CSSB 128(RES): "An Act moving the termination date of the Board of Storage Tank Assistance to June 30, 1999; relating to the storage tank assistance fund; relating to financial assistance for owners and operators of underground petroleum storage tank systems; relating to discharges from underground petroleum storage tank systems; and providing for an effective date."
00CS FOR SENATE BILL NO. 128(RES) 01 "An Act moving the termination date of the Board of Storage Tank Assistance 02 to June 30, 1999; relating to the storage tank assistance fund; relating to 03 financial assistance for owners and operators of underground petroleum storage 04 tank systems; relating to discharges from underground petroleum storage tank 05 systems; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 44.66.010(a)(18) is amended to read: 08 (18) Board of Storage Tank Assistance (AS 46.03.360) - June 30, 1999 09 [2000]; 10 * Sec. 2. AS 46.03.360(e) is amended to read: 11 (e) Under AS 44.62 (Administrative Procedure Act), the board shall adopt 12 regulations under which the department shall 13 (1) [DETERMINE WHICH COSTS OF TIGHTNESS TESTING AND 14 SITE ASSESSMENT ARE ELIGIBLE COSTS UNDER AS 46.03.415;
01 (2)] rank requests for assistance under AS 46.03.421 [AS 46.03.420]; 02 (2) [(3)] determine which costs of risk assessment, containment, 03 corrective action, and cleanup are eligible costs under AS 46.03.421 [AS 46.03.420]; 04 and 05 (3) [(4)] determine which costs of upgrading and closure are eligible 06 costs under AS 46.03.431 [AS 46.03.430]. 07 * Sec. 3. AS 46.03.360(f) is amended to read: 08 (f) If the department determines that an owner or operator is not eligible for 09 assistance under AS 46.03.410 - 46.03.431 [AS 46.03.410 - 46.03.430] or that a cost 10 is not eligible under AS 46.03.410 - 46.03.431 [AS 46.03.415 - 46.30.430] and the 11 affected owner or operator disputes that determination, or if an owner or operator 12 disputes the ranking assigned to a request for assistance under AS 46.03.421 13 [AS 46.03.420], the owner or operator may apply to the board for resolution of the 14 dispute. The board may issue a decision in a dispute brought to it under this 15 subsection. The decision is binding on the owner, operator, and department. 16 * Sec. 4. AS 46.03.360(g) is amended to read: 17 (g) The board may adopt regulations to limit the number of sites per calendar 18 year for which an owner or operator may be awarded financial assistance under 19 AS 46.03.421 and 46.03.431 [AS 46.03.420 - 46.03.430]. The department shall 20 implement the regulations. 21 * Sec. 5. AS 46.03.365(c) is amended to read: 22 (c) When [EXCEPT AS PROVIDED IN AS 46.03.420(c)(2)(A), WHEN] the 23 regulations adopted under this section address areas governed by federal laws or 24 regulations, the state regulations must be consistent with federal laws and regulations 25 and may not be more stringent than the federal laws and regulations. 26 * Sec. 6. AS 46.03.405 is amended to read: 27 Sec. 46.03.405. Prohibitions. A person, including a governmental entity or 28 institution, or a public corporation, may not operate an underground petroleum storage 29 tank or tank system unless 30 (1) the tank and tank system is registered with the department as 31 provided in AS 46.03.360 - 46.03.450 or other law; and
01 (2) [EXCEPT AS PROVIDED IN AS 46.03.420(c)(1)(D),] the person 02 has provided to the department proof of financial responsibility to the extent required 03 under regulations adopted under AS 46.03.365 or proof of application for arrangements 04 that would satisfy state financial responsibility requirements. 05 * Sec. 7. AS 46.03.410 is amended to read: 06 Sec. 46.03.410. Storage tank assistance fund. (a) There is established the 07 storage tank assistance fund. It consists of money appropriated to it by law. The 08 department shall deposit earnings on money in the fund in the general fund. The 09 legislature may use the estimated balance in the account maintained by the 10 commissioner of administration under AS 37.05.142 to make appropriations to the 11 fund. The legislature may appropriate unencumbered money from the fund for 12 the cost of risk assessment, containment, corrective action, and cleanup relating 13 to an underground petroleum storage tank system owned or operated by the 14 federal government, the state, the University of Alaska, a public corporation, a 15 school district, or another political subdivision or instrumentality of the state. An 16 application for funds under AS 46.03.421 and 46.03.431 is not considered an 17 encumbrance for purposes of this subsection. 18 (b) The commissioner may use money in the fund to pay for 19 (1) [TANK TIGHTNESS TESTS OR SITE ASSESSMENTS UNDER 20 AS 46.03.415; 21 (2) GRANTS AND] loans under AS 46.03.421 [AS 46.03.420] for risk 22 assessment, containment, corrective action, and cleanup costs; and 23 (2) loans [(3) GRANTS] under AS 46.03.431 [AS 46.03.430] for tank 24 system upgrading and closure. 25 (c) The commissioner shall prepare a report on the status of the storage tank 26 assistance fund and notify the legislature not later than the 10th day following the 27 convening of each regular session of the legislature that the report is available. The 28 report may include information considered significant by the commissioner but must 29 include 30 (1) the amount and source of money received by the fund during the 31 preceding fiscal year;
