Legislature(1993 - 1994)
04/17/1993 10:00 AM House RES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE RESOURCES STANDING COMMITTEE
April 17, 1993
10:00 a.m.
MEMBERS PRESENT
Representative Bill Williams, Chairman
Representative Bill Hudson, Vice Chairman
Representative Con Bunde
Representative Pat Carney
Representative John Davies
Representative Joe Green
Representative Jeannette James
Representative Eldon Mulder
Representative David Finkelstein
MEMBERS ABSENT
None
OTHER LEGISLATORS PRESENT
Representative Gail Phillips
Representative Kay Brown
COMMITTEE CALENDAR
*HJR 41: Relating to consideration of individual fishery
quota shares block proposals by the North Pacific
Fishery Management Council.
PASSED FROM COMMITTEE WITH A DO PASS
RECOMMENDATION
HB 238: "An Act relating to the oil and hazardous
substance release response fund, repealing the oil
and hazardous substance municipal impact
assistance program 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, 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, relating to a restoration standard in
certain state environmental laws, modifying
definitions of related terms, amending the manner
of computing the amounts required for the
suspension and reimposition of the oil
conservation surcharge, relating to fees to be
charged and collected by the Department of
Environmental Conservation, and annulling a
regulation related to costs for certain site
restorations."
HEARD AND HELD IN COMMITTEE FOR FURTHER
CONSIDERATION
(* first public hearing)
WITNESS REGISTER
Representative Bill Williams
Alaska State Legislature
State Capitol, Room 128
Juneau, Alaska 99801-1182
Phone: 465-3424
Position Statement: Prime Sponsor, HJR 41
Representative Joe Green
Chair, House Special Committee on Oil and Gas
Alaska State Legislature
State Capitol, Room 114
Juneau, Alaska 99801-1182
Phone: 465-4931
Position Statement: Explained CSHB 238
James Studley
P.O. Box 946
Haines, Alaska 99827
Phone: 766-3377
Position Statement: Agreed with the intent of HB 238, but
recommended provisions be included for
funding to communities
Rodney "Rock" Ahrens
Haines Fire Chief
P.O. Box 481
Haines, Alaska 99827
Phone: 766-2230
Position Statement: Recommended funding for local emergency
planning committees be included in HB
238
Mary McBurney, Executive Director
Cordova District Fishermen United
P.O. Box 939
Cordova, Alaska 99574
Phone: 424-3447
Position Statement: Opposed HB 238
Nancy Lethcoe, President
Alaska Wildlife, Recreation and Tourism
P.O. Box 1353
Valdez, Alaska 99686
Phone: 835-4300
Position Statement: Voiced concerns with HB 238
Stan Stephens, President
Prince William Sound Regional Advisory Council
P.O. Box 1297
Valdez, Alaska 99686
Phone: 835-4731
Position Statement: Opposed HB 238
Jim Udelhoven
The Alliance
11401 Olive Lane
Anchorage, Alaska 99515
Phone: 262-5905
Position Statement: Supported HB 238
Larry Smith
Cook Inlet Oil Reform Alliance
1520 Lakeshore Drive
Homer, Alaska 99603
Phone: 234-3855
Position Statement: Recommended increase to oil surcharge
provisions in HB 238
Bill O'Brien
5905 Alpine Woods Drive
Anchorage, Alaska 99516
Phone: 345-0469
Position Statement: Supported HB 238
Sheila Gottehrer, Executive Director
Prince William Sound Regional Citizens Advisory Committee
601 West 5th, Suite 500
Anchorage, Alaska 99510
Phone: 277-7222
Position Statement: Opposed HB 238
Mary Forbes
Kodiak Audobon Society
418 Mill Bay Rd.
Kodiak, Alaska 99615
Phone: 486-2685
Position Statement: Opposed HB 238 and CSHB 238
Kristin Stahl-Johnson
Prince William Sound Regional Citizens Advisory Committee
P.O. Box 2661
Kodiak, Alaska 99615
Phone: 486-4684
Position Statement: Opposed HB 238 and CSHB 238
Dennis McCarty
Ketchikan Gateway Borough Assembly
620 Dock Street, #201
Ketchikan, Alaska 99901
Phone: 225-9840
Position Statement: Opposed elimination of funding for ferry
in HB 238
Bob Weinstein, Councilman
Ketchikan City Council
P.O. Box 7801
Ketchikan, Alaska 99901
Phone: 247-8103
Position Statement: Opposed elimination of funding for ferry
in HB 238
Colin Read
Professor of Economics
University of Alaska Fairbanks
653 Love Rd.
Fairbanks, Alaska 99712
Phone: 488-7116
Position Statement: HB 238 made no economic sense
Randy McGovern, Vice Chairman
State Hazardous Substance Spill Technology Review Council
1611 Carr Street
Fairbanks, Alaska 99709
Phone: 451-0124
Position Statement: Opposed HB 238
Chip Thoma
2 Marine Way
Juneau, Alaska 99801
Phone: None
Position Statement: Opposed HB 238
Karl Becker
Prince William Sound Conservation Alliance
P.O. Box 1185
Cordova, Alaska 99574
Phone: 424-7466
Position Statement: Opposed HB 238
Jack Brown, President
Cook Inlet Regional Citizens Advisory Council
P.O. Box 558
Homer, Alaska 99603
Phone: 235-8252
Position Statement: Opposed HB 238
Ken Castner
Cook Inlet Regional Citizens Advisory Council
P.O. Box 558
Homer, Alaska 99603
Phone: 235-8252
Position Statement: Opposed HB 238 and urged adequate
funding of spill prevention and response
Gail Parsons
P.O. Box 2397
Homer, Alaska 99603
Phone: 235-7712
Position Statement: Opposed HB 238
Walt Sonan
Address not available
Seldovia, Alaska 99663
Phone: not available
Position Statement: Opposed HB 238
Marilyn Kvarford
Seldovia Oil Spill Response Team
Address not available
Seldovia, Alaska 99663
Phone: not available
Position Statement: Opposed HB 238 in its current form
Marnie Graham
P.O. Box 3244
Valdez, Alaska 99686
Phone: 835-3850
Position Statement: Opposed HB 238
Joanne Lundfelt
P.O. Box 2559
Valdez, Alaska 99686
Phone: 835-2055
Position Statement: Recommended more time be provided for
public input on issues addressed in HB
238 (prepared testimony read by Nancy
Lethcoe)
