Legislature(1999 - 2000)
04/04/2000 02:00 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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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