clean up. The program helps to clean up
the sites and help to keep the business in business. He
pointed out that some of the operations are very small,
adding that only about 30% are service stations. There are
countless contractors throughout the State that have their
own refueling tanks. The program provides assistance.
Co-Chair Harris inquired if there were any additional tanks
the State that need to be replaced. Mr. Barnett advised
that the State has close to a 70% compliance rate with the
original federal requirements for upgrading tanks. There
are a number of tanks, which have not been upgraded and do
not participate in the program. He added that there are
sites that have just begun to clean up and that work can be
quite extensive.
Co-Chair Harris interjected that the legislation does not
deal with the residential clean up. Mr. Barnett replied
that the concern is with predominately gasoline tanks and
the tanks regulated by the Environmental Protection Agency
(EPA).
Representative Whitaker commented that in 1999, the Oil and
Gas Committee looked at this concern. He understood that
the loan and grant program was intended to be complete
within a couple years from that date. He questioned the
renewal request.
Mr. Burnett explained that the program Representative
Whitaker referenced was the grant program. The Board has
the authority to review eligible costs and to establish the
ranking criteria to priority rank applications based on the
availability of funds. The grant program is a small portion
of the work being done by the Board. The primary function
of the Board is regulatory oversight.
The other aspect of the Board is "no further action
letters", mediating disputes between tank owners and the
Department of Environmental Conservation in regard to clean
up plans. The Board also acts as a body for disputes in
order to keep the attorneys out. The Board assures that the
clean ups are done without the involvement of the Department
of Law. Another change that took place happened in SB 153,
which last year clarified the loan program. The loan
program has no sunset date. That program exists to address
the clean ups that are on going. He noted that the grant
program had been terminated in June. The role of the Board
does not change with the loss of the grant program.
Representative Whitaker asked how the function of the Board
could be differentiated from a "lobbying effort".
Mr. Barnett advised that the role of the Board is to hold
hearings when a tank owner cannot reach a satisfactory
decision on a clean up plan, they come to the Board and the
Board holds a hearing to deal with the issues.
Communication barriers are then eliminated. The Board acts
as an "Ombudsman" in mediating the spill disputes. He
claimed that the "no further action" letters are dealt with
through the Board. The Department is reluctant to issue
those letters indicating timelines for getting certain
action accomplished to produce enough information so that
the Department is satisfied. When the Department proposes
regulations, they must run them through the Board for
review. That allows public input from the in-house
stakeholders to insure that the regulations are okay.
Because of that, the program has been very successful. He
submitted that any type lobbying effort would take place
through the Alaska Underground Tank Owners & Operators
Association.
Representative Whitaker concluded that the Board works in an
"arbitration and advisory function". Mr. Barnett agreed.
Co-Chair Harris referenced the fiscal note and asked about
the contractual line. Mr. Barnett replied that the
contractual line covers his salary as a paid contractor and
the travel of the Board members and the Department
representatives to the Board meetings.
Co-Chair Harris asked how the Underground Revolving Loan
Fund got funded. Mr. Barnett explained that the fund came
through a capital appropriation out of the Prevention
Account. The only general funds that are used in the
Underground Storage Tank Loan Fund are the tank owner
registration fees. Those fees are rolled over into the
Storage Tank Assistance Fund and authorized to be paid from
that source.
GARY WEBER, PRESIDENT, ALASKA UNDERGROUND TANK ASSOCIATION,
MAT-SU, testified in support of the legislation. He stated
that the most important work of the Board is the regulatory
oversight and mediation of disputes. He pointed out that
the State of Alaska has one of the best operating tank plans
in the entire nation. He urged that the bill be moved from
Committee.
Representative Stoltze asked if Mr. Weber currently owned
the Chevron Station in Wasilla. Mr. Weber replied that he
does own that station.
Representative Foster MOVED to report HB 187 out of
Committee with individual recommendations and with the
accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
HB 187 was reported out of Committee with a "do pass"
recommendation and with fiscal note #1 by the Department of
Environmental Conservation.
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