Legislature(1999 - 2000)

04/17/2000 04:15 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
             HB 432-BOARD OF STORAGE TANK ASSISTANCE                                                                        
                                                                                                                                
MS. LORALI MEIER, staff to the House  Resources Committee, sponsor                                                              
of HB 432, explained  the measure as follows.  HB  432 extends the                                                              
termination date of  the Board of Storage Tank  Assistance to 2003                                                              
and it expands the Board's authority.   The extension of the Board                                                              
is  necessary because  many  sites  are in  the  process of  being                                                              
cleaned up and  most underground storage tank  owners believe they                                                              
need the  Board to mediate  between themselves and  the Department                                                              
of Environmental Conservation (DEC).   The authority that is being                                                              
expanded is  not a binding authority,  it simply provides  a forum                                                              
for all involved parties to sit down  at the table.  It allows the                                                              
Board to review a dispute on a cleanup  decision.  When the Board,                                                              
DEC and  the tank  owner can  sit down  together  to focus on  the                                                              
final decision  letter, most  of the  issues are easily  remedied.                                                              
The fiscal note reflects the cost  of staff travel and the cost of                                                              
the executive administration.                                                                                                   
                                                                                                                                
CHAIRMAN HALFORD  asked if the March  30, 1999 sunset date  in the                                                              
original legislation  had a one-year extension date  which is what                                                              
the Board is operating under now.                                                                                               
                                                                                                                                
MS. MEIER said that is correct.                                                                                                 
                                                                                                                                
CHAIRMAN  HALFORD  asked  who  requested   the  expansion  of  the                                                              
authority to non-profit entities.                                                                                               
                                                                                                                                
MS. MEIER replied that amendment  was introduced by Representative                                                              
Mulder  in  the House  Finance  Committee.   That  amendment  only                                                              
affects one non-profit entity which she believes is a church.                                                                   
                                                                                                                                
Number 475                                                                                                                      
                                                                                                                                
MR. JOHN BARNETT,  a private contractor serving in  a support role                                                              
to the  Board of  Storage Tank  Assistance, pointed  out that  the                                                              
Senate Resources  Committee proposed  changing the program  from a                                                              
grant program to a loan program last  year.  The Board rewrote its                                                              
regulations under  the new guidelines  and converted it to  a loan                                                              
program.  Those  regulations recently went into effect.   A number                                                              
of  sites have  applied  for loans.    The same  authorities  were                                                              
listed under the  loan statutes to provide for  appeals or dispute                                                              
mediation with  the Board of Storage  Tank Assistance.   Being the                                                              
first year  of the loan program,  tank owners have  requested that                                                              
the Board  be in place to  mediate eligible cost  disputes related                                                              
to  loans.   A number  of tank  owners have  received "no  further                                                              
action"  letters from  DEC and  they have  asked for  a forum  for                                                              
dispute resolution.  The tank owners  agreed to pay a registration                                                              
fee that should provide for the Board.                                                                                          
                                                                                                                                
SENATOR  TAYLOR  noted  the  amendment  made  on  the  House  side                                                              
provides for a grant, not a loan.                                                                                               
                                                                                                                                
MR. BARNETT explained that a few  non-profits were on the original                                                              
grant  list.   Under  the  revised eligibility  requirements  that                                                              
evolved out of SB 128, most organizations  became ineligible.  The                                                              
amendment allows  one non-profit to  remain in the  grant program.                                                              
A grant program  still exists but  it is limited to  entities with                                                              
assets  of under  $1 million.   Originally  there  were about  300                                                              
applicants on the grant list; now there are about 60.                                                                           
                                                                                                                                
CHAIRMAN HALFORD  asked at  what point in  time this  program will                                                              
cease.                                                                                                                          
                                                                                                                                
MR. BARNETT said  the total demand went from about  $50 million to                                                              
under $10 million.   The program received about $5  million in the                                                              
capital budget last  year so the list is short and  the program is                                                              
close to  finishing.   The upgrade  and closure  program has  been                                                              
completed at this time.  The only  projects underway are clean-ups                                                              
and they take some time.                                                                                                        
                                                                                                                                
CHAIRMAN  HALFORD asked  if  any  one is  getting  State money  to                                                              
upgrade private tanks.                                                                                                          
                                                                                                                                
Number 696                                                                                                                      
                                                                                                                                
MR. BARNETT said  two names remain on the list and  will be funded                                                              
this  year.   They  were eligible  under  the revised  eligibility                                                              
requirements.                                                                                                                   
                                                                                                                                
CHAIRMAN HALFORD asked for a copy of the list.                                                                                  
                                                                                                                                
MR. BARNETT replied that since the  regulations were signed only a                                                              
few days  ago, he  does not  have a  finite list  of all  entities                                                              
still applying  for loans.   He said  two facilities on  the Kenai                                                              
Peninsula owned by the same entity  are awaiting final upgrade and                                                              
closure grants.   He  noted that those  facilities have  been shut                                                              
down because of contamination so the owner has no cash flow.                                                                    
                                                                                                                                
CHAIRMAN  HALFORD remarked  their  total net  worth  is less  than                                                              
$250,000 and that is the last of the grants.                                                                                    
                                                                                                                                
MR. BARNETT said that is correct.                                                                                               
                                                                                                                                
CHAIRMAN  HALFORD asked  if the  next set  of grants  will be  for                                                              
clean-up.                                                                                                                       
                                                                                                                                
MR. BARNETT said that is correct.                                                                                               
                                                                                                                                
CHAIRMAN  HALFORD asked  if DEC  also  has a  tank clean-up  grant                                                              
program.                                                                                                                        
                                                                                                                                
MR. JIM HAYDEN, DEC, provided Chairman  Halford with a list of the                                                              
names of the grantees.                                                                                                          
                                                                                                                                
CHAIRMAN  HALFORD  asked if  the  House  amendment adds  only  one                                                              
applicant.                                                                                                                      
                                                                                                                                
MR. BARNETT said yes and that applicant  was on the list for years                                                              
but  would  have  been removed  because  of  the  new  eligibility                                                              
requirements.                                                                                                                   
                                                                                                                                
CHAIRMAN HALFORD asked what amount the grant will be for.                                                                       
                                                                                                                                
MR. BARNETT answered the amount will be $7,000.                                                                                 
                                                                                                                                
There  being  no  further testimony,  SENATOR  MACKIE  moved  CSHB
432(FIN) from committee with individual recommendations.                                                                        
                                                                                                                                
SENATOR TAYLOR said,  "My only concern is that we  may be entering                                                              
into  something that  looks like  it's  just special  legislation,                                                              
something  that we  may  be criticized  for,  and I  want to  make                                                              
certain that we're not being - moving  half the bill at this point                                                              
when it's  just to provide  a $7,000 grant  to one individual.   I                                                              
realize it's a diminimus amount but  I'm not concerned about that.                                                              
I'm just concerned about the legal aspects of it."                                                                              
                                                                                                                                
CHAIRMAN  HALFORD stated  he  would hold  the  bill while  Senator                                                              
Taylor looks into that matter.                                                                                                  

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