Legislature(2019 - 2020)GRUENBERG 120

02/11/2020 03:00 PM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 74 REPEAL IND. OCEAN POLLUTION MONITORS/FEE TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 182 SEXUAL ASSAULT EXAMINATION KITS: TESTING TELECONFERENCED
Moved CSSSHB 182(STA) Out of Committee
         HB 74-COMM. VESSEL ENVIRONMENTAL COMPLIANCE/FEE                                                                    
                                                                                                                              
3:06:35  PM                                                                                                                   
                                                                                                                                
CO-CHAIR  FIELDS   announced  that  the  final  order  of business   would                                                      
be  HOUSE   BILL   NO.  74,   "An  Act   repealing   the   ocean   rangers                                                      
program; and providing for an effective date."                                                                                  
                                                                                                                                
3:07:35  PM                                                                                                                   
                                                                                                                                
JASON    BRUNE,     Commissioner,      Department     of    Environmental                                                       
Conservation   (DEC),   on  behalf   of the   House  Rules  Committee   by                                                      
request  of  the  governor,  presented   the  committee  substitute   (CS)                                                      
for  HB  74,  with  the  use  of a  PowerPoint   presentation,   entitled                                                       
"CSHB74   Cruise   ship  Environmental    Monitoring."     [CSHB   74  was                                                      
subsequently adopted as the working document by the committee.]                                                                 
                                                                                                                                
COMMISSIONER    BRUNE   relayed   that  his   intent   is  to  develop   a                                                      
program  that  is  a  new,  improved,  and  modernized   approach  to  the                                                      
Ocean   Ranger   Program,   which   was  established    via  the   [voter-                                                      
approved  Ballot   Measure  2]  initiative  process   about  12 years  ago                                                      
[2006].      He   began   with   slide    2,   entitled   "A   Modernized                                                       
Approach," which read:                                                                                                          
                                                                                                                                
   head2right This bill clarifies that the cruise industry will be                                                              
      regulated in a similar manner to other industries                                                                         
   head2right Existing statutes limit DEC's ability to effectively                                                              
      monitor cruise ship emissions and discharges                                                                              
   head2right This CS maintains DEC's current authority and adds                                                                
      flexibility for how it is used                                                                                            
                                                                                                                                
REPRESENTATIVE    STORY  asked  for  an  example   of how  DEC  regulates                                                       
another industry.                                                                                                               
                                                                                                                                
COMMISSIONER    BRUNE    answered    that   most   industries    get   one                                                      
inspection   per  year.     The  wastewater   treatment   facilities   for                                                      
local   communities,     the   oil   and   gas   industry,    the   mining                                                      
industry,   and  the  fishing   industry   all  have   one  or  maybe  two                                                      
inspections   annually.    They  do  not  have  24/7 monitoring   or  even                                                      
75 percent or 50 percent monitoring at their facilities.                                                                        
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS    pointed   out   that  in   the  industry   of                                                      
commercial   fishing,   there  is 100  percent   observer  coverage,   and                                                      
there  may  be  parallel   examples  of  regulatory   oversight   in  some                                                      
of the other industries mentioned.                                                                                              
                                                                                                                                
COMMISSIONER   BRUNE  responded   that  [for fishing   vessels]  there  is                                                      
coverage   for   counting   fish   but   not  for   every   environmental                                                       
discharge   or  other  regulatory   oversights.     It  is  for  counting                                                       
species and for counting the numbers, sizes, and total biomass.                                                                 
                                                                                                                                
COMMISSIONER   BRUNE   stated  that  when  the  initiative    was  passed,                                                      
it  required   100  percent  coverage   on  each  cruise   ship;  the  100                                                      
percent  coverage   was  never  met.    He  moved  to slide   3, entitled                                                       
"Current Program Challenges and Inefficiencies," which read:                                                                    
                                                                                                                                
   head2right There were typically 22 ocean rangers on vessels                                                                  
      throughout a summer season                                                                                                
   head2right Ocean rangers performed    in-port     and    underway                                                            
      observations                                                                                                              
   head2right DEC staff spent majority of time going through ocean                                                              
      ranger reports                                                                                                            
   head2right Ocean rangers looked for potential non-compliance with                                                            
       marine discharge and pollution requirements and to                                                                       
     ensure proper sanitation, health, and safety practices                                                                     
      for passengers and crew                                                                                                   
   head2right Ocean rangers were observers, not inspectors, and                                                                 
      passed concerns to DEC for further investigation                                                                          
                                                                                                                                
CO-CHAIR    FIELDS     expressed    his    understanding     that    DEC's                                                      
interpretation   of  the  statute  is that  each  vessel  needs  at  least                                                      
one  inspection   per  year   to  achieve  100  percent   coverage   under                                                      
the law.  He asked how many sailings have Ocean Ranger coverage.                                                                
                                                                                                                                
COMMISSIONER   BRUNE   replied  that   approximately   60-70   percent  of                                                      
vessels   currently    have   Ocean   Ranger   coverage    in  any   given                                                      
season.    He reiterated   that  the Ocean  Rangers   were  observers  not                                                      
inspectors,   therefore,   would   pass  their  daily  reports   onto  DEC                                                      
staff.                                                                                                                          
                                                                                                                                
3:12:54 PM                                                                                                                    
                                                                                                                                
COMMISSIONER    BRUNE   referred    to   slide   4,   entitled   "Current                                                       
Program Challenges and Inefficiencies," which read in part:                                                                     
                                                                                                                                
   head2right Over 12 years, DEC has spent roughly $40 million on                                                               
       the ocean ranger contract. During that time, six of                                                                      
         the DEC issued notices of violation (NOVs) were                                                                        
      attributable to ocean ranger observations                                                                                 
                                                                                                                                
COMMISSIONER   BRUNE  added  that  the  six violations   attributable   to                                                      
the  Ocean  Ranger  Program   were  out  of a  total  of  264  notices  of                                                      
violations.      He  suggested    that   if  the   program   were   funded                                                      
through   general  fund  (GF),   it would   have  been  eliminated   years                                                      
ago.    It  is  funded   through   the  $5  per  lower   berth  fee.    He                                                      
asked,  "Is  that   money  well  spent?"    He  mentioned   that  most  of                                                      
the  violations   are  either   observations   and  violations   detected                                                       
by DEC staff or self-reported by the industry itself.                                                                           
                                                                                                                                
COMMISSIONER     BRUNE   reviewed     slide   5,   entitled     "CS   Bill                                                      
Overview," which read:                                                                                                          
                                                                                                                                
   head2right Simplified fee structure                                                                                          
   head2right Moving detailed statutes to regulation                                                                            
   head2right Incorporating technology                                                                                          
   head2right Updating wastewater systems in port communities                                                                   
      through a grant or loan program                                                                                           
                                                                                                                                
REPRESENTATIVE     STORY   referred    to   the   report   of   six   NOVs                                                      
attributed   to  the  Ocean   Ranger  Program   and  suggested   that  the                                                      
presence  of  oceans  rangers   on board  vessels  may  have  contributed                                                       
to best practices.                                                                                                              
                                                                                                                                
COMMISSIONER   BRUNE  answered   that he  agrees  with  that  perspective                                                       
to  some  extent;   however,   he  said  that  if  a  company   wished  to                                                      
commit  a  nefarious   act,  it  could  do  so, regardless   of  an  Ocean                                                      
Ranger  being  on  board.    The  Ocean  Rangers   do not  work  24  hours                                                      
per  day  and  are  busy  with   other  duties   at  times.    He  offered                                                      
that   proposed   under   CSHB   74,  there   would   be   announced   and                                                      
unannounced    inspections,   which   would   have  a  deterrent    effect                                                      
similar to 24-hour coverage.                                                                                                    
                                                                                                                                
3:16:06 PM                                                                                                                    
                                                                                                                                
COMMISSIONER    BRUNE   turned  to   slide  6,   entitled   "Current   Fee                                                      
Structure,"   and  slide  7,  listing   the  ten components   of  the  fee                                                      
structure   under  AS  46.03.480(b)(1)-(10).     He  offered   that  it is                                                      
confusing   how   the  fee  structure    is  assessed.     The   fees  are                                                      
assessed   based  on  the  number  of  lower  berths;   for example,   the                                                      
charge  is  "$175  for a  commercial   passenger  vessel  with  overnight                                                       
accommodations   for  at  least  100 but  not  more  than 249  passengers                                                       
for  hire"  [AS 46.03.480(b)(2)].     Under  CSHB  74,  there  would  be a                                                      
$4  per berth  fee  to  pay  for the  Ocean  Rangers   for large   vessels                                                      
and   $1  per   berth   fee   for   the  Commercial    Passenger    Vessel                                                      
Environmental   Compliance   (CPVEC)   Program.    It would  result   in a                                                      
simplified $5 per berth fee.                                                                                                    
                                                                                                                                
COMMISSIONER    BRUNE  continued   with   slide  8,  entitled   "Proposed                                                       
Fee Structure," which read:                                                                                                     
                                                                                                                                
   head2right New fee would take effect in 2021 cruise season                                                                   
   head2right All vessels over 50 berths pay $5 per berth                                                                       
         head2right Large vessels pay roughly the same, small vessels                                                           
           will see an increase in fees and an increase in                                                                      
           oversight                                                                                                            
   head2right The fee would be reduced by $1 per berth for any ship                                                             
       that maintains a DEC-approved electronic wastewater                                                                      
      monitoring system                                                                                                         
                                                                                                                                
