05/05/1996 10:05 AM Senate FIN

                                                                               
       CS FOR HOUSE BILL NO. 456(L&C)                                          
       "An  Act  relating   to  the  Board  of   Storage  Tank                 
  Assistance; and     providing for an effective date."                        
                                                                               
  George Dozier,  staff aide to Representative  Kott testified                 
  on behalf of the bill.  He  said this bill was due to sunset                 
  this  year.    Legislative audit  recommended  the  board be                 
  extended and that  a public  member be added  to the  board.                 
  This bill would also take care of those recommendations.                     
                                                                               
  John Barnett, executive  director, storage tank  assistance,                 
  DEC was  invited to  join the  committee.   He reviewed  the                 
  legislative history.  He explained the amendment co-chairman                 
  Halford  requested  be drafted.    The current  storage tank                 
  assistance program  does not limit eligibility for financial                 
  assistance.    If  one  has  a  regulated tank  and  pays  a                 
  registration  fee,  they  are   able  to  receive  financial                 
  assistance without regard to financial need.  The  board has                 
  worked up  criteria related  to rural  locations, number  of                 
                                                                               
                                                                               
  facilities owned by  the oeprator  and some other  criteria.                 
  It  will retain  the public  health threat  criteria as  the                 
  greatest emphasis to be put on sites; and also the inability                 
  to demonstrate the financial  responsibility requirements as                 
  set out by the                                                               
  Federal   Government.      The    financial   responsibility                 
  requirements require pollution  liability insurance or  self                 
  insurability.   Mr.  Barnett  said  the  federal  government                 
  defined small companies  through financial responsibility as                 
  twelve tanks or  less.   This would be  consistent with  the                 
  federal requirements.  The  failure of a tank owner  to meet                 
  financial  responsibility  under federal  law  is a  fine of                 
  $10,000/day.  He said  sites would be ranked with  six tanks                 
  or less with higher points than twelve tanks or less because                 
  it is a  set criteria the  board could consider in  ranking.                 
  Co-chairman Halford  said  he felt  smaller entities  should                 
  have  a  higher  priority.    Mr.  Barnett  said the  Alaska                 
  Underground Tank  Owners and Operators  supported ten tanks;                 
  the department made the  suggestion of twelve.  He  was sure                 
  there  would be  no  objection if  the  committee wanted  to                 
  initially reduce it  to ten on  this amendment.  Twelve  was                 
  considered  consistent  with  federal  rules.    Co-chairman                 
  Halford said he  has opposed this  bill in the past  because                 
  there are  four elements:   testing,  clean-up, closure  and                 
  granting individuals money to purchase new   tanks.  At some                 
  point the spill should not be rewarded.  The upgrade portion                 
  is the one that has the most opposition.                                     
                                                                               
  Senators  Phillips and  Sharp moved  amendment  #1 regarding                 
  tank  cleanup program.   Mr. Dozier  said the  sponsor would                 
  have no objection to the amendment.    Without objection the                 
  amendment  was  adopted.   Senator  Phillips moved  SCS CSHB
(FIN)  and  without objection  it  was reported  out with                 
  individual  recommendations  and   zero  fiscal  note   from                 
  Department of Environmental Conservation.                                    
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Senator  Halford recessed at  12:24 P.M. subject  to call of                 
  the chair.