1997-05-10                     Senate Journal                      Page 1939
SB 41                                                                        
Message dated and received May 9 was read, stating:                            
                                                                               
Dear President Miller:                                                         
                                                                               
Under the authority of art. II, sec. 15, of the Alaska Constitution, I         
have vetoed the following bill:                                                
                                                                               
HOUSE CS FOR CS FOR SENATE BILL NO.                                           
41(JUD)                                                                        
An Act relating to environmental audits to                                    
determine compliance with certain laws, permits, and                           
regulations.                                                                   
                                                                               
The partnership this Administration has formed with Alaska industry            
is a source of much pride and benefit to the state.  These                     
partnerships have led directly to the creation of new jobs for                 
Alaskans, new state revenues and a generally stronger economy.                 
Another less publicized yet equally important benefit of these                 
partnerships to Alaskas future is the improved environmental                   
protections we have put in place.  As a result of various actions by           
my Administration, our industry partners are operating in a way that           
better protects Alaskas environment.                                           
                                                                               
I am committed to the use of additional incentives to further improve          
our industries already good record.  Environmental self-audits and             
prompt correction of the environmental problems identified in those            
audits are part of doing development right.  I endorse appropriate             
incentives to promote the use of environmental audits.  One of the             
incentives in the bill I support is not penalizing corporations when           
they report environmental violations uncovered in an audit and                 
promptly correct them.  This is current Department of Environmental            
Conservation practice.                                                         
                                                                               
                                                                               

1997-05-10                     Senate Journal                      Page 1940
SB 41                                                                        
I cannot, however, in good conscience, support an incentive which              
allows information regarding environmental practices that could lead           
to releases of toxic substances into the air or water to be kept               
confidential and withheld from the public.  Our partnership with the           
industry and the public is based on being open and accountable to              
the public.  I cannot support legislation that creates a perception of         
secrecy and risks undermining public trust in those partnerships.              
                                                                               
This bill started out with considerable problems.  It gave immunity            
from criminal violations and occupational safety and health                    
violations, it kept confidential the entire audit report, and it did not       
require companies to promptly discontinue or correct violations                
found.  I appreciate the Legislatures cooperation in adding, at the            
suggestion of the Departments of Environmental Conservation and                
Law, measures to prevent abuse of the bills confidentiality and                
immunity provisions.  However, preventing abuses does not correct              
the underlying flaw in this bill--allowing information regarding               
environmental practices to remain confidential.                                
                                                                               
Under DECs current policies, companies conducting environmental                
audits and making plans for prompt corrective action will not face             
enforcement actions.  Several businesses in Alaska already conduct             
audits of their environmental practices.  None of these audits have            
been used against a company, either by a government agency or in               
a private lawsuit.  In addition, existing law already establishes a            
number of ways a company can maintain confidentiality when                     
appropriate.                                                                   
                                                                               
Alaska businesses have told the Department of Environmental                    
Conservation what the best incentives are to encourage operators to            
actively review their compliance with environmental rules.  They               
include tax credits or small technology grants, expedited permitting,          
increased operating flexibility, multi-media or systems-level                  
inspections, reduced inspection frequency, and a reduction in                  
penalties along the lines of the Department of Environmental                   
Conservations current policy.  Confidentiality of audit information            
was not one of the main incentives suggested.                                  
                                                                               
                                                                               

1997-05-10                     Senate Journal                      Page 1941
SB 41                                                                        
I have directed the Department of Environmental Conservation to                
continue to develop incentives and policies that reward individual             
and corporate responsibility.  I am confident we can provide that              
encouragement without harming public confidence in our shared goal             
of proving that, in Alaska, we do development right.                           
                                                                               
For these reasons, I have vetoed HCS CSSB 41 (JUD).                            
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor