00 SENATE BILL NO. 215 01 "An Act relating to and redesignating the oil and hazardous substance release 02 response fund and to its use in the event of a disaster emergency; repealing the 03 authority in law by which marine highway vessels may be designed and 04 constructed to aid in oil and hazardous substance spill cleanup in state marine 05 water using money in the oil and hazardous substance release response fund; 06 amending requirements relating to the revision of state and regional master 07 prevention and contingency plans; altering requirements applicable to liens for 08 recovery of state expenditures related to oil or hazardous substances; amending 09 the authority to contract to provide personnel to respond to a release or 10 threatened release of oil or a hazardous substance and to contract to conduct 11 spill related research; reassigning responsibility for the oil and hazardous substance 12 response corps and for the emergency response depots to the Department of 13 Environmental Conservation, and for the operation of the state emergency response 14 commission and its attendant responsibilities for the local emergency planning 01 commissions to the Department of Military and Veterans' Affairs; and modifying 02 definitions of terms relating to the preceding provisions; terminating the nickel-per-barrel oil 03 conservation surcharge; levying and collecting two new oil surcharges; 04 and providing for the suspension and reimposition of one of the new surcharges; 05 and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 26.23.020(g) is amended to read: 08  (g) In addition to any other powers conferred upon the governor by law, the 09 governor may, under AS 26.23.010 - 26.23.220, 10  (1) suspend the provisions of any regulatory statute prescribing 11 procedures for the conduct of state business, or the orders or regulations of any state 12 agency, if compliance with the provisions of the statute, order, or regulation would 13 prevent, or substantially impede or delay, action necessary to cope with the disaster 14 emergency; 15  (2) use all available resources of the state government and of each 16 political subdivision of the state as reasonably necessary to cope with the disaster 17 emergency; 18  (3) transfer personnel or alter the functions of state departments and 19 agencies or units of them for the purpose of performing or facilitating the performance 20 of disaster emergency services; 21  (4) subject to any applicable requirements for compensation under 22 AS 26.23.160, commandeer or utilize any private property, except for all news media 23 other than as specifically provided for in AS 26.23.010 - 26.23.220, if the governor 24 considers this necessary to cope with the disaster emergency; 25  (5) direct and compel the relocation of all or part of the population 26 from any stricken or threatened area in the state, if the governor considers relocation 27 necessary for the preservation of life or for other disaster mitigation purpose; 28  (6) prescribe routes, modes of transportation, and destinations in 29 connection with necessary relocation; 30  (7) control ingress to and egress from a disaster area, the movement of 31 persons within the area, and the occupancy of premises in it; 01  (8) suspend or limit the sale, dispensing, or transportation of alcoholic 02 beverages, firearms, explosives, and combustibles; 03  (9) make provisions for the availability and use of temporary 04 emergency housing; 05  (10) allocate or redistribute food, water, fuel, or clothing; and 06  (11) use money from the oil and hazardous substance release 07 prevention and response fund, established by AS 46.08.010, to respond to a declared 08 disaster emergency related to an oil or hazardous substance discharge. 09 * Sec. 2. AS 26.23.050(b) is amended to read: 10  (b) Whenever, and to the extent that, money is needed to cope with a disaster, 11  (1) in the event of an oil or hazardous substance release or 12 discharge, the governor shall have first recourse to the appropriate account within 13 the oil and hazardous substance release prevention and response fund, and 14 thereafter the governor may have second recourse to money regularly 15 appropriated to state and local agencies and third recourse to money available in 16 the disaster relief fund; 17  (2) if the disaster does not involve an oil or hazardous substance 18 release or discharge, 19  (A) the governor shall have first recourse [SHALL BE] to 20 money regularly appropriated to state and local agencies; and 21  (B) the governor shall have further [. THE SECOND] 22 recourse [SHALL BE] to money available in the disaster relief fund [OR, FOR 23 OIL OR HAZARDOUS SUBSTANCES DISCHARGES, THE OIL AND 24 HAZARDOUS SUBSTANCE RELEASE RESPONSE FUND, AS THE 25 GOVERNOR DETERMINES APPROPRIATE. IF MONEY AVAILABLE 26 FROM THESE SOURCES IS INSUFFICIENT, AND IF THE GOVERNOR 27 FINDS THAT OTHER SOURCES OF MONEY TO COPE WITH THE 28 DISASTER ARE NOT AVAILABLE OR ARE INSUFFICIENT, THE 29 GOVERNOR MAY, NOTWITHSTANDING THE LIMITATIONS IMPOSED 30 BY AS 37.07.080(e), 31  (1) TRANSFER AND SPEND MONEY APPROPRIATED FOR 01 OTHER PURPOSES; OR 02  (2) BORROW MONEY FOR A TERM NOT TO EXCEED TWO 03 YEARS]. 04 * Sec. 3. AS 26.23.050 is amended by adding a new subsection to read: 05  (d) If money available from a source identified in (b) of this section is 06 insufficient, and if the governor finds that other sources of money to cope with the 07 disaster are not available or are insufficient, the governor may, notwithstanding the 08 limitations imposed by AS 37.07.080(e), 09  (1) transfer and spend money appropriated for other purposes; or 10  (2) borrow money for a term not to exceed two years. 11 * Sec. 4. AS 29.60.510(a) is amended to read: 12  (a) The commissioner may use money from the oil and hazardous substance 13 release prevention and response fund to make grants to a municipality or village that 14 is affected by the release or by the response to the release and that demonstrates that 15 the release or response to the release involves extraordinary expenditures that are 16 beyond the reasonable capability of the municipality or village to meet from the 17 current revenue sources of the municipality or village if 18  (1) the governor determines that a release of oil or a hazardous 19 substance exceeds 2,500 barrels of oil, or exceeds an amount of a hazardous substance 20 that, when released into the environment, presents a threat to the economy and public 21 welfare of the municipalities and villages affected by it at least equivalent in effect to 22 the effect of a release of oil in an amount defined by this paragraph; 23  (2) the release has been proclaimed a disaster emergency by the 24 governor under AS 26.23.020; and 25  (3) the governor finds that 26  (A) the release of the oil or hazardous substance into the 27 environment presents a real and substantial threat to the economy and public 28 welfare of the municipalities and villages that are affected by the release and 29 by the resultant activities to contain and clean up the release; and 30  (B) it is in the best interest of the state to pay the expenses 31 incurred by municipalities and villages to mitigate the social and economic 01 effects that arise out of the release of the oil or the hazardous substance and 02 the resultant cleanup activities. 03 * Sec. 5. AS 29.60.510(b) is amended to read: 04  (b) For each disaster emergency declared by the governor under AS 26.23.020 05 that involves a catastrophic oil release or threatened catastrophic oil release, and 06 subject to agreement with the commissioner of environmental conservation as to the 07 amount of money in the fund that may be used by the department to make grants, the 08 commissioner may expend not more than $10,000,000 [OF THE BALANCE OF THE 09 FUND THAT IS APPROPRIATED TO THE SPILL RESERVE OR] of the 10 unrestricted balance of the catastrophic oil release response account in the fund for 11 grants authorized under this section. For each disaster emergency declared by the 12 governor under AS 26.23.020 that involves a release or threatened release of oil 13 or a hazardous substance, except a catastrophic oil release, and subject to 14 appropriation of money in the fund that may be used by the department to make 15 grants, the commissioner may expend not more than the amount appropriated 16 from the oil and hazardous substances release contingency and abatement account 17 in the fund for grants authorized under this section. If the commissioner and the 18 commissioner of environmental conservation do not agree on the amount of money in 19 the catastrophic oil release response account in the fund that may be used by the 20 department to make grants under AS 29.60.500 - 29.60.599 for a catastrophic oil 21 release or threatened catastrophic oil release, the governor shall make the 22 determination. 23 * Sec. 6. AS 29.60.560(e) is amended to read: 24  (e) Expenditures made under this section may be made only from the amount 25 transferred to the commissioner under AS 29.60.510(c), unless 26  (1) the commissioner and the commissioner of environmental 27 conservation mutually agree that payment may be made from money in the oil and 28 hazardous substance release prevention and response fund not transferred under 29 AS 29.60.510(c); or 30  (2) the commissioner pays them from another source. 31 * Sec. 7. AS 29.60.599(4) is amended to read: 01  (4) "fund" means the oil and hazardous substance release prevention 02 and response fund established by AS 46.08.010; 03 * Sec. 8. AS 37.14.410 is amended to read: 04  Sec. 37.14.410. REIMBURSED EXPENDITURES. (a) Amounts received by 05 the state as reimbursement for expenses related to the Exxon Valdez oil spill incurred 06 by the state on or before December 31, 1992, shall be deposited in the general fund 07 and, except as required under (b) of this section, may not be credited to the oil and 08 hazardous substance release mitigation account under AS 46.04.010 or to an account 09 established in AS 46.08.020 or 46.08.025. 10  (b) A percentage of each payment deposited in the general fund under (a) of 11 this section shall be credited to the oil and hazardous substances release contingency 12 and abatement account established in [OIL AND HAZARDOUS SUBSTANCE 13 RELEASE MITIGATION ACCOUNT UNDER AS 46.04.010 OR] AS 46.08.020. 14 That percentage is determined by dividing 15  (1) the amount of the expenses for which the state may be reimbursed 16 under (a) of this section that were paid from the [OIL AND HAZARDOUS 17 SUBSTANCE RELEASE RESPONSE] fund established under AS 46.08.010, by 18  (2) the total amount of expenses for which the state may be reimbursed 19 under (a) of this section. 20 * Sec. 9. AS 43.55 is amended by adding a new section to read: 21  Sec. 43.55.201. SURCHARGE LEVIED. (a) Every producer of oil shall pay 22 a surcharge of $.03 per barrel of oil produced from each lease or property in the state, 23 less any oil the ownership or right to which is exempt from taxation. 24  (b) The surcharge imposed by (a) of this section is in addition to 25  (1) and shall be paid in the same manner as the tax imposed by 26 AS 43.55.011 - 43.55.150; and 27  (2) the surcharge imposed by AS 43.55.300 - 43.55.320. 28  (c) A producer of oil shall make reports of production in the same manner and 29 under the same penalties as required under AS 43.55.011 - 43.55.150. 30 * Sec. 10. AS 43.55 is amended by adding a new section to read: 31  Sec. 43.55.211. DISPOSITION OF PROCEEDS OF SURCHARGE. (a) The 01 commissioner shall deposit the proceeds of the surcharge levied by AS 43.55.201 into 02 the general fund. 03  (b) The commissioner of administration shall separately account for all 04 proceeds of the surcharge that are deposited into the general fund. 05 * Sec. 11. AS 43.55 is amended by adding a new section to read: 06  Sec. 43.55.221. USE OF REVENUE DERIVED FROM SURCHARGE. The 07 legislature may appropriate the annual estimated balance of the account established 08 under AS 43.55.211 to the catastrophic oil release response account in the oil and 09 hazardous substance release prevention and response fund established by AS 46.08.010. 