CS FOR SENATE BILL NO. 326(FIN) "An Act relating to evaluating state assumption of the wastewater discharge program under the federal Clean Water Act; and providing for an effective date." ZACH WARWICK, STAFF, SENATOR THERRIAULT, testified in support of the legislation. He observed that SB 326 is a companion bill to HB 503. The effective date was changed to January 1, 2003 and the fiscal note was reduced accordingly. The Department of Environmental Conservation indicated that the fiscal note would not be sufficient to run the program. They have applied for additional federal funding. If federal funding is not received the new administration would have to decided if the project can be done within the general fund appropriation. TOM CHAPPLE, DIRECTOR, DIVISION OF AIR AND WATER QUALITY, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, testified via teleconference. The Department does not object to changing the duration of the project from 18 to 12 months. He did not think that that the project could be successfully executed with the funding contained in the current fiscal note, which was reduced by two-thirds. The question is whether the state should assume primacy and operate the federal National Pollutant Discharge Elimination System program. He recommended a fiscal note of $315 thousand dollars, which would be achieved by adding $63 thousand dollars in federal funds for FY03 and $46 thousand dollars in FY04. The state would know by September if the federal funds were available. Representative Foster MOVED to report CSSB 326 (FIN)) out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSSB 326(FIN) was REPORTED out of Committee with a "do pass" recommendation and with a new fiscal impact note by the Department of Environmental Conservation.