Gerald Brookman
715 Muir Ave.
Kenai, Alaska 99610
Phone: 283-9329
Position Statement: Opposed HB 238 and recommended increases
in oil surcharge
Carl Portman
Resource Development Council
807 G Street
Anchorage, Alaska 99501
Phone: 276-0700
Position Statement: Supported HB 238
Darcy Richards, Program Director
Aleutians West Coastal Resource Area
P.O. Box 220170
Anchorage, Alaska 99522
Phone: 344-5612
Position Statement: Opposed HB 238
Bob Brodie
P.O. Box 296
Kodiak, Alaska 99615
Phone: 486-3079
Position Statement: Opposed HB 238
Alaire Stanton, Mayor
City of Ketchikan
Vice President, Southeast Conference
334 Front St.
Ketchikan, Alaska 99901
Phone: 225-3111
Position Statement: Opposed HB 238 and elimination of
funding for Southeast ferry
Lydia Rabottini
P.O. Box 4332
Homer, Alaska 99603
Phone: 235-8796
Position Statement: Opposed HB 238 and its reduction of
funding for spill prevention
Doug Yates
P.O. Box 221
Ester, Alaska 99725
Phone: 479-8300
Position Statement: Opposed HB 238
Larry Fanning, Chief
Juneau Fire Department
Member, Capital City Emergency Planning Committee
820 Glacier Ave.
Juneau, Alaska 99801
Phone: 586-5322
Position Statement: Opposed HB 238
Richard Fineberg
P.O. Box 278
Talkeetna, Alaska 99676
Phone: 733-1457
Position Statement: Opposed HB 238
Tim Robertson
Address not available
Seldovia, Alaska 99663
Phone: not available
Position Statement: Opposed HB 238
June Ruhling
Address not available
Seldovia, Alaska 99663
Phone: not available
Position Statement: Opposed HB 238
John Kvarford
Address not available
Seldovia, Alaska 99663
Phone: not available
Position Statement: Suggested monies from the 470 Fund be
spent the way it was intended
Vivian Menaker
Lynn Canal Conservation
P.O. Box 118
Haines, Alaska 99827
Phone: 766-2360
Position Statement: Opposed HB 238
Krista Rogerson
P.O. Box 1386
Valdez, Alaska 99686
Phone: 835-3850
Position Statement: Opposed HB 238
Eric Myers
6710 Potter Heights
Anchorage, Alaska 99516
Phone: 345-3366
Position Statement: Questioned the necessity for HB 238
Walt Parker
3724 Campbell Airstrip
Anchorage, Alaska 99504
Phone: 333-5189
Position Statement: Opposed HB 238
Russell Heath, Executive Director
Alaska Environmental Lobby (AEL)
P.O. Box 22151
Juneau, Alaska 99802
Phone: 463-3366
Position Statement: Clarified AEL's position on
participation in drafting of HB 238
Greg Petrich
Kodiak Audobon Society
211 Bartel Avenue
Kodiak, Alaska 99615
Phone: 586-6942
Position Statement: Objected to elimination of citizen's
oversight councils in HB 238
Pamela Miller, Biologist
Greenpeace
P.O. Box 104432
Anchorage, Alaska 99510
Phone: 276-3337
Position Statement: Opposed HB 238
Aimee Boulanger, Community Coordinator
Alaska Center for the Environment
519 W. Eight Avenue
Anchorage, Alaska 99501
Phone: 274-3621
Position Statement: Opposed HB 238
Peter Van Tuyn, Attorney
725 Christensen Dr. #9
Anchorage, Alaska 99501
Phone: 276-4244
Position Statement: Opposed HB 238
Susan McLean
P.O. Box 869
Homer, Alaska 99603
Phone: 235-7073
Position Statement: Opposed HB 238
William Hopkins, Executive Director
Alaska Oil and Gas Association
121 W. Fireweed
Anchorage, Alaska 99501
Phone: 272-1481
Position Statement: Supported HB 238 to allow 470 fund to
accumulate to $50 million cap
Linda Feiler
P.O. Box 148
Anchor Point, Alaska 99556
Phone: 235-8457
Position Statement: Opposed HB 238
Jim Levine
7343 Linden Drive
Anchorage, Alaska 99502
Phone: 248-0742
Position Statement: Opposed HB 238
Steve Colt, Economist
1408 P Street #A
Anchorage, Alaska 99501
Phone: 278-5107
Position Statement: Testified against economic aspects of
HB 238
Theo Matthews
Administrative Assistant
United Cook Inlet Drift Association
P.O. Box 369
Kenai, Alaska 99611
Phone: 283-9540
Position Statement: Opposed provisions of HB 238
Hugh Doogan
359 Slater Street
Fairbanks, Alaska 99701
Phone: 456-1869
Position Statement: Opposed HB 238
John Sandor, Commissioner
Department of Environmental Conservation
410 Willoughby Ave., Suite 105
Juneau, Alaska 99801-1795
Phone: 465-5000
Position Statement: Believed state recovered its costs in
the Exxon Valdez oil spill clean up
Jerry McCune
United Fishermen of Alaska
211 N. 4th Street, Suite 112
Juneau, Alaska 99801
Phone: 586-2820
Position Statement: Recommended that legislature take more
time in reviewing issues before passing
HB 238
Amy Hausen, Vice President
Homer High School Student Government
2396 Kachemak Bay Drive
Homer, Alaska 99603
Phone: 235-8228
Position Statement: Opposed HB 238 and recommended strong
spill prevention funding
PREVIOUS ACTION
BILL: HJR 41
SHORT TITLE: INDIVIDUAL FISHERY QUOTA BLOCK PROPOSALS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) WILLIAMS,Olberg,Moses
TITLE: Relating to consideration of individual fishery quota
shares block proposals by the North Pacific Fishery
Management Council.
JRN-DATE JRN-PG ACTION
04/16/93 1280 (H) READ THE FIRST TIME/REFERRAL(S)
04/16/93 1280 (H) RESOURCES
04/17/93 (H) RES AT 10:00 AM CAPITOL 124
BILL: HB 238
SHORT TITLE: OIL/HAZARDOUS SUBS. RELEASE RESPONSE FUND
BILL VERSION:
SPONSOR(S): SPECIAL COMMITTEE ON OIL AND GAS
TITLE: "An Act relating to the oil and hazardous substance
release response fund, repealing the oil and hazardous
substance municipal impact assistance program 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,
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,
relating to a restoration standard in certain state
environmental laws, modifying definitions of related terms,
amending the manner of computing the amounts required for
the suspension and reimposition of the oil conservation
surcharge, relating to fees to be charged and collected by
the Department of Environmental Conservation, and annulling
a regulation related to costs for certain site
restorations."
