Legislature(2003 - 2004)

03/10/2003 01:05 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 113-DISCHARGE PREVENTION & CONTINGENCY PLANS                                                                               
                                                                                                                                
VICE  CHAIR MASEK  announced  that the  final  order of  business                                                               
would  be HOUSE  BILL  NO.  113, "An  Act  extending the  renewal                                                               
period for  oil discharge prevention  and contingency  plans; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
VICE CHAIR MASEK turned to public testimony.                                                                                    
                                                                                                                                
Number 0923                                                                                                                     
                                                                                                                                
CHERYL  FULTZ, Southeast  Alaska Petroleum  Resource Organization                                                               
(SEAPRO), testified, noting that  SEAPRO is an oil-spill response                                                               
cooperative.  Ms. Fultz said she was in support of HB 113.                                                                      
                                                                                                                                
Number 1065                                                                                                                     
                                                                                                                                
REPRESENTATIVE LYNN  moved to adopt  CSHB 113(O&G).   There being                                                               
no objection, it was so ordered.                                                                                                
                                                                                                                                
Number 1094                                                                                                                     
                                                                                                                                
LARRY  DIETRICK,  Director,  Division  of  Spill  Prevention  and                                                               
Response,  Department of  Environmental Conservation  (DEC), read                                                               
the following from written testimony:                                                                                           
                                                                                                                                
     [The]  CS  for  HB  113  will  streamline  the  state's                                                                    
     permitting process by lengthening  the time for renewal                                                                    
     of oil discharge prevention  and contingency plans from                                                                    
     the current  three years  to five  years.   A five-year                                                                    
     renewal period  will streamline the review  process for                                                                    
     [the] industry while  maintaining Alaska's strong spill                                                                    
     prevention  and  response  standards.    Oil  discharge                                                                    
     prevention  and contingency  plans are  public-noticed,                                                                    
     reviewed,   and   approved   by   the   Department   of                                                                    
     Environmental Conservation.                                                                                                
                                                                                                                                
     Oil   discharge   prevention  contingency   plans   are                                                                    
     required  for operators  of oil  terminals, refineries,                                                                    
     crude-oil transmission  pipelines, oil  exploration and                                                                    
     production  facilities, oil  tank vessels,  oil barges,                                                                    
     nontank vessels  of over 400  gross tons,  and railroad                                                                    
     tank  cars.    There  are multiple  benefits  from  the                                                                    
     change proposed  by the  bill.   The bill  furthers the                                                                    
     goal   of  permit   streamlining   with   no  loss   of                                                                    
     environmental  protection, and  complements initiatives                                                                    
     currently being  undertaken by the department  to shift                                                                    
     the emphasis  away from  the administrative  review and                                                                    
     approval  process, to  field  verification of  response                                                                    
     capability.                                                                                                                
                                                                                                                                
     The bill  will significantly reduce  the administrative                                                                    
     burden on  the regulated  community and will  shift the                                                                    
     emphasis from paperwork to  performance.  The reduction                                                                    
     in paperwork  will increase stability of  operators and                                                                    
     the  department  to  focus   on  spill  prevention  and                                                                    
     facility operation.   The  change will  allow operators                                                                    
     more  time  to  make practical  enhancements  to  their                                                                    
     spill prevention and response capabilities.                                                                                
                                                                                                                                
     The change  will also improve  environmental protection                                                                    
     and preparedness  through increased field  presence and                                                                    
     the ability  to work directly with  operators to ensure                                                                    
     response readiness  through onsite facility  and vessel                                                                    
     inspections, spill  drills, and exercises.   The change                                                                    
     will make  the state renewal cycle  consistent with the                                                                    
     five-year   renewal  cycle   for   federal  oil   spill                                                                    
     contingency plans required under  the Oil Pollution Act                                                                    
     of 1990, as well as those of other West Coast states.                                                                      
                                                                                                                                
Number 1245                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA  asked Mr. Dietrick if  he had previously                                                               
testified before the committee on [HB 113].                                                                                     
                                                                                                                                
