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." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Green read the bill's title. 10:18:52 AM KAREN LIDSTER, Staff to Representative John Coghill, the bill's sponsor, stated that, in order to meet federal Environmental Protection Agency (EPA) guidelines regarding underground storage tanks, the Legislature, in 1990, approved HB 220, which created the Underground Storage Tank Program (USTP) and the Storage Tank Assistance Fund (STAF) grant program. Grant applications to STAF were prioritized on criteria established by the Board of Storage Tank Assistance (BSTA). Ms. Lidster stated that USTP was phased out shortly after the EPA underground storage tank program ended, and the STAF grant program was converted to the Underground Storage Tank Revolving Loan Fund (STRLF) in the year 2002. However, the initial grant program was "extremely successful" and when STRLF was created there were no applicants for its funds. With the transition to STRLF, there was no reason to continue the BSTA. Therefore, this bill would modify "the end date for the Board [of Storage Tank Assistance] in order to be consistent with the end date for formal termination of the loan program." It would in essence eliminate statutes and regulations that are no longer required. 10:20:49 AM Senator Bunde asked for further clarification of the reason STRLF did not receive any applications, specifically whether the funds provided by STAF had adequately addressed the entirety of underground tanks or whether the transition from a grant program to a loan program caused the decrease in applicants. Ms. Lidster deferred to Larry Dietrick with the Department of Environmental Conservation. 10:21:22 AM Senator Bunde clarified his question as whether there were storage tanks still needing to be addressed and whether they were not being cleaned up because the program changed to a loan program. 10:21:36 AM LARRY DIETRICK, Director, Division of Spill Prevention & Response, Department of Environmental Conservation, stated that 6,000 of the 7,000 underground storage tanks in the State have been removed. The balance of the tanks was upgraded to current requirements. The effort has cost $43 million. This "was a very significant program", and the hope is that it negated the threat from underground storage tank pollutants. Senator Bunde understood therefore that the deteriorating tanks were "eliminated". Mr. Dietrick affirmed. Senator Olson asked whether the term "eliminated" meant that the tanks were actually removed or were simply "not being used anymore". Mr. Dietrick stated that 6,000 tanks were physically removed. Senator Olson asked whether the program addressed both under and above ground storage tanks. Mr. Dietrick responded that the program was limited to underground storage tanks. Senator Hoffman asked whether restoring the program to a grant program would generate further applicants. Mr. Dietrick expressed that continuing the grant program as it was originally designed, which was to remove tanks not meeting EPA standards, would not generate additional applicants, as all of the tanks were either removed or updated. Co-Chair Green opined that Senator Hoffman appeared to be having difficulty believing that. Senator Bunde shared Senator Hoffman's sentiment. "If there wasn't a free lunch, they wouldn't be standing in line." Co-Chair Green voiced being encouraged that "we are ending an era". 10:24:30 AM Senator Olson asked whether the underground storage tank program pertained to both water and petroleum product tanks. Mr. Dietrick stated that the program was limited to petroleum product tanks. Co-Chair Wilken moved to report the bill from Committee with individual recommendations and accompanying fiscal notes. There being no objection, HB 419 was REPORTED from Committee with previous zero fiscal note #1 dated March 21, 2006 from the Department of Environmental Conservation.