Legislature(1999 - 2000)
03/20/2000 01:10 PM House RES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 432-BOARD OF STORAGE TANK ASSISTANCE CO-CHAIR MASEK announced that the next order of business would be 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." Number 0688 LORALI MEIER, Staff to Representative Masek, Alaska State Legislature, informed everyone that HB 432 was introduced by this committee as a safeguard to ensure that the Board of Storage Tank Assistance will still be effective while cleanup projects of contaminated sites continue. She pointed out that HB 432 would extend the Board of Storage Tank Assistance to [June 30,] 2003, which is necessary because many sites have just initiated cleanup or are in the midst of a long-term cleanup process. It is important for the board to be available during the upcoming construction season in order to [mediate] and resolve disputes between the Department of Environmental Conservation (DEC) and the underground storage tank owners. MS. MEIER pointed out that HB 432 also expands the authority of the board to allow the board to make recommendations concerning cleanup decisions. This would not be a binding authority, but would merely provide a forum for the board, businesses, and DEC to discuss final decision letters. Ms. Meier stated that passage of HB 432 this session is imperative or there will be no mediator between DEC and underground storage tank owners. She noted that she would refer most questions to Mr. Barnett, Board of Storage Tank Assistance. MS. MEIER, in response to Representative Joule, clarified that this was dealt with last year in the form of SB 128, which was sponsored by the Senate Finance Committee. She explained that SB 128 dealt with many issues concerning the underground storage tank facilities and the board. Currently, the board has already "sunset" and is in its "wind-down year;" however, there are sites that are still being cleaned up. Therefore, it is important that the board act as the mediator between DEC and the storage tank owners. REPRESENTATIVE COWDERY remarked that this [issue] has been around for about ten years. He inquired as to whether it is mainly the small or the large operators that are still not in compliance. MR. MEIER answered that she believes that most of the sites still being cleaned up are those of small business owners. She deferred to Mr. Barnett in regard to specific numbers. REPRESENTATIVE HARRIS referred to the fiscal note and asked if the "$40,200 contractual" is for only one person. MS. MEIER deferred to Mr. Barnett. Number 0960 JOHN BARNETT, Board of Storage Tank Assistance, informed the committee that he is a private contractor that provides staff support to the board. In response to Representative Cowdery's question, Mr. Barnett explained that initially there were a lot of large companies in this program as well as many on the waiting list. The bill that passed last year, SB 128, converted the predominantly grant program to a loan program. Senate Bill 128 also established new eligibility standards in order to ensure that only smaller facilities, "mom and pop" facilities, would be eligible for grants. There are still 60 of those small facilities that have started their cleanup program in the last year or two, or that will be starting their cleanup program this year. He noted that over 1,000 grants have been issued and thus the program is predominantly a loan program available to large businesses and a grant program for very small facilities. REPRESENTATIVE HARRIS restated his question with regard to whether the $40,200 covers the extension of Mr. Barnett's contract. MR. BARNETT replied yes. He explained that the board was privatized last year, and this fiscal note represents only travel and one person on contract, which would be himself. He further noted that it [the contract] goes out to a competitive bid process should HB 432 pass. REPRESENTATIVE COWDERY commented that when natural gas came to Anchorage, many privately owned homes had buried oil tanks. Since that time, he believes that the majority of those buried tanks have been removed due to refinancing and so forth. Representative Cowdery asked what is happening with buried tanks in Wasilla as [use of] natural gas is expanding in that area. MR. BARNETT pointed out that most of those [buried] tanks are residential heating oil tanks and therefore not regulated by DEC or the Environmental Protection Agency (EPA). There is not an active tracking mechanism. Nor is the extent of the problem known. He noted that the banking industry for financing new home sales/purchases has requested voluntary site assessments and the removal of old tanks. Since such tanks are not regulated, however, there are no standards in place for those tanks. Number 1210 GARY WEBER, Secretary Treasury, Alaska Underground Tank Owners and Operators Association, testified via teleconference from the Mat-Su Valley. He informed the committee that the underground- tank owners are counting on the board's being extended for the next three years because there are many that have not completed [cleanup]. He noted that he had not completed his own cleanup, which he has been involved in for ten years. Mr. Weber noted that when this program was initially established, the tank owners lobbied for high tank fees in order that money would be available to provide for this board. Although the tank fees have decreased as the upgrades have occurred, there is adequate money to support the board. In conclusion, Mr. Weber said that he hoped the committee would forward HB 432. Number 1325 BOB GILFILLIAN, Private Engineer, testified via teleconference from Anchorage. He informed the committee that he has been dealing with many environmental issues throughout the state in the private sector for about 20 years. He noted that before he moved into the private sector, he worked in DEC for three years. He also noted that he served as the first chairman of the board when it was created. Recently, he served on the Privatization Subcommittee on DEC. Mr. Gilfillian stated that he was in favor of HB 432 and recommended its passage. MR. GILFILLIAN stated that over the years he has found it problematic for "mom and pop" businesses to resolve problems when there is no one to go to. Since the creation of this board, he has found it to be a very effective to resolve issues and bring forward appeals when the department makes determinations. With the board, disputes have been resolved with the department at the table. Currently, many of these sites are approaching final cleanup or are in the cleanup phase, which have many complicated issues. Having the board continue is critical at this time. Mr. Gilfillian believes the board provides great value to the general public. Furthermore, the Privatization [Sub]Committee [on DEC] recommended continuation of the board and expansion of its authority in order to include all the contaminated sites besides the underground tank program. In conclusion, Mr. Gilfillian stated that he is in favor of the continuation of the board as well as for its expanded role. Number 1605 JOHN COOK, Owner, Sterling Tesoro, testified via teleconference from Kenai. He informed the committee that he is one of DEC's victims. If it were not for the board, he predicted that he would be in the "poorhouse." He stressed the need for the department's power to be overseen by the board. [The department] almost ruined him and others that are "mom and pop" businesses, he said. Mr. Cook informed the committee that he ended up with a $1 million grant, which [the department] wasted on monitor wells and extra regulations that were not necessary. [The department's] trick is to make more regulations in order to make their jobs binding. He pointed out that "these guys" charge exorbitant fees for cleanup and inspection of the site, but no one ever sees them. He expressed the need to clean up and perform an internal investigation [on the department]. For example, Mr. Cook pointed out that [the department] had an agricultural engineer in charge of his cleanup. Mr. Cook urged the committee to continue the board and suggested that an internal investigation be performed on the qualifications and actions of "these guys." He related his belief that "these guys" could be replaced by three engineers and a secretary. Number 1831 REPRESENTATIVE COWDERY made a motion to move HB 432 out of committee with individual recommendations and the accompanying fiscal note. He requested unanimous consent. There being no objection, HB 432 was moved from the House Resources Standing Committee.
| Document Name | Date/Time | Subjects |
|---|