05/04/2006 09:00 AM Senate FINANCE

                                                                                                                                
     HOUSE BILL NO. 419                                                                                                         
     "An Act repealing the Board  of Storage Tank Assistance, the                                                               
     underground storage  tank revolving loan fund,  and the tank                                                               
     cleanup   loan   program;    repealing   certain   reporting                                                               
     requirements relating to  underground petroleum storage tank                                                               
     systems; making conforming amendments;  and providing for an                                                               
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Green read the bill's title.                                                                                           
                                                                                                                                
10:18:52 AM                                                                                                                   
                                                                                                                                
KAREN LIDSTER,  Staff to Representative John  Coghill, the bill's                                                               
sponsor,  stated that,  in order  to  meet federal  Environmental                                                               
Protection Agency (EPA)  guidelines regarding underground storage                                                               
tanks, the Legislature,  in 1990, approved HB  220, which created                                                               
the Underground Storage Tank Program  (USTP) and the Storage Tank                                                               
Assistance Fund (STAF) grant program.  Grant applications to STAF                                                               
were prioritized on criteria established  by the Board of Storage                                                               
Tank Assistance (BSTA).                                                                                                         
                                                                                                                                
Ms. Lidster  stated that  USTP was phased  out shortly  after the                                                               
EPA underground  storage tank program  ended, and the  STAF grant                                                               
program was  converted to the Underground  Storage Tank Revolving                                                               
Loan Fund  (STRLF) in the  year 2002. However, the  initial grant                                                               
program  was "extremely  successful" and  when STRLF  was created                                                               
there were  no applicants for  its funds. With the  transition to                                                               
STRLF, there was no reason  to continue the BSTA. Therefore, this                                                               
bill would  modify "the end date  for the Board [of  Storage Tank                                                               
Assistance]  in order  to be  consistent  with the  end date  for                                                               
formal  termination of  the loan  program." It  would in  essence                                                               
eliminate statutes and regulations that are no longer required.                                                                 
                                                                                                                                
10:20:49 AM                                                                                                                   
                                                                                                                                
Senator  Bunde  asked for  further  clarification  of the  reason                                                               
STRLF did not receive any  applications, specifically whether the                                                               
funds provided by  STAF had adequately addressed  the entirety of                                                               
underground tanks or whether the  transition from a grant program                                                               
to a loan program caused the decrease in applicants.                                                                            
                                                                                                                                
Ms. Lidster  deferred to  Larry Dietrick  with the  Department of                                                               
Environmental Conservation.                                                                                                     
                                                                                                                                
10:21:22 AM                                                                                                                   
                                                                                                                                
Senator  Bunde  clarified  his question  as  whether  there  were                                                               
storage  tanks still  needing to  be addressed  and whether  they                                                               
were not being  cleaned up because the program changed  to a loan                                                               
program.                                                                                                                        
                                                                                                                                
10:21:36 AM                                                                                                                   
                                                                                                                                
LARRY  DIETRICK,   Director,  Division  of  Spill   Prevention  &                                                               
Response, Department  of Environmental Conservation,  stated that                                                               
6,000 of  the 7,000 underground  storage tanks in the  State have                                                               
been removed.  The balance of  the tanks was upgraded  to current                                                               
requirements. The effort  has cost $43 million. This  "was a very                                                               
significant program", and the hope  is that it negated the threat                                                               
from underground storage tank pollutants.                                                                                       
                                                                                                                                
Senator Bunde  understood therefore that the  deteriorating tanks                                                               
were "eliminated".                                                                                                              
                                                                                                                                
Mr. Dietrick affirmed.                                                                                                          
                                                                                                                                
Senator Olson asked whether the  term "eliminated" meant that the                                                               
tanks  were  actually removed  or  were  simply "not  being  used                                                               
anymore".                                                                                                                       
                                                                                                                                
Mr. Dietrick stated that 6,000 tanks were physically removed.                                                                   
                                                                                                                                
Senator Olson asked whether the  program addressed both under and                                                               
above ground storage tanks.                                                                                                     
                                                                                                                                
Mr.  Dietrick   responded  that   the  program  was   limited  to                                                               
underground storage tanks.                                                                                                      
                                                                                                                                
Senator Hoffman  asked whether restoring  the program to  a grant                                                               
program would generate further applicants.                                                                                      
                                                                                                                                
Mr. Dietrick  expressed that continuing  the grant program  as it                                                               
was originally  designed, which was  to remove tanks  not meeting                                                               
EPA standards,  would not generate additional  applicants, as all                                                               
of the tanks were either removed or updated.                                                                                    
                                                                                                                                
Co-Chair Green opined that Senator  Hoffman appeared to be having                                                               
difficulty believing that.                                                                                                      
                                                                                                                                
Senator  Bunde  shared  Senator Hoffman's  sentiment.  "If  there                                                               
wasn't a free lunch, they wouldn't be standing in line."                                                                        
                                                                                                                                
Co-Chair Green  voiced being  encouraged that  "we are  ending an                                                               
era".                                                                                                                           
                                                                                                                                
10:24:30 AM                                                                                                                   
                                                                                                                                
Senator Olson asked whether the  underground storage tank program                                                               
pertained to both water and petroleum product tanks.                                                                            
                                                                                                                                
Mr. Dietrick  stated that  the program  was limited  to petroleum                                                               
product tanks.                                                                                                                  
                                                                                                                                
Co-Chair  Wilken moved  to report  the bill  from Committee  with                                                               
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being no  objection, HB  419 was  REPORTED from  Committee                                                               
with previous zero  fiscal note #1 dated March 21,  2006 from the                                                               
Department of Environmental Conservation.