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HCS CSSB 215(STA) Detail
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HCS CSSB 215(STA): "An Act relating to oil and hazardous substances; redesignating the oil and hazardous substance release response fund and relating to it; repealing the Citizens' Oversight Council on Oil and Other Hazardous Substances 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 and repealing the authority of the Department of Environmental Conservation to levy and collect fees for review of certain submissions related to oil; altering requirements applicable to liens for recovery of state expenditures related to oil or hazardous substances; terminating the nickel-per-barrel oil conservation surcharge; levying and collecting two new oil surcharges; and providing for the suspension and reimposition of one of the new surcharges."

00HOUSE CS FOR CS FOR SENATE BILL NO. 215(STA) 01 "An Act relating to oil and hazardous substances; redesignating the oil and 02 hazardous substance release response fund and relating to it; repealing the 03 Citizens' Oversight Council on Oil and Other Hazardous Substances and the 04 authority in law by which marine highway vessels may be designed and 05 constructed to aid in oil and hazardous substance spill cleanup in state marine 06 water using money in the oil and hazardous substance release response fund and 07 repealing the authority of the Department of Environmental Conservation to levy 08 and collect fees for review of certain submissions related to oil; altering 09 requirements applicable to liens for recovery of state expenditures related to oil 10 or hazardous substances; terminating the nickel-per-barrel oil conservation 11 surcharge; levying and collecting two new oil surcharges; and providing for the 12 suspension and reimposition of one of the new surcharges." 13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 14 * Section 1. AS 26.23.020(g) is amended to read:

01 (g) In addition to any other powers conferred upon the governor by law, the 02 governor may, under AS 26.23.010 - 26.23.220, 03 (1) suspend the provisions of any regulatory statute prescribing 04 procedures for the conduct of state business, or the orders or regulations of any state 05 agency, if compliance with the provisions of the statute, order, or regulation would 06 prevent, or substantially impede or delay, action necessary to cope with the disaster 07 emergency; 08 (2) use all available resources of the state government and of each 09 political subdivision of the state as reasonably necessary to cope with the disaster 10 emergency; 11 (3) transfer personnel or alter the functions of state departments and 12 agencies or units of them for the purpose of performing or facilitating the performance 13 of disaster emergency services; 14 (4) subject to any applicable requirements for compensation under 15 AS 26.23.160, commandeer or utilize any private property, except for all news media 16 other than as specifically provided for in AS 26.23.010 - 26.23.220, if the governor 17 considers this necessary to cope with the disaster emergency; 18 (5) direct and compel the relocation of all or part of the population 19 from any stricken or threatened area in the state, if the governor considers relocation 20 necessary for the preservation of life or for other disaster mitigation purpose; 21 (6) prescribe routes, modes of transportation, and destinations in 22 connection with necessary relocation; 23 (7) control ingress to and egress from a disaster area, the movement of 24 persons within the area, and the occupancy of premises in it; 25 (8) suspend or limit the sale, dispensing, or transportation of alcoholic 26 beverages, firearms, explosives, and combustibles; 27 (9) make provisions for the availability and use of temporary 28 emergency housing; 29 (10) allocate or redistribute food, water, fuel, or clothing; and 30 (11) use money from the oil and hazardous substance release 31 response account in the oil and hazardous substance release prevention and response

01 fund, established by AS 46.08.010, to respond to a declared disaster emergency related 02 to an oil or hazardous substance discharge. 03 * Sec. 2. AS 29.60.500 is amended to read: 04 Sec. 29.60.500. PURPOSE AND POLICY. (a) The legislature finds and 05 declares that a major release of oil or hazardous substances into the environment 06 presents a real and substantial threat to the economy and public welfare of the 07 municipalities, [AND] villages, and school districts that are affected by the release 08 and the resultant activities to contain and clean up the release. 09 (b) The legislature concludes that it is in the best interest of the state and its 10 citizens to provide a readily available fund for the payment of the expenses incurred 11 by municipalities, [AND] villages, and school districts to mitigate the social and 12 economic effects that arise out of a major release of oil or hazardous substances and 13 resultant cleanup activities. 14 (c) It is the intent of the legislature and declared to be the public policy of the 15 state that money to defray the cost of social and economic effects on municipalities, 16 [AND] villages, and school districts arising from a major release of oil or a hazardous 17 substance and resultant cleanup activities and to pay for efforts to abate that release 18 will be immediately available upon 19 [(1)] a determination [BY THE GOVERNOR] that the release was 20 sudden and that it exceeds 2,500 barrels of oil, or exceeds an amount of a hazardous 21 substance that when released into the environment presents a real and substantial threat 22 to the economy and public welfare of the municipalities, [OR] villages, or school 23 districts affected by it [; 24 (2) THE DECLARATION BY THE GOVERNOR OF A DISASTER 25 EMERGENCY RELATING TO THE RELEASE; AND 26 (3) A FINDING BY THE GOVERNOR THAT 27 (A) THE RELEASE OF THE OIL OR HAZARDOUS 28 SUBSTANCE INTO THE ENVIRONMENT PRESENTS A REAL AND 29 SUBSTANTIAL THREAT TO THE ECONOMY AND PUBLIC WELFARE 30 OF THE MUNICIPALITIES AND VILLAGES THAT ARE AFFECTED BY 31 THE RELEASE AND BY THE RESULTANT ACTIVITIES TO CONTAIN