COMMISSIONER    BRUNE   added    that   the  intent    of   the  proposed                                                       
legislation   is  to  have  a  $5  per  berth  fee   put  into  the  CPVEC                                                      
fund.                                                                                                                           
                                                                                                                                
REPRESENTATIVE    STORY  referred   to  the  increase   in  fees  for  the                                                      
small   vessels,   mentioned   on  slide   8,  and   asked  for   the  fee                                                      
amount.                                                                                                                         
                                                                                                                                
COMMISSIONER   BRUNE   responded   that  the  fee  would   depend  on  the                                                      
number  of  voyages  of the  vessel;  it  would  be a  $5 per  berth  fee,                                                      
which  is  currently  not  paid.   He  said,  "If they  weren't  assessed                                                       
it,  and there  [were]  a  hundred  berths  on  the ship,  it  would  be a                                                      
$500  per  voyage  additional  cost  for  that  vessel."   He  added  that                                                      
many  of  the  smaller   vessels  are  luxury   vessels.    He  estimated                                                       
the  full   increase   in  cost   for  the   smaller   vessels   over  the                                                      
course of a full season to be about $60,000.                                                                                    
                                                                                                                                
CO-CHAIR    FIELDS    asked   whether    the   vessels    discussed    are                                                      
overnight vessels.                                                                                                              
                                                                                                                                
COMMISSIONER   BRUNE   answered   yes.    He  confirmed   that  the  small                                                      
boats used for day excursions are not included.                                                                                 
                                                                                                                                
COMMISSIONER   BRUNE   reviewed   slide  9,  entitled   "Staying   Current                                                      
with Technology and Environmental Standards," which read:                                                                       
                                                                                                                                
   head2right This CS removes sections of statute that are overly                                                               
      detailed and do not allow for changing technology and                                                                     
      environmental standards                                                                                                   
   head2right Requires DEC write regulations that address the items                                                             
      removed from statute                                                                                                      
   head2right Putting requirements in regulation allows DEC to                                                                  
      respond to future improvements in waste treatment and                                                                     
      monitoring technologies                                                                                                   
   head2right New technology could provide for 24/7 electronic                                                                  
      monitoring of ships' discharge ports                                                                                      
                                                                                                                                
CO-CHAIR   FIELDS   asked   whether   the  proposed   legislation    would                                                      
either   allow   DEC   to   perform   the   monitoring   or   to   hire  a                                                      
contractor    to  perform   the   monitoring   with   oversight    by  the                                                      
department.                                                                                                                     
                                                                                                                                
COMMISSIONER BRUNE answered, "Yes, that is correct."                                                                            
                                                                                                                                
3:20:56 PM                                                                                                                    
                                                                                                                                
COMMISSIONER    BRUNE   relayed,   "I  have   often   said  that   ...  we                                                      
should  have   the  highest  of  environmental    standards,   and  indeed                                                      
we  do have  the  highest   of environmental    standards  in  the  world,                                                      
in  Alaska,  and  I'm  very  proud  of that."    He continued   by  saying                                                      
that  Alaska  should  not  only  hold industry   to a  high  standard  but                                                      
should  hold  itself   to that   same  high  standard.    He  referred  to                                                      
slide 10, entitled "Water Quality Improvements," which read:                                                                    
                                                                                                                                
   head2right Part of the fees will be used to upgrade wastewater                                                               
      treatment facilities in port communities                                                                                  
   head2right Large cruise ship permit allows up to 40 fecal colony                                                             
      forming units per 100 ml                                                                                                  
   head2right Local waste water treatment facility permit allows up                                                             
      to 1.5 million fecal colony forming units per 100 ml.                                                                     
   head2right Many of the over one million yearly cruise ship                                                                   
      passengers will use on-shore restrooms when visiting                                                                      
      Alaska ports                                                                                                              
                                                                                                                                
COMMISSIONER    BRUNE  emphasized    that  he  is  not   suggesting   that                                                      
cruise   ships  should  be  allowed   to  discharge   1.5  million   fecal                                                      
coliforms.     He   said  he  is   suggesting   that   Alaska  should   do                                                      
everything   in its  power  to bring  the  local  communities   up  to the                                                      
high  standard   that  the  cruise  industry   is  already  meeting.    He                                                      
pointed  out  that  many  of  the  cruise  ship  passengers   use  onshore                                                      
restrooms;   and  many  of  Alaska's   communities    were  not  built  to                                                      
accommodate   the  large  number  of visitors.    He  maintained  that  he                                                      
is  proposing  through  the  legislation   to  use some  of  the funds  to                                                      
upgrade the local wastewater systems.                                                                                           
                                                                                                                                