10 * Sec. 12. AS 43.55 is amended by adding a new section to read: 11  Sec. 43.55.231. SUSPENSION AND REIMPOSITION OF THE 12 SURCHARGE. (a) Except when a different time for making a determination is 13 required under (f) of this section, not later than 30 days after the end of each calendar 14 quarter, the commissioner of administration shall determine the cumulative total of 15 money that has been 16  (1) deposited through that calendar quarter, or was received through 17 that calendar quarter and is subject to deposit, into the catastrophic oil release response 18 account of the oil and hazardous substance release prevention and response fund 19 established by AS 46.08.010; 20  (2) deposited through the calendar quarter, or was received through the 21 calendar quarter and is subject to deposit, into the catastrophic oil release response 22 mitigation account under AS 46.08.025(b); 23  (3) expended through that calendar quarter from the catastrophic oil 24 release response account of the oil and hazardous substance release prevention and 25 response fund. 26  (b) Within 15 days after making the determinations required by (a) of this 27 section, the commissioner of administration shall 28  (1) add the amounts determined under (a)(1) and (2) of this section; 29  (2) determine the difference between the amount determined under (1) 30 of this subsection and the amount determined under (a)(3) of this section; and 31  (3) report the amount determined under (2) of this subsection to the 01 commissioner. 02  (c) In making the determination required by (b) of this section, the 03 commissioner of administration may not consider within the calculation money 04 described in (a) of this section that was received subject to a dedication imposed by 05 the federal government that restricts the use of the money to a specific purpose. 06  (d) If the commissioner of administration reports that the difference determined 07 under (b) of this section equals or exceeds $50,000,000, the commissioner of revenue 08 shall suspend imposition and collection of the surcharge levied and collected under 09 AS 43.55.201. Suspension of the imposition and collection of the surcharge begins on 10 the first day of the calendar quarter next following the commissioner's receipt of the 11 commissioner of administration's report under (b) of this section. Before the first day 12 of a suspension authorized by this subsection, the commissioner shall make a 13 reasonable effort to notify all persons who are known to the department to be paying 14 the surcharge under AS 43.55.201 that the surcharge will be suspended. 15  (e) Except as provided in AS 43.55.241, if the commissioner of administration 16 reports that the difference determined under (b) of this section is less than 17 $50,000,000, the commissioner of revenue shall require imposition and collection of 18 the surcharge authorized under AS 43.55.201. Reimposition of the surcharge begins 19 on the first day of the calendar quarter next following the commissioner's receipt of 20 the commissioner of administration's report under (b) of this section. Before the first 21 day of reimposition of the surcharge authorized by this subsection, the commissioner 22 shall make a reasonable effort to notify all persons who are known to the department 23 to be required to pay the surcharge under AS 43.55.201 that the surcharge will be 24 reimposed. 25  (f) Notwithstanding the requirement of (a) of this section that the cumulative 26 determination of receipts and expenditures be made quarterly, when the amount 27 determined under (b) of this section is $45,000,000 or more, the commissioner of 28 administration shall make the determinations required by this section not later than 30 29 days before each calendar quarter and every 30 days thereafter. 30 * Sec. 13. AS 43.55 is amended by adding a new section to read: 31  Sec. 43.55.241. SURCHARGE NOT IMPOSED. The surcharge authorized by 01 AS 43.55.201 is not levied during any fiscal year for which the estimated revenue from 02 the surcharge would be sufficient to restore the balance of the oil and hazardous 03 substance release prevention and response fund on the first day of the fiscal year to 04 at least $50,000,000, and 05  (1) the legislature does not, during the regular legislative session 06 preceding the first day of the fiscal year, appropriate money from the general fund to 07 the catastrophic oil release response account in the oil and hazardous substance release 08 prevention and response fund sufficient to restore the balance of that account on the 09 first day of the fiscal year to at least $50,000,000; or 10  (2) the legislature, during the regular legislative session preceding the 11 first day of the fiscal year, appropriates money from the general fund to the 12 catastrophic oil release response account in the oil and hazardous substance release 13 prevention and response fund sufficient to restore the balance of that account on the 14 first day of the fiscal year to at least $50,000,000 and, because of gubernatorial veto 15 or reduction in the amount of the appropriation, restoration of the balance of the fund 16 to at least $50,000,000 does not become law. 17 * Sec. 14. AS 43.55 is amended by adding new sections to read: 18 ARTICLE 2A. ADDITIONAL CONSERVATION SURCHARGE ON OIL. 19  Sec. 43.55.300. SURCHARGE LEVIED. (a) Every producer of oil shall pay 20 a surcharge of $.02 per barrel of oil produced from each lease or property in the state, 21 less any oil the ownership or right to which is exempt from taxation. 22  (b) The surcharge imposed by (a) of this section is in addition to 23  (1) and shall be paid in the same manner as the tax imposed by 24 AS 43.55.011 - 43.55.150; and 25  (2) the surcharge imposed by AS 43.55.201 - 43.55.241. 26  (c) A producer of oil shall make reports of production in the same manner and 27 under the same penalties as required under AS 43.55.011 - 43.55.150. 