Legislature(2005 - 2006)CAPITOL 124

04/25/2005 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HCR 9 AGRICULTURE DAY TELECONFERENCED
Moved Out of Committee
+= HB 269 HAZARDOUS SUBSTANCE RELEASE LIABILITY TELECONFERENCED
Moved Out of Committee
+= HB 241 BOARD OF FISHERIES CONFLICTS OF INTEREST TELECONFERENCED
Heard & Held
HB 269-HAZARDOUS SUBSTANCE RELEASE LIABILITY                                                                                  
                                                                                                                                
CO-CHAIR RAMRAS announced that the  final order of business would                                                               
be HOUSE BILL  NO. 269, "An Act relating  to contribution actions                                                               
relating to the  release of a hazardous  substance; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
JANE PIERSON, Staff to Representative Jay Ramras, read the                                                                      
following statement [original punctuation provided]:                                                                            
                                                                                                                                
     HB 269 deals with fixing  the uncertainty caused by the                                                                    
     United  States Supreme  Court's December  2004 decision                                                                    
     in, Cooper Industries v. Aviall Services, Inc.                                                                             
                                                                                                                                
     Alaska's hazardous  substance remediation  statutes are                                                                    
     modeled after  the Federal  Comprehensive Environmental                                                                    
     Response Compensation & Liability  Act of 1980 (CERCLA)                                                                    
     and  the Superfund  Amendments and  Reauthorization Act                                                                    
     of 1986 (SARA)                                                                                                             
                                                                                                                                
     The  US  Supreme Court  found  in  the Aviall  decision                                                                    
     that, a  responsible party cannot bring  a contribution                                                                    
     action until  such time as  the party has been  sued by                                                                    
     the state or federal government,  or has entered into a                                                                    
     formal administrative settlement of liability.                                                                             
                                                                                                                                
     The Aviall  decision puts into  question the  rights of                                                                    
     Alaskan's who conduct  voluntary cleanups on properties                                                                    
     contaminated   by  hazardous   substances  to   undergo                                                                    
     contribution   actions    against   other   potentially                                                                    
     responsible parties.                                                                                                       
                                                                                                                                
     Voluntary cleanups of contaminated  sites form the vast                                                                    
     majority  of environmental  cleanups  conducted in  the                                                                    
     State of Alaska.                                                                                                           
                                                                                                                                
     These voluntary  cleanups allow the state  to focus its                                                                    
     limited  resources  on   monitoring  responsible  party                                                                    
     cleanup   actions,   instead  of   undertaking   costly                                                                    
     administrative  or  judicial   enforcement  actions  to                                                                    
     force  cleanups,  or  undertaking  cleanups  at  public                                                                    
     expense.                                                                                                                   
                                                                                                                                
     The  right   to  contribution  actions   against  other                                                                    
     potentially  responsible parties  creates an  important                                                                    
     incentive  for   voluntary  remediation,   by  allowing                                                                    
     responsible  parties  to undertake  effective  cleanups                                                                    
     themselves, and then  be able to recover  some of those                                                                    
     costs from  other potentially responsible  parties, who                                                                    
     fail to voluntarily undertake or  assist with the clean                                                                    
     up.                                                                                                                        
                                                                                                                                
     The  purpose of  HB 269,  is to  respond to  the Aviall                                                                    
     decision   by    clarifying   the   language    in   AS                                                                    
     46.03.822(j),  ensuring  that responsible  parties  who                                                                    
     conduct  voluntary  cleanups   may  bring  contribution                                                                    
     actions against other potentially responsible parties.                                                                     
                                                                                                                                
     HB  269  has the  support  of  both the  Department  of                                                                    
     Environmental Conservation and the Governor's office.                                                                      
                                                                                                                                
     This is not  an area of law where Alaska  can afford to                                                                    
     have the  common law  decisions of  the court  out pace                                                                    
     our  codified laws.   For  the reasons  stated above  I                                                                    
     urge the committee to pass HB269.                                                                                          
                                                                                                                                
2:31:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD asked for an explanation.                                                                               
                                                                                                                                
MS. PIERSON said  if there was a gas spill  on your property, and                                                               
you were  not the one  who spilled it but  you clean it  up, then                                                               
you cannot sue  the guilty party until  the government instigates                                                               
an action.   She said  HB 269 changes  our statutes so  that once                                                               
the state or federal government  has identified other responsible                                                               
parties you can sue them for their part in the spill.                                                                           
                                                                                                                                
2:32:50 PM                                                                                                                    
                                                                                                                                
BENJAMIN BROWN, Legislative  Liaison, Department of Environmental                                                               
Conservation, said the Supreme Court  came to an odd decision and                                                               
said  unless you  have a  right  to a  contribution action  under                                                               
certain sections  of the  act, then  you can't  go after  a third                                                               
party defendant.   The Alaska  Supreme Court  has not yet  made a                                                               
similar decision, but  it could, he said.  The  bill will prevent                                                               
a future  problem based  on this  "arcane interpretation"  by the                                                               
U.S. Supreme Court.                                                                                                             
                                                                                                                                
2:35:22 PM                                                                                                                    
                                                                                                                                
BRETT  TOSTEVIN,  Assistant  Attorney  General,  Civil  Division,                                                               
Department of Law (DOL), said the  DOL supports HB 269 because it                                                               
allows  people who  do  voluntary  cleanup to  try  to get  costs                                                               
covered even  if they have  not been  sued, and it  would removes                                                               
the  confusion  brought  about by  the  Supreme  Court  decision.                                                               
Voluntary  cleanup   can  occur  "without  us   having  to  incur                                                               
additional  costs  or  enforcement   actions  or  have  to  bring                                                               
lawsuits against people  simply to allow them to have  a right of                                                               
contribution against  other people who  are liable."   Without HB
269, a monkey  wrench could be thrown into  the state's voluntary                                                               
cleanup  program.   The bill  would allow  a contribution  action                                                               
after the  issuance of the  potential liability  determination by                                                               
the  Department  of  Environmental  Conservation,  and  the  bill                                                               
defines what that may determination  be.  The bill will encourage                                                               
voluntary  cleanups in  the future  and  not reward  recalcitrant                                                               
parties.                                                                                                                        
                                                                                                                                
2:40:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD asked who would be opposed to the bill.                                                                 
                                                                                                                                
MR. TOSTEVIN said he does not know of any.                                                                                      
                                                                                                                                
2:41:17 PM                                                                                                                    
                                                                                                                                
GEORGE  LYLE, Private  Attorney, Anchorage,  said he  has clients                                                               
who  own properties  that were  contaminated by  previous owners.                                                               
Current  owners are  obligated to  clean up  the properties,  but                                                               
they should retain the right  to go after the parties responsible                                                               
for the contamination,  he stated.  The owners  tend to volunteer                                                               
to  do  the  cleanup  with  the  understanding  that  they  could                                                               
eventually seek recovery from the  people who actually caused the                                                               
problems.  He urged the committee to pass HB 269.                                                                               
                                                                                                                                
2:43:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON moved  to report  HB 269  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.    There  being  no   objection,  HB  269  passed  out  of                                                               
committee.                                                                                                                      

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