Juneau -- The Alaska Senate Wednesday approved a measure that revamps the state's Storage Tank Assistance Fund. Senate Bill 128, sponsored by the Senate Finance Committee, converts portions of the current grant program to a loan program for cleaning up private oil tanks.

"This bill eliminates the give-away for big companies, while preserving the grant program for 'Mom and Pop' businesses who need to clean up their oil tanks," said Finance Co-Chair John Torgerson (R-Kasilof).

"It makes no sense for the state to foot the bill for big companies to clean up their tanks. It's much more fiscally responsible to convert that portion of the Storage Tank Fund into a loan program," said Torgerson.

"We're proposing an affordable loan program. It's fiscally responsible and it eliminates a state give-away program. Knowing they'll have to pay for the clean-up encourages private parties to take greater care during the initial installation of fuel storage tanks," Torgerson said.

The grant portion of the Storage Tank Assistance Fund will remain in place for qualifying businesses. Qualification is based on a formula that determines the net worth of the company.

SB 128 is part of an effort by the Republican-led Majority to change the way Alaska does business. The Senate Majority has pledged to restructure and streamline government as part of its long-range fiscal plan to address the state's $1 billion fiscal gap.

SB 128 now goes to the House for consideration.