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Oil & Hazardous Substance Release

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Oil & Hazardous Substance Release OIL & HAZARDOUS SUBSTANCE RELEASE PREVENTION & RESPONSE FUND Fiscal Year 2007 - 2008 BIENNIAL REPORT July 1, 2006 through June 30, 2008 Alaska Department of Environmental Conservation Prepared by the Division of Spill Prevention and Response Presented to the First Session of the 26th Alaska Legislature January 20, 2009 Sarah Palin, Governor Larry Hartig, Commissioner DEPARTMENT OF ENVIRONMENTAL CONSERVATION OIL AND HAZARDOUS SUBSTANCE RELEASE PREVENTION AND RESPONSE FUND FISCAL YEAR 2007 – 2008 Biennial Report to the Legislature JULY 1, 2006 THROUGH JUNE 30, 2008 January 2009 This page intentionally left blank OIL AND HAZARDOUS SUBSTANCE RELEASE PREVENTION AND RESPONSE FUND BIENNIAL REPORT FISCAL YEAR 2007 & 2008 TABLE OF CONTENTS Page Introduction …………………………………………………………………………………… 1 Oil & Hazardous Substance Release Prevention & Response Fund Diagram …………………. 3 Reports: Table A: Summary of Fiscal Year 2007 & 2008 Expenditures and Obligations ……….. 4 Table B: Prevention Mitigation and Response Mitigation Revenues ………………….... 6 . Table C: Revenue Sources .............................................................................................. 17 Table D: Summary of Response Contracts & Purchases in Excess of $10,000.00 ….…… 18 Table E: Summary of Fiscal Year 2008 & 2009 Appropriations ….…………………….. 20 Table F: Fiscal Year 2007 & 2008 Projects .................................................................... 22 Table G: Fiscal Year 2007 & 2008 Personal Services Costs for Projects ......................... 36 Table H: DEC Inventory of Active Contaminated Sites and Leaking Underground Storage Tanks Sites Ordered Alphabetically by Location and Showing Priority Classifications .................................................................................................... 55 Table I: DEC Inventory of Active Contaminated Sites and Leaking Underground Storage Tanks Sites Ordered Alphabetically by Location…………………………………….. 58 Table J: Inventory of Closed Contaminated and Leaking Underground Storage Tanks Sites Ordered Alphabetically by Location ……..………………………………… 79 Appendix 1: Community Spill Response…………………………………………..……. 115 Appendix 2: Project Summaries…………………………………………………………. 115 Appendix 3: Oil & Hazardous Susbstance Rleases Alaska Statutes ................................... 201 This page intentionally left blank Introduction The Oil and Hazardous Substance Release Prevention and Response Fund (Response Fund) was created by the Legislature in 1986 to provide a readily available funding source to investigate, contain, clean up and take other necessary action to protect public health, welfare and the environment from the release or threatened release of oil or a hazardous substance. Alaska Statute 46.080.030 states: “ It is the intent of the legislature and declared to be the public policy of the state that funds for the abatement of a release of oil or a hazardous substance will always be available.” (SLA 1986 Sec.1 Ch. 59). The statutes governing the Response Fund were amended in 1989, 1990, 1991, 1994, 1999, and 2006. These amendments increased the scope that defines how the Response Fund can be used and it also increased the Department of Environmental Conservation’s (DEC) reporting requirements. In addition, the 1994 amendment made major changes to the Response Fund structure by dividing the Response Fund into two separate accounts. The first account is the response account and the second account is the prevention account. The changes became effective on July 1, 1994. The diagram on page three illustrates the current structure of the Response Fund. The 1999 amendment changed the reporting requirement on the status of the fund from an annual report to the Legislature to a biennial report. The 2006 amendment changed the surcharge levied on crude oil produced in the state. The legislation imposed a prevention account surcharge of $.04 (formerly $.03) per barrel of oil produced from each lease or property in the state, less any oil the ownership or right to which is exempt from taxation. Sec. 26 of AS 43.55.201 was also amended to change the response account surcharge from $.02 to $.01 per barrel of oil produced from each lease or property in the state. Response Account The response account may be used to finance the state’s response to an oil or hazardous substance release disaster declared by the governor, or to address a release or threatened release that poses an imminent and substantial threat to the public health or welfare, or to the environment. To access the response account for any incident other than a declared disaster, DEC must notify the governor and the Legislative Budget and Audit Committee within 120 hours of using the money from this account. The response account is financed by a $.01 per barrel surcharge and money recovered from responsible parties. The surcharge is suspended when the combined balance of the surcharge account, the response mitigation account and the unreserved and unobligated balance in the response account reach $50 million. The account 1 balance reached $50 million for the first time during the quarter ending December 31, 1994. Therefore, beginning April 1, 1995, the surcharge collection was suspended. Access to the fund for the response to the North Slope Pipeline spills occurred on November 20, 2006. This action lowered the balance of the account below $50 million. On April 1, 2007, the Department of Administration imposed the $.01 cent surcharge to restore the balance to $50 million. The combined balance of the response account as of June 30, 2008 is $43.2 million. As a result, the $.01 cent surcharge has remained on through the fiscal year 2008. Prevention Account The prevention account may be used to respond to oil and hazardous substance releases that have not been declared a disaster by the governor. In addition, the prevention account is also used to fund Alaska’s oil and hazardous substance release response and prevention programs. The Legislature appropriates money from the prevention account to support DEC for spill prevention and preparedness planning activities (AS 46.08.040(a)(2)). The prevention account is financed with a $.04 per barrel surcharge and fines, settlements, penalties and interest. 2 Oil & Hazardous Substance Release Prevention and Response Fund (OHSRPRF) 1¢ 4¢ GENERAL FUND | SURCHARGE ACCOUNT1 | 2 AS 43.55.301 SURCHARGE ACCOUNT | AS 43.55.300 (Suspended @ $50 million) | | | | | | | | RESPONSE MITIGATION ACCOUNT | PREVENTION MITIGATION ACCOUNT AS 46.08.025 (b ) | AS 46.08.020 (b) | | Cost Recovery, funding received from Cost recovery, fines, penalties, | state, federal or private sources. settlements, funding from state, | federal or private sources. | | | | Oil & Hazardous Release Prevention and Response Fund AS 46.08.010(a) | | | | | | PREVENTION RESPONSE | ACCOUNT ACCOUNT | AS 46.08.020 | AS 46.08.025 | | | | Legislative Emergency Uses | Appropriation | AS 46.08.040(a)(1) | AS 46.08.040(a)(2) USES: USES: * Investigate, evaluate, contain, cleanup, monitor and assess a * Investigate, evaluate, contain, and cleanup a release or threatened release of release or threatened release of oil or hazardous substance that oil or hazardous substances. poses an imminent and substantial threat to public health or welfare * Establish and maintain spill response capability. or the environment. * Review oil discharge prevention and contingency plans. * Match federal funds for release. * Maintain spill response contracts and agreements. * Recover cost to the state, a municipality, a village, or a school * Conduct training, response exercises, inspections, and tests. district for cleanup. * Verify or establish preparedness of the state. * Recover state costs. * Verify proof of financial responsibility. * Acquire, repair and improve spill response equipment caches. * Prepare, review and revise regional and state spill plans and local Hazmat plans 1 House Bill 3001C amended AS 43.55.201 Sec. 26 and changed the Surcharge from $.02 to $.01 effective * Participate in federal oil discharge cleanup activities. 4/1/2006 * Assess effects of a release. * Recover state costs. 2 House Bill 3001C amended AS 43.55.300 Sec. 28 and changed the Surcharge from $.03 to $.04 effective * Restore the environment. 4/1/2006 Revision Date: 12/4/2006 3 Table A Summary of Fiscal Year 2007 & 2008 Expenditures and Obligations This table summarizes the expenditures and year-end obligations for appropriations funded by the Oil and Hazardous Substance Release Prevention and Response Fund (Response Fund) in Fiscal Year 2007 & 2008. (In Thousands) Fiscal Year 2007 Fiscal Year 2008 Appropriation Description Expended Obligated Total Expended Obligated Total Prevention Account Operating Budget: Information & Administrative Services 1,559.8 0.0 1,559.8 1,670.0 0.0 1,670.0 State Support Services 195.3 0.0 195.3 195.3 0.0 195.3 Laboratory Services 14.7 0.0 14.7 16.7 0.0 16.7 Central Highways G.O.R. 700.0 0.0 700.0 0.0 0.0 0.0 Northern Regions Highway & Aviation G.O.R. 125.0 0.0 125.0 0.0 0.0 0.0 Spill Prevention & Response Director's Office 241.9 1.7 243.6 262.1 0.4 262.5 Spill Prevention & Response Industry Preparedness Note 2 3,193.6 126.4 3,320.0 3,214.1 21.6 3,235.7 Spill Prevention & Emergency Response Program 3,734.4 292.4 4,026.8 3,764.7 108.3 3,873.1 Spill Prevention & Response Fund Administration Note 1 1,188.8 120.8 1,309.7 1,314.0 15.5 1,329.5 Spill Prevention & Response Contaminated Sites Note 1 6,063.7 179.3 6,243.0 6,944.5 120.1 7,064.6 Local Emergency Planning Committee 296.9 0.0 296.9 0.0
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