01 AND CLEAN UP THE RELEASE; AND 02 (B) IT IS IN THE BEST INTEREST OF THE STATE TO PAY 03 THE EXPENSES INCURRED BY MUNICIPALITIES AND VILLAGES TO 04 MITIGATE THE SOCIAL AND ECONOMIC EFFECTS THAT ARISE OUT 05 OF THE RELEASE OF THE OIL OR THE HAZARDOUS SUBSTANCE 06 AND THE RESULTANT CLEANUP ACTIVITIES]. 07 * Sec. 3. AS 29.60.510 is amended to read: 08 Sec. 29.60.510. MUNICIPAL IMPACT GRANTS AUTHORIZED. (a) 09 Subject to (b) of this section, the [THE] commissioner may use money from the oil 10 and hazardous substance release prevention and response fund to make grants to a 11 municipality, [OR] village, or school district that is affected by the release or by the 12 response to the release and that demonstrates that the release or response to the release 13 involves extraordinary expenditures that are beyond the reasonable capability of the 14 municipality, [OR] village, or school district to meet from the current revenue sources 15 of the municipality, [OR] village, or school district if 16 [(1) THE GOVERNOR DETERMINES THAT] a release of oil [OR 17 A HAZARDOUS SUBSTANCE] exceeds 2,500 barrels of oil, or if a release of a 18 hazardous substance exceeds an amount of a hazardous substance that, when released 19 into the environment, presents a threat to the economy and public welfare of the 20 municipalities, [AND] villages, and school districts affected by it at least equivalent 21 in effect to the effect of a release of oil in an amount defined by this subsection 22 [PARAGRAPH; 23 (2) THE RELEASE HAS BEEN PROCLAIMED A DISASTER 24 EMERGENCY BY THE GOVERNOR UNDER AS 26.23.020; AND 25 (3) THE GOVERNOR FINDS THAT 26 (A) THE RELEASE OF THE OIL OR HAZARDOUS 27 SUBSTANCE INTO THE ENVIRONMENT PRESENTS A REAL AND 28 SUBSTANTIAL THREAT TO THE ECONOMY AND PUBLIC WELFARE 29 OF THE MUNICIPALITIES AND VILLAGES THAT ARE AFFECTED BY 30 THE RELEASE AND BY THE RESULTANT ACTIVITIES TO CONTAIN 31 AND CLEAN UP THE RELEASE; AND

01 (B) IT IS IN THE BEST INTEREST OF THE STATE TO PAY 02 THE EXPENSES INCURRED BY MUNICIPALITIES AND VILLAGES TO 03 MITIGATE THE SOCIAL AND ECONOMIC EFFECTS THAT ARISE OUT 04 OF THE RELEASE OF THE OIL OR THE HAZARDOUS SUBSTANCE 05 AND THE RESULTANT CLEANUP ACTIVITIES]. 06 (b) For each release or threatened release of oil or a hazardous substance 07 (1) for which the commissioner of environmental conservation may, 08 under AS 46.08.045, expend money from the oil and hazardous substance release 09 response account in the fund [DISASTER EMERGENCY DECLARED BY THE 10 GOVERNOR UNDER AS 26.23.020], and subject to agreement with the commissioner 11 of environmental conservation as to the amount of money in the fund that may be used 12 by the department to make grants, the commissioner may expend not more than 13 $10,000,000 [OF THE BALANCE OF THE FUND THAT IS APPROPRIATED TO 14 THE SPILL RESERVE OR] of the unrestricted balance of the oil and hazardous 15 substance release response account in the fund for grants for purposes described 16 in AS 29.60.520; if [AUTHORIZED UNDER THIS SECTION. IF] the commissioner 17 and the commissioner of environmental conservation do not agree on the amount of 18 money in the response account in the fund that may be used by the department to 19 make grants under AS 29.60.500 - 29.60.599 for release or threatened release of oil 20 or a hazardous substance, the governor shall make the determination; 21 (2) for which money may not be expended from the response 22 account under (1) of this subsection, and subject to appropriation of money in the 23 fund that may be used by the department to make grants, the commissioner may 24 expend not more than the amount appropriated from the oil and hazardous 25 substance release prevention account in the fund for grants for purposes 26 described in AS 29.60.520. 27 (c) Notwithstanding the limitation of AS 37.07.080(e) against the transfer of 28 money between appropriations, when the commissioner and the commissioner of 29 environmental conservation have agreed to the amount of money in the oil and 30 hazardous substance release response account [FUND] that may be used by the 31 department to make grants, or when that determination has been made by the governor,

01 the commissioner of environmental conservation shall promptly transfer that amount 02 to the department for use under AS 29.60.500 - 29.60.599. 03 (d) For money that has been transferred under (c) of this section, if within any 04 one-year period thereafter the commissioner does not use the money to make a grant 05 under AS 29.60.500 - 29.60.599, the commissioner shall [, AT THE DIRECTION OF 06 THE GOVERNOR OR THE REQUEST OF THE COMMISSIONER OF 07 ENVIRONMENTAL CONSERVATION,] return the unexpended amount transferred 08 under (c) of this section to the oil and hazardous substance release response 09 account of the fund. 10 * Sec. 4. AS 29.60.520 is amended to read: 11 Sec. 29.60.520. PURPOSES OF MUNICIPAL IMPACT GRANTS. (a) A 12 grant made under AS 29.60.510 may be made 13 (1) only for 14 (A) provision of subsistence resources on which the residents 15 of the municipality, [OR] village, or school district rely for subsistence needs; 16 (B) the additional costs of a reasonable and appropriate function 17 or service, including administrative expenses for the incremental costs of 18 providing the function or service, limited to: 19 (i) public health and welfare functions and services, 20 including hospital, clinic, and emergency medical services; alcohol, 21 drug abuse, and mental health services; family support services; and the 22 operation of waste disposal systems and water quality improvement 23 systems; 24 (ii) public safety functions and services, including police 25 protection, search and rescue, and fire protection; 26 (iii) public utility functions and services, including the 27 operation of electric generating plants and distribution systems, water 28 supply systems, telephone systems, and fuel distribution systems; and 29 (iv) housing functions and services, limited to leasing or 30 making other arrangements for temporary housing to be occupied by 31 persons associated with containment or cleanup of the release;

01 (C) costs associated with leasing transportation facilities for use 02 in activities associated with the containment or cleanup; 03 (D) costs of repair or replacement of equipment or a capital 04 asset associated with a function or service set out in (B) of this paragraph the 05 useful life of which has been substantially reduced by use associated with the 06 containment or cleanup; and 07 (2) to compensate the municipality, [OR] village, or school district for 08 (A) the reduction of revenue attributable to the release of the 09 oil or hazardous substance; and 10 (B) the actual costs of projects or activities that are delayed or 11 lost because of the efforts of the municipality, [OR] village, or school district 12 responding to the release or associated with the containment or cleanup of oil 13 or the hazardous substance. 14 (b) If money received under this section is used for a capital expenditure, the 15 commissioner may require the municipality, [OR] village, or school district that 16 acquired the item as a capital expenditure to transfer it to the state at the end of the 17 period during which the item is actually used for spill response if the commissioner 18 finds that retention of the item would confer an inappropriate benefit on the 19 municipality, [OR] village, or school district. 20 * Sec. 5. AS 29.60.530 is amended to read: 21 Sec. 29.60.530. CRITERIA TO EVALUATE GRANT APPLICATIONS. (a) 22 In determining whether an expenditure or proposed expenditure by a municipality, 23 [OR] village, or school district is eligible for a grant under AS 29.60.510, the 24 department shall consider 25 (1) the degree to which the effect on the municipality, [OR] village, or 26 school district is directly caused by the oil or hazardous substance release or the 27 response to the release; 28 (2) the availability of money to the recipient from other sources that 29 can meet the costs of providing the functions or services; and 30 (3) the severity of the effect addressed in the grant application. 31 (b) The department may reject an application for a grant under AS 29.60.510

01 or approve an application for a grant in an amount that is less than the amount 02 requested by a municipality, [OR] village, or school district if the department 03 determines that payment of the amount requested is not warranted under (a) of this 04 section. 05 (c) The department shall adopt, by regulation, criteria by which to rank all or 06 a portion of applications for the purpose of establishing the priority order of awarding 07 grants if money requested by eligible municipalities, [AND] villages, and school 08 districts under this section exceeds the amount available. The criteria must be based 09 on the elements set out in (a) of this section. If the total amount of money requested 10 by eligible municipalities, [AND] villages, and school districts under this section 11 exceeds the amount available, the department shall rank applications for the purpose 12 of establishing the priority order of awarding grants in accordance with the regulations. 13 * Sec. 6. AS 29.60.540(b) is amended to read: 14 (b) Money received by a municipality, [OR] village, or school district under 15 AS 29.60.500 - 29.60.599 may not be used for a capital improvement, as that term is 16 defined in AS 46.08.900. 17 * Sec. 7. AS 29.60.560(a) is amended to read: 18 (a) For each disaster emergency declared by the governor under AS 26.23.020 19 based on a release of oil or a hazardous substance or for each other release of oil or 20 a hazardous substance for which money may be expended under AS 46.08.045(b), 21 the commissioner, after consulting with and securing the written approval of the 22 attorney general and after consulting with other state agencies, shall 23 (1) make an assessment of the social and economic effects of the 24 release of the oil or hazardous substance; 25 (2) develop a plan to 26 (A) recover the cost of release-related expenditures; and 27 (B) mitigate the social and economic effects of the release of 28 the oil or hazardous substance on the municipalities, the villages, the school 29 districts, and the region in which the discharge occurs. 30 * Sec. 8. AS 29.60.560(e) is amended to read: 31 (e) Expenditures made under this section may be made only from the amount

01 transferred to the commissioner under AS 29.60.510(c), unless 02 (1) the commissioner and the commissioner of environmental 03 conservation mutually agree that payment may be made from money in the oil and 04 hazardous substance release response account in the oil and hazardous substance 05 release prevention and response fund not transferred under AS 29.60.510(c); or 06 (2) the commissioner pays them from another source. 07 * Sec. 9. AS 29.60.599(4) is amended to read: 08 (4) "fund" means the oil and hazardous substance release prevention 09 and response fund established by AS 46.08.010; 10 * Sec. 10. AS 29.60.599(7) is amended to read: 11 (7) "service" 12 (A) means 13 (i) a function performed or service provided by a 14 municipality under a duty or power authorized by this title or by 15 another provision of law authorizing a municipality to perform functions 16 or provide services; 17 (ii) [, OR] a comparable function performed or service 18 provided by a village; or 19 (iii) a function performed or service provided by a 20 school district; 21 (B) includes functions not previously performed and services 22 not previously provided by the municipality or village; 23 * Sec. 11. AS 29.60.599 is amended by adding a new paragraph to read: 24 (9) "school district" has the meaning given in AS 14.30.350. 25 * Sec. 12. AS 37.14.410 is amended to read: 26 Sec. 37.14.410. REIMBURSED EXPENDITURES. (a) Amounts received by 27 the state as reimbursement for expenses related to the Exxon Valdez oil spill incurred 28 by the state on or before December 31, 1992, shall be deposited in the general fund 29 and, except as required under (b) of this section may not be credited to the oil and 30 hazardous substance release mitigation account under AS 46.04.010 or to an account 31 established in AS 46.08.020 or 46.08.025.

01 (b) A percentage of each payment deposited in the general fund under (a) of 02 this section shall be credited to the prevention account established in [OIL AND 03 HAZARDOUS SUBSTANCE RELEASE MITIGATION ACCOUNT UNDER 04 AS 46.04.010 OR] AS 46.08.020. That percentage is determined by dividing 05 (1) the amount of the expenses for which the state may be reimbursed 06 under (a) of this section that were paid from the oil and hazardous substance release 07 response fund established under AS 46.08.010, by 08 (2) the total amount of expenses for which the state may be reimbursed 09 under (a) of this section. 10 * Sec. 13. AS 43.55 is amended by adding a new section to read: 11 Sec. 43.55.201. SURCHARGE LEVIED. (a) Every producer of oil shall pay 12 a surcharge of $.02 per barrel of oil produced from each lease or property in the state, 13 less any oil the ownership or right to which is exempt from taxation. 14 (b) The surcharge imposed by (a) of this section is in addition to and shall be 15 paid in the same manner as the tax imposed by AS 43.55.011 - 43.55.150; and is in 16 addition to the surcharge imposed by AS 43.55.300 - 43.55.310. 17 (c) A producer of oil shall make reports of production in the same manner and 18 under the same penalties as required under AS 43.55.011 - 43.55.150. 19 * Sec. 14. AS 43.55 is amended by adding a new section to read: 20 Sec. 43.55.211. USE OF REVENUE DERIVED FROM SURCHARGE. The 21 legislature may appropriate the annual estimated balance of the account maintained 22 under AS 37.05.142 for deposits into the general fund of the proceeds of the surcharge 23 levied under AS 43.55.201 to the response account in the oil and hazardous substance 24 release prevention and response fund established by AS 46.08.010. 25 * Sec. 15. AS 43.55 is amended by adding a new section to read: 26 Sec. 43.55.221. SUSPENSION AND REIMPOSITION OF THE 27 SURCHARGE. (a) Not later than 30 days after the end of each calendar quarter, the 28 commissioner of administration shall determine, as of the end of that quarter, the fiscal 29 year's 30 (1) unreserved and unobligated balance in the response account of the 31 oil and hazardous substance release prevention and response fund established in

01 AS 46.08.010; for purposes of this paragraph, the "unreserved and unobligated balance 02 in the response account" means the cash balance of the account less the sum of 03 (A) reserves for outstanding appropriations from the account; 04 (B) encumbrances of money in the account; and 05 (C) other liabilities of the account; 06 (2) balance of the account maintained under AS 37.05.142 that accounts 07 for the proceeds of the surcharge that are deposited in the general fund; 08 (3) the balance of the response mitigation account established by 09 AS 46.08.025(b) that originated from the sources described in AS 46.08.025(a)(3) and 10 that is available for appropriation to the response account of the fund established in 11 AS 46.08.010. 12 (b) Within 15 days after making the determinations required by (a) of this 13 section, the commissioner of administration shall 14 (1) add the amounts determined under (a)(1) - (3) of this section; and 15 (2) report the sum calculated under (1) of this subsection to the 16 commissioner of revenue. 17 (c) In making the determination required by (a) of this section, the 18 commissioner of administration may not consider money described in (a) of this 19 section that is subject to a dedication imposed by law that restricts the use of the 20 money to a specific purpose for which the response account of the oil and hazardous 21 substance release prevention and response fund established in AS 46.08.010 may not 22 be lawfully expended. 23 (d) If the commissioner of administration reports that the sum reported under 24 (b) of this section equals or exceeds $50,000,000, the commissioner of revenue shall 25 suspend imposition and collection of the surcharge levied and collected under 26 AS 43.55.201. Suspension of the imposition and collection of the surcharge begins on 27 the first day of the calendar quarter next following the commissioner's receipt of the 28 commissioner of administration's report under (b) of this section. Before the first day 29 of a suspension authorized by this subsection, the commissioner shall make a 30 reasonable effort to notify all persons who are known to the department to be paying 31 the surcharge under AS 43.55.201 that the surcharge will be suspended.

01 (e) Except as provided in AS 43.55.231, if the commissioner of administration 02 reports that the sum reported under (b) of this section is less than $50,000,000, the 03 commissioner of revenue shall require imposition and collection of the surcharge 04 authorized under AS 43.55.201. If the surcharge is not in effect, reimposition of the 05 surcharge begins on the first day of the calendar quarter next following the 06 commissioner's receipt of the commissioner of administration's report under (b) of this 07 section. Before the first day of reimposition of the surcharge authorized by this 08 subsection, the commissioner shall make a reasonable effort to notify all persons who 09 are known to the department to be required to pay the surcharge under AS 43.55.201 10 that the surcharge will be reimposed. 11 * Sec. 16. AS 43.55 is amended by adding a new section to read: 12 Sec. 43.55.231. SURCHARGE NOT IMPOSED. (a) The surcharge authorized 13 by AS 43.55.201 is not levied during any fiscal year for which 14 (1) the legislature does not, during the regular or a special legislative 15 session preceding the first day of the fiscal year, appropriate at least an amount equal 16 to the amount determined under (b) of this section from the general fund to the 17 response account in the oil and hazardous substance release prevention and response 18 fund; or 19 (2) the legislature, during the regular or a special legislative session 20 preceding the first day of the fiscal year, appropriates at least the amount of money 21 equal to the amount determined under (b) of this section from the general fund to the 22 response account in the oil and hazardous substance release prevention and response 23 fund and that appropriation is vetoed or reduced by the governor. 24 (b) The amount of money required to be appropriated from the general fund 25 to the response account in the oil and hazardous substance release prevention and 26 response fund by (a) of this section is the amount, determined for the last day of the 27 preceding fiscal year, that is the sum of the actual or estimated balance of 28 (1) the account maintained under AS 37.05.142 to account for all 29 proceeds of the surcharge that are deposited into the general fund; and 30 (2) the portion of the balance of the response mitigation account 31 established by AS 46.08.025(b) that originated from the recovery of money described

01 in AS 46.08.025(a)(3). 02 * Sec. 17. AS 43.55 is amended by adding new sections to read: 03 Sec. 43.55.299. DEFINITIONS. In AS 43.55.201 - 43.55.299, 04 (1) "response account" means the oil and hazardous substance release 05 response account established in AS 46.08.010(a)(2); 06 (2) "response mitigation account" means the oil and hazardous 07 substance release response mitigation account established in AS 46.08.025(b). 08 ARTICLE 2A. ADDITIONAL CONSERVATION SURCHARGE ON OIL. 09 Sec. 43.55.300. SURCHARGE LEVIED. (a) Every producer of oil shall pay 10 a surcharge of $.03 per barrel of oil produced from each lease or property in the state, 11 less any oil the ownership or right to which is exempt from taxation. 12 (b) The surcharge imposed by (a) of this section is in addition to and shall be 13 paid in the same manner as the tax imposed by AS 43.55.011 - 43.55.150; and is in 14 addition to the surcharge imposed by AS 43.55.201 - 43.55.231. 15 (c) A producer of oil shall make reports of production in the same manner and 16 under the same penalties as required under AS 43.55.011 - 43.55.150. 17 Sec. 43.55.310. USE OF REVENUE DERIVED FROM SURCHARGE. The 18 legislature may appropriate the annual estimated balance of the account maintained 19 under AS 37.05.142 for deposits into the general fund of the proceeds of the surcharge 20 levied under AS 43.55.300 to the oil and hazardous substance release prevention 21 account in the oil and hazardous substance release prevention and response fund 22 established by AS 46.08.010. 23 * Sec. 18. AS 43.55.900(15) is amended to read: 24 (15) "surcharge" means 25 (A) when used in AS 43.55.201 - 43.55.299, the surcharge 26 levied by AS 43.55.201 [AS 43.55.200]; 27 (B) when used in AS 43.55.300 - 43.55.310, the surcharge 28 levied by AS 43.55.300; 29 * Sec. 19. AS 46.04.010 is amended to read: 30 Sec. 46.04.010. REIMBURSEMENT FOR CLEANUP EXPENSES. The 31 department shall promptly seek reimbursement under AS 46.03.760(e), AS 46.08.070,