JRN-DATE JRN-PG ACTION
03/19/93 707 (H) READ THE FIRST TIME/REFERRAL(S)
03/19/93 708 (H) RESOURCES, STATE AFFAIRS
03/24/93 (H) RES AT 08:00 AM CAPITOL 124
03/24/93 (H) MINUTE(RES)
04/07/93 (H) MINUTE(RES)
04/14/93 (H) MINUTE(RES)
04/16/93 (H) MINUTE(RES)
04/17/93 (H) RES AT 10:00 AM CAPITOL 124
ACTION NARRATIVE
TAPE 93-46, SIDE A
Number 000
The House Resources Committee was called to order by
Chairman Bill Williams at 10:10 a.m. Members present at the
call to order were Representatives Williams, Bunde, Carney,
Davies, Green, Finkelstein and Mulder. Members absent at
the call were Representatives Hudson and James.
CHAIRMAN BILL WILLIAMS announced that in addition to the
primary purpose of the meeting, to hear public testimony on
HB 238, the committee would first consider HJR 41.
HJR 41: INDIVIDUAL FISHERY QUOTA BLOCK PROPOSALS
CHAIRMAN WILLIAMS spoke as PRIME SPONSOR of HJR 41. He
explained that several block plans were before the North
Pacific Fisheries Management Council (NPFMC) for
consideration. Such a plan would be an amendment to the
Individual Fishing Quota (IFQ) program which was recently
approved. A block proposal, he explained, would limit the
number of shares one fisherman could accumulate under the
IFQ program and thus minimize the negative impacts that
would result from consolidation of shares. The resolution
urges the NPFMC to adopt such a program and to act quickly.
CHAIRMAN WILLIAMS noted that Rick Lauber of the NPFMC was
available to respond to questions, if necessary.
Number 082
REPRESENTATIVE ELDON MULDER made a MOTION to MOVE HJR 41
with a zero fiscal note, with individual recommendations.
He asked unanimous consent.
CHAIRMAN WILLIAMS asked if there were any objections to the
motion. Hearing none, the MOTION CARRIED.
Number 091
CHAIRMAN WILLIAMS announced that the remainder of the
meeting would be devoted to taking testimony from throughout
the state, by teleconference, on HB 238.
HB 238: OIL/HAZARDOUS SUBS. RELEASE RESPONSE FUND
Number 101
CHAIRMAN WILLIAMS explained that HB 238 had first been heard
in the Resources committee on March 24, 1993, and that a
draft committee substitute had been prepared by the bill's
sponsor, Representative Joe Green a few days prior to this
meeting, which had been distributed to legislative
information offices (LIO's) throughout the state. He told
those present in Juneau and at the LIO's statewide that they
were welcome to comment on either version of the bill, as
well as on the broader issues of oil spill response, clean-
up and restoration. He noted that no motions would be made,
action accepted by the chair, nor action taken at this
meeting.
Number 132
CHAIRMAN WILLIAMS also noted that a number of state
officials were present at the Juneau site, if there were any
questions. He explained that there was new material in
members' packets, which included the draft CS to HB 238, as
well as written testimony and a report by the Prince William
Sound Regional Citizen's Advisory Council (PWSRCAC).
Number 156
REPRESENTATIVE JOE GREEN, CHAIRMAN OF THE HOUSE SPECIAL
COMMITTEE ON OIL AND GAS WHICH SPONSORED HB 238, explained
that the bill's CS is a compilation of recommendations and
agreements made among various factions concerned with the
oil and hazardous substance spill response fund. He said
the bill was initiated in response to a perception that
liberties were being taken with the "nickel a barrel" oil
surcharge fund. He remarked that the original intent of the
fund was that it would be capped at $50 million. The
current balance of the fund, he said, was around $20
million.
REPRESENTATIVE GREEN, referring to the revised draft CS for
HB 238, said it proposes a split in the nickel a barrel
surcharge. Two cents per barrel, he advised, would go into
a spill abatement and contingency account that would be used
for oversight and the various functions performed by the
Department of Environmental Conservation (DEC), the Regional
Citizens' Advisory Councils (RCACs) and community
involvement groups.
REPRESENTATIVE GREEN said the other three cents per barrel
would take over the obligation to establish equipment and
facilities around the state, and to establish remote
response depots which still do not exist four years after
the Exxon Valdez oil spill. After those purposes are met,
he explained, the three cent per barrel contribution would
go toward building up the $50 million fund.
CHAIRMAN WILLIAMS announced the committee would next begin
to take testimony from the various sites around the state.
He asked individuals testifying to limit their testimony to
three minutes, and those testifying on behalf of
organizations to speak for no more than five minutes.
Number 253
JAMES STUDLEY, testified from Haines in agreement with the
intent of HB 238, but felt the bill needed to include
provisions to get money to communities that are directly
responsible for planning and prevention, purchasing response
equipment, and providing training. He said it would be
important to have capable management of funds at a local
level. Without provisions in a bill such as HB 238, he
said, the costs of such activities would be passed off to
the communities themselves.
Number 340
RODNEY "ROCK" AHRENS, HAINES FIRE CHIEF, testified from
Haines, and told the committee that his main concern is with
getting funds to the communities for local emergency
planning committees (LEPCs). He suggested that clear
provisions be made in HB 238 for pass-through funding for
those activities.
Number 356
MARY MCBURNEY, EXECUTIVE DIRECTOR FOR THE CORDOVA DISTRICT
FISHERMEN UNITED, testified from Cordova in opposition to
HB 238. She stated that splitting the surcharge would be in
the oil industry's interest. The most important lesson of
the Exxon Valdez oil spill, she explained, was the need for
preparedness. House Bill 238 takes away money for basic
prevention and response, she said. She also expressed
concern over changes proposed in HB 238 that would make the
fund accessible only in response to "catastrophic" spills in
excess of 100,000 barrels.
MS. MCBURNEY called the proposed two cents per barrel
inadequate to meet the need for preparedness and response to
spill emergencies, and finally stated that she opposed
HB 238 because it attempts to fix what is not broken.
Number 399
NANCY LETHCOE, PRESIDENT OF ALASKA WILDLIFE, RECREATION AND
TOURISM ASSOCIATION, testified from Valdez. She discussed
the reasons for the association's concerns over HB 238.