28  Sec. 43.55.310. DISPOSITION OF PROCEEDS OF SURCHARGE. (a) The 29 commissioner shall deposit the proceeds of the surcharge levied by AS 43.55.300 into 30 the general fund. 31  (b) The commissioner of administration shall separately account for all 01 proceeds of the surcharge levied by AS 43.55.300 that are deposited into the general 02 fund. 03  Sec. 43.55.320. USE OF REVENUE DERIVED FROM SURCHARGE. The 04 legislature may appropriate the annual estimated balance of the account established 05 under AS 43.55.310 to the oil and hazardous substances release contingency and 06 abatement account in the oil and hazardous substance release prevention and response 07 fund established by AS 46.08.010. 08 * Sec. 15. AS 43.55.900(3) is amended to read: 09  (3) "catastrophic oil discharge" means 10  (A) an oil release or discharge in excess of 100,000 barrels; 11 or 12  (B) any other oil release or discharge that the governor 13 determines presents a grave and substantial threat to the economy or 14 environment and for which the governor has issued a proclamation 15 declaring a condition of disaster emergency under AS 26.23.020(c) [HAS 16 THE MEANING GIVEN IN AS 46.04.900]; 17 * Sec. 16. AS 43.55.900(15) is amended to read: 18  (15) "surcharge" means 19  (A) when used in AS 43.55.201 - 43.55.241, the surcharge 20 levied by AS 43.55.201 [AS 43.55.200]; 21  (B) when used in AS 43.55.300 - 43.55.320, the surcharge 22 levied by AS 43.55.300; 23 * Sec. 17. AS 46.04.030(e) is amended to read: 24  (e) The department may attach reasonable terms and conditions to its approval 25 or modification of a contingency plan that the department determines are necessary to 26 ensure that the applicant for a contingency plan has access to sufficient resources to 27 protect environmentally sensitive areas, [AND] to take containment and cleanup and 28 other necessary action to [CONTAIN, CLEAN UP, AND] mitigate potential oil 29 discharges from the facility or vessel as provided in (k) of this section, and to ensure 30 that the applicant complies with the contingency plan. The contingency plan must 31 provide for the use by the applicant of the best technology that was available at the 01 time the contingency plan was submitted or renewed. The department may require an 02 applicant or holder of an approved contingency plan to take steps necessary to 03 demonstrate its ability to carry out the contingency plan, including 04  (1) periodic training; 05  (2) response team exercises; and 06  (3) verifying access to inventories of equipment, supplies, and 07 personnel identified as available in the approved contingency plan. 08 * Sec. 18. AS 46.04.030(e) as amended by sec. 11, ch. 83, SLA 1992, is amended to read: 09  (e) The department may attach reasonable terms and conditions to its approval 10 or modification of a contingency plan that the department determines are necessary to 11 ensure that the applicant for a contingency plan has access to sufficient resources to 12 protect environmentally sensitive areas, [AND] to take containment and cleanup and 13 other necessary action to [CONTAIN, CLEAN UP, AND] mitigate potential oil 14 discharges from the facility or vessel as provided in (k) of this section, and to ensure 15 that the applicant complies with the contingency plan. If a contingency plan submitted 16 to the department for approval relies on the services of an oil spill primary response 17 action contractor, the department may not approve the contingency plan unless the 18 primary response action contractor is registered and approved under AS 46.04.035. 19 The contingency plan must provide for the use by the applicant of the best technology 20 that was available at the time the contingency plan was submitted or renewed. The 21 department may require an applicant or holder of an approved contingency plan to take 22 steps necessary to demonstrate its ability to carry out the contingency plan, including 23  (1) periodic training; 24  (2) response team exercises; and 25  (3) verifying access to inventories of equipment, supplies, and 26 personnel identified as available in the approved contingency plan. 27 * Sec. 19. AS 46.04.200(a) is amended to read: 28  (a) The department shall 29  (1) prepare [AND ANNUALLY REVIEW AND REVISE] a statewide 30 master oil and hazardous substance discharge prevention and contingency plan; 31  (2) annually review the statewide master oil and hazardous 01 substance discharge prevention and contingency plan; and 02  (3) revise the statewide master oil and hazardous substance 03 discharge prevention and contingency plan; the department shall revise the 04 statewide master plan whenever, in the judgment of the commissioner, revision 05 is necessary. 06 * Sec. 20. AS 46.04.200(c) is amended to read: 07  (c) In preparing and annually reviewing the state master plan, the 08 commissioner shall 09  (1) consult with municipal and community officials, and with 10 representatives of affected regional organizations; and 11  (2) [SUBMIT THE DRAFT PLAN TO THE PUBLIC FOR REVIEW 12 AND COMMENT; 13  (3) SUBMIT TO THE LEGISLATURE FOR REVIEW, NOT LATER 14 THAN THE 10TH DAY FOLLOWING THE CONVENING OF EACH REGULAR 15 SESSION, THE PLAN AND ANY ANNUAL REVISION OF THE PLAN; 16  (4)] require or schedule unannounced oil spill drills to test the 17 sufficiency of an oil discharge prevention and contingency plan approved under 18 AS 46.04.030 or of the cleanup plans of a party identified under (b)(2) of this section 19 [; AND 20  (5) SUBMIT THE PLAN AND ANY ANNUAL REVISION TO THE 21 ALASKA STATE EMERGENCY RESPONSE COMMISSION FOR ITS REVIEW 22 AND APPROVAL UNDER AS 46.13.045]. 23 * Sec. 21. AS 46.04.200 is amended by adding a new subsection to read: 24  (d) In preparing a revision of the statewide master plan, the commissioner shall 25 submit 26  (1) the draft plan to the 27  (A) public for review and comment; and 28  (B) Alaska State Emergency Response Commission for its 29 review and approval under AS 46.13.045; and 30  (2) the proposed revision of the plan to the legislature for review not 31 later than the 10th day following the convening of each regular session. 