MR. DIETRICK,  in response, relayed  his understanding  that this                                                               
is the first time this bill had been heard by the committee.                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA  said the committee had  information that                                                               
the  RCAC  [Regional  Citizens' Advisory  Council],  a  citizens'                                                               
group  established after  the Exxon  Valdez oil  spill, is  quite                                                               
concerned with the legislation.  She  said one of the things that                                                               
was mentioned  was that the  federal contingency plan has  a one-                                                               
year  amendment  process.   She  asked  Mr.  Dietrick if  he  was                                                               
familiar with that,  and whether that could possibly  be a better                                                               
solution than going  to a three-year cycle.  She  asked how it is                                                               
currently handled.                                                                                                              
                                                                                                                                
MR. DIETRICK, in response, said  the [state] does not participate                                                               
in the annual update that's referred  to by RCAC; the reviews are                                                               
conducted on a  federal level.  He said he  didn't have firsthand                                                               
knowledge of how rigorous [the  review is], and he suggested that                                                               
the state  process, as  it exists currently,  is better  than the                                                               
federal  annual renewal  process.   Mr. Dietrick  said the  state                                                               
basically  has the  "equivalent  of the  Evergreen process,"  and                                                               
that any  changes made to  a plan must  be made on  a continuous,                                                               
real-time basis under current state  law.  He suggested that one-                                                               
year  or three-year  renewal cycles  are not  important; he  said                                                               
existing state  law requires  updates on a  real-time basis.   He                                                               
told   the   committee   that  updates   and   notifications   of                                                               
nonreadiness  are   provided  on  a  continuous   basis,  and  he                                                               
suggested  that the  state structure  is superior  to the  annual                                                               
renewal cycles under the federal system.                                                                                        
                                                                                                                                
MR.  DIETRICK said  the  state is  currently  under a  three-year                                                               
renewal cycle but  the federal renewal cycle is  every five years                                                               
and  this legislation  will  change the  state  renewal cycle  to                                                               
every  five years  so  that  it is  consistent  with the  federal                                                               
renewal cycle.                                                                                                                  
                                                                                                                                
Number 1451                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HEINZE referred  to comments  from the  RCAC that                                                               
expressed concerns about [best available  technology (BAT)].  She                                                               
asked Mr. Dietrick when the last BAT conference was.                                                                            
                                                                                                                                
MR. DIETRICK said the regulations for  BAT were put into place in                                                               
1997, and called  for a conference every five  years, which meant                                                               
the first  conference was due  in 2002.   He said  the department                                                               
had requested  funds for a  BAT conference and was  awarded those                                                               
funds last  year for  the purpose of  initiating what  would have                                                               
been the  first conference under  the regulations.   Mr. Dietrick                                                               
said a workgroup  had been put together and is  now planning that                                                               
conference with  the appropriation  made by the  legislature last                                                               
year.                                                                                                                           
                                                                                                                                
Number 1522                                                                                                                     
                                                                                                                                
REPRESENTATIVE HEINZE asked Mr.  Dietrick if he thought switching                                                               
to the five-year cycle would affect BAT [reviews].                                                                              
                                                                                                                                
MR. DIETRICK said  the BAT analyses that have  been performed are                                                               
theoretical reviews;  it is as important  to test these as  it is                                                               
to review  and approve them.   He explained that BAT  analyses do                                                               
not  change  much over  the  review  cycles because  they're  not                                                               
tested  and the  technology  development is  rather  slow.   This                                                               
change will allow [the department]  to test the BAT analyses that                                                               
have  been  provided   in  the  individual  plans   and  to  seek                                                               
corrective actions if they are flawed  or have problems.  He said                                                               
he thought  this will  be an  improvement that  will put  the BAT                                                               
reviews on the same five-year cycle now that the conference is                                                                  
scheduled for.                                                                                                                  
                                                                                                                                
Number 1593                                                                                                                     
                                                                                                                                
VICE CHAIR MASEK indicated HB 113 would be held for further                                                                     
consideration.                                                                                                                  

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