First, she said the bill addresses broad public policy
questions, but was drafted and introduced with input from
only a single industry. Second, she was unconvinced changes
were needed in the present fund, which estimates predicted
would reach its $50 million cap level in approximately two
years without HB 238. Third, she said HB 238 increases the
risk that tourism in Alaska will be affected by an oil
spill.
MS. LETHCOE continued describing her reasons for opposing
HB 238. The fourth reason, she said, was that the bill
reduces the ability to prepare for and respond to a spill.
Fifth, she noted that copies of the draft CS were not
distributed until two days before this meeting. She felt
this was not sufficient time to respond to as major a
revision as the change to a 100,000 barrel catastrophic
spill definition. Finally, she was concerned that the two
cent per barrel charge was inadequate and that no provision
had been made for inflation proofing the fund, particularly
in light of declining oil revenues.
Number 477
STAN STEPHENS, PRESIDENT OF THE PRINCE WILLIAM SOUND
REGIONAL ADVISORY COUNCIL (RCAC), testified from Valdez in
opposition to HB 238. He said the bill threatens to roll
back efforts to protect citizens of Alaska. He said that
the changes proposed in HB 238 indicate that the legislature
has not only forgotten the lessons of the Exxon Valdez Oil
Spill, but rips them right from the pages of the history
books. House Bill 238 would return the DEC budget to levels
before the 1989 spill, and would eliminate many of the
purposes of the fund, including a reduction in requirements
for clean-up and restoration of the environment.
Number 500
MR. STEPHENS referred to Section 25 of HB 238, which calls
for funding for the abatement account at two cents per
barrel, calling it grossly insufficient and restricting of
restoration efforts. He said the bill made inadequate
provisions for training and preparedness, and for the filing
of master plans. Section 34, he said, amends the definition
of "threatened release" from "imminent danger" to "imminent
release," and the definition of "property" is changed to
include only tangible personal property, excluding the
environment.
Number 534
MR. STEPHENS expressed concern that Section 73 removes
requirements for an annual review of the state master plan.
Section 14, he said, limits public participation in annual
reviews. He was also concerned with the proposed version of
HB 238 in its prohibition of the DEC charging user fees.
Number 558
CHAIRMAN WILLIAMS noted that Representatives Bill Hudson,
Jeannette James and Kay Brown had joined the meeting.
Number 560
JIM UDELHOVEN, REPRESENTING AN ALLIANCE OF OIL INDUSTRY
SUPPORT BUSINESSES IN ALASKA, testified from Kenai, voicing
strong support for HB 238. Alaska needs a fully-funded
first response fund to protect its land and water, he
explained, adding that the DEC has spent money from the fund
irresponsibly. He stated that HB 238 corrects past abuses
of the oil and hazardous substance release response fund.
Number 580
LARRY SMITH, COOK INLET OIL REFORM ALLIANCE, stated that
public hearings should always be part of the process of
developing public policy. He said there was merit in the
idea of having two separate funds, and noted that California
has two four cent a barrel funds. One is for petroleum and
one is for other hazardous substances. California also has
a 25 cent a barrel fund which caps at $50 million for big
spill responses. In addition to that cap, he explained, the
California plan has a mechanism for increasing the per
barrel contribution to one dollar a barrel should the state
need to launch a response. That state has the ability to
respond to the limit of its faith in credit.
Number 616
MR. SMITH suggested that if Alaska proceeds with the idea of
having two separate funds, they should each be funded at a
nickel a barrel, and should be combined with a borrowing
mechanism and sliding loan repayment system. He stated that
this was the wrong time to cut state environmental services.
He noted that the oil industry receives large tax breaks
from the state, which amounts to the state kicking in about
25% of the nickel a barrel surcharge. When the oil and
hazardous substance release response fund was established in
1989, he said, the first $20 million was contributed by the
people of Alaska through legislative action.
Number 646
BILL O'BRIEN testified by teleconference from Anchorage. He
spoke in support of the split of the nickel a barrel
contribution into two separate funds as proposed in the
draft CS for HB 238. He said it appeared money had been
siphoned off the fund for unintended purposes. House Bill
238, he said, was not complicated legislation and was not a
major policy shift. He called the bill a good compromise.
SHEILA GOTTEHRER, EXECUTIVE DIRECTOR OF THE PRINCE WILLIAM
SOUND REGIONAL CITIZENS ADVISORY COMMITTEE (PWSRCAC), said
that organization represents a number of spill-affected
communities and Native organizations. She cautioned the
committee that HB 238 would affect those communities and
said that the CS would constitute major changes in public
policy. Because of this, she said the public needs more
time to understand the complexity and impact of the bill.
She called the proposed CS an improvement over the original
version of HB 238, but added that it was "still a wolf in
sheep's clothing."
TAPE 93-46, SIDE B
Number 000
MS. GOTTEHRER offered the following comments regarding HB
238: First, she suggested the level of funding should be
determined each year through the budget process. Second,
she noted that the "470" fund would reach $50 million in FY
96 without HB 238. Third, she expressed concern that under
HB 238, only "catastrophic" spills were considered to pose a
threat. She said that the proposed two cent a barrel level
would not be sufficient to meet the intended purposes,
resulting in Alaska returning to the situation present in
the days before the 1989 oil spill.
MS. GOTTEHRER expressed concern with the failure of the CS
to meet the objective of having funds accessible to respond
in a timely manner to a spill. It cripples the DEC's
ability to prevent and respond to spills, she added.
Number 098
MARY FORBES, KODIAK AUDOBON SOCIETY, testified from Kodiak
in opposition to HB 238 and the proposed CS. She stressed
the need to invest in prevention of oil spills, and also
pointed out the need to continue the involvement of
citizens' oversight councils.
Number 125
KRISTIN STAHL-JOHNSON, PRINCE WILLIAM SOUND REGIONAL
CITIZENS ADVISORY COMMITTEE, testified in opposition to
HB 238 and the proposed CS. The proposal to split the
nickel a barrel fund into separate two cent and three cent
funds, was "penny wise but pound foolish." She urged the
committee not to pass HB 238.
Number 195
DENNIS MCCARTY, KETCHIKAN GATEWAY BOROUGH ASSEMBLY MEMBER,
testified from Ketchikan with concerns about the capital
funding portion of HB 238. Funding for a ferry, he said,
was important in addressing the need to have appropriate
equipment available in the case of a spill, especially if a
major spill occurred in Southeast Alaska. He also noted
that the state marine highway vessel, AURORA, was called
into service during the Exxon Valdez clean-up.