01 * Sec. 22. AS 46.04.210(a) is amended to read: 02  (a) For any region of the state, the boundaries of which are determined by the 03 commissioner by regulation, in which the department is required to review and approve 04 an oil discharge prevention and contingency plan submitted by a person under 05 AS 46.04.030, the department shall 06  (1) prepare [AND ANNUALLY REVIEW AND REVISE] a regional 07 master oil and hazardous substance discharge prevention and contingency plan; 08  (2) annually review the regional master oil and hazardous substance 09 discharge prevention and contingency plan; and 10  (3) revise the regional master oil and hazardous substance 11 discharge prevention and contingency plan; the commissioner shall revise a 12 regional master plan whenever, in the judgment of the commissioner, revision is 13 necessary. 14 * Sec. 23. AS 46.04.210(b) is amended to read: 15  (b) The provisions of AS 46.04.200(b) - (d) [AS 46.04.200(b) AND (c)] apply 16 to preparation and review of a regional master plan under this section. 17 * Sec. 24. AS 46.04.900(2) is amended to read: 18  (2) "catastrophic oil discharge" means 19  (A) an oil release or discharge in excess of 100,000 barrels; [,] 20 or 21  (B) any other oil release or discharge that [WHICH] the 22 governor determines presents a grave and substantial threat to the economy or 23 environment and for which the governor has issued a proclamation 24 declaring a condition of disaster emergency under AS 26.23.020(c) [OF 25 THE STATE]; 26 * Sec. 25. AS 46.08.005 is amended to read: 27  Sec. 46.08.005. PURPOSE. The legislature finds and declares that the 28 catastrophic release of oil or hazardous substances into the environment presents a 29 real and substantial threat to the public health and welfare, to the environment, and to 30 the economy of the state. The legislature therefore concludes that it is in the best 31 interest of the state and its citizens to provide a [READILY AVAILABLE] fund 01 containing two accounts. Within the fund, 02  (1) one account consists of money readily available to the 03 commissioner for the payment of the expenses incurred by the Department of 04 Environmental Conservation during an emergency first response to a catastrophic 05 release or threatened [AND THE DEPARTMENT OF TRANSPORTATION AND 06 PUBLIC FACILITIES IN THE PROTECTION OF THE ENVIRONMENT OF THE 07 STATE FROM THE] release of oil and for related purposes intended to address 08 catastrophic oil releases; 09  (2) the other account consists of money that the state may use 10 during a response to a release or threatened release of oil or a hazardous 11 substance, other than a catastrophic oil discharge, to pay the expenses of making 12 preparations for the possibility of a release or threatened release of oil or 13 hazardous substances, to reduce the amount, degree, or intensity of a release or 14 threatened release, and for other related purposes identified in law [OR 15 HAZARDOUS SUBSTANCES]. 16 * Sec. 26. AS 46.08.010(a) is amended to read: 17  (a) There is established in the state general fund the oil and hazardous 18 substance release prevention and response fund. The fund shall be administered by 19 the commissioner. The fund is composed of two accounts, 20  (1) the oil and hazardous substances release contingency and 21 abatement account; 22  (2) the catastrophic oil release response account. 23 * Sec. 27. AS 46.08.010(b) is amended to read: 24  (b) Money from an appropriation made to an account in the fund remaining 25 in that account [THE FUND] at the end of a fiscal year remains available for 26 expenditure in successive fiscal years. 27 * Sec. 28. AS 46.08.010(c) is amended to read: 28  (c) The fund shall be used for actual expenses incurred under AS 46.08.040. 29 Except as provided in AS 46.08.040(a)(2)(D)(ii) for the equipment that is required 30 for and placed in the oil and hazardous substance response depots 31 [AS 46.08.040(d)(2)], the fund may not be used for capital improvements. 01 * Sec. 29. AS 46.08.020 is amended to read: 02  Sec. 46.08.020. FINANCING OF THE OIL AND HAZARDOUS 03 SUBSTANCES RELEASE CONTINGENCY AND ABATEMENT ACCOUNT 04 [FUND]. (a) The legislature may appropriate from the following sources to the oil 05 and hazardous substances release contingency and abatement account in the fund: 06  (1) money received from federal, state, or other sources or from a 07 private donor; 08  (2) money recovered or otherwise received from parties responsible for 09 the containment and cleanup of oil or a hazardous substance at a specific site, to the 10 extent that the money recovered or otherwise received had been paid out of the 11 oil and hazardous substances contingency and abatement account, but excluding 12  (A) money recovered or otherwise received due to a 13 catastrophic oil discharge; and 14  (B) money [FUNDS] from performance bonds and other forms 15 of financial responsibility held in escrow pending satisfactory performance of 16 a privately financed response action; and 17  (3) fines, penalties, or damages recovered under AS 46.08.005 - 18 46.08.080 or other law for costs incurred by the state as a result of the release or 19 threatened release of oil or a hazardous substance, but excluding fines, penalties, or 20 damages recovered or otherwise received due to a catastrophic oil discharge. 