Legislature(1993 - 1994)
05/05/1994 01:30 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 215 An Act relating to and redesignating the oil and hazardous substance release response fund and to its use in the event of a disaster emergency; repealing the authority in law by which marine highway vessels may be designed and constructed to aid in oil and hazardous substance spill cleanup in state marine water using money in the oil and hazardous substance release response fund; amending requirements relating to the revision of state and regional master prevention and contingency plans; altering requirements applicable to liens for recovery of state expenditures related to oil or hazardous substances; amending the authority to contract to provide personnel to respond to a release or threatened release of oil or a hazardous substance and to contract to conduct spill related research; 2 reassigning responsibility for the oil and hazardous substance response corps and for the emergency response depots to the Department of Environmental Conservation, and for the operation of the state emergency response commission and its attendant responsibilities for the local emergency planning commissions to the Department of Military and Veterans' Affairs; and modifying definitions of terms relating to the preceding provisions; terminating the nickel-per-barrel oil conservation surcharge; levying and collecting two new oil surcharges; and providing for the suspension and reimposition of one of the new surcharges; and providing for an effective date. HCS CS SB 215 (FIN) was reported out of Committee with "no recommendation" and with a fiscal note by the Department of Revenue dated 4/27/94 and four zero fiscal notes by the Department of Law dated 4/27/94, the Department of Administration dated 4/27/94, the Department of Public Safety dated 4/27/94 and the Department of Environmental Conservation dated 4/27/94. (Tape Change, HFC 94-160, Side 2). SENATE BILL 215 "An Act relating to and redesignating the oil and hazardous substance release response fund and to its use in the event of a disaster emergency; repealing the authority in law by which marine highway vessels may be designed and constructed to aid in oil and hazardous substance spill cleanup in state marine water using money in the oil and hazardous substance release response fund; amending requirements relating to the revision of state and regional master prevention and contingency plans; altering requirements applicable to liens for recovery of state expenditures related to oil or hazardous substances; amending the authority to contract to provide personnel to respond to a release or threatened release of oil or a hazardous substance and to contract to conduct spill related research; reassigning responsibility for the oil and hazardous substance response corps and for the emergency response depots to the Department of Environmental Conservation, and for the operation of the state emergency response commission and its attendant responsibilities for the 11 local emergency planning commissions to the Department of Military and Veterans' Affairs; and modifying definitions of terms relating to the preceding provisions; terminating the nickel-per-barrel oil conservation surcharge; levying and collecting two new oil surcharges; and providing for the suspension and reimposition of one of the new surcharges; and providing for an effective date." Representative Therriault MOVED that the version before the Committee be work draft #8-LS110\T, Chenoweth, 5/02/94. There being NO OBJECTION, it was so ordered. Representative Therriault distributed to the Committee Amendment #4, a xerox of the House Resource version of the legislation. The amendment would delete Sections #30 & #31 and replace it with the language of Section #30 from the Resources version. Representative Therriault MOVED to adopt Amendment #1. The language would do away with the 2,500 barrel threshold, replacing it with language rolled forward from the Senate version. BOB POE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained that Amendment #1 would eliminate Sections #30 & #31 in the House Finance version. Section #30 was the section which established a threshold of 2,500 barrels for the use of the Response Account and would have required a 72-hour reporting period and a verification from the Governor. Section #31 allowed the Department, for spills under 2,500 barrels, to use the remaining balance of the prevention account. He added that Amendment #4 would eliminate those two sections and would replace them with the section from the Resource's version which allows DEC to access the response account for any "threatened or actual release of any size" and must report in writing to the Governor and the Legislative Budget and Audit Committee within 120 hours of taking action. Representative Martin MOVED to amend Amendment #4 to 5 working days rather than 120 hours. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Martin. OPPOSED: Parnell, Therriault, Foster, Grussendorf, Hanley, Navarre, MacLean, Larson. Representative Hoffman was not present for the vote. The MOTION FAILED (2-8). 12 There being NO OBJECTION to adopting Amendment #4, it was adopted. Co-Chair MacLean MOVED to adopt Amendment #5 which would allow for the incorporation of above ground storage tanks. Mr. Poe reminded the Committee of the amount of money a three cent surcharge would produce. He pointed out that it would not provide enough to address either the above or below ground storage tank problems. He recommended further consideration of motor fuel taxes to address those problems. Mr. Poe stated the Department would not object to the amendment. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Foster, Grussendorf, Hanley, Martin, Navarre, Parnell, Larson, MacLean. OPPOSED: Therriault. Representative Hoffman was not present for the vote. The MOTION PASSED (9-1). Representative Brown MOVED to adopt Amendment #6, #8- LS1107\C.4, Chenoweth, 4/30/94. DAN AUSTIN, STAFF, REPRESENTATIVE KAY BROWN, explained that the money in the mitigation account is automatically placed into the response fund. The amendment would return the status quo in order to receive the general fund mitigation account and then the Legislature could make an appropriation from the response fund. Mr. Poe corrected Mr. Austin's explanation, explaining that the Exxon payments would go to the prevention account, mitigation account. Both of those accounts have a mitigation account and through the front section of the budget, the money collected in the mitigation account would then be appropriated to the prevention account or to other uses. Representative Brown WITHDREW Amendment #6. Representative Brown MOVED to adopt Amendment #7 which would allow the response fund to be used for threatened releases. Mr. Poe supported the amendment. There being NO OBJECTION, it was adopted. Representative Brown MOVED to adopt Amendment #8 which would require that restoration activities after a spill be paid for from the response portion of the fund and not from the 13 prevention portion of the account. Mr. Poe indicated that would be a policy call of the Legislature. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Navarre, Brown. OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson. Representative Hoffman was not present for the vote. The MOTION FAILED (3-7). Representative Brown MOVED TO WITHDRAW Amendment #9. There being NO OBJECTION, it was withdrawn. Representative Brown MOVED to adopt Amendment #10 which would delete the definition of a catastrophic oil release returning the bill to the House Resources version. There being NO OBJECTION, it was adopted. Representative Brown MOVED to adopt Amendment #11 which would split the existing reserve funds between the two accounts. Mr. Poe stated that the effect of the split would be to create a $24 million dollar tax reduction over a five year period of time. REPRESENTATIVE DAVID FINKELSTEIN asked if there would be enough money for both the above and the below ground storage tanks without the amendment. Mr. Poe stated there would not. Representative Therriault added that even with the amendment, there would not be sufficient money for those concerns. Representative Therriault OBJECTED to Amendment A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown, Larson. OPPOSED: Hanley, Martin, Parnell, Therriault, Foster. The MOTION FAILED (5-6). Representative Therriault MOVED to report HCS CS SB 215 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. HCS CS SB 215 (FIN) was reported out of Committee with "no recommendations" and with a fiscal note by the Department of 14 Revenue dated 4/27/94 and zero fiscal notes by the Department of Law dated 4/27/94, the Department of Administration dated 4/27/94, the Department of Public Safety dated 4/27/94 and the Department of Environmental Conservation dated 4/27/94. (Tape Change, HFC 94-161, Side 1).
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