COMMISSIONER   BRUNE   continued   with  slide   11  and  explained   that                                                      
under  the  Federal  Clean  Water  Act  is the  301(h)  waiver  [allowing                                                       
municipalities    to   discharge    wastewater   with   less   than   full                                                      
secondary    treatment   as   required   by   law];   the   Environmental                                                       
Protection    Agency   (EPA)    oversees   wastewater    discharge    from                                                      
communities   with   the  301(h)  waiver.     He  pointed   out  that  the                                                      
communities   of Sitka,   Skagway,  and  Ketchikan  may  still  discharge                                                       
up  to  1.5  million  fecal   coliforms   per  100  milliliters   (ml)  of                                                      
water.                                                                                                                          
                                                                                                                                
CO-CHAIR   FIELDS   asked  whether   the  communities   listed   were  the                                                      
only ones with the waiver.                                                                                                      
                                                                                                                                
CO-CHAIR   FIELDS  replied   that  that  the  list   [on  the  slide]  was                                                      
selective   of  those   communities   that  are  visited   frequently   by                                                      
cruise  shops.    He  added  that  there  are  communities   with  301(h)-                                                      
like waivers.                                                                                                                   
                                                                                                                                
CO-CHAIR FIELDS asked whether Hoonah has a waiver.                                                                              
                                                                                                                                
COMMISSIONER    BRUNE   said  that   Hoonah   is  not   on  the   list  of                                                      
communities with 301(h) waivers.                                                                                                
                                                                                                                                
REPRESENTATIVE    STORY  asked  for  confirmation    that  the  intent  of                                                      
the  proposed   legislation   is  to  maintain   the  large  cruise   ship                                                      
permit   allowing   up  to  40  fecal  colony   [forming   units  per  100                                                      
ml].                                                                                                                            
                                                                                                                                
COMMISSIONER     BRUNE    emphasized     that    under     the   proposed                                                       
legislation,   there  would  be  no  change  in  the requirements.     The                                                      
intent   is   to  bring   the   wastewater    discharge    of  the   local                                                      
communities up to a level better for the environment.                                                                           
                                                                                                                                
3:24:44 PM                                                                                                                    
                                                                                                                                
COMMISSIONER   BRUNE  reviewed   slide  12, entitled   "2020  Cruise  Ship                                                      
Season," which read:                                                                                                            
                                                                                                                                
   head2right Marine engineers (DEC staff and contractors) will                                                                 
         perform initial and annual inspections on ships                                                                        
      operating in Alaska as early in the season as possible                                                                    
   head2right Marine engineers and/or DEC inspectors will perform                                                               
        both random and targeted inspections in-port and                                                                        
      underway                                                                                                                  
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS    asked  for  the  scope   of  expertise   of a                                                      
marine  engineer.     He  asked,  "What   is a  marine   engineer  in  the                                                      
context of cruise ship wastewater compliance?"                                                                                  
                                                                                                                                
COMMISSIONER   BRUNE  relayed   that  marine  engineers   have  extensive                                                       
experience   on  boats;   they  have  extensive    training  and   special                                                      
classification    and  certification.      The  engineer   looks   at  the                                                      
"as-built"   of  a  ship   and  confirms   that   it  has  everything   as                                                      
purported.  He offered to provide more information.                                                                             
                                                                                                                                
CO-CHAIR   FIELDS   asked   for  information    on  practices    in  other                                                      
states   with   extensive    cruise    ship   visitations    -  including                                                       
enforcement regimes, workforce, and operations.                                                                                 
                                                                                                                                
COMMISSIONER    BRUNE    committed    to   providing    the   information                                                       
requested.     He  reiterated   that  Alaska  has  some   of  the  highest                                                      
environmental   standards   in  the  world   with  its  current  program.                                                       
He  said   that   the  administration    commits   to  maintaining    that                                                      
standard with the proposed legislation.                                                                                         
                                                                                                                                
CO-CHAIR   FIELDS   asked   about   the  available   workforce    for  the                                                      
positions needed and the timeline for hiring.                                                                                   
                                                                                                                                
COMMISSIONER   BRUNE  responded   that  one  reason  only  three  or  four                                                      
of  the  current   Ocean  Rangers   are  Alaskans   is  because   it  is a                                                      
highly  technical,   highly  qualified   workforce;   there  are not  many                                                      
in  Alaska.      He  said   that  his   thought   is   to  bring   on  one                                                      
additional   marine   engineer   to  work  for  DEC,   therefore,   having                                                      
two  of them,  and  the  other  hires  would  be  inspectors.    When  DEC                                                      
needs  engineers   early  in the  season,  it  would  contract  for  them.                                                      
For future years, it may be a seasonal position or a contractor.                                                                
                                                                                                                                