21  (b) Money received by the state under (a)(2) and (a)(3) of this section shall 22 be deposited in the general fund and credited to a special account called the "oil and 23 hazardous substances [SUBSTANCE] release contingency and abatement mitigation 24 account." The legislature may annually appropriate to the oil and hazardous 25 substances release contingency and abatement account in the fund from the oil and 26 hazardous substances release contingency and abatement mitigation [THIS] 27 account a sum equal to the amount received under (a)(2) and (a)(3) of this section 28 during the calendar year preceding the legislative session in which the appropriations 29 are to be made. 30 * Sec. 30. AS 46.08 is amended by adding a new section to read: 31  Sec. 46.08.025. FINANCING OF THE CATASTROPHIC OIL RELEASE 01 RESPONSE ACCOUNT. (a) The legislature may appropriate from the following 02 sources to the catastrophic oil release response account in the fund: 03  (1) money received from federal, state, or other sources or from a 04 private donor; 05  (2) money recovered or otherwise received from parties responsible for 06 the containment and cleanup of a catastrophic oil discharge, but excluding money from 07 performance bonds and other forms of financial responsibility held in escrow pending 08 satisfactory performance of a privately financed response action; 09  (3) fines, penalties, or damages recovered under AS 46.08.005 - 10 46.08.080 or other law for costs incurred by the state as a result of a catastrophic oil 11 discharge. 12  (b) Money received by the state under (a)(2) and (a)(3) of this section shall 13 be deposited in the general fund and credited to a special account called the 14 "catastrophic oil release response mitigation account." The legislature may annually 15 appropriate to the catastrophic oil release response account in the fund from the 16 catastrophic oil release response mitigation account a sum equal to the amount received 17 under (a)(2) and (a)(3) of this section during the calendar year preceding the legislative 18 session in which the appropriations are to be made. 19 * Sec. 31. AS 46.08.040(a) is amended to read: 20  (a) In addition to money in the fund that is transferred to the commissioner of 21 community and regional affairs to make grants under AS 29.60.510 and to pay for 22 impact assessments under AS 29.60.560, the commissioner of environmental 23 conservation may use money 24  (1) from the catastrophic oil release response account in the fund to 25  (A) [(1)] investigate and evaluate a catastrophic oil [THE] 26 release or threatened catastrophic oil release [OF OIL OR A HAZARDOUS 27 SUBSTANCE], and [CONTAIN, CLEAN UP, AND] take containment and 28 cleanup and other necessary action, such as monitoring and assessing, to 29 address a catastrophic oil release or threatened catastrophic oil release [OF 30 OIL OR A HAZARDOUS SUBSTANCE] that poses an imminent and 31 substantial threat to the public health or welfare, or to the environment; 01  (B) [(2) PAY ALL COSTS INCURRED TO 02  (A) ESTABLISH AND MAINTAIN THE OIL AND 03 HAZARDOUS SUBSTANCE RESPONSE OFFICE; 04  (B) REVIEW OIL DISCHARGE PREVENTION AND 05 CONTINGENCY PLANS SUBMITTED UNDER AS 46.04.030; 06  (C) CONDUCT TRAINING, RESPONSE EXERCISES, 07 INSPECTIONS, AND TESTS, IN ORDER TO VERIFY EQUIPMENT 08 INVENTORIES AND ABILITY TO PREVENT AND RESPOND TO OIL 09 AND HAZARDOUS SUBSTANCE RELEASE EMERGENCIES, AND TO 10 UNDERTAKE OTHER ACTIVITIES INTENDED TO VERIFY OR 11 ESTABLISH THE PREPAREDNESS OF THE STATE, A MUNICIPALITY, 12 OR A PARTY REQUIRED BY AS 46.04.030 TO HAVE AN APPROVED 13 CONTINGENCY PLAN TO ACT IN ACCORDANCE WITH THAT PLAN; 14 AND 15  (D) VERIFY OR ESTABLISH PROOF OF FINANCIAL 16 RESPONSIBILITY REQUIRED BY AS 46.04.040; 17  (3) PAY THE EXPENSES INCURRED BY THE ALASKA DIVISION 18 OF EMERGENCY SERVICES FOR THE OIL AND HAZARDOUS SUBSTANCE 19 RESPONSE CORPS AND THE OIL AND HAZARDOUS SUBSTANCE RESPONSE 20 DEPOTS WHEN PRESENTED WITH APPROPRIATE DOCUMENTATION BY 21 THE DIVISION; 22  (4)] provide matching funds in the event of a catastrophic oil release 23 for participation 24  (i) in federal oil discharge cleanup activities; and 25  (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 26 Environmental Response, Compensation, and Liability Act of 1980); 27 and 28  (C) [(5)] recover the costs to the state, a municipality, or a 29 village of a containment and cleanup resulting from the catastrophic oil release 30 or the threatened catastrophic oil release [OF OIL OR A HAZARDOUS 31 SUBSTANCE]; 01  (2) from the oil and hazardous substances release contingency and 02 abatement account in the fund to 03  (A) investigate and evaluate the release or threatened release 04 of oil or a hazardous substance, except a catastrophic oil release, and 05 contain, clean up, and take other necessary action, such as monitoring and 06 assessing, to address a release or threatened release of oil or a hazardous 07 substance, except a catastrophic oil release, that poses an imminent and 08 substantial threat to the public health or welfare; 09  (B) recover the costs to the state, a municipality, or a village 10 of a containment and cleanup resulting from the release or the threatened 11 release of oil or a hazardous substance, except a catastrophic oil release; 12  (C) pay all costs incurred to 13  (i) establish and maintain the oil and hazardous 14 substance response office; 15  (ii) review oil discharge prevention and contingency 16 plans submitted under AS 46.04.030; 17  (iii) conduct training, response exercises, inspections, 18 and tests, in order to verify equipment inventories and ability to 19 prevent and respond to oil and hazardous substance release 20 emergencies, and to undertake other activities intended to verify or 21 establish the preparedness of the state, a municipality, or a party 22 required by AS 46.04.030 to have an approved contingency plan to 23 act in accordance with that plan; and 24  (iv) verify or establish proof of financial 25 responsibility required by AS 46.04.040; 26  (D) pay the expenses incurred by the department for 27  (i) the oil and hazardous substance response corps; 28 and 29  (ii) the oil and hazardous substance response depots; 30  (E) provide matching funds in the event of the release of oil 31 or a hazardous substance, except a catastrophic oil release, for 01 participation 02  (i) in federal oil discharge cleanup activities; and 03  (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 04 Environmental Response, Compensation, and Liability Act of 1980); 05 and 06  (F) [(6)] prepare, review, and revise 07  (i) [(A)] the state's master oil and hazardous substance 08 discharge prevention and contingency plan required by AS 46.04.200; 09 and 10  (ii) [(B)] a regional master oil and hazardous substance 11 discharge prevention and contingency plan required by AS 46.04.210 12 [; AND 13  (7) RESTORE THE ENVIRONMENT BY ADDRESSING THE 14 EFFECTS OF AN OIL OR HAZARDOUS SUBSTANCE RELEASE]. 