Legislature(1999 - 2000)
04/04/2000 02:00 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 432
An Act extending the termination date of the Board of
Storage Tank Assistance; expanding the authority of the
board to issue recommendations concerning cleanup
decisions; and providing for an effective date.
LORALI MEIER, STAFF, REPRESENTATIVE BEVERLY MASEK, commented
that the Board of Storage Tank Assistance was created in
1990 in response to a clean up program initiated by
increased federal regulations and aggressive Environmental
Protection Agency (EPA) enforcement actions. Many Alaskan
underground storage tank owners were forced out of business
because they could not afford the high cost of clean up of
contamination from their leaking tanks.
Ms. Meier stated that the Storage Tank Assistance Program
was established to protect Alaska's drinking water supplies
and to help Alaska's regulated underground storage tank
owners and operators meet EPA's tough new environmental laws
and regulations pertaining to underground petroleum storage
tanks. The goals of the program were simple:
? Cleanup existing leaks,
? Prevent future leaks, and
? Help Alaska's tank owners and operators through
educational, technical, and financial assistance.
Although originally established as a financial assistance
grant program, the program was restructured in 1999 as
predominately a loan program.
Ms. Meier noted that HB 432 extends the termination date of
the Board of Storage Tank Assistance to June 30, 2003. It is
necessary to extend the termination date because many sites
have just initiated cleanup or are in the midst of a long
term cleanup process which are not expected to be completed
for a few years. Furthermore, as the new loan program is
expected to be implemented this upcoming construction
season, it is imperative that the Board remain available to
mediate and resolve disputes between the Department of
Environmental Conservation (DEC) and Alaska's underground
storage tank owners.
Ms. Meier stated that HB 432 also expands the authority of
the Board. Historically, there has been a delay by DEC in
sending final cleanup decisions to businesses. Clean-up
decisions, provide evidence that the contaminated site has
been cleaned up. Many sites are pending sale or are waiting
on bank financing. The transactions cannot proceed until
final cleanup decision letters are distributed by DEC. By
expanding the Board's authority to issue recommendations
concerning cleanup decisions, it is expected that many new
cleanup decisions will be issued that in the past have been
delayed or simply overlooked. The expansion of authority
will not be binding authority; it will simply provide a
forum for the Board, businesses, and DEC to discuss final
decision letters.
Representative Phillips asked for more detail regarding the
additional responsibility of the Board and the expansion of
that authority. Ms. Meier replied that it would not be a
binding authority; they would provide a form and
recommendations concerning the clean up decisions. She
noted that last session, SB 128 dealt with the Board of
Storage Tank program and transferred it from a grant program
to a loan program. It did not extend the Board.
JOHN BARNETT, PRIVATE CONTRACTOR PROVIDING SERVICES TO THE
BOARD OF STORAGE TANKS, JUNEAU, responded to queries from
Representative Phillips. He noted that there has been
discussion over the past few years regarding "no further
action" letters and delays associated with that. These are
essentially "clean-up" decisions with the owner clarifying
that their property is free of contamination which frees up
their property for resale.
Mr. Barnett pointed out that the problem which has occurred
in the last few years, is that the backlog of sites that
need to have the clean-up decisions, have created tremendous
delays. Many times, it is an over site by the Department or
some type of communication break down. A lot of the disputes
and appeals are resolved at the table. Given the proposed
legislation, the Board could make recommendations either to
the Department or to the tank owner to undertake a certain
amount of activities. Such action could resolve 90% of the
problems.
Co-Chair Therriault asked for comments on the amendments.
Mr. Barnett noted that the Board was in full support of the
amendment submitted by Co-Chair Mulder, 1-LS1539\A.1,
Lauterbach, 4/4/00. [Copy on File]. He pointed out that
the list had been closed since 1994 and that the amendment
would only affect entities on that list.
Co-Chair Therriault asked about impact of Amendment #2,
which would change the date. [Copy on File]. Mr. Barnett
replied that amendment would be acceptable.
Representative Phillips asked why the date extension had not
been added last year. Ms. Meier replied that there had not
been support on the Senate side. She added, this year,
there appears to be more support from the Senate if the date
was "2002".
Representative J. Davies asked if the list included non-
profits. Mr. Barnett stated that there are two on the
current list. They are currently not eligible for a grant.
GARY WEBER, (TESTIFIED VIA TELECONFERENCE), SECRETARY
TREASURER, ALASKA UNDERGROUND TANK OWNERS (AUTO), WASILLA,
noted that the under ground tank owners totally support the
proposed legislation.
Co-Chair Mulder MOVED to adopt Amendment #1. There being NO
OBJECTION, it was adopted.
(TAPE CHANGE, HFC 00 - 100, Side 1)
Co-Chair Mulder MOVED to adopt Amendment #2 which would
shorten the extension date. Representative J. Davies
OBJECTED. He stated that if the amendment was adopted, it
would need to be placed in the title. Co-Chair Mulder
WITHDREW Amendment #2.
Co-Chair Therriault asked if the fiscal note proposed
continuation of the existing funding. Mr. Barnett replied
that the fiscal note covers travel costs for the Board
members and a contract to be placed out for competitive bid
this spring. He pointed out that the Board was privatized
last year and that costs associated with the Board has
dramatically dropped. The revenue source would be
registration receipts received from the tank owners.
Representative Foster MOVED to report CS HB 432 (FIN) out of
Committee with individual recommendations and with the
accompanying note. There being NO OBJECTION, it was so
ordered.
CS HB 432 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by Department of
Environmental Conservation dated 3/21/00.
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