MR. MCCARTY, in regard to previously stated concerns that a
ferry could not respond because of the difficulty in
discharging passengers and cargo in an emergency, said that
it is possible to coordinate such a transition if needed,
provided the state is adequately prepared and trained
personnel are ready to respond. He stressed that the plan
to fund the ferry was not a boondoggle.
BOB WEINSTEIN, KETCHIKAN CITY COUNCIL MEMBER, noted that his
comments did not necessarily reflect the feeling of the
council. He commented that he shared concerns with the
sponsors of HB 238 about past mis-uses of the response fund.
He felt, however, that those problems could be addressed
without major changes to public policy. He stressed the
importance of having vessels available to respond to an
emergency. He did not feel the oil industry had met its
obligations to the state to provide prevention and response
capabilities.
Number 330
COLIN READ, ECONOMICS PROFESSOR AT THE UNIVERSITY OF ALASKA
FAIRBANKS, testified from Fairbanks. He said that HB 238
does not make economic sense, in large part because it does
not provide for inflation-proofing the funds. He also
objected to the artificial definition of "catastrophic"
spills, and said that it would not provide for clean-up of
dangerous spills that don't happen to meet the definition
set out in HB 238. He said the bill would result in
constraining economic flexibility for Alaskan citizens to
the benefit of the oil industry.
Number 382
RANDY MCGOVERN, VICE CHAIRMAN OF THE STATE HAZARDOUS
SUBSTANCE SPILL TECHNOLOGY REVIEW COUNCIL, testified from
Fairbanks. He stated that with a proliferation of oil and
other hazardous substance activities, Alaska is not the
pristine wilderness it is perceived to be. The 470 fund, he
said, made money available to the state to oversee or
perform response activities, with cost recovery to come from
the responsible parties. He reminded the committee of the
frequency with which companies and even individuals leave
behind toxic substances.
Number 400
MR. MCGOVERN voiced his strong opposition to HB 238, calling
it onerous and harmful to the citizens of Alaska's life and
health. Of particular concern, he said, was the elimination
of the public review process.
Number 415
CHIP THOMA testified in Juneau in opposition to HB 238. He
acknowledged that liberties had been taken in the
administration of the oil response fund in the past, but
felt that funds had not been used aggressively enough for
prevention. He did not feel that the changes proposed in
HB 238 were necessary. He voiced concern about inadequate
equipment, and undermanning of vessels, and said the state
is looking at another disaster if liberties are taken with
the fund.
Number 460
KARL BECKER, FISHERMAN AND MEMBER OF THE PRINCE WILLIAM
SOUND CONSERVATION ALLIANCE, testified in Juneau. He
expressed concern that the coastal communities stood to be
most affected by an oil spill. One of his concerns was that
citizens have continued involvement in legislative
oversight, including the annual review of the state master
plan, as well as assurance that citizens' oversight councils
will be funded. He also cautioned that the split of the
nickel a barrel fund weakens the state's ability to prevent
or respond to spills. He asked that the Resources committee
not pass HB 238 or the proposed committee substitute.
Number 495
JACK BROWN, PRESIDENT OF THE COOK INLET REGIONAL CITIZENS
ADVISORY COUNCIL (RCAC) testified from Homer. He noted his
concern that because of HB 238, a number of projects that
should be funded will be in limbo. He recommended that the
legislature remember its obligations to the communities and
citizens of Alaska. The DEC, he said, has the
responsibility to review and certify spill response
contingency plans and to establish depots for near-shore
response. He asked that the committee table HB 238 and said
that the Cook Inlet RCAC was willing to work with the
legislature to find a compromise solution to the problems
that exist in administering the fund.
Number 528
KEN CASTNER, REPRESENTING FISHING INTERESTS OF THE COOK
INLET REGIONAL CITIZENS ADVISORY COUNCIL, testified from
Homer. He reminded committee members of hearings in the
1992 legislature on a bill related to liability for oil
spill response, HB 540. He urged vigilance in assuring
strong response capability, and noted frustrations with
developing the near-shore response project. One such
project last year, he said, had been funded and then
postponed. He also stressed the importance of protecting
coastal communities, which stand to be most affected by
another major spill. A nickel a barrel, he said, goes a
long way toward prevention.
Number 558
GAIL PARSONS, EDUCATOR, testified from Homer in strong
opposition to HB 238. She said the bill would undermine all
that has been accomplished. She emphasized that the
opinions of the children in the Homer schools reflects fear
that another spill could ruin the beaches and kill fish,
animals and birds in the area. She urged the legislature to
defeat HB 238, which she said would eliminate reserve funds
for restoration of the environment. She also asked for
increased prevention efforts instead of diluting them as,
she said, would be the result of HB 238.
Number 593
WALT SONAN, FISHERMAN, testified from Seldovia. He said the
proposal to divide the nickel a barrel fund into two funds
would stretch the resources too thin. He also objected to
the definition of "catastrophic" spills, stating that it
limits the scope of response too severely. Any proposal to
change the oil and hazardous substance release response
fund, he said, needs further review.
Number 616
MARILYN KVARFORD, MEMBER OF SELDOVIA OIL SPILL (SOS)
RESPONSE TEAM, recommended the Resources committee not pass
HB 238 as currently drafted. She suggested that more time
be given to thinking about what the state needs in terms of
equipment and training of personnel in the event of any size
spill. If the nickel a barrel funds are going to be
divided, she said, the larger portion should go toward
prevention and response. Another suggestion would be to
have two three-cent funds. She expressed disappointment
that HB 238 does not provide for the near-shore
demonstration project.
MARNIE GRAHAM testified from Valdez. She said it appeared
the purpose of HB 238 and the draft CS was to reduce the
expenditures on oil spill prevention, response and clean-up.
She cautioned against weakening the DEC's ability to prevent
or respond to oil and hazardous substance spills. Alaska's
environment supports the livelihood of many in the
communities of the state. Regarding the DEC's spending from
the 470 fund, she commented that it is the legislature's
responsibility to make appropriations for spending. She
urged the committee to not pass HB 238 or the draft CS.
Number 670
JOANNE LUNDFELT OF VALDEZ presented written testimony as
read to the committee by Nancy Lethcoe. She objected to the
unreasonably short time period for the public to respond to
the draft CS for HB 238. She called the bill a radical
change in public policy, undoing laws intended to protect
Alaska's environment. She questioned whether the bill's
primary purpose was to save the oil industry money or to
enable the DEC to provide better prevention, spill response,
clean-up and restoration. She said that HB 238 did not
appear to meet the latter objective. More time was needed
to study the issue, she said.