15 * Sec. 32. AS 46.08.040(b) is amended to read: 16  (b) The [WHEN THE GOVERNOR DECLARES A DISASTER RELATED 17 TO AN OIL OR HAZARDOUS SUBSTANCE DISCHARGE EMERGENCY UNDER 18 AS 26.23.020(c), THE] governor may [, DURING THE EFFECTIVE PERIOD OF 19 THE DISASTER EMERGENCY,] use money from the catastrophic oil release 20 response account in the fund to respond to a [THE] disaster emergency based upon 21 a release or discharge of oil or a hazardous substance 22  (1) in circumstances when the actual or imminent occurrence of a 23 catastrophic oil discharge constitutes a condition of disaster emergency, as 24 authorized by AS 46.04.080(a); or 25  (2) when the governor has declared a condition of disaster 26 emergency under AS 26.23.020(c). 27 * Sec. 33. AS 46.08.040(b) is amended to read: 28  (b) The [WHEN THE GOVERNOR DECLARES A DISASTER RELATED 29 TO AN OIL OR HAZARDOUS SUBSTANCE DISCHARGE EMERGENCY UNDER 30 AS 26.23.020(c), THE] governor may [, DURING THE EFFECTIVE PERIOD OF 31 THE DISASTER EMERGENCY,] use money from the catastrophic oil release 01 account in the fund to respond to a [THE] disaster emergency based upon a release 02 or discharge of oil or a hazardous substance when the governor has declared a 03 condition of disaster emergency under AS 26.23.020(c). 04 * Sec. 34. AS 46.08.040(c) is amended to read: 05  (c) Notwithstanding other provisions of this section, money from the fund may 06 not be used for a purpose specified in (a)(1)(B) - (D) or (a)(2) [(a)(2) - (7) AND 07 (d)(2)] of this section unless money is available from an appropriation made 08 specifically for that purpose. 09 * Sec. 35. AS 46.08.060(a) is amended to read: 10  (a) The commissioner shall submit a report to the legislature not later than the 11 10th day following the convening of each regular session of the legislature. The report 12 may include information considered significant by the commissioner but must include: 13  (1) the amount of money expended by the department under 14 AS 46.08.040(a) during the preceding fiscal year; 15  (2) the amount and source of money received and money recovered by 16 or on behalf of the department during the preceding fiscal year as specified in 17 AS 46.08.020 and 46.08.025; 18  (3) a summary of municipal participation in the department's responses 19 that were paid for [FUNDED] by the fund; 20  (4) a detailed summary of department activities in responses paid for 21 [FUNDED] by the fund during the preceding fiscal year, including response 22 descriptions and statements outlining the nature of the threat; [IN THIS PARAGRAPH, 23 "DETAILED" INCLUDES INFORMATION DESCRIBING EACH PERSONAL 24 SERVICES POSITION AND TOTAL COMPENSATION FOR THAT POSITION, 25 EACH CONTRACT IN EXCESS OF $20,000, AND EACH PURCHASE IN EXCESS 26 OF $10,000;] and 27  (5) the projected cost to the department for the next fiscal year of 28 monitoring, operating, and maintaining sites where response has been completed or is 29 expected to be continued during the fiscal year. 30 * Sec. 36. AS 46.08.075(a) is amended to read: 31  (a) The state has a lien for expenditures by the state from the oil and 01 hazardous substance release prevention and response fund, or from any other state 02 fund, for the costs of response, containment, removal, or remedial action resulting from 03 an oil or hazardous substance release or spill, or, with respect to response costs, for 04 the costs of response to a threatened [THE SUBSTANTIAL THREAT OF A] release 05 of oil or a hazardous substance, against all property owned by a person who is 06 determined by the commissioner to be liable for the expenditures under this chapter, 07 AS 46.03, AS 46.04, 42 U.S.C. 9607, or other state or federal law. The lien includes 08 interest, at the maximum rate allowable under AS 45.45.010(a), from the date of the 09 expenditures. The state may file an action in a court of competent jurisdiction in order 10 to foreclose on the lien. 11 * Sec. 37. AS 46.08.075(e) is amended to read: 12  (e) A person with an ownership interest in property against which a lien is 13 recorded may bring an action in a court of competent jurisdiction to require that the 14 lien be released. The lien may be released to the extent of that person's ownership 15 interest if the court finds that the person is not liable for the expenses incurred by the 16 state in connection with the costs of response, containment, removal, or remedial 17 action resulting from the [OIL OR HAZARDOUS SUBSTANCE] release or spill, or 18 from the threatened [THREAT OF] release, of oil or a hazardous substance. 19 * Sec. 38. AS 46.08.110 is amended to read: 20  Sec. 46.08.110. RESPONSE CORPS. (a) The department [DIVISION OF 21 EMERGENCY SERVICES, DEPARTMENT OF MILITARY AND VETERANS' 22 AFFAIRS,] shall establish an oil and hazardous substance response corps. 23  (b) The corps consists of volunteers who register with the department 24 [DIVISION] and agree to be trained by the division in techniques for containment and 25 cleanup and to be available on short notice to assist in containment and cleanup 26 consistent with the responsibilities assigned to the corps under an applicable incident 27 command system. 28  (c) Members of the corps are entitled to per diem and expenses as determined 29 by the department [DIVISION] for training and for days spent in service to the state 30 in containment and cleanup actions. 31 * Sec. 39. AS 46.08.120 is amended to read: 01  Sec. 46.08.120. RESPONSE DEPOTS. The department [DIVISION] shall 02 maintain emergency response depots in areas of the state determined in the plans 03 prepared under AS 46.04.200 - 46.04.210 to be potential sites of releases or threatened 04 releases of oil or hazardous substances. The depots shall be equipped and staffed in 05 a manner that ensures prompt response when containment and cleanup actions are 06 necessary. 