Legislature(2017 - 2018)SENATE FINANCE 532
03/08/2018 09:00 AM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB92 | |
| SB158 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 321 | TELECONFERENCED | |
| += | SB 92 | TELECONFERENCED | |
| + | SB 158 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 158
"An Act relating to oil and hazardous substances and
waiver of cost recovery for containment and cleanup of
certain releases; and providing for an effective
date."
9:33:39 AM
KRISTIN RYAN, DIRECTOR, DIVISION OF SPILL PREVENTION AND
RESPONSE, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, JUNEAU,
discussed SB 158. The bill would offer cost recovery to
homeowners when they had a release of oil of hazardous
substance from equipment used for space heating or
electrical power generation. Current statutes require the
Department of Environmental Conservation to seek complete
cost recovery for cleaning up spilled petroleum or other
hazardous substances. This can deter homeowners from
reporting or cooperating with the department when they
experience a spill at their home, such as a spill from a
heating oil tank. She added that the language of the bill
had been crafted specifically for small homeowners that due
to lack of expertise were least able to deal with a spill.
9:37:42 AM
Ms. Ryan discussed the fiscal impact of the bill. She said
that costs related to spills ranged from $200 to $4,000.
She believed that guidance from the department was cost
effective. She stated that the money currently collected
from cost recover went into the Prevention Account, which
was utilized by the legislature to provide the division's
annual operating costs. She relayed that several other
sources of funds that went into the account would be
adequate to cover costs into the future. She felt that the
reduction in revenue was worth the value that would be
gained by cleaning up the environment and helping
individuals through a stressful situation.
9:39:55 AM
Senator von Imhof noted that she had heard the bill in the
Senate Resources Committee. She recalled testimony that had
clarified the reticence of homeowners to contact the
department because of the financial repercussions. She
asked how much the fuel tax the division received.
Ms. Ryan replied that the division received $.095 per
gallon.
Co-Chair MacKinnon clarified that the question was how much
was received in total on an annual basis.
Ms. Ryan stated that there were 2 sources of monies that
went to the fund. One was the $.095 per gallon for refined
fuel, which she believed would end up generating $6 million
per year; additionally, there was a $.04 per barrel tax
from Trans-Alaska Pipeline System (TAPS). Because of
declining production, there had been a decline in the
revenue, which had prompted the refined fuel tax.
9:41:54 AM
Vice-Chair Bishop asked about the release amount that
constituted a recordable spill.
Ms. Ryan stated that the amount varied depending on the
receiving environment. She stressed that all spills should
be reported to the division. She said that water spills
should be reported immediately, land spills were less
immediate depending on size. She relayed that large
companies on the North Slope provided a monthly report of
spills, rather than reporting each minor spill.
Co-Chair MacKinnon asked Ms. Ryan to walk through the
Sectional Analysis.
Ms. Ryan addressed the Sectional Analysis (copy on file):
Section 1 (Page 1, lines 4 -8): provides an exception
to existing mandatory cost recovery requirements.
Section 2 (Page 1, line 9 13): allows the Department
to adopt regulations to waive cost recovery efforts in
situations defined by the proposed legislation.
Section 3 (e) (Page 1, line 14 Page 2 line 16):
Establishes reasons the Department may waive cost
recovery efforts. The Department must find the release
was from a home or building with four or fewer housing
units; the release was not willful and was reported to
the Department immediately; the homeowner took
immediate measures to stop and contain the release;
and the homeowner granted access to the property and
is cooperative.
Section 4 (Page 2, lines 17-22): establishes the
ability for the Department to adopt regulations.
Section 5 (Page 2, lines 23-26): makes sections 1-3 of
the legislation retroactive to January 2018.
Section 6 (Page 2, line 27): allows the Department to
adopt regulations under section 4 immediately.
9:44:06 AM
Senator Stevens asked for an explanation of the term "small
homeowners."
Ms. Ryan explained that any sized home would meet the
exemption requirement.
Co-Chair MacKinnon referenced Ms. Ryan's comments about
unexpected exemptions. She requested further details.
Ms. Ryan stated that the most significant exemption was
municipalities that provided fuel for heat generation. She
recalled that the initial fiscal note had assumed $7.6
million would be generated, which had dropped to $6
million. She said that the most significant exemptions had
been for municipalities and power generation in villages.
Ms. Ryan stated that there was a section in statute that
spoke to the exemptions.
Co-Chair MacKinnon asked whether there was spills in
municipalities that the state was responsible for.
Ms. Ryan affirmed that there wherever there was fuel used
there would be spills. She said that the first goal was to
have the responsible party address the problem.
9:47:08 AM
Co-Chair MacKinnon OPENED public testimony.
9:47:28 AM
FABIENNE PETER-CONTESSE, HOMEOWNER, JUNEAU, testified in
support of the bill. She recounted that she had an
underground fuel spill at her home and had immediately
called Department of Environmental Conservation. She
detailed her process working with the department. She had
spent many tens of thousands of dollars to mitigate the
problem. She lamented that homeowner's insurance did not
cover her spill. She expressed appreciation for the ease
with which the department's staff had worked with her. She
revealed that overtime she began to receive bills for the
day to day operations of the division. She felt that the
billing of the public put a barrier between the public and
the department. She shared that she had recently received a
letter and expected that she would receive a bill for them
having written the letter. She expressed concern for people
who would be financially burdened for clean up efforts, on
top of the stress of dealing with the spill. She encouraged
full support of the legislation.
9:51:52 AM
Vice-Chair Bishop appreciated the testimony. He related
that he had heard similar stories from constituents.
Co-Chair MacKinnon CLOSED public testimony.
Vice-Chair Bishop discussed FN 1 from Department of
Environmental Conservation, OMB component number 3094. He
believed that the division had effectively explained the
note.
Senator Micciche supported the bill. He asked whether DEC
had increased its outreach to the public about the program
and spill prevention measures.
Ms. Ryan stated that the division had spent quite a bit of
time at home building association meetings and various
fairs that highlighted home products. She discussed the
concept of increasing prevention and noted that most spills
were occurring where fuel was stored in large volumes. She
said that the division only regulated tanks of 420,000
gallons or larger and had not role in prevention regualtion
below that threshold. She stated that regulation was
recently drafted that would require tanks below that
threshold, down to 13,000 gallons, to register with the
division. She believed that building relationships through
providing technical assistance would improve the dialogue
surrounding the maintenance of tanks.
9:56:18 AM
Ms. Ryan shared that the goal was setting standards in
regulation but thought this would be difficult to apply
universally throughout the state because of varied resource
availability in different areas of the state.
SB 158 was HEARD and HELD in committee for further
consideration.
9:58:08 AM
Co-Chair MacKinnon informed that amendments to the bill
were due by 5:00 p.m. on the following Friday.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB158 Sectional Analysis.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 158 |
| SB158 Supporting Document-DEC Fact Sheet.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 158 |
| SB158 Transmittal Letter.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 158 |
| SB 92 J. Murgas SFIN written testimony.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 92 |
| SB 92 Explanation of Changes Ver. O to Ver. U.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 92 |
| SB 92 FAQ Sheet.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 92 |
| SB 92 Work Draft Version U.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 92 |
| SB 92 Support Doc - Northern Economics 2015 Survey Summary.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 92 |