TAPE 93-47, SIDE A
Number 000
GERALD BROOKMAN testified from Kenai. He suggested that
instead of the two and three cent funds proposed in the
draft CS for HB 238, there should instead be a six cent and
a four cent fund, for a total contribution of ten cents a
barrel. He commented that the parties responsible for
draining the state's resources should pay their fair share,
and instead of weakening the fund, it should be
strengthened. He referred to recent newspaper
advertisements by oil companies in response to HB 238, and
suggested that the oil industry accept change with good
grace. He asked the committee to vote against HB 238.
Number 084
CARL PORTMAN, RESOURCE DEVELOPMENT COUNCIL, testified from
Anchorage. He said it was imperative that the fund be
allowed to accumulate to $50 million, and that the fund be
used only in a true emergency. He said the fund should not
be used for citizens' oversight councils, which should be
funded by the legislature if they are believed to be
important. He commented that HB 238 is not a complex bill
and does not constitute a major policy change.
Number 129
DARCY RICHARDS, PROGRAM DIRECTOR OF THE ALEUTIANS WEST
COASTAL RESOURCE AREA testified from Anchorage. She
cautioned that the proposed legislation eliminates citizens'
oversight, and she felt public input was critical. She
stressed the importance of learning the lessons of the 1989
spill, and asked that the committee not pass HB 238.
BOB BRODIE testified from Kodiak. He said that HB 238
reminds Alaskans to be vigilant and watch the legislature.
He noted that he had been mayor of Kodiak at the time of the
Exxon Valdez oil spill. He called HB 238 a waste of time
and money, and called the efforts of the Alaska Oil and Gas
Association to pass it a "smoke screen." He commented that
if there were inappropriate uses of the 470 fund, there
should be administrative remedies, which should involve
participation of the citizens of Alaska. He did not believe
there was anything salvageable in HB 238.
Number 246
ALAIRE STANTON, MAYOR OF THE CITY OF KETCHIKAN AND VICE
PRESIDENT OF THE SOUTHEAST CONFERENCE, commented that the
potential for a spill in Southeastern waters exists
everyday. She stressed the importance of the legislature
allocating funds for capital needs, such as the ferry to be
built with 470 funds, and said those funds should not be
restricted. Regarding charges of mis-use of the 470 fund by
the DEC, she said any problems could be corrected through
administrative means, and not through legislation.
Number 278
LYDIA RABOTTINI testified from Homer, and stated that the
470 fund was intended for prevention and first response.
She said it was important for Alaska to learn from the Exxon
Valdez oil spill that once the oil is in the water, it is
too late to prevent damage. She commented that HB 238 would
make prevention difficult.
Number 291
DOUG YATES testified from Fairbanks, and explained that he
works in the tourism industry. He said Alaska's real wealth
is its clean air and water. Alaska's economic health will
depend on the quality of its environment when the oil is
gone, he added. Without funds to prevent spills, he said
Alaska would be "just another pauper with its hand out to
the federal government." He urged the committee not to let
the oil industry design legislation that favors them, and
added that the legislature should defeat efforts to change
the 470 fund.
Number 331
LARRY FANNING, JUNEAU FIRE CHIEF AND MEMBER OF THE CAPITAL
CITY EMERGENCY PLANNING COMMITTEE, pointed out that the
100,000 barrel spill definition for "catastrophic" which is
included in the draft CS for HB 238 overlooks the need for
responding to spills which usually fall beneath that
threshold. He said that in planning for oil emergencies, it
is important to look at who will be doing the work. He
described the case of the Exxon Valdez as evidence that the
local agencies, such as fire departments, are usually first
on the scene to try and contain the spill.
Number 375
MR. FANNING referred to Coast Guard regulations that give
industry a 48-hour response window, but stressed that this
does not guarantee protection of the environment. He also
referred to another area of HB 238 he felt needed attention.
This related to the DEC's ability to transfer funds for
hazardous material depot centers. He said it did not make
sense that one agency charged with planning would not be
associated by a direct tie with those that have the resource
allocation. He recommended that depots be placed under the
direct control of the DEC.
MR. FANNING raised a third area of concern, that being
funding for LEPCs. Those funds, he said, needed to be
increased. He urged a proactive approach to the potential
for another spill, including further restrictions on
industry, such as triple-hulled tankers to reduce the risk
of a spill.
Number 410
RICHARD FINEBERG testified in Juneau. He told the committee
members that he had been present in Valdez in 1989 during
the clean-up of the Exxon spill. He said the state had
experienced agonizing inefficiency in that response. He
described two effects that HB 238 would have, which he
described as "pernicious." First, he said, HB 238 slashes
prevention and response mechanisms. Second, the bill seeks
better accounting but creates a complex system which will
cause greater confusion and will be back before the
legislature in the future.
MR. FINEBERG referred to tables prepared for the Senate
Finance committee in members' packets, one of which showed
the profits of the oil industry as $4.75 to $5 per barrel at
the five cent a barrel surcharge level for calendar year
1991. He said the figures on line 14(c) put the issue in
context. The second figure he referred to showed the after-
tax profits as if the North Slope oil interests were one
large corporation. He said those profits would be almost
equal to those of the Fortune 500 corporations.
MR. FINEBERG referred to a third table which showed that if
the nickel a barrel surcharge was eliminated, oil industry
profits would increase by approximately 2.5 cents per
barrel, with the remaining 2.5 cents divided between the
state and federal governments.
Number 481
TIM ROBERTSON testified from Seldovia in opposition to
HB 238. He explained that he had been among those who
started the Seldovia Oil Spill Response Team (SOS),
comprised of volunteers. He said the SOS Response Team is
waiting for the state to support efforts to establish a
response depot in Seldovia. If HB 238 is implemented, he
said, that would never happen. He objected to attempts to
do away with the citizens oversight councils, as well as to
the appearance that the oil industry was taking precedence
over other industries. He expressed dismay at the
dismantling of the 470 fund, and urged the committee to not
pass HB 238.
Number 515
JUNE RUHLING testified from Seldovia with three points
related to HB 238. First, she objected to the lack of
funding for near-shore demonstration projects, which she
said were needed for spill prevention in coastal areas.
Second, she said HB 238 does not provide for public review
of the state's master contingency plan. Third, she said
that the three cent a barrel fund for a catastrophic spill
could not be accessed for any spill less than 100,000
barrels. Her objection was based on the potential for
damage from much smaller spills in an environmentally
sensitive area.
MS. RUHLING said the two cent portion of the fund would not
be enough to cover prevention programs and response to
smaller spills. She also said it would make more sense to
increase the two cent fund to three cents. She asked that
the committee not pass HB 238.