07 * Sec. 40. AS 46.08.150 is amended to read: 08  Sec. 46.08.150. CONTRACTS. The office [OR THE DIVISION, AS 09 APPLICABLE,] may 10  (1) enter into agreements with agencies of the state and federal 11 government, political subdivisions, the University of Alaska, or private persons or 12 entities to 13  (A) [(1)] provide the personnel, equipment, or other services or 14 supplies necessary to establish and maintain regional oil and hazardous 15 substances depots and as necessary for response readiness; and 16  (B) [(2)] train members of response corps; and 17  (2) contract with persons to provide personnel, including members 18 of the emergency response corps, to assist them with a nongovernmental response 19 to a release or threatened release of oil or a hazardous substance [(3) CONDUCT 20 RESEARCH INTO OIL AND HAZARDOUS SUBSTANCES SPILL TECHNOLOGY; 21 THE OFFICE SHALL INCLUDE IN THE RESEARCH TOPICS FOR WHICH IT 22 CONDUCTS OR CONTRACTS FOR RESEARCH, THE RESEARCH TOPICS 23 RECOMMENDED TO IT BY THE HAZARDOUS SUBSTANCE SPILL 24 TECHNOLOGY REVIEW COUNCIL UNDER AS 46.13.120]. 25 * Sec. 41. AS 46.08.900(5) is amended to read: 26  (5) "fund" means the oil and hazardous substance release prevention 27 and response fund; 28 * Sec. 42. AS 46.08.900(9) is amended to read: 29  (9) "release" 30  (A) means any spilling, leaking, pumping, pouring, emitting, 31 emptying, discharging, injecting, escaping, leaching, dumping, or disposing into 01 the environment; 02  (B) [, EXCEPT THAT "RELEASE"] does not include 03  (i) a permitted release; or 04  (ii) an act of nature; 05 * Sec. 43. AS 46.08.900(11) is amended to read: 06  (11) "threatened release" means [AN IMMINENT DANGER] that a 07 release is imminent; a release is imminent if 08  (A) it is impending, or on the point of happening; or 09  (B) though not impending, in the judgment of the 10 commissioner 11  (i) the incident or occurrence may reasonably be 12 expected to culminate in an actual release; and 13  (ii) that actual release may reasonably be expected to 14 cause personal injury, other injury to life, or loss of or damage to 15 property, including the environment [WILL OCCUR]; 16 * Sec. 44. AS 46.08.900 is amended by adding a new paragraph to read: 17  (13) "catastrophic oil discharge" and "catastrophic oil release" have the 18 meaning given the term "catastrophic oil discharge" in AS 46.04.900. 19 * Sec. 45. AS 46.09.900(8) is amended to read: 20  (8) "threatened release" means [AN IMMINENT DANGER] that a 21 release is imminent; a release is imminent if 22  (A) it is impending, or on the point of happening; or 23  (B) though not impending, in the judgment of the 24 commissioner 25  (i) the incident or occurrence may reasonably be 26 expected to culminate in an actual release; and 27  (ii) that actual release may reasonably be expected to 28 cause personal injury, other injury to life, or loss of or damage to 29 property, including the environment [WILL OCCUR]. 30 * Sec. 46. AS 46.13.010(a) is amended to read: 31  (a) There is established in the Department of Military and Veterans' Affairs 01 [ENVIRONMENTAL CONSERVATION] the Alaska State Emergency Response 02 Commission. 03 * Sec. 47. AS 19.65.025; AS 26.23.195(b); AS 43.55.200, 43.55.210, 43.55.220, 43.55.230, 04 43.55.240; AS 46.08.040(d), and 46.08.190(3) are repealed. 05 * Sec. 48. TREATMENT OF APPROPRIATION TO FORMER SPILL RESERVE FOR 06 PURPOSES OF AS 43.55.230. For the purpose of former AS 43.55.230(a)(2), repealed by 07 this Act, an appropriation to the former spill reserve referred to in AS 29.60.510(b), the 08 reference to which is repealed by sec. 5 of this Act, is not an expenditure. 09 * Sec. 49. APPLICABILITY. The definition of "catastrophic oil discharge" in 10 AS 46.08.900, added by sec. 44 of this Act, applies to discharges occurring after the effective 11 date of this section. 12 * Sec. 50. TRANSITIONAL PROVISIONS APPLICABLE TO CONSERVATION 13 SURCHARGE ON OIL IMPOSED BY AS 43.55.200 AFTER JUNE 30, 1993, AND 14 BEFORE THE EFFECTIVE DATE OF THIS ACT. After June 30, 1993, and before the 15 effective date of this section, every producer of oil who is required by AS 43.55.200 - 16 43.55.240, repealed by this Act, to pay the oil conservation surcharge of $.05 per barrel of oil 17 shall pay that levy. The provisions of AS 43.55.210 - 43.55.240, repealed by this Act, apply 18 to the amounts received by the state under AS 43.55.200 - 43.55.240, but as to the amounts 19 received after June 30, 1993, and before the effective date of this section, if so appropriated 20 by the legislature and notwithstanding any other provision of law relating to the deposit of and 21 accounting for those receipts, 22 (1) on the effective date of this section, the commissioner of revenue shall 23 allocate 24  (A) 60 percent of the amount received to the catastrophic oil release 25 response account established by AS 46.08.010(a)(2), added by sec. 26 of this Act; and 26  (B) 40 percent of the amount received to the oil and hazardous 27 substances release contingency and abatement account established by 28 AS 46.08.010(a)(1), added by sec. 26 of this Act; and 29 (2) the allocations made under (1) of this section are credited to the respective 30 accounts for purposes of determination of the suspension and reimposition of the surcharge 31 under AS 43.55.231 and 43.55.241, added by secs. 12 and 13 of this Act. 01 * Sec. 51. TERMS OF MEMBERS OF ALASKA STATE EMERGENCY RESPONSE 02 COMMISSION NOT AFFECTED. The transfer of the Alaska State Emergency Response 03 Commission from the Department of Environmental Conservation to the Department of 04 Military and Veterans' Affairs made by sec. 46 of this Act does not affect the term of office 05 of a person serving as a member of the commission on the effective date of this section. 06 * Sec. 52. Section 33 of this Act takes effect only if Senate Bill 90 am H becomes law. 07 * Sec. 53. If sec. 33 of this Act takes effect, sec. 32 of this Act does not take effect. 08 * Sec. 54. Section 18 of this Act takes effect January 1, 1994.