01 (2) the amount of money expended during the preceding fiscal year for 02 each type of expense authorized under (b) of this section; 03 (3) a detailed summary of department activities paid for from the fund 04 during the preceding fiscal year, including how many requests for assistance have been 05 made to the department to use the fund for [GRANTS OR] loans for [TESTING, SITE 06 ASSESSMENT,] risk assessment, upgrading, closure, containment, corrective action, 07 and cleanup costs, and the number of requests funded in each activity area; 08 (4) the projected cost for the next fiscal year of monitoring, operating, 09 and maintaining sites where department activities have been completed or are expected 10 to start or be continued during the fiscal year; 11 (5) the priority list of tank system sites for which the department 12 expects to provide financial assistance in the next fiscal year. 13 * Sec. 8. AS 46.03 is amended by adding a new section to read: 14 Sec. 46.03.421. Tank cleanup loan program. (a) The commissioner may 15 make a loan from the storage tank assistance fund to an owner or operator of an 16 underground petroleum storage tank system for the costs of risk assessment, 17 containment, corrective action, and cleanup resulting from a release of petroleum from 18 or associated with an underground petroleum storage tank system if the owner or 19 operator submitted a timely application for a grant under former AS 46.03.420 and 20 agrees 21 (1) to accept a loan in the same or lesser amount instead of a grant for 22 the same project; 23 (2) to provide additional security or collateral for the loan if requested 24 by the department 25 (3) either to 26 (A) upgrade all underground petroleum storage tanks located at 27 the facility from which the release occurred to the standards set by state and 28 federal regulations according to a time line established by the department; or 29 (B) remove and properly dispose of all liquids and sludges from 30 the underground petroleum storage tanks located at the facility from which the 31 release occurred, conduct a site assessment, and either fill the tanks with inert
01 solid material or properly dismantle, remove, and dispose of the tanks in 02 accordance with applicable state and federal regulations; and 03 (4) to submit a plan for risk assessment, containment, corrective action, 04 and cleanup to the department for its review and approval; if the department and the 05 owner or operator cannot reach agreement on a plan or on later changes in the plan, 06 the owner or operator may apply to the board to review the dispute; the board may 07 issue a recommendation to the department in a dispute brought to it under this 08 paragraph. 09 (b) The department may require more security or collateral for a loan made 10 under this section than was required under a previously approved grant application for 11 the same project. 12 (c) Under regulations of the board, the department shall rank requests under 13 this section in order of priority, giving greatest priority to those tank systems that 14 present the greatest threat or potential threat to human health. 15 (d) The department may deny a request for a loan under this section if other 16 risk assessment, containment, corrective action, tank upgrading or closure, and cleanup 17 activities for which money may be used under AS 46.03.410 constitute a higher 18 priority for fund expenditures. 19 (e) This section does not affect 20 (1) the liability under state or federal law of a person or entity that 21 receives assistance under this section for the costs of risk management, containment, 22 corrective action, and cleanup resulting from a release of petroleum; or 23 (2) the authority of the department to seek recovery from the owner or 24 operator of costs other than grants or loans actually made to an owner or operator 25 under this section or the former provisions of this section. 26 (f) The rate of interest on a loan under this section is equal to the 12th Federal 27 Reserve District discount rate in effect on January 1 of the year in which the loan is 28 approved plus one-half percentage point. The department shall disburse a loan in 29 partial payments according to a schedule that allows reasonable oversight and 30 assessment during implementation of the plan approved under (a) of this section. The 31 interest rate applicable to a loan remains the same throughout the project for which the