Number 535
JOHN KVARFORD testified from Seldovia. He suggested the
money from the 470 fund be spent the way it was intended,
which would include projects like the near-shore
demonstration team. Given new oil finds in the upper Cook
Inlet, he said that project is even more important than
ever, as well as increased spending for prevention,
equipment, and training.
Number 547
VIVIAN MENAKER, LYNN CANAL CONSERVATION, testified from
Haines and questioned who would benefit from HB 238. The
proposal to split the fund into two separate funds, she
said, would not provide enough money for prevention and for
clean-up of small spills. The three cent portion, she said,
was unnecessary because of federal funding established
through a 1990 act.
MS. MENAKER said that HB 238 would reduce the DEC's ability
to respond to a spill and would eliminate public oversight.
She said that oversight capability is needed in Haines,
given the potential for environmental damages with the
development of the Windy Craggy Mine. She said that the
present law does not need to be changed.
Number 580
KRISTA ROGERSON testified from Valdez in opposition to
HB 238. She expressed dissatisfaction with the amount of
time to respond to the draft CS, and said that the bill and
CS disempowers the DEC.
Number 601
ERIC MYERS testified from Anchorage. He questioned whether
there were real problems with the 470 fund. Regarding
suggestions that the draft CS is a compromise, he called
those suggestions an absurd reading of the situation. He
described the proposed changes as amounting to "a frontal
lobotomy" on the DEC's ability to deliver core prevention
and response programs.
MR. MYERS said that he had served for many years as a House
Finance Committee Aide, and was involved in the preparation
of the DEC's budget. In that regard, he was struck by the
media blitz launched by the oil and gas industry concerning
the 470 fund. He said the essential message was that the
fund has been squandered, leaving no money for response to a
major spill. He said the fundamental premise of the
advertising campaign was incorrect, because $20 million was
available.
MR. MYERS called the claim a deliberate deception. The
essential debate, he explained, was a matter of revisionist
history on the part of the proponents of HB 238. He
stressed that when the fund was established, there was a
clear understanding that there would be essential on-going
funding of state agency programs for prevention and
response. He said this understanding was in contrast with
the idea that the fund would just sit, waiting for an
emergency "like the Maytag repairman." The central issue,
he stressed, is who benefits from HB 238.
MR. MYERS suggested that the only benefit of HB 238 is to
oil producers who do not like to pay taxes. He said that
the legislation was unnecessary.
Number 653
CHAIRMAN WILLIAMS noted that Representative Gail Phillips
was present.
WALT PARKER testified from Anchorage in opposition to
HB 238. Passage of the bill, he said, would seriously harm
the state's ability to have strong prevention and response
programs. He had been involved in planning and preparation
for spills for 25 years, and currently serves as chairman of
the Hazardous Substance Spill Technology Review Council. He
noted that the views expressed were his own and not those of
the council.
Number 682
MR. PARKER cautioned that the state needs to continue to
build up strong systems to control the transportation of oil
in the marine environment, rather than go backward and begin
the process again. He briefly described the history that
led to the current situation, including the court case,
Chevron vs. Hammond in 1979, which the state lost. In the
1980's, he said, the system for prevention and response
collapsed completely. He referred to legislation in 1989
and 1990, and said it was never intended that the 470 fund
should be inflexible.
MR. PARKER said the prevention side is still extremely weak,
with the same fleet that was available four years ago. He
raised the point that when the state relaxed its presence in
spill prevention and response, the Coast Guard also relaxed
its regulations.
TAPE 93-47, SIDE B
Number 000
MR. PARKER said that to do the job right, the state should
retain flexibility in administration of the 470 fund.
Number 015
RUSSELL HEATH, EXECUTIVE DIRECTOR OF THE ALASKA
ENVIRONMENTAL LOBBY (AEL), testified in Juneau. He
reiterated that there had not been enough time to analyze
the draft CS. He expressed thanks to the chair of the
committee for holding this meeting and allowing public
testimony. He referred to comments he said were made at the
bill sponsor's press conference, which he said indicated the
AEL had been contacted by the sponsor's office for their
input in the development of HB 238. Mr. Heath acknowledged
that was true, but clarified that the AEL had declined the
offer as it did not want to be part of "back room deal-
making."
MR. HEATH had suggested an open forum during the legislative
interim to address some problems with the 470 fund, but said
he was told that that would not happen and that HB 238 would
pass this year.
Number 065
GREG PETRICH testified in Juneau. He said the emphasis
should be on planning, and added that the local level is the
best place for effective planning to take place on a site
specific response approach. For this reason, he opposed a
proposal in HB 238 to do away with the citizens' oversight
councils. He said this attempt by the oil industry to
change the fund accentuates public mistrust of the oil
industry. Regarding problems with misuse of the fund, he
said that attention should be focussed on an administrative
direction.
PAMELA MILLER, GREENPEACE BIOLOGIST, testified from Kenai.
She said HB 238 severely compromises the intent of the 470
fund, because it eviscerates the state's ability to prevent,
respond to and clean-up an oil spill. She said the state
must hold the oil industry accountable for spill prevention
and response. She strongly opposed HB 238.
Number 142
AIMEE BOULANGER, COMMUNITY COORDINATOR FOR POLLUTION ISSUES
AT THE ALASKA CENTER FOR THE ENVIRONMENT, testified from
Kenai in opposition to HB 238. She said that the split of
the fund seems to focus on post-spill clean-up and not on
prevention. She felt the funds need to be available for
clean-up of various sizes and types of spills. She also
expressed concern with restrictions on restoration uses.
She called it a farce if the funds cannot be used for
prevention of spills or for restoration of the environment.
Number 175
PETER VAN TUYN, ATTORNEY, testifying from Kenai, said that
he supported the comments made by others, and opposed the
passage of HB 238.
Number 190
SUSAN MCLEAN testified from Homer in opposition to HB 238.
She said the state should keep control of the 470 fund,
because, she explained, the oil companies would do what was
in their own best interests if the state let them. She
stressed the role of prevention in keeping Alaska's
environment healthy.
Number 203
WILLIAM HOPKINS, EXECUTIVE DIRECTOR OF THE ALASKA OIL AND
GAS ASSOCIATION, testified from Anchorage. He said that tax
stability was important in the economic climate to encourage
industry investment. He also noted that the oil industry
was concerned with expenditures from the 470 fund for
purposes other than those for which the nickel a barrel
charge was imposed. After the Valdez oil spill, he
explained, the legislature levied the surcharge for the
purpose of accumulating a $50 million fund for emergency oil
spill containment and clean up.