01 or from an applicable federal fund, for the expenses it incurs in cleaning up or 02 containing a discharge of oil. If the department obtains reimbursement for a portion 03 of its expenses from a federal fund, the remainder of the expenses incurred may be 04 recovered under AS 46.03.760(e) or AS 46.08.070. Money received by the department 05 under this section shall be deposited in the general fund and credited to 06 (1) the oil and hazardous substance release response mitigation 07 account established under AS 46.08.025(b); the amount required to be deposited 08 under this paragraph shall represent the proportion of the expenses recovered 09 that were originally paid for from the oil and hazardous substance release account 10 established under AS 46.08.010(a)(2); or 11 (2) [A SPECIAL ACCOUNT CALLED] the ["] oil and hazardous 12 substance release prevention mitigation account established under AS 46.08.020(b); 13 the amount required to be deposited under this paragraph is the amount of 14 money recovered that exceeds the amount payable to the response mitigation 15 account under (1) of this section ["]. 16 * Sec. 20. AS 46.08.005 is amended to read: 17 Sec. 46.08.005. PURPOSE. The legislature finds and declares that the release 18 of oil or hazardous substances into the environment presents a real and substantial 19 threat to the public health and welfare, to the environment, and to the economy of the 20 state. The legislature therefore concludes that it is in the best interest of the state and 21 its citizens to provide a [READILY AVAILABLE] fund containing two accounts. 22 Within the fund, 23 (1) one account consists of money readily available to the 24 commissioner for the payment of the expenses incurred by the Department of 25 Environmental Conservation during a response to a [AND THE DEPARTMENT OF 26 TRANSPORTATION AND PUBLIC FACILITIES IN THE PROTECTION OF THE 27 ENVIRONMENT OF THE STATE FROM THE] release of oil or hazardous 28 substances when authorized by AS 46.08.045 and for related purposes intended 29 to address those releases; 30 (2) the other account consists of money that the state may use 31 during a response to a release of oil or a hazardous substance, other than one

01 described in (1) of this subsection, and to a threatened release of oil or a 02 hazardous substance, to pay the expenses of making preparations for the 03 possibility of a release or threatened release of oil or hazardous substances, to 04 reduce the amount, degree, or intensity of a release or threatened release, and for 05 other related purposes identified in law [OR HAZARDOUS SUBSTANCES]. 06 * Sec. 21. AS 46.08.010(a) is amended to read: 07 (a) There is established in the state general fund the oil and hazardous 08 substance release prevention and response fund. The fund shall be administered by 09 the commissioner. The fund is composed of two accounts, 10 (1) the oil and hazardous substance release prevention account; 11 (2) the oil and hazardous substance release response account. 12 * Sec. 22. AS 46.08.010(b) is amended to read: 13 (b) Money from an appropriation made to an account in the fund remaining 14 in that account [THE FUND] at the end of a fiscal year does not lapse and remains 15 available for expenditure in successive fiscal years. 16 * Sec. 23. AS 46.08.010(c) is amended to read: 17 (c) The fund shall be used for actual expenses incurred under AS 46.08.040. 18 Except as provided in AS 46.08.040(a)(2)(C)(ii) for the equipment that is required 19 for and placed in the oil and hazardous substance response depots and in 20 AS 46.08.040(a)(2)(E) for the acquisition, repair, or improvement of assets as 21 preparedness measures [AS 46.08.040(d)(2)], the fund may not be used for capital 22 improvements. 23 * Sec. 24. AS 46.08.020 is amended to read: 24 Sec. 46.08.020. FINANCING OF THE OIL AND HAZARDOUS 25 SUBSTANCE RELEASE PREVENTION ACCOUNT [FUND]. (a) The legislature 26 may appropriate from the following sources to the prevention account in the fund: 27 (1) the annual estimated balance of the account maintained under 28 AS 37.05.142 for deposits into the general fund of the proceeds of the oil 29 conservation surcharge levied by AS 43.55.300; 30 (2) money received from other state sources, from federal [, STATE,] 31 or other sources, or from a private donor;

01 (3) [(2)] money recovered or otherwise received from parties 02 responsible for the containment and cleanup of oil or a hazardous substance at a 03 specific site, but excluding money 04 (A) [FUNDS] from performance bonds and other forms of 05 financial responsibility held in escrow pending satisfactory performance of a 06 privately financed response action; and 07 (B) described in AS 46.08.025(a)(3); 08 (4) [(3)] fines, penalties, or damages recovered under AS 46.08.005 - 09 46.08.080 or other law for costs incurred by the state as a result of the release or 10 threatened release of oil or a hazardous substance; 11 (5) the interest earned on the balance of the accounts maintained 12 under AS 37.05.142 for deposits into the general fund from the proceeds of the 13 surcharges levied under AS 43.55.201 and 43.55.300; and 14 (6) the interest earned on the balances of each of the following: 15 (A) the prevention account; 16 (B) the prevention mitigation account; 17 (C) the response account; and 18 (D) the response mitigation account. 19 (b) Money received by the state under (a)(2) - (6) [(a)(2) AND (a)(3)] of this 20 section shall be deposited in the general fund and credited to a special account called 21 the "oil and hazardous substance release prevention mitigation account." The 22 legislature may annually appropriate to the prevention account in the fund from the 23 prevention mitigation [THIS] account a sum equal to the amount received under 24 (a)(2) - (6) [(a)(2) AND (a)(3)] of this section during the calendar year preceding the 25 legislative session in which the appropriations are to be made. 26 * Sec. 25. AS 46.08 is amended by adding a new section to read: 27 Sec. 46.08.025. FINANCING OF THE OIL AND HAZARDOUS 28 SUBSTANCE RELEASE RESPONSE ACCOUNT. (a) The legislature may 29 appropriate from the following sources to the oil and hazardous substance release 30 response account in the fund: 31 (1) the annual estimated balance of the account maintained under

01 AS 37.05.142 for deposit into the general fund of the proceeds of the oil conservation 02 surcharge levied by AS 43.55.201; 03 (2) money received from other state sources, from federal or other 04 sources, or from a private donor; and 05 (3) money recovered or otherwise received from parties responsible for 06 the containment and cleanup of oil or a hazardous substance at a specific site for 07 which the state expended money from the former oil and hazardous substance release 08 response fund before the effective date of this section or for which the state expended 09 money from the response account, but excluding 10 (A) money from performance bonds and other forms of 11 financial responsibility held in escrow pending satisfactory performance of a 12 privately financed response action; 13 (B) fines, penalties, and damages described in 14 AS 46.08.020(a)(4). 15 (b) Money received by the state under (a)(2) and (3) of this section shall be 16 deposited in the general fund and credited to a special account called the "oil and 17 hazardous substance release response mitigation account." The legislature may 18 annually appropriate to the response account in the fund from the response mitigation 19 account a sum equal to the amount received under (a)(2) and (3) of this section during 20 the calendar year preceding the legislative session in which the appropriations are to 21 be made. 22 * Sec. 26. AS 46.08.040(a) is amended to read: 23 (a) In addition to money in the response account of the fund that is 24 transferred to the commissioner of community and regional affairs to make grants 25 under AS 29.60.510 and to pay for impact assessments under AS 29.60.560, the 26 commissioner of environmental conservation may use money 27 (1) from the response account in the fund 28 (A) when authorized by AS 46.08.045, [(1)] to investigate and 29 evaluate the release [OR THREATENED RELEASE] of oil or a hazardous 30 substance, and contain, clean up, and take other necessary action, such as 31 monitoring and assessing, to address a release [OR THREATENED RELEASE]

