SENATE RESOURCES COMMITTEE January 28, 1994 3:45 P.M. MEMBERS PRESENT Senator Mike Miller, Chairman Senator Loren Leman, Vice Chairman Senator Steve Frank Senator Drue Pearce MEMBERS ABSENT Senator Al Adams Senator Dave Donley Senator Fred Zharoff COMMITTEE CALENDAR SENATE BILL NO. 238 "An Act establishing a procedure for review of proposed projects under the Alaska coastal management program, and relating to petitions for compliance with and enforcement of district coastal management programs under that program and to the disposition of those petitions." CS FOR HOUSE BILL NO. 59(MLV) "An Act making a special appropriation to the Department of Natural Resources for refunds to certain veterans who purchased state land and for reimbursement to the University of Alaska for the veterans' land discount applied to land transferred to the University of Alaska; and providing for an effective date." SENATE JOINT RESOLUTION NO. 40 Urging the Congress to amend the Oil Pollution Act of 1990 with respect to the financial responsibility requirements for offshore exploration and production facilities. PREVIOUS ACTION SB 238 - See Resources minutes dated 1/24/94. HB 59 - See State Affairs minutes dated 4/21/93. See Resources minutes dated 1/24/94. SJR 40 - See Resources minutes dated 1/24/94. WITNESS REGISTER Glenn Gray Division of Governmental Coordination Office of the Governor P.O. Box 110030 Juneau, Alaska 99811-0030 POSITION STATEMENT: Supported SJR 40. Representative Eldon Mulder State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Supported HB 59. ACTION NARRATIVE TAPE 94-3, SIDE A Number 001 CHAIRMAN MILLER called the Resources Committee meeting to order at 3:45 p.m. and announced SB 238 (COASTAL ZONE MANAGEMENT PROCEDURES) S) to be up for consideration. SENATOR PEARCE said there were no changes made to SB 238 in subcommittee. SENATOR MILLER noted that Senator Adams had an amendment that would tighten the title considerably and asked for a motion. There were none. SENATOR PEARCE moved to pass SB 238 from Committee with the negative fiscal note with individual recommendations and asked for unanimous consent. There were no objections and it was so ordered. Number 46 SENATOR MILLER announced SJR 40 (URGE CONGRESS TO AMEND OIL POLLUTION LAW) to be up for consideration. He noted there was a proposed CS. SENATOR PEARCE said the Energy Council meeting in December passed a policy relating to the financial responsibility requirements of OPA '90 that were added at conference committee and never had a public hearing at the congressional level. Now, she explained that anyone with a fuel tank is faced with the possibility of needing to show that they have $150 million of liquid ability to cover any release. The Council contends that congress did not intend to have the $150 million apply to every entity near navigable waters. She explained that the CS added a section on page 2, lines 6 - 8. SENATOR LEMAN moved to adopt the proposed CS to SJR 40 (Res). There were no objections and it was so ordered. Number 155 GLENN GRAY, Division of Governmental Coordination, passed out a summary of the administration's position on MMS on OPA '90 financial responsibility requirements. He said the highest risk of oil pollution comes from vessels. 90% of oil entering the water excluding natural causes is from vessels or is transportation related. Requiring $150 million proof of financial responsibility would be devastating if MMS is implemented, because it is interpreted to mean every facility that handles oil, oil products, and wet lands which is over 50% of the state. He supported the resolution. SENATOR LEMAN moved to discharge CS to SJR 40 (Res) from committee with individual recommendations. There were no objections and it was so ordered. Number 190 SENATOR MILLER announced HB 59 (APPROP: VETS' LAND DISCOUNT REFUND) to be up for consideration. REPRESENTATIVE ELDON MULDER testified that this bill has been around for a long time. It is a bill that has merit, he said, and explained in 1978 the land discount program was implemented. In 1979 an additional discount was given to veterans. A court decision in 1983 halted the veterans discount and a year later the legislature reestablished it again. The 16th Alaska legislature authorized payment for the discount for those affected between 1983 and 1984, but didn't fund the payment. This bill would fund what the legislature has already authorized. Number 210 SENATOR FRANK moved to pass CS for HB 59(MLV) with individual recommendations. There were no objections and it was so ordered. SENATOR MILLER adjourned the meeting at 4:45 p.m.