SB 128: "An Act relating to the storage tank assistance fund; eliminating the grant portion of a program relating to risk assessment, containment, corrective action, and cleanup of underground petroleum storage tank systems and replacing the grant portion with a loan program; relating to discharges from underground petroleum storage tank systems; and providing for an effective date."
00SENATE BILL NO. 128 01 "An Act relating to the storage tank assistance fund; eliminating the grant portion 02 of a program relating to risk assessment, containment, corrective action, and 03 cleanup of underground petroleum storage tank systems and replacing the grant 04 portion with a loan program; relating to discharges from underground petroleum 05 storage tank systems; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 46.03.365(c) is amended to read: 08 (c) When [EXCEPT AS PROVIDED IN AS 46.03.420(c)(2)(A), WHEN] the 09 regulations adopted under this section address areas governed by federal laws or 10 regulations, the state regulations must be consistent with federal laws and regulations 11 and may not be more stringent than the federal laws and regulations. 12 * Sec. 2. AS 46.03.405 is amended to read: 13 Sec. 46.03.405. Prohibitions. A person, including a governmental entity or 14 institution, or a public corporation, may not operate an underground petroleum storage
01 tank or tank system unless 02 (1) the tank and tank system is registered with the department as 03 provided in AS 46.03.360 - 46.03.450 or other law; and 04 (2) [EXCEPT AS PROVIDED IN AS 46.03.420(c)(1)(D),] the person 05 has provided to the department proof of financial responsibility to the extent required 06 under regulations adopted under AS 46.03.365 or proof of application for arrangements 07 that would satisfy state financial responsibility requirements. 08 * Sec. 3. AS 46.03.410(a) is amended to read: 09 (a) There is established the storage tank assistance fund. It consists of money 10 appropriated to it by law. The department shall deposit earnings on money in the fund 11 in the general fund. The legislature may use the estimated balance in the account 12 maintained by the commissioner of administration under AS 37.05.142 to make 13 appropriations to the fund. The legislature may appropriate unencumbered money 14 from the fund for any purpose, including the cost of risk assessment, containment, 15 corrective action, and cleanup, relating to an underground petroleum storage tank 16 system owned or operated by the federal government, the state, the University of 17 Alaska, a public corporation, a school district, or another political subdivision or 18 instrumentality of the state. An application for funds that has been approved by 19 the commissioner under AS 46.03.415 - 46.03.430 pending availability of funds is 20 not considered an encumbrance for purposes of this subsection. 21 * Sec. 4. AS 46.03.410(b) is amended to read: 22 (b) The commissioner may use money in the fund that has not been 23 appropriated for another purpose to pay for 24 (1) tank tightness tests or site assessments under AS 46.03.415; 25 (2) [GRANTS AND] loans under AS 46.03.420 for risk assessment, 26 containment, corrective action, and cleanup costs; and 27 (3) grants under AS 46.03.430 for tank system upgrading and closure. 28 * Sec. 5. AS 46.03.420 is repealed and reenacted to read: 29 Sec. 46.03.420. Tank cleanup program. (a) Subject to whether another 30 activity for which money may be used under AS 46.03.410 constitutes a higher priority 31 for fund expenditures, the commissioner may make a loan from the storage tank
01 assistance fund to an owner or operator of an underground petroleum storage tank 02 system for the costs of risk assessment, containment, corrective action, and cleanup 03 resulting from a release of petroleum from or associated with an underground 04 petroleum storage tank system if the owner or operator 05 (1) before July 1, 1994, submitted an application for a grant under the 06 former provisions of this section and the application was approved by the department 07 before July 1, 1999, subject to the availability of funds; 08 (2) agrees to accept a loan in the same or lesser amount instead of a 09 grant for the same project; and 10 (3) agrees to provide additional security or collateral for the loan if 11 requested by the department. 12 (b) The department may require more security or collateral for a loan made 13 under this section than was required under a previously approved grant application for 14 the same project. 15 (c) This section does not affect 16 (1) the liability under state or federal law of a person or entity that 17 receives assistance under this section for the costs of risk management, containment, 18 corrective action, and cleanup resulting from a release of petroleum; or 19 (2) the authority of the department to seek recovery from the owner or 20 operator of costs other than grants or loans actually made to an owner or operator 21 under this section or the former provisions of this section. 22 (d) The legislature may appropriate to the storage tank assistance fund 23 established under AS 46.03.410 the annual estimated balance of the account maintained 24 under AS 37.05.142 by the commissioner of administration to keep track of loan 25 repayments under this section. 26 * Sec. 6. Section 4(a), ch. 96, SLA 1990, is amended to read: 27 (a) Notwithstanding AS 46.03.420(c) [AS 46.03.420(h)], 46.03.758, 46.03.760, 28 46.03.780, 46.03.790, and 46.03.822, a person, including a municipal school district, 29 regional educational attendance area, or municipality, is not civilly or criminally liable 30 to the state under those sections for a discharge covered by those sections if the person 31 demonstrates by a preponderance of the evidence that the person
01 (1) is the owner or operator of an underground petroleum storage tank 02 or tank system, as defined in AS 46.03.450, enacted by sec. 2 of this Act, that was 03 installed before December 22, 1988, and the discharge occurred from that tank or tank 04 system before December 22, 1992; 05 (2) acted in good faith to report, assess, and mitigate damage from the 06 discharge and to undertake corrective action in accordance with applicable state and 07 federal law and was in compliance with all applicable state and federal law before the 08 discharge occurred; 09 (3) is receiving or has been approved for state funds under 10 AS 46.03.420 - 46.03.430, enacted by sec. 2 of this Act; and 11 (4) did not intentionally cause the discharge. 12 * Sec. 7. AS 46.03.380(b)(3)(B)(ii) is repealed. 13 * Sec. 8. This Act takes effect July 1, 1999.