04/29/1996 03:42 PM Senate RES

                                                                               
        CSHB 456(L&C) BOARD OF STORAGE TANK ASSISTANCE                       
                                                                               
  CHAIRMAN LEMAN  called the Senate Resources Committee meeting to             
 order at 3:42 p.m.  He stated the meeting would be considered a               
 work session until a quorum as established.  He then introduced               
 CSHB 456(L&C) as the first order of business.                                 
                                                                               
  JOHN BARNETT , Executive Director of the Board of Storage Tank               
 Assistance, said the board was formed through legislation adopted             
 in 1990.  It is comprised of seven members:  the commissioner of              
 the Department of Transportation & Public Facilities; the                     
 commissioner of the Department of Environmental Conservation; and             
 five members from the private sector.  HB 456 replaces one of the             
 commissioners with a member of the general public that has no                 
 personal financial interest in underground storage tanks,  This               
 change, in addition to the actual extension of the board, was a               
 recommendation of a legislative audit conducted last year.                    
                                                                               
 Mr. Barnett explained the board is a judicial appeal board and acts           
 as a mediator between the regulated underground tank owners                   
 community and the Department of Environmental Conservation.  When             
 tank owners have disputes with DEC, they can go before the board              
 and the board can make rulings which affect DEC or affect the                 
 owner-operator.  Also, the board can make recommendations.                    
                                                                               
 The board also resolves disputes regarding eligibility for                    
 financial assistance, as well as providing educational assistance             
 and technical assistance to tank owners throughout the state.  Mr.            
 Barnett noted there are 1,000 unfunded financial assistance                   
 requests on file, which represent about $50 million.  The board               
 sets the ranking criteria to rank those sites.  He noted the board            
 has been very successful over the last four years in ensuring that            
 smaller businesses get the funds in general.                                  
                                                                               
 Mr. Barnett said the board has also been very successful at                   
 eliminating problems before they escalate.  By acting as a mediator           
 they can actually assist a tank owner in getting assistance, either           
 technical, financial or otherwise.                                            
                                                                               
 Mr. Barnett stated the board supports the legislative audit                   
 recommendation of continuation for four more years.                           
                                                                               
  CHAIRMAN LEMAN  asked how much the program costs, and if it breaks           
 even with the user fees.   MR. BARNETT  replied that the user fees            
 they've taken in through tank registration receipts are slightly              
 under $400,000 a year, and the board cost is approximately $114,000           
 a year.  He added that this year they are funded at about $1.9                
 million for financial assistance grants and loans, the source of              
 these funds is in the response fund.                                          
                                                                               
  CHAIRMAN LEMAN  asked if DEC supports the legislation, and  MR.              
 BARNETT  acknowledged that they do.                                           
                                                                               
 Number 172                                                                    
                                                                               
  JIM HAYDEN,  Program Manager, Storage Tank Program, Department of            
 Environmental Conservation, said in 1988 it was recognized that new           
 federal rules would impact the small businesses and that they would           
 have a very difficult time of administering or coming up to speed             
 with the new rules so the board was brought into play to try to               
 mediate between the department and the small tank owner.  He said             
 the program has worked very well, and the department is very much             
 in favor of the board's participation and continued participation.            
                                                                               
  ROGER POPPE,  aide to Representative Pete Kott who is prime sponsor          
 of HB 456, clarified the legislation applies to just underground              
 storage of which there are approximately 2,500 in the state at 900            
 facilities.  He said EPA already has a great many restrictions with           
 some new ones going into effect in 1998, which is a good argument             
 for continuation of the board just in anticipation of how to deal             
 with those new federal restrictions.                                          
                                                                               
 There being no further testimony on CSHB 456(L&C),  CHAIRMAN LEMAN            
 closed the public hearing and stated the bill would be set aside              
 until a quorum was established.                                               
                                                                               
       CSHB 456(L&C)  BOARD OF STORAGE TANK ASSISTANCE                       
                                                                               
  CHAIRMAN LEMAN  brought CSHB 456(L&C) back before the committee and          
 asked for the pleasure of the committee.                                      
                                                                               
  SENATOR TAYLOR  moved CSHB 456(L&C) be passed out of committee with          
 individual recommendations.  Hearing no objection, it was so                  
 ordered.