01 of oil or a hazardous substance that poses an imminent and substantial threat 02 to the public health or welfare, or to the environment; 03 (B) to [(2) PAY ALL COSTS INCURRED TO 04 (A) ESTABLISH AND MAINTAIN THE OIL AND 05 HAZARDOUS SUBSTANCE RESPONSE OFFICE; 06 (B) REVIEW OIL DISCHARGE PREVENTION AND 07 CONTINGENCY PLANS SUBMITTED UNDER AS 46.04.030; 08 (C) CONDUCT TRAINING, RESPONSE EXERCISES, 09 INSPECTIONS, AND TESTS, IN ORDER TO VERIFY EQUIPMENT 10 INVENTORIES AND ABILITY TO PREVENT AND RESPOND TO OIL 11 AND HAZARDOUS SUBSTANCE RELEASE EMERGENCIES, AND TO 12 UNDERTAKE OTHER ACTIVITIES INTENDED TO VERIFY OR 13 ESTABLISH THE PREPAREDNESS OF THE STATE, A MUNICIPALITY, 14 OR A PARTY REQUIRED BY AS 46.04.030 TO HAVE AN APPROVED 15 CONTINGENCY PLAN TO ACT IN ACCORDANCE WITH THAT PLAN; 16 AND 17 (D) VERIFY OR ESTABLISH PROOF OF FINANCIAL 18 RESPONSIBILITY REQUIRED BY AS 46.04.040; 19 (3) PAY THE EXPENSES INCURRED BY THE ALASKA DIVISION 20 OF EMERGENCY SERVICES FOR THE OIL AND HAZARDOUS SUBSTANCE 21 RESPONSE CORPS AND THE OIL AND HAZARDOUS SUBSTANCE RESPONSE 22 DEPOTS WHEN PRESENTED WITH APPROPRIATE DOCUMENTATION BY 23 THE DIVISION; 24 (4)] provide matching funds in the event of a release of oil or a 25 hazardous substance for which use of the response account is authorized by 26 AS 46.08.045 for participation 27 (i) in federal oil discharge cleanup activities; and 28 (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 29 Environmental Response, Compensation, and Liability Act of 1980); 30 and 31 (C) to [(5)] recover the costs to the state, a municipality, [OR]

01 a village , or a school district of a containment and cleanup resulting from the 02 release [OR THE THREATENED] release of oil or a hazardous substance for 03 which money was expended from the response account; 04 (2) from the prevention account in the fund to 05 (A) investigate and evaluate the release or threatened release 06 of oil or a hazardous substance, except a release described in AS 46.08.045, 07 and contain, clean up, and take other necessary action, such as monitoring 08 and assessing, to address a release or threatened release of oil or a 09 hazardous substance, except a release described in AS 46.08.045; 10 (B) pay all costs incurred to 11 (i) establish and maintain the oil and hazardous 12 substance response office; 13 (ii) review oil discharge prevention and contingency 14 plans submitted under AS 46.04.030; 15 (iii) conduct training, response exercises, inspections, 16 and tests, in order to verify equipment inventories and ability to 17 prevent and respond to oil and hazardous substance release 18 emergencies, and to undertake other activities intended to verify or 19 establish the preparedness of the state, a municipality, or a party 20 required by AS 46.04.030 to have an approved contingency plan to 21 act in accordance with that plan; and 22 (iv) verify or establish proof of financial 23 responsibility required by AS 46.04.040; 24 (C) pay the expenses incurred by the division of emergency 25 services for 26 (i) the oil and hazardous substance response corps; 27 and 28 (ii) the oil and hazardous substance response depots; 29 (D) pay, when presented with appropriate documentation by 30 the Alaska State Emergency Response Commission, expenses incurred by 31 the commission for

01 (i) its activities, including staff support, when the 02 activities and staff support relate to oil or hazardous substances; 03 and 04 (ii) the costs of being prepared for and responding to 05 a request by the department for support in activities that relate to 06 response to and restoration of the effects of an oil or hazardous 07 substance release; 08 (E) pay all costs incurred to acquire, repair, or improve an 09 asset having an anticipated life of more than one year and that is acquired, 10 repaired, or improved as a preparedness measure by which the state may 11 respond to, recover from, reduce, or eliminate the effects of a release or 12 threatened release of oil or a hazardous substance; 13 (F) pay the costs, if approved by the commissioner, that 14 were incurred by local emergency planning committees to carry out the 15 duties assigned them by AS 46.13.080; 16 (G) provide matching funds in the event of the release of oil 17 or a hazardous substance, except a release of oil for the containment and 18 cleanup of which use of the response account is authorized by 19 AS 46.08.045, for participation 20 (i) in federal oil discharge cleanup activities; and 21 (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 22 Environmental Response, Compensation, and Liability Act of 1980); 23 (H) pay or reimburse the storage tank assistance fund 24 established in AS 46.03.410 for expenditures from that fund authorized by 25 AS 46.03.410(b); 26 (I) recover the costs to the state, a municipality, a village, 27 or a school district of a containment and cleanup resulting from the release 28 or threatened release of oil or a hazardous substance for which money was 29 expended from the prevention account; 30 (J) [; (6)] prepare, review, and revise 31 (i) [(A)] the state's master oil and hazardous substance