MR. HOPKINS said since that time more than $90 million has
been collected from the industry, and most has been spent,
but not for oil spill emergencies. Misuses of the 470 fund
need to be stopped, he contended, so the fund can accumulate
to its cap and the state will have that fund available in
the event of an emergency like the one in 1989.
LINDA FEILER testified from Kenai in opposition to HB 238.
She said the state needs protective legislation that will
ensure the oil industry pays for preventive measures.
Number 246
JIM LEVINE testified in Juneau. He noted that he was in
agreement with the testimony against HB 238. Regarding the
$50 million fund, he compared that amount with the $3
billion spent by Exxon in the aftermath of the Exxon Valdez
oil spill. He pointed out that even if the state asked for
$50 million annually from the oil industry, it would take 60
years to accumulate the amount that it cost Exxon. He said
that HB 238 was not a fair compromise, but instead was a
recipe for disaster and catastrophe.
Number 273
MR. LEVINE defended the process of including citizens in
development of public policy. He particularly supported the
inclusion of the citizens oversight groups in assuring that
volunteers are knowledgeable and diverse. These volunteers,
he said, included areas of expertise from engineering,
science, law and others. He implored the committee to
discard HB 238 and its attempt to revise the 470 process.
Number 312
STEVE COLT, AN ECONOMIST FROM ANCHORAGE, testified in
Juneau. He said that it made economic sense for the cost
causer to be the cost payer. He referred to the Alaska
Public Utilities Commission (APUC) and the move to have a
user-pay approach where the regulated industry was expected
to bear the burden of providing regulatory services. He
said it was curious that HB 238 moves in the opposite
direction, away from responsible funding by industry of its
own oversight.
Number 320
MR. COLT reminded the committee that because of inflation,
the five cent per barrel tax was somewhere close to four
cents, and the $50 million cap has already been reduced by
inflation to approximately $40 million in real purchasing
power. He pointed out that rather than discussing a
reduction of the surcharge, the committee should be debating
how to maintain the fund by inflation-proofing it. By
reducing the tax, he said, the fund would be destroyed.
Only prevention really pays, he said, and this should be the
lesson remembered from the Exxon Valdez spill.
Number 338
THEO MATTHEWS, ADMINISTRATIVE ASSISTANT FOR UNITED COOK
INLET DRIFT ASSOCIATION, testified from Kenai. He said his
organization represented 585 commercial salmon drift permit
holders in Cook Inlet. Oil spills caused major disruptions
in the fisheries in 1987 and 1989, he explained, and
stressed the importance of keeping oil out of the water.
Regarding the proposal in the draft CS for HB 238 to
establish two separate funds, he said that would work only
if each fund had enough money to adequately do the job it is
intended for.
MR. MATTHEWS expressed concern with wording in sections 13
and 14, regarding response plans; section 25, with
elimination of restoration; section 14, which allows the
Exxon settlement to top off the fund; and section 34, with
the definition of "threatened release." He asked that the
committee not support HB 238.
Number 379
HUGH DOOGAN testified in Fairbanks in opposition to HB 238.
He also referred to other bills in the legislature, and to a
recent settlement received from Alyeska. He questioned
whether the state was ever fully reimbursed for the costs
incurred in response to the Exxon Valdez oil spill.
Number 406
JOHN SANDOR, COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, replied that the state had recovered its costs
in the Exxon Valdez clean up.
Number 409
JERRY MCCUNE, UNITED FISHERMEN OF ALASKA (UFA), testified in
Juneau. He referred to the controversial nature of HB 238,
and advised the committee to move slowly and to bring all
the parties affected together to examine what needs to be
addressed. He urged that sufficient time be given to
resolving the issues.
CHAIRMAN WILLIAMS asked for a poll of all teleconference
sites to determine whether there were any others wishing to
testify on HB 238.
Number 449
AMY HAUSEN, HOMER HIGH SCHOOL STUDENT AND VICE PRESIDENT OF
STUDENT GOVERNMENT, testified from Homer in opposition to
HB 238. She emphasized the importance of having funds
available to clean up oil spills, and said that the funds
that benefit Alaskan coastal communities are well spent.
She cautioned that if HB 238 was passed, those funds would
go back into the pockets of the oil companies. She urged
the committee to assure that oil would be kept off the
beaches of Alaska for the benefit of Alaskans and its
wildlife.
Number 480
CHAIRMAN WILLIAMS asked if there were any others wishing to
testify by teleconference. There were no respondents at the
teleconference sites.
COMMISSIONER SANDOR addressed the general comments heard in
testimony on HB 238. He explained that the issues addressed
in the bill are very complex, comprising a divergence of
points of view. He briefly described the evolution of the
oil and hazardous substance release response fund. In 1986,
he said, HB 470 was enacted with specific funding
objectives. Legislation in 1989 added other uses of the
fund, and those were again added to in 1990 legislation. He
noted that it was not unreasonable for some to consider the
additional uses of the fund as going beyond what was
originally intended.
COMMISSIONER SANDOR explained that an audit was ordered in
1991. He noted the balances in the spill reserve fund for
each of the past four fiscal years: FY 91, $6.026 million;
FY 92, $12.627 million; FY 93, $23.656 million; and, FY 94,
$25 million. He said that the DEC believes it can improve
fund management and will work with the legislature and other
parties to improve administration of the fund.
Number 535
COMMISSIONER SANDOR noted that there had been 18 spills
around the size of the Exxon Valdez spill in the past 30
years. He stressed the importance of strong research,
prevention and response capabilities to reduce the risks and
effects of potential spills. He said that while much
remains to be done, Alaska can be proud of its progress
along those lines. He also mentioned the importance of
partnership among the federal, state, industry and citizen
groups participating in cooperative efforts. He added that
hearings such as this one were important in identifying ways
to improve management of the fund.
Number 558
CHAIRMAN WILLIAMS asked if there were any other testimony.
There was no response. He thanked those who participated in
the teleconference and assured them that the House Resources
Committee would give due consideration to the comments
heard, and would keep the public informed of progress on
HB 238.
ANNOUNCEMENTS
CHAIRMAN WILLIAMS announced the committee's next meeting
would be on Monday, April 19, 1993, at 8:00 a.m. to consider
SB 43 and SB 46.
ADJOURNMENT
There being no further business to come before the House
Resources Committee, Chairman Williams adjourned the meeting
at 1:00 p.m.
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