SENATE BILL 69 "An Act relating to hazardous chemicals, hazardous materials, and hazardous waste." ANNETTE KREITZER, STAFF, SENATOR LOREN LEMAN, spoke in support of SB 69. She explained that as we downsize government, and make it more "user friendly", a need to 4 assess the efficiency becomes more apparent. Currently, businesses in Alaska must report virtually the same information about hazardous chemicals, materials and wastes in four different formats to four different entities. The proposed legislation would eliminate three formats and one entity. The bill was drafted with input from industry, fire departments, Department of Environmental Conservation (DEC) and the Department of Public Safety (DPS), Division of Fire Prevention. The information reported would be streamlined to one form which would satisfy federal, state and local reporting requirements. Ms. Kreitzer continued, providing the Committee a sectional analysis of the legislation. Section 1 was an amendment added in the House Resources Committee and would add an immunity to Title 9, protecting the State from strict liability for oil spills or other environmental releases at the REAA schools. Without the change, the State and school districts could each be liable for 100% of damages claimed from environmental problems on school sites. The amendment was added as part of the State's response to the Toksook Bay lawsuit. Section 2 & 3 deletes reference to AS 18.70.310 of the state fire marshals placarding program. A placarding program list which hazardous substances or chemicals are in the vicinity and how one should respond in fire suppression. The program has not been effective nor well implemented. Ms. Kreitzer commented that Section 4, Subsection (a) would make the State Emergency Response Commission the agency to approve a form to be used for the reporting of placarding information under a municipal placarding program. The action would ensure that if the form needs to be changed, the commission could coordinate with all agencies that receive such reports. Section 5, Subsection (c) refers to the existing municipal placarding program. Currently under State or federal law, either a municipality or the State Emergency Response Commission (SERC) may add substances to those already required to be reported. This section ensures a public process for adding or removing substances. MARIE SANSONE, ASSISTANT ATTORNEY GENERAL, CIVIL DIVISION, DEPARTMENT OF LAW, commented that the Attorney General's Office was supportive of the proposed legislation. Ms. Kreitzer spoke to Amendment #1 which would place a time- 5 line on when the form should be developed, which would provide date certain times for the public. Representative Mulder MOVED to adopt Amendment #1, 9- LS0360\K.1, Lauterbach, 2/06/96. There being NO OBJECTION, it was adopted. CHESTER WEGNER, (TESTIFIED VIA TELECONFERENCE), ASSISTANT STATE FIRE MARSHAL, ANCHORAGE, advised that the State Fire Marshal's Office was in support of the legislation. He stated that the current program was difficult to implement. CHRIS KENNEDY, (TESTIFIED VIA TELECONFERENCE), ASSISTANT ATTORNEY GENERAL, CIVIL DIVISION, ANCHORAGE, offered to answer questions on Section 1 of the legislation. CRYSTAL SMITH, LEGAL ADMINISTRATOR, DEPARTMENT OF LAW, provided an overview of Section 1. Section 1 represents one aspect of the Administration's response to the States exposure to the major liability which was revealed in the Toksook Bay lawsuit. That lawsuit was brought in response to a fuel spill at an REAA school which occurred in 1990. The State received that school from the Bureau of Indian Affairs (BIA) just a year prior to the incident. The result of the lawsuit has been addressed by a consent judgement. A settlement against the State was made and the REAA's are now paying a portion of that settlement. As a result, the State's liability for damages was revealed. Without the change included in Section 1, the State and school district could be held 100% liable for any damages at the school sites. The exemption from liability is "narrowly" drawn and would only apply for liability for damages. Ms. Smith continued, Section 14 includes the transitional applicability language which has to do with Section 1 exemptions. Representative Parnell asked if under current law, the State was exempt from strict liability. Mr. Kennedy advised that the legislation would change liability for both the State and the REAA. Currently, both the State and the REAA are strictly liable under AS 46.03.822. Representative Parnell asked if there would be any other transfers by the federal government similar to the REAA's that the State currently bears exposure for which are not being addressed in the proposed legislation. Mr. Kennedy suggested there probably were, although in SB 69, a specific problem was addressed at the request of the Senate leadership. 6 FRANK JOHN DILLON, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE VICE PRESIDENT, ALASKA TRUCKING ASSOCIATION, ANCHORAGE, commented that the association which he represents handles the majority of the hazardous materials in the State. Currently, that group is stringently regulated by the federal government. Mr. Dillon requested that the legislation not move beyond federal requirements and regulations. At this time, tremendous amounts of hazardous waste and materials are moved without incident. The reason this can be done, is that there currently exists a body of "good" safety regulations and required enforcement of those rules. He requested that the legislation not move beyond what is reasonable or what is contained in federal regulations. (Tape Change, HFC 96-123, Side 2). Representative Kelly asked if "hazardous waste" as defined in AS 46.03.900 and the Environmental Statute 40 CFR 261 were different. Ms. Kreitzer replied that the AS 46.03.900 was more encompassing than the other one referenced. Ms. Sansone added that the hazardous waste definition which is in law in Title 46 is broad and written in qualitative terms. However, in implementing the State Statute, DEC adopted the Environmental Protection Agency (EPA) identification of hazardous waste sets in regulation, whereas, the State is using the federal standard list of hazardous waste. There is a provision in State law which allows the commissioner of DEC to find other ways in which something may be "hazardous". She added, the DEC commissioner has never carried through and named an additional substance. The definition of "hazardous materials" references another section in the federal regulations. Those regulations designate and identifies hazardous materials for the purposes of transportation laws. Regarding those regulations, the State and local laws are pre-empted by federal regulations which are more detailed. Representative Kelly MOVED a conceptual amendment to Section 11, Subsection (A) & (B), removing (B), which he thought would avoid "non-achievable" standards currently existing in regulation. Representative Brown asked which chemicals would be covered in removal of Subsection (B). There was no representative from DEC who could explain that exemption. Ms. Kreitzer asserted that the Senate Resources Committee made it explicit that it was not their intent to include anything more stringent then already existed in federal 7 regulations. She thought that the legislation was a step toward streamlining all the current reportings required. Removing portions of the legislation could affect the entire bill. Representative Kelly voiced concern that the language was "too broad" and removal would make the State standard less stringent. Co-Chair Hanley pointed out that the intent was to combine four different requirements into one. He explained that if information was required to be reported "somewhere" in statute, and then removed from the form, someone might not be in compliance by not reporting on that one form. Representative Kelly WITHDREW the MOTION to the amendment. There being NO OBJECTION, it was withdrawn. Representative Brown questioned Section 5, Page 3, Line 20, the change from 500 pounds to 10 thousand pounds for reporting of a hazardous chemical. Ms. Kreitzer stated that change was consistent with federal law. Representative Therriault asked why there was a zero fiscal note for DEC. Ms. Kreitzer responded, currently, DEC has been delegated by the State Emergency Response Commission (SERC) as the agency which receives "community right to know" reports. That motion has not been rescinded to date. DEC currently makes the report available and the Senate assumed that DEC could continue to provide that obligation. She emphasized that this is not a new requirement. Representative Martin MOVED to report HCS CS SB 69 (FIN) out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. HCS CS SB 69 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Public Safety dated 2/07/96 and zero fiscal notes by the Department of Military & Veterans Affairs dated 2/07/96 and the Senate Finance Committee dated 2/07/96.