01 discharge prevention and contingency plan required by AS 46.04.200; 02 and 03 (ii) [(B)] a regional master oil and hazardous substance 04 discharge prevention and contingency plan required by AS 46.04.210; 05 and 06 (K) [(7)] restore the environment by addressing the effects of 07 an oil or hazardous substance release. 08 * Sec. 27. AS 46.08.040(a)(2)(D) is repealed and reenacted to read: 09 (D) pay, when presented with appropriate documentation by the 10 Department of Military and Veterans' Affairs, expenses incurred by the 11 Department of Military and Veterans' Affairs for 12 (i) Alaska State Emergency Response Commission 13 activities, including staff support, when the activities and staff support 14 relate to oil or hazardous substances; and 15 (ii) the costs to the Department of Military and 16 Veterans' Affairs of being prepared for and responding to a request by 17 the department for support in activities that relate to response to and 18 restoration of the effects of an oil or hazardous substance release; 19 * Sec. 28. AS 46.08.040(c) is amended to read: 20 (c) Notwithstanding other provisions of this section, money from the fund may 21 not be used for a purpose specified in (a)(1)(B) or (C) or (a)(2) [(a)(2) - (7) AND 22 (d)(2)] of this section unless money is available from an appropriation made 23 specifically for that purpose. The legislature may use not more than three percent 24 of the estimated annual balance of the prevention account to make appropriations 25 for the purposes described in (a)(2)(F) of this section. 26 * Sec. 29. AS 46.08 is amended by adding a new section to read: 27 Sec. 46.08.045. USE OF THE RESPONSE ACCOUNT. (a) The 28 commissioner may use money from the response account in the fund to respond to a 29 release when the governor declares a disaster related to an oil or hazardous substance 30 discharge emergency under AS 26.23.020(c). During the effective period of the 31 disaster emergency, the commissioner may use money from the response account to

01 respond to the disaster emergency. 02 (b) Notwithstanding (a) of this section, money from the response account may 03 be used for the purposes described in AS 46.08.040(a)(1)(A) without a declaration 04 under AS 26.23.020(c) when the release would exceed 2,500 barrels of oil, or would 05 exceed an amount of a hazardous substance released into the environment that presents 06 a threat to the economy and public welfare at least equivalent in effect to the effect 07 of a release of more than 2,500 barrels of oil if 08 (1) within 72 hours of being advised of a release of oil, the 09 commissioner prepares and provides to the governor and the members of the 10 Legislative Budget and Audit Committee a written report relating to the release, 11 summarizing the release, the state's actions, both taken and anticipated, the costs of 12 the state's actions, both taken and anticipated, and other information considered 13 appropriate by the commissioner; and 14 (2) not later than 72 hours after the commissioner is advised of the 15 release, the governor, in writing, approves the commissioner's use of the money in the 16 account; the governor shall approve or modify and approve the state's response to the 17 release as set out in the commissioner's report and may, at any time during the period 18 of the state's response to the release, approve, disapprove, or modify action taken or 19 expected to be taken by the department in its use of money in the response account to 20 respond to the release. 21 * Sec. 30. AS 46.08.050(b) is amended to read: 22 (b) A [THE] department that is appropriated or allocated money from the 23 fund, either directly or through a reimbursable service agreement with the 24 Department of Environmental Conservation, shall develop procedures governing the 25 expenditure of, and accounting for, money it expends [EXPENDED] from the fund. 26 The Department of Environmental Conservation may not reimburse or pay money 27 to another state agency for the agency's activities under AS 46.08.040 unless the 28 state agency provides to the department the information necessary to complete the 29 report required by AS 46.08.060 [, AND MAY NOT DELAY IMPLEMENTATION 30 OF THIS CHAPTER PENDING THE EFFECTIVE DATE OF THE PROCEDURES]. 31 * Sec. 31. AS 46.08.060(a) is amended to read:

01 (a) The commissioner shall submit a report to the legislature not later than the 02 10th day following the convening of each regular session of the legislature. The report 03 may include information considered significant by the commissioner but must include: 04 (1) the amount of money expended by the department under 05 AS 46.08.040(a)(1)(A) and (2)(A) [AS 46.08.040(a)] during the preceding fiscal year; 06 (2) the amount and source of money received and money recovered by 07 or on behalf of the department during the preceding fiscal year under 08 (A) AS 46.04.010 (reimbursement of cleanup expenses); 09 (B) AS 46.08.020(a)(4) (recovery of fines, penalties, and 10 damages); and 11 (C) AS 46.08.025(a)(3) (cost recoveries) [AS SPECIFIED IN 12 AS 46.08.020]; 13 (3) a summary of municipal participation in the department's responses 14 that were paid for [FUNDED] by the response account [FUND]; 15 (4) a [DETAILED] summary of department activities in responses paid 16 for [FUNDED] by the response account [FUND] during the preceding fiscal year, 17 including response descriptions and statements outlining the nature of the threat; [IN 18 THIS PARAGRAPH, "DETAILED" INCLUDES INFORMATION DESCRIBING 19 EACH PERSONAL SERVICES POSITION AND TOTAL COMPENSATION FOR 20 THAT POSITION, EACH CONTRACT IN EXCESS OF $20,000, AND EACH 21 PURCHASE IN EXCESS OF $10,000]; and 22 (5) the projected cost to the department for the next fiscal year of 23 monitoring, operating, and maintaining sites where response [HAS BEEN 24 COMPLETED OR] is expected to be continued during the fiscal year, to the extent 25 these costs would be paid for from the response account. 26 * Sec. 32. AS 46.08.060(b) is amended to read: 27 (b) As part of the department's on-going identification efforts associated with 28 oil spill or hazardous substance release or waste sites, the commissioner shall include 29 in the report under this section 30 (1) the number [A SUMMARY] of [THE] sites that are included in 31 the department's contaminated sites data base, whether the site is active or closed;

01 and [IDENTIFIED BY THE DEPARTMENT;] 02 (2) a prioritized listing of those sites, both statewide and by 03 community, based on the immediate and long-term threats to the public health or 04 welfare or to the environment [POSED BY THESE SITES; AND 05 (3) THE APPROPRIATE ACTIONS NEEDED TO ABATE THESE 06 THREATS, AND THEIR ESTIMATED COST]. 07 * Sec. 33. AS 46.08.060(c) is amended to read: 08 (c) In addition to the department's report required under (a) of this section, the 09 governor shall submit a report about use of the fund during the previous fiscal year to 10 the legislature not later than the 10th day following the convening of each regular 11 session of the legislature. In the report, the governor shall describe in detail the 12 governor's use of money from the fund, with separate explanations, by agency, of the 13 activities that were paid for [FUNDED] under the authority of AS 46.08.045 14 [AS 46.08.040(b)]. 15 * Sec. 34. AS 46.08.070 is amended by adding a new subsection to read: 16 (d) The department shall adopt regulations to implement the cost recovery 17 requirements of (a) and (b) of this section, but may not delay cost recovery actions 18 pending the effective date of the adoption of the regulations. 19 * Sec. 35. AS 46.08.075(a) is amended to read: 20 (a) The state has a lien for expenditures by the state from the [OIL AND 21 HAZARDOUS SUBSTANCE RELEASE RESPONSE] fund, or from any other state 22 fund, for the costs of response, containment, removal, or remedial action resulting from 23 an oil or hazardous substance release [SPILL], or, with respect to response costs, for 24 the costs of response to a threatened [THE SUBSTANTIAL THREAT OF A] release 25 of oil or a hazardous substance, against all property owned by a person who is 26 determined by the commissioner to be liable for the expenditures under this chapter, 27 AS 46.03, AS 46.04, 42 U.S.C. 9607, or other state or federal law. The lien includes 28 interest, at the maximum rate allowable under AS 45.45.010(a), from the date of the 29 expenditures. The state may file an action in a court of competent jurisdiction in order 30 to foreclose on the lien. 31 * Sec. 36. AS 46.08.075(e) is amended to read:

01 (e) A person with an ownership interest in property against which a lien is 02 recorded may bring an action in a court of competent jurisdiction to require that the 03 lien be released. The lien may be released to the extent of that person's ownership 04 interest if the court finds that the person is not liable for the expenses incurred by the 05 state in connection with the costs of response, containment, removal, or remedial 06 action resulting from the [OIL OR HAZARDOUS SUBSTANCE] release or from the 07 threatened [THREAT OF] release, of oil or a hazardous substance. 08 * Sec. 37. AS 46.08.900(5) is amended to read: 09 (5) "fund" means the oil and hazardous substance release prevention 10 and response fund; 11 * Sec. 38. AS 46.08.900(9) is amended to read: 12 (9) "release" 13 (A) means any spilling, leaking, pumping, pouring, emitting, 14 emptying, discharging, injecting, escaping, leaching, dumping, or disposing into 15 the environment; 16 (B) [, EXCEPT THAT "RELEASE"] does not include 17 (i) a permitted release; or 18 (ii) an act of nature; 19 * Sec. 39. AS 46.08.900(11) is amended to read: 20 (11) "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. 40. AS 46.08.900 is amended by adding new paragraphs to read: 31 (13) "catastrophic oil discharge" and "catastrophic oil release" have the

01 meaning given the term "catastrophic oil discharge" in AS 46.04.900; 02 (14) "prevention account" means the oil and hazardous substance 03 release prevention account established in AS 46.08.010(a)(1); 04 (15) "prevention mitigation account" means the oil and hazardous 05 substance release prevention mitigation account established in AS 46.08.020(b); 06 (16) "response account" means the oil and hazardous substance release 07 response account established in AS 46.08.010(a)(2); 08 (17) "response mitigation account" means the oil and hazardous 09 substance release response mitigation account established in AS 46.08.025(b). 10 * Sec. 41. AS 46.09.900(8) is amended to read: 11 (8) "threatened release" means [AN IMMINENT DANGER] that a 12 release is imminent; a release is imminent if 13 (A) it is impending, or on the point of happening; or 14 (B) though not impending, in the judgment of the 15 commissioner 16 (i) the incident or occurrence may reasonably be 17 expected to culminate in an actual release; and 18 (ii) that actual release may reasonably be expected to 19 cause personal injury, other injury to life, or loss of or damage to 20 property, including the environment [WILL OCCUR]. 21 * Sec. 42. AS 19.65.025; AS 24.20.600, 24.20.610, 24.20.620, 24.20.630; AS 43.55.200, 22 43.55.210, 43.55.220, 43.55.230, 43.55.240; AS 44.46.025(a)(4) and (5); AS 46.08.040(b), 23 46.08.040(d); and sec. 3, ch. 112, SLA 1989 are repealed. 24 * Sec. 43. TREATMENT OF APPROPRIATION TO FORMER SPILL RESERVE FOR 25 PURPOSES OF AS 43.55.230. For the purpose of former AS 43.55.230(a)(2), repealed by 26 sec. 42 of this Act, an appropriation to the former spill reserve referred to in AS 29.60.510(b), 27 the reference to which is deleted by sec. 3 of this Act, is not an expenditure. 28 * Sec. 44. SURCHARGE IMPOSED BY AS 43.55.201 - 43.55.231 SUSPENDED AND 29 REIMPOSED. In addition to the circumstances set out in AS 43.55.231, the surcharge 30 authorized by AS 43.55.201 is not levied on and after the effective date of this section and 31 until June 30, 1995, if

01 (1) the Eighteenth Alaska State Legislature does not, during the Second 02 Regular Session or during any special session held before the effective date of this section, 03 appropriate at least an amount equal to the estimated amount, as of the day before the 04 effective date of this section, of the unexpended and unobligated balance of the former oil and 05 hazardous substance release response fund to the response account in the oil and hazardous 06 substance release prevention and response fund; or 07 (2) the governor vetoes or reduces the amount appropriated under (1) of this 08 section. 09 * Sec. 45. TRANSITIONAL PROVISIONS APPLICABLE TO CONSERVATION 10 SURCHARGE ON OIL IMPOSED BY AS 43.55.200 AFTER JUNE 30, 1994, AND 11 BEFORE THE EFFECTIVE DATE OF THIS SECTION. After June 30, 1994, and before the 12 effective date of this section, every producer of oil who is required by AS 43.55.200 - 13 43.55.240, repealed by this Act, to pay the oil conservation surcharge of $.05 per barrel of oil 14 shall pay that levy. The provisions of AS 43.55.210 - 43.55.240, repealed by this Act, apply 15 to the amounts received by the state under AS 43.55.200 - 43.55.240, but as to the amounts 16 received after June 30, 1994, and before the effective date of this section, if so appropriated 17 by the legislature and notwithstanding any other provision of law relating to the deposit of and 18 accounting for those receipts, 19 (1) on the effective date of this section, the commissioner of revenue shall 20 allocate 21 (A) 40 percent of the amount received to the response account 22 established by AS 46.08.010(a)(2), as amended by sec. 21 of this Act; and 23 (B) 60 percent of the amount received to the prevention account 24 established by AS 46.08.010(a)(1), as amended by sec. 21 of this Act; and 25 (2) the allocations made under (1) of this section are credited to the respective 26 accounts for purposes of determination of the suspension and reimposition of the surcharge 27 under AS 43.55.221 and 43.55.231, added by secs. 15 and 16 of this Act. 28 * Sec. 46. Section 27 of this Act takes effect only if a version of Senate Bill 33 29 transferring the Alaska State Emergency Response Commission from the Department of 30 Environmental Conservation to the Department of Military and Veterans' Affairs is enacted 31 by the Eighteenth Alaska State Legislature and becomes law.