01 loan was approved but begins accruing on each partial payment only after 02 disbursement of that payment. 03 (g) The legislature may appropriate to the storage tank assistance fund 04 established under AS 46.03.410 the annual estimated balance of the account maintained 05 under AS 37.05.142 by the commissioner of administration to keep track of loan 06 repayments, including interest payments, under this section. 07 * Sec. 9. AS 46.03 is amended by adding a new section to read: 08 Sec. 46.03.431. Tank upgrading and closure loan program. (a) The 09 department shall, by regulation, establish a loan program under which the owner or 10 operator of an underground petroleum storage tank may receive a loan for 60 percent 11 of the eligible costs of tank upgrading or closure, subject to a maximum total loan of 12 $60,000 for each facility. 13 (b) An owner or operator is eligible for a loan under this section only if 14 (1) a timely application for a grant was submitted under former 15 AS 46.03.430 for the facility; and 16 (2) the owner or operator agrees to accept a loan instead of the grant. 17 (c) Under regulations adopted by the board, the department shall determine 18 which costs of upgrading and closure are eligible for a loan under this section. 19 (d) The rate of interest on a loan under this section is equal to the 12th Federal 20 Reserve District discount rate in effect on January 1 of the year in which the loan is 21 approved plus one-half percentage point. The department shall disburse a loan in 22 partial payments according to a schedule that allows reasonable oversight and 23 assessment during the project funded by the loan. The interest rate applicable to a 24 loan remains the same throughout the project for which the loan was approved but 25 begins accruing on each partial payment only after disbursement of that payment. 26 (e) A loan may not be awarded under this section for upgrading or closure 27 activities that do not meet the requirements of state and federal law. 28 (f) The legislature may appropriate to the storage tank assistance fund 29 established under AS 46.03.410 the annual estimated balance of the account maintained 30 under AS 37.05.142 by the commissioner of administration to keep track of loan 31 repayments, including interest payments, under this section.
01 (g) In this section, 02 (1) "closure" means to remove all petroleum and sludges from an 03 underground petroleum storage tank and either fill the tank with inert solid material 04 or properly dismantle, remove, and dispose of the tank; 05 (2) "upgrading" means to add or retrofit cathodic protection systems, 06 lining, spill and overflow controls, or similar systems to improve the ability of an 07 underground petroleum storage tank system to prevent a release. 08 * Sec. 10. Section 4(a), ch. 96, SLA 1990, is amended to read: 09 (a) Notwithstanding AS 46.03.421(e), former AS 46.03.420(h), 46.03.758, 10 46.03.760, 46.03.780, 46.03.790, and 46.03.822, a person, including a municipal school 11 district, regional educational attendance area, or municipality, is not civilly or 12 criminally liable to the state under those sections for a discharge covered by those 13 sections if the person demonstrates by a preponderance of the evidence that the person 14 (1) is the owner or operator of an underground petroleum storage tank 15 or tank system, as defined in AS 46.03.450 [, ENACTED BY SEC. 2 OF THIS ACT,] 16 that was installed before December 22, 1988, and the discharge occurred from that 17 tank or tank system before December 22, 1992; 18 (2) acted in good faith to report, assess, and mitigate damage from the 19 discharge and to undertake corrective action in accordance with applicable state and 20 federal law and was in compliance with all applicable state and federal law before the 21 discharge occurred; 22 (3) is receiving or has been approved for state funds under 23 AS 46.03.421 and 46.03.431 or former AS 46.03.420 - 46.03.430 [, ENACTED BY 24 SEC. 2 OF THIS ACT]; and 25 (4) did not intentionally cause the discharge. 26 * Sec. 11. AS 46.03.380(b)(3)(B)(ii), 46.03.415, 46.03.420, 46.03.430; and sec. 7, ch. 96, 27 SLA 1990, are repealed. 28 * Sec. 12. Section 1 of this Act takes effect immediately under AS 01.10.070(c). 29 * Sec. 13. Except as provided in sec. 12 of this Act, this Act takes effect July 1, 1999.