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.