3:29:02 PM                                                                                                                    
                                                                                                                                
COMMISSIONER   BRUNE  reviewed   slide  13, entitled   "2020  Cruise  Ship                                                      
Season," which read:                                                                                                            
                                                                                                                                
   head2right DEC Inspection, Monitoring, and Compliance                                                                        
         head2right 4 new DEC positions                                                                                         
         head2right 10 DEC staff available for the cruise ship season to                                                        
           review reports and conduct in-port and underway                                                                      
         inspections, compliance and enforcement actions                                                                        
         head2right Inspections will be random and targeted                                                                     
                                                                                                                                
COMMISSIONER   BRUNE  added   that  inspections   would  be  announced  as                                                      
well as unannounced.                                                                                                            
                                                                                                                                
REPRESENTATIVE    STORY   asked   where  the   four  new   DEC  positions                                                       
would be based.                                                                                                                 
                                                                                                                                
COMMISSIONER    BRUNE  responded   that   he  expects   that  during   the                                                      
cruise  ship  season  the  positions   would  be based  predominantly   in                                                      
Southeast   Alaska;  the  rest of  the  year  the inspectors   would  have                                                      
other  duties.    He  mentioned   that  the  cruise  ships  visit   Homer,                                                      
Anchorage,   and Dutch   Harbor;  therefore,   the focus  for  inspection                                                       
cannot   be  only  in  Southeast   Alaska   waters;  to  be  "random   and                                                      
targeted"   the inspectors   must  show  up  at all  ports  of  call.   He                                                      
expressed   that   he  did  not   know  exactly   where   they   would  be                                                      
based.                                                                                                                          
                                                                                                                                
REPRESENTATIVE    SHAW   asked   whether   the   Alaska   Marine   Highway                                                      
System    (AMHS)   must   meet   the    same   environmental    oversight                                                       
requirements    as  the  cruise   ship  industry.     He  mentioned   that                                                      
AMHS transports people similarly to what the cruise ships do.                                                                   
                                                                                                                                
COMMISSIONER   BRUNE  answered   yes.   They  are  required   to meet  the                                                      
same   standards;    however,    the  commissioner     of  DEC   and   the                                                      
commissioner    of   the   Department    of   Transportation    &   Public                                                      
Facilities   (DOTP&F)   are  afforded   the   flexibility   to  negotiate                                                       
the  cost  charged  per  berth  for  the  ferries,  and  that  negotiated                                                       
fee  has  been  zero;  under  CSHB  74,  that  process   would  remain  as                                                      
it.                                                                                                                             
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS    recalled    legislation   from   a  previous                                                       
legislative   session  exempting   small  commercial   passenger   vessels                                                      
from wastewater discharge requirements.                                                                                         
                                                                                                                                
COMMISSIONER   BRUNE   stated  he  is  not  aware   of  the  legislation.                                                       
He  opined  that  state  ferries  should  be held  to  the  same standard                                                       
as  industry  and  as local  communities;   all  entities   should  adhere                                                      
to the state's environmental standard.                                                                                          
                                                                                                                                
CO-CHAIR  FIELDS   asked  for more  information   on  the industry   trend                                                      
of  small  luxury  cruise  ships  coming  to Alaska   and whether   DEC is                                                      
addressing this trend through its monitoring program.                                                                           
                                                                                                                                
COMMISSIONER   BRUNE  responded,   "Absolutely."    He  said  that  is one                                                      
of  the   reasons   that  inspections    of  smaller   vessels   would  be                                                      
incorporated     into    DEC's   regime.        He   acknowledged     that                                                      
accumulatively    these   vessels   can   have   a  significant    impact;                                                      
therefore, oversight is necessary.                                                                                              
                                                                                                                                
3:34:30 PM                                                                                                                    
                                                                                                                                
COMMISSIONER    BRUNE   turned   to  slide   14,   entitled   "Additional                                                       
Changes," which read:                                                                                                           
                                                                                                                                
   head2right Repeals and re-enacts 46.03.482(c) addressing fee                                                                 
      schedule for State of Alaska vessels                                                                                      
   head2right Repeals citizens' suits                                                                                           
   head2right Conforming changes                                                                                                
                                                                                                                                
