04/21/1994 01:35 PM House FIN

  SB 330    An Act  relating  to  water  quality  enhancement,                 
            water supply, waste water, and solid waste grants;                 
            the Alaska clean water fund; the establishment  of                 
            the  Alaska   clean  water  account,   the  Alaska                 
            drinking water fund, and the Alaska drinking water                 
            account; and providing for an effective date.                      
                                                                               
            CS SB 330 (RLS) was reported out of Committee with                 
            "no recommendations"  and with a zero  fiscal note                 
                                                                               
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            by  the  Department of  Environmental Conservation                 
            dated 2/24/94.                                                     
  SENATE BILL 330                                                              
                                                                               
       "An  Act relating  to water quality  enhancement, water                 
       supply, waste water, and solid waste grants; the Alaska                 
       clean water fund; the establishment of the Alaska clean                 
       water account, the Alaska drinking  water fund, and the                 
       Alaska  drinking water  account; and  providing for  an                 
       effective date."                                                        
                                                                               
  KEITH  KELTON, DIRECTOR, DIVISION OF FACILITY CONSTRUCTION &                 
  OPERATION, DEPARTMENT OF  ENVIRONMENTAL CONSERVATION,  noted                 
  that  SB   330  proposed   modifications  to  two   statutes                 
  administered by  the  Division of  Facility  Construction  &                 
  Operation  within the  Department,  AS 46.03.030  (Municipal                 
  Matching Grants) and AS 46.03.032 (Alaska Clean Water Fund).                 
                                                                               
  Mr. Kelton  provided background  history of  the bill  which                 
  would create the Alaska Clean Water Fund in order to provide                 
  low interest loans  for the construction of  municipal waste                 
  water projects.  The program, capitalized 83% by the federal                 
  government, was  designed to replace EPA  construction grant                 
  programs.   He  continued that  since only  the  waste water                 
  projects could be  financed, the Legislature then  created a                 
  separate  account for excess State appropriations to provide                 
  loans for water supply and solid waste projects.  Mr. Kelton                 
  noted the account has not yet  been capitalized and that the                 
  only capitalized loans are for waste water projects.                         
                                                                               
                                                                               
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  Mr. Kelton added,  SB 330  would provide funding  assistance                 
  through  grants   and   loans   to   Alaska's   incorporated                 
  municipalities for  the construction  of water,  waste water                 
  and solid waste improvements.                                                
                                                                               
  Co-Chair  MacLean questioned  the legislative impact  to the                 
  VSW  program  and the  matching grants  for water  and sewer                 
  projects.  Mr. Kelton responded that  there would be a small                 
  fiscal impact  to the  other grants at  a higher  percentage                 
  than is currently available.  He added that the impact would                 
  be controlled by the appropriation  process and the priority                 
  list would be assembled by the Department.                                   
                                                                               
                                                                               
  Co-Chair MacLean reiterated that  this legislation would  be                 
  impacting  the  municipal matching  grants  list.   Only two                 
  projects  were  funded  this   year  through  the  municipal                 
  matching  grants for water  and sewer and  with the proposed                 
  legislation, the  local communities would be  more seriously                 
  competing for that money.                                                    
                                                                               
  Representative Brown MOVED to report CS  SB 330 (RLS) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being NO OBJECTIONS, it was                 
  so ordered.                                                                  
                                                                               
  CS  SB  330 (RLS)  was reported  out  of Committee  with "no                 
  recommendations"  and  with  a  zero   fiscal  note  by  the                 
  Department of Environmental Conservation dated 2/24/94.