01/24/1994 05:00 PM House O&G

  Number 014                                                                   
                                                                               
  LARRY LaBOLLE, AIDE TO REP. RICHARD FOSTER, PRIME SPONSOR of                 
  HB 384, testified on his behalf.  He referred to a sponsor                   
  statement which is on file.  He stated the purpose of the                    
  bill is to remove the sunset clause from the existing                        
  legislation.                                                                 
                                                                               
  Number 030                                                                   
                                                                               
  BILL SCHOEPHOESTER (via Anchorage) stated that he also                       
  represents the Association of Refined Oil Product                            
  Distributors; an association of the three major line holders                 
  that transport the line haul for the refined petroleum                       
  products in the state of Alaska.  He stated that it made a                   
  lot of sense to repeal the temporary nature of the                           
  authorization the Department of Environmental Conservation                   
  (DEC) has to approve financial responsibility without direct                 
  access.  He stated HB 384 made good sense to him and he                      
  would like to see it pass, because if the direct access                      
  situation is ever corrected, it would not require any action                 
  to change, because the DEC would not have to exercise it's                   
  authority.  He also stated that he has been struggling with                  
  obtaining direct access insurance and has not had any                        
  success.                                                                     
                                                                               
  Number 054                                                                   
                                                                               
  CHAIRMAN GREEN asked if there was anyone from the DEC who                    
  might wish to answer questions or make a statement regarding                 
  the fact that there is still an insurance problem.                           
                                                                               
  Number 057                                                                   
                                                                               
  MICHAEL CONWAY, DIRECTOR OF THE DEC'S DIVISION OF SPILL                      
  PREVENTION & RESPONSE, stated that the DEC supports                          
  continuing the waiver provision and making the waiver                        
  provision permanent.  Without the  provision, the DEC may                    
  have to shut down facilities which provide fuel throughout                   
  Alaska.  The DEC is continuing to work with the insurance                    
  industry to make direct action coverage more readily                         
  available.  He stated that there is a proposed product now                   
  under review by DEC and the Department of Law, that would                    
  serve as a rider for insurance coverage that does not offer                  
  direct action.  He stated the DEC believes that the waiver                   
  provisions are strict enough (with a quarterly affidavit                     
  required and the department's ability to deny waivers) that                  
  the provision may be made a permanent part of the law.  He                   
  said the DEC supports the House language as optimal.                         
                                                                               
  Number 069                                                                   
                                                                               
  CHAIRMAN GREEN asked Mr. Conway if HB 384 was passed out and                 
  became law, and if in a few years some insurance company or                  
  companies come forth and provide coverage, would the                         
  Division of Spill Prevention & Response be the primary                       
  office to bring that to the attention of the legislature?                    
                                                                               
  Number 074                                                                   
                                                                               
  MR. CONWAY stated that it would be very easy for the DEC to                  
  notify the legislature.  The provision gives the DEC the                     
  flexibility to be able to move with whatever the industry is                 
  doing, but the DEC could provide the legislature with status                 
  reports at any time.                                                         
                                                                               
  Number 083                                                                   
                                                                               
  CHAIRMAN GREEN asked for the wish of the Committee.                          
                                                                               
  Number 084                                                                   
                                                                               
  REPRESENTATIVE GARY DAVIS moved that the Committee pass out                  
  HB 384 with individual recommendations.                                      
                                                                               
  Number 086                                                                   
                                                                               
  REPRESENTATIVE KOTT seconded the motion.  There were no                      
  objections.                                                                  
                                                                               
  Number 090                                                                   
                                                                               
  CHAIRMAN GREEN adjourned the meeting at 5:13 p.m.