HB 419-REPEAL UNDERGROUND STORAGE TANK LAWS 2:45:34 PM CO-CHAIR RAMRAS announced that the next order of business would be HOUSE BILL NO. 419, "An Act repealing the Board of Storage Tank Assistance, the underground storage tank revolving loan fund, and the tank cleanup loan program; repealing certain reporting requirements relating to underground petroleum storage tank systems; making conforming amendments; and providing for an effective date." KAREN LIDSTER, Staff to Representative John Coghill, Alaska State Legislature, presented HB 419 on behalf of Representative Coghill, sponsor. She paraphrased from the sponsor statement, which read [original punctuation provided]: In 1990 the Alaska Legislature passed HB 220 to credit a state UST [Underground Storage Tank] Program and a Storage Tank Assistance Fund in order to assist tank owners that were required to meet the deadlines set in the US Environmental Protection Agency (EPA) Underground Storage Tank Program. In 1999, the year after EPA's deadline, the program began to phase out and was formally ended by the Legislature on June 30, 2004. A loan program to assist owners with completing cleanup was established by SB 128, passed in 1999. The Storage Tank Assistance Fund was converted to the Underground Storage Tank Revolving Loan Fund in 2002. The original legislation, HB 220, also created the Board of Storage Tank Assistance to oversee state grants and loans. The Board is no longer needed since the grant program has been terminated and no loan applications have been received. SB 128 established a June 30, 1999 sunset date for the board. Subsequent bills extended that date to June 30, 2007. HB 419 will modify the end date for the board in order to be consistent with the end date for formal termination of the loan program. Additionally the bill lists out the statutes that relate to the board, the reporting, regulations, fees, revolving loan fund, loan program, definitions, uses of the fund, the respective administrative codes, the orderly completion of the boards obligations, and renumbering instructions related to those statutes repealed. MS. LIDSTER said the legislation that helped the tank owners with the EPA regulations was extremely successful. The loan program wasn't used, and therefore HB 419 would provide for the orderly termination of the board and the loan program. 2:48:32 PM CO-CHAIR RAMRAS noted that Representative Coghill is trying to perform general housekeeping measures throughout the session. He asked if HB 419 is part of that effort. MS. LIDSTER replied yes. REPRESENTATIVE SEATON referred to AS 46.08.025, which is included in the committee packet and related his understanding that "these are all going to be satisfied with this." He then pointed out that there is some performance bond money, and asked if that is returned to the state or the companies. LARRY DIETRICK, Director, Division of Spill Prevention and Response, Department of Environmental Conservation, said the only money remaining are the fees charged for new tank installation. The 1,000 or so tanks left in the program amount to roughly $35,000 per year. To date, those fees are deposited into the loan fund being terminated. Therefore, when the program is terminated, those fees will continue to be collected, but will be deposited into the general fund. 2:50:44 PM REPRESENTATIVE SEATON surmised then that there is not money from performance bonds or other financial responsibility held in escrow pending satisfactory performance of a privately financed response action as specified in AS 46.08.024(a)(3)(A). MR. DIETRICK replied, "That is correct." 2:51:05 PM REPRESENTATIVE ELKINS moved to report HB 419 out of committee with individual recommendations and the accompanying fiscal notes. Hearing no objections, it was so ordered.