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Fact Sheet On Underground Storage Tank (UST) Program
(applicable statutes: AS 46.03.360-450)

Owners of underground storage tanks had until 12/22/98 to either upgrade or close their underground storage tanks.

Prior to SB 128 (ch 70 SLA 1999) there were four UST grant and loan programs:

• *Tank Tightness (AS 46.03.415)
• *Reimbursement program (sec. 7, ch 96 SLA 90)
• Upgrade & Closure Grants
• Tank Clean Up Loans & Grants (repealed by SB 128)

All applications for grant assistance under the Upgrade and Closure program (AS 46.03.430) are in. THERE CAN BE NO NEW APPLICANTS. Under the law prior to SB 128, DEC estimated it would use $3.5 million of the $5.0 million in the UST fund to give all of the qualified applicants grants. Under SB 128's provisions, the Upgrade and Closure grant list was last year valued at around $32,200 to satisfy the qualified applicants. CS SB 153 (FIN) will now phase this program out effective June 30, 2002, rather than June 30, 2004 because all eligible costs have been paid. It was the Senate's desire during the debate on SB 128 that the Storage Tank Assistance Fund be fully capitalized so that the Upgrade & Closure program could be finished in 2000. Clean up assistance was to end shortly after.

The Tank Clean Up Grant program (AS 46.03.420) under SB 128 now requires a one million dollar tangible net worth limitation, which reduces the number of qualified applicants on the Clean-up list; which in FY 00 totaled $23.3 million. This change moved off the list, applicants such as Unocal, Tesoro, Chevron Mapco and Providence Hospital, and retains the smaller "mom and pop" requests. Applying the $1.0 million limitation to the Tank Clean Up grants has left about $9.0 million of eligible costs. Under CS SB 153 (FIN) this program will be phased out June 30, 2004, as all eligible costs are expected to have been paid by then. There can be no new applications (July 1, 1994 was the deadline).

The Tank Clean Up Loan Program (created by SB 128) (AS 46.03.422) requires that to receive a loan, the applicant must have submitted an application before July 1, 1994 (see: AS 46.03.422 (a) reference to AS 46.03.420). There can be no new applications for the tank clean up loan program.

DEC RSA's money to the Division of Investments to handle the loans for these programs.

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Attachments:

• Sponsor Statement
• Sectional Analysis
  
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