CSSB 295(JUD): An Act relating to financial assistance for certain owners or operators of underground petroleum storage tank systems; and providing for an effective date. John Barnett, Executive Director, Board of Storage Tank Assistance, Division of Spill Prevention and Response, Department of Environmental Conservation, and Mike Conway, Director, Division of Spill Preven-tion and Response, Department of Environmental Con- servation, spoke in support of the bill. Discussion was had by Senators Kerttula, Sharp, and Co-chair Frank, regarding the Underground Storage Tank Program as it related to bigger businesses, fees, and the bush and rural areas. CSSB 295(JUD) was REPORTED OUT of committee with individual recommendations, and zero fiscal notes for the Department of Environmental Conservation, and the Department of Transportation and Public Facilities. CS FOR SENATE BILL NO. 295(JUD): An Act relating to financial assistance for certain owners or operators of underground petroleum storage tank systems; and providing for an effective date. Co-chair Pearce announced that SB 295 was before the committee. JOHN BARNETT, Executive Director, Board of Storage Tank Assistance, Division of Spill Prevention and Response, Department of Environmental Conservation (DEC), testified that SB 295 was requested by the Alaska Underground Tank Owners and Operators Association. The Board of Storage Tank Assistance worked in cooperation with DEC to administer a grant and loan program for underground tank owners throughout the state. The Board acted as an appeal Board and the first section of the bill clarified the appeal authority of the Board. Currently only tank owners could appeal if DEC determined that certain costs were ineligible for reimbursement. This clarification allowed tank owners to appeal if they had been determined ineligible. At present there were 152 applications which DEC said were totally ineligible and had no appeal rights. This bill would provide a forum for and give the Board authority to hear those appeals. The second section of the bill gave the closure and upgrade program a statutory deadline of December 31, 1994. Senator Kerttula asked if that date needed to be extended because of rural problems. Mr. Barnett felt that the bush was always a challenge, but public workshops and outreach had been done in the fall of 1990 throughout the state. Media advertising had been done and a newsletter had gone out to all known tank owners listed in a database established in 1986. He felt most of the rural areas were aware of the program. Senator Kerttula asked for assurance that all rural areas and river communities had been noticed. MIKE CONWAY, Director, Division of Spill Prevention & Response, Department of Environmental Conservation, stated that most river communities used above ground storage tanks and this legislation targeted underground tanks. He said there were problems with above ground tanks too but there was no state program to deal with it if the tank held less than 10,000 barrels. Mr. Barnett said very few small communities had applied to this program. He went on to explain that the Board was working with the Rural Bulk Fuel Task Force to share what it had learned in order to address some the problems they faced. Co-chair Frank felt that SB 295 was a good bill and asked Mr. Barnett or Conway to speak to the concern that this program somehow benefited large companies. Mr. Barnett thanked Co-chair Frank for bringing up this issue. He said that at the beginning of the program a registration fee was paid to defer some of the costs, and a ranking system was established using a score. Fifty percent was scored if the tank related to a public health threat. The other half the score related to the distance to an alternate fuel source, including details how many tanks were owned with higher points for fewer tanks owned (giving smaller businesses the advantage). Twenty percent of the score was insurability. If a person was not self-insurable they would receive 20 points. This definitely targeted small mom and pop businesses. There were large companies that belonged to this program but they paid large registration fees each year and waited for a longer time to receive funding. He estimated the program to take at least 10 years to complete. Co-chair Frank asked Mr. Barnett to provide the committee with the latest funding and criteria for the program. Mr. Barnett said that information was available from their annual report and funding was in the $4-5M range. End SFC-94 #51, Side 2 Begin SFC-94 #55, Side 1 In answer to Senator Sharp, Mr. Barnett said that DEC, DOT&PF, and the Board of Storage Tank Assistance, supported SB 295. He said that the position paper should be in the members' files. Mr. Barnett restated that about 400 upgrade and closure applicants were on a waiting list for funds. What this bill provided for those applicants, already on the list and acting in good faith, was eligibility for clean up after the clean up program deadline closed. He said the bill would allow an extra six months to do outreach for the closure and upgrade list and those people would also be eligible for the clean up program. After December 31, 1994, there would be a finite list of all applicants outlining the scope of the problem. Mr. Conway said that DEC was in support of the program because it was a prevention program. It kept owners and operators involved in the clean-ups, helped the rural areas stay in business, and, if not funded, the response fund would have to be used "after the fact" at a bigger expense to the state. There also could be health problems if the program was not in place. In answer to Senator Sharp, Mr. Conway said that DEC continued to get federal funds for the technical assistance part of the program. He stated it was a state fund with no other assistance. Co-chair Frank MOVED for passage of CSSB 295 from committee with individual recommendations. No objection being heard, it was REPORTED OUT of committee with "individual recommendations," and zero fiscal notes for the Department of Transportation & Public Facilities and the Department of Environmental Conservation. Co-chair Pearce, Senators Rieger, Kerttula, and Sharp signed "no recommendation." Senator Jacko and Co-chair Frank signed "do pass."