04/14/2015 01:30 PM Senate FINANCE

CS FOR HOUSE BILL NO. 158(FIN)                                                                                                
                                                                                                                                
     "An Act relating to a refined fuel surcharge; relating                                                                     
     to the motor fuel tax; relating to a qualified dealer                                                                      
     license; and providing for an effective date."                                                                             
                                                                                                                                
1:49:42 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  MOVED to  ADOPT the  proposed committee                                                                    
substitute  for   CSHB  158(FIN),  Work   Draft  29-LS0608\G                                                                    
(Nauman,   4/11/15).   Co-Chair   MacKinnon   OBJECTED   for                                                                    
discussion.                                                                                                                     
                                                                                                                                
1:50:20 PM                                                                                                                    
                                                                                                                                
ERIN  SHINE, STAFF,  SENATOR ANNA  MACKINNON, explained  the                                                                    
changes in  the work draft. She  looked at page 1,  line 11,                                                                    
and stated  that the  amount was  previously 0.001,  and was                                                                    
changed to 0.0095.  She referred to page 2,  line three, and                                                                    
stated  that bonded  fuel  was removed,  so  there were  new                                                                    
numbers 3, 4, and 5.                                                                                                            
                                                                                                                                
Co-Chair  MacKinnon REMOVED  her objection.  There being  NO                                                                    
further  OBJECTION, the  proposed  committee substitute  was                                                                    
adopted.                                                                                                                        
                                                                                                                                
1:51:14 PM                                                                                                                    
                                                                                                                                
CRYSTAL KOENEMAN, STAFF,  REPRESENTATIVE CATHY MUNOZ, stated                                                                    
that  Representative  Munoz  sent  her regards  as  she  was                                                                    
currently participating in another committee hearing.                                                                           
                                                                                                                                
1:52:25 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:52:45 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
Vice-Chair Micciche MOVED to ATTACH  a Letter of Intent. Co-                                                                    
Chair MacKinnon OBJECTED for discussion.                                                                                        
                                                                                                                                
1:53:44 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:54:01 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Micciche  explained that the reason  for the rate                                                                    
reduction  was  to  provide  enough   to  manage  the  Spill                                                                    
Prevention  and  Response  (SPAR)  program.  The  Letter  of                                                                    
Intent  was   drafted  in  response  to   some  concerns  of                                                                    
Alaskans. He read from the letter (copy on file):                                                                               
                                                                                                                                
     It is the  intent of the Alaska  State Legislature that                                                                    
     the report  required by A.S. 46.08.060  (a) be provided                                                                    
     to  the  Legislature  not  later   than  the  10th  day                                                                    
     following the convening of each  regular session and to                                                                    
     include   a   comprehensive   summary   of   department                                                                    
     activities concerning the Prevention Account including                                                                     
                                                                                                                                
          A.   Public  outreach  and  education  efforts  to                                                                    
          reduce the risk of spills.                                                                                            
                                                                                                                                
          B.   Performance   measures   relating  to   spill                                                                    
          prevention  and response  to  spills of  non-crude                                                                    
          products.                                                                                                             
                                                                                                                                
          C.   Details  of spill  cleanup efforts  including                                                                    
          cost and the use of in-house personnel.                                                                               
                                                                                                                                
          D.   Specific information  for each  spill cleanup                                                                    
          on cost recovery efforts and results.                                                                                 
                                                                                                                                
          E.   Summary    of     policy    guidelines    for                                                                    
          determination   of   appropriate   cost   recovery                                                                    
          decisions.                                                                                                            
                                                                                                                                
Co-Chair  MacKinnon  wondered  if Representative  Munoz  was                                                                    
aware  of  the  Letter  of Intent,  and  whether  there  was                                                                    
opposition  or  support  of   its  inclusion.  Ms.  Koeneman                                                                    
replied  that Representative  Munoz  was  supportive of  the                                                                    
changes  in  the  committee substitute  and  the  Letter  of                                                                    
Intent.                                                                                                                         
                                                                                                                                
1:56:15 PM                                                                                                                    
                                                                                                                                
KEN ALPER,  DIRECTOR, TAX  DIVISION, DEPARTMENT  OF REVENUE,                                                                    
introduced himself.                                                                                                             
                                                                                                                                
Co-Chair MacKinnon  wondered if Mr. Alper  was familiar with                                                                    
the Letter of Intent. Mr.  Alper replied in the affirmative,                                                                    
and  felt  that  it  spoke  to the  role  of  Department  of                                                                    
Environmental  Conservation (DEC)  in the  operation of  the                                                                    
program. He did not feel that  DOR would have any issue with                                                                    
the language.                                                                                                                   
                                                                                                                                
Co-Chair  MacKinnon expressed  concern regarding  the public                                                                    
outreach and  education efforts toward spill  reduction. She                                                                    
queried the DEC's position on the Letter of Intent.                                                                             
                                                                                                                                
1:57:06 PM                                                                                                                    
                                                                                                                                
KRISTIN  RYAN, DIRECTOR,  DIVISION OF  SPILL PREVENTION  AND                                                                    
RESPONSE, DEPARTMENT OF  ENVIRONMENTAL CONSERVATION, replied                                                                    
that DEC  was comfortable with the  requirements outlined in                                                                    
the Letter of  Intent. She stated that  DEC already provided                                                                    
a biannual  report, so the additional  requirements would be                                                                    
included  in that  report. She  stated that  the educational                                                                    
outreach  efforts  would  be   documented  in  the  biannual                                                                    
report.                                                                                                                         
                                                                                                                                
Senator  Bishop requested  a meeting  with a  representative                                                                    
from  DEC.  He felt  he  would  add  some insight  into  the                                                                    
educational outreach.                                                                                                           
                                                                                                                                
Vice-Chair  Micciche clarified  that  the  Letter of  Intent                                                                    
only required an  annual report, and did not  add any costs.                                                                    
Ms. Ryan agreed.                                                                                                                
                                                                                                                                
Co-Chair  MacKinnon wondered  if  there  were already  funds                                                                    
available for  educational outreach.  Ms. Ryan  replied that                                                                    
there were  already funds  for the  program, and  the report                                                                    
would  be  electronic,  therefore  requiring  no  additional                                                                    
costs.                                                                                                                          
                                                                                                                                
Vice-Chair Micciche commented that he  had put effort in the                                                                    
legislation. He  had studied  the many  aspects of  the SPAR                                                                    
program,  and commended  DEC on  their educational  outreach                                                                    
efforts.                                                                                                                        
                                                                                                                                
Senator Dunleavy surmised that  the letter would be attached                                                                    
to  the  legislation,  but  would  not  be  incorporated  as                                                                    
language in the bill. Co-Chair MacKinnon agreed.                                                                                
                                                                                                                                
Co-Chair  MacKinnon REMOVED  her objection.  There being  NO                                                                    
further OBJECTION, the Letter of Intent was adopted.                                                                            
                                                                                                                                
CSHB 158(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.