Legislature(1999 - 2000)

04/04/2000 02:00 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
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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