COMMISSIONER    reviewed   the   information    on  slide   15,  entitled                                                       
"Effective   Dates,"  as  follows:    If CSHB  74  is  enacted  into  law,                                                      
immediately   or  retroactively   to  April  1,  2020,  the  Ocean  Ranger                                                      
Program   would   be   repealed,    and  the   fees   applied   to   DEC's                                                      
activities.    The  current  [Ocean  Ranger   Program]  contract  is  $3.5                                                      
million   annually;   it  has   brought   in  about   $40  million   since                                                      
inception;    the   funds   would   be  transferred    to   DEC  for   its                                                      
activities.     On  January  1,  2021,  the  $5  fee  would  be  in  place                                                      
and the new regulations would be in place.                                                                                      
                                                                                                                                
CO-CHAIR   FIELDS    expressed   an   interest   in   hearing   from   the                                                      
department   in  the future   about  whether  the  inspection   regime  is                                                      
maintaining   an equivalence   with  the  Ocean  Ranger  regime  in  terms                                                      
of   number    of   vessels    inspected    and    number   of   sailings                                                       
[inspected],   so  that the  public  has  confidence   that  the coverage                                                       
is continuing.                                                                                                                  
                                                                                                                                
COMMISSIONER    BRUNE   responded    that   ten   DEC   staff   would   be                                                      
committed   to  doing   inspections   and  would   inspect  every   vessel                                                      
early  in  the season.    He offered   to report  to  the legislature   on                                                      
the  number  of  ships  inspected   to  determine   whether   that  number                                                      
meets the legislature's expectations.                                                                                           
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS    referred  to  slide   14  and  asked  for  an                                                      
explanation of "citizen's suits."                                                                                               
                                                                                                                                
3:37:17 PM                                                                                                                    
                                                                                                                                
EMMA  POKON,   Assistant   Attorney   General,   Environmental   Section,                                                       
Civil    Division,    Department    of   Law   (DOL),    responded    that                                                      
currently   AS 46.03.481   provides  for  citizens'   suits,  whereby  any                                                      
member  of  the  public   can  bring  a  lawsuit  against   the  owner  or                                                      
operator   of a  cruise  ship  or  against  the  department   for  failing                                                      
to  perform   an  act  or   duty  that  the   public  member   determines                                                       
should   have   been  performed.      She  maintained    that  under   the                                                      
proposed   legislation,   DEC  would  have   the  flexibility   to  decide                                                      
how  to approach   any violation   that  occurs  and  the best  course  of                                                      
action with respect to enforcement.                                                                                             
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS   asked  whether   that  provision   in the  law                                                      
has ever been employed by an aggrieved citizen.                                                                                 
                                                                                                                                
MS. POKON answered, "Not to my knowledge."                                                                                      
                                                                                                                                
COMMISSIONER   BRUNE  reviewed   slide  16, entitled   "Fiscal  Impacts,"                                                       
which read:                                                                                                                     
                                                                                                                                
   head2right Revenue: Large ships see little change, fees go up for                                                            
      small vessels in 2021                                                                                                     
   head2right Contract for marine engineer inspections will be                                                                  
      considerably lower than for Ocean Rangers                                                                                 
   head2right Attached fiscal note includes expenditure authority                                                               
      for the 2020 cruise season.                                                                                               
   head2right Personal services and other support costs for four new                                                            
      positions add to DEC's baseline budget                                                                                    
   head2right Expect future capital appropriation in grant authority                                                            
      to improve water quality near communities                                                                                 
                                                                                                                                
COMMISSIONER   BRUNE  added  that  inspections   would  be done  on  shore                                                      
and  possibly   at  one consistent   location;   the  contract   would  be                                                      
shorter   than   the  full-season    marine  engineer    requirement   for                                                      
Ocean Rangers currently.                                                                                                        
                                                                                                                                
CO-CHAIR  FIELDS   asked  for confirmation   that  there  are  funds  from                                                      
the  Ocean  Ranger  fees;   and  under  CSHB  74,  those  funds  would  be                                                      
used for the new purposes under the regulatory regime.                                                                          
                                                                                                                                
COMMISSIONER   BRUNE   replied,   "Absolutely."     There   is  about  $10                                                      
million   in  the   fund  currently,    which  would   be  used   for  the                                                      
proposed   functions,    given   spending   authority   to  do   so.    He                                                      
restated   that  $3.5  million   has been   collected  annually   for  the                                                      
Ocean  Ranger   Program;  about   $40 million   over  12  years  has  been                                                      
spent  on  the  program;  CSHB   74 proposes   to  use  the  excess  funds                                                      
generated   annually  -  about  50  percent  of  what  is collected   from                                                      
the  $5   per  berth   fee  -  for  upgrading    shore-based   wastewater                                                       
treatment   facilities   in the  communities   that  are  visited  by  and                                                      
affected   by   the  cruise   ship   industry.      He  maintained    that                                                      
ultimately   there   would  be  a  significant   positive   environmental                                                       
impact     on   those     communities;     however,     future     capital                                                      
appropriations    from   the   legislature   would   be   required.     He                                                      
maintained   that  the  goal  is to  have  a program   like  Village  Safe                                                      
Water   or   the   [Clean   Water]   State    Revolving   Fund,    whereby                                                      
communities    would    need   to   demonstrate    need   and   financial                                                       
commitment   and   work  with   DEC  staff   to  develop   a  program   to                                                      
upgrade community wastewater treatment systems.                                                                                 
                                                                                                                                
3:42:12 PM                                                                                                                    
                                                                                                                                
COMMISSIONER BRUNE stated:                                                                                                      
                                                                                                                                
      Our  commitment   is  to  making  sure   that  the  waters   of                                                           
      Alaska  are   protected;   that  we  are  open   for  business                                                            
      for  those   companies   that   are  choosing    Alaska  as   a                                                           
      destination;   but  that   we  are  insuring   that  our  high                                                            
      environmental   standards   are  going  to  be adhered   to  by                                                           
      those  companies;   and  putting   that  authority   with  DEC                                                            
      staff and DEC inspectors.                                                                                                 
                                                                                                                                
COMMISSIONER   BRUNE   reviewed   slide  17,  entitled   "What   Will  Not                                                      
Change," which read:                                                                                                            
                                                                                                                                
   head2right DEC's authority to conduct inspections at reasonable                                                              
      times and ability to get a warrant if necessary                                                                           
   head2right DEC's vessel registration system, which is required                                                               
      for  all   passenger    vessels   with   over   50   overnight                                                            
      berths.                                                                                                                   
   head2right Air emission monitoring program                                                                                   
   head2right The large cruise ship wastewater discharge general                                                                
      permit                                                                                                                    
   head2right The small cruise ship and ferry best management plan                                                              
      requirements                                                                                                              
   head2right Sampling or reporting requirements                                                                                
   head2right What may not be discharged to Alaska's environment                                                                
                                                                                                                                
COMMISSIONER   BRUNE   added  that   air  monitoring   would  be  done  by                                                      
the Division of Air Quality.                                                                                                    
                                                                                                                                
CO-CHAIR   FIELDS   asked  to  what   extent  air  emissions    enter  the                                                      
water.                                                                                                                          
                                                                                                                                
COMMISSIONER   BRUNE  answered   that  different   ships  have  different                                                       
technologies;   some  discharge   air emissions   into  the  water  during                                                      
the  sulfur  conversion   process;   some  use  scrubbers   [air-emission                                                       
control equipment] on their smokestacks.                                                                                        
                                                                                                                                
CO-CHAIR   FIELDS   asked  whether   air  emission   discharge   into  the                                                      
water is monitored by [Division of Water] staff.                                                                                
                                                                                                                                
COMMISSIONER    BRUNE   expressed   his  belief   that   the  amounts   of                                                      
sulfur  discharged   into  the  water  is  so far  below  what  naturally                                                       
occurs that the impact is negligible.                                                                                           
                                                                                                                                
CO-CHAIR    KREISS-TOMKINS    recalled    the   bill   [exempting    small                                                      
commercial     passenger     vessels     from    wastewater     discharge                                                       
regulations]   - Senate   Bill  3 [Thirtieth   Alaska  State  Legislature                                                       
(2017-2018),   signed   into  law   8/10/17]  -  which   exempts   vessels                                                      
under   250  [passengers].     He  asked   whether   under  the  proposed                                                       
legislation   there  would   be  any provisions    that  alter  or  repeal                                                      
provisions in law established through Senate Bill 3.                                                                            
                                                                                                                                
3:45:45 PM                                                                                                                    
                                                                                                                                
MS.  POKON   replied   that  there   are  provisions   in  CSHB   74  that                                                      
remove   detail  from  statute   with  the  intention   of  putting   that                                                      
detail  into  regulations.    The  intent  is  not to  change  provisions                                                       
in  the current   scheme  but  to  put them  into  regulations   to  allow                                                      
DEC  the  flexibility   to  react   to  changing   circumstances   in  the                                                      
future.                                                                                                                         
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS    asked  whether   the  proposed   legislation                                                       
would   maintain    the  provisions    exempting    small   vessels   from                                                      
wastewater discharge requirements.                                                                                              
                                                                                                                                
MS.  POKON  answered  that  those  provisions   would  be in  regulation;                                                       
DEC  would  continue   to have  the  authority   to  distinguish   between                                                      
different   classes  of dischargers.     She said  there  could  be  a set                                                      
of  rules  applying   to large   vessels  and  a  set of  rules  applying                                                       
to  small  vessels   based  on  the   risks  they  present.     She  added                                                      
that  the  department   can  apply  the  best  management   practices   to                                                      
the  smaller   vessels   - as  is  done   currently   - and  continue   to                                                      
require the more robust permit coverage.                                                                                        
                                                                                                                                
CO-CHAIR  KREISS-TOMKINS    asked  about  DEC's  current  air  monitoring                                                       
for cruise ships - programmatically and operationally.                                                                          
                                                                                                                                
MS.  POKON   answered   that   currently   the   primary   air  emissions                                                       
monitoring   by  DEC uses  opacity   monitoring   [EPA]  "Method  9"  from                                                      
shore;  in  the  last  couple   years  ambient  air  monitors   have  been                                                      
used  in a  test  project.   She  offered  to  provide  more  information                                                       
on capacity monitoring.                                                                                                         
                                                                                                                                
3:49:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    HOPKINS   asked  what   Ocean  Rangers   look  at.    He                                                      
asked,  "Do  they  only  look  at  the  fecal  coliform   and  the  sewage                                                      
discharge,   or  do  they   look  at  other  aspects   of  the  discharge                                                       
from the cruise ships?"                                                                                                         
                                                                                                                                
MS.  POKON   answered   that  the  Ocean  Rangers   observed   compliance                                                       
with  a  variety  of  federal   and  state  environmental    requirements                                                       
and  reported    on  it.    She   said  that   they   did  not   have  the                                                      
authority   of a  DEC staff  person  or  the  expertise  of  an inspector                                                       
with   respect   to  collecting    evidence   or   keeping   records   for                                                      
enforcement purposes; they were looking more broadly.                                                                           
                                                                                                                                
COMMISSIONER    BRUNE   added  that   Ocean   Rangers   were  looking   at                                                      
pools,   nail  salons,   food  distribution   areas,   and  other   health                                                      
and  safety  practices.    He  continued  by  adding  to  the  list:   air                                                      
pollution,    oil   and  fuel,   hazardous    materials,    solid   waste,                                                      
permitted    ships,    ballast    water,    wastewater,     certificates,                                                       
safety, health, and sanitation.                                                                                                 
                                                                                                                                
REPRESENTATIVE    HOPKINS   asked  whether   electronic   monitoring   was                                                      
used  only  for  sewage  discharge.     He  asked  how  other  monitoring                                                       
was performed, such as for diesel dumping.                                                                                      
                                                                                                                                
COMMISSIONER   BRUNE  said  that  the  emphasis  would  be  on wastewater                                                       
discharge   and  other  discharges.     Air  monitoring   would  continue                                                       
from  shore.    The  other  monitoring   comes   under  other  regulatory                                                       
oversight   from  the  U.S.   Food  and  Drug  Administration    (FDA)  or                                                      
from  other  federal  entities   performing  inspection.     He expressed                                                       
his  belief   that  much  of  what  the   Ocean  Rangers   have  done  was                                                      
duplicative.      The  focus   would  be   on  those   items  having   the                                                      
greatest   risk   to  the  environment    -  discharges   from   the  boat                                                      
through air and wastewater processes.                                                                                           
                                                                                                                                
REPRESENTATIVE    HOPKINS  asked  for  confirmation   that  air  would  be                                                      
monitored from the shore.                                                                                                       
                                                                                                                                
COMMISSIONER    BRUNE   responded    that   air  monitoring    would   not                                                      
change  much   at all.    The  Ocean   Rangers  were  not  involved   much                                                      
with  air  monitoring.     Air  monitoring    was  performed   from  shore                                                      
through  a  contract,   and DEC  trained   personnel  used  the  Method  9                                                      
analysis.      Most   of   the   inspections    came   from   the   shore;                                                      
therefore, the Ocean Rangers were not involved.                                                                                 
                                                                                                                                
REPRESENTATIVE   HOPKINS   asked  whether  the  electronic   [wastewater]                                                       
monitoring   system  proposed  under  the  legislation   would  track  the                                                      
other discharges that the Ocean Rangers tracked.                                                                                
                                                                                                                                
COMMISSIONER   BRUNE  answered   that  the electronic   monitoring   would                                                      
be  focused  on  wastewater   discharge.     The  department   would  have                                                      
the  flexibility   to  take  advantage   of  any new  technology   in  air                                                      
monitoring that exists in the future.                                                                                           
                                                                                                                                
REPRESENTATIVE    HOPKINS    asked   whether   fuel   leakage   would   be                                                      
electronically monitored.                                                                                                       
                                                                                                                                
COMMISSIONER   BRUNE   responded   that  many   vessels  deal   with  that                                                      
issue.   When  DEC  gets  reports  on  leakages,  the  Division  of  Spill                                                      
Prevention   and  Response   (SPAR)  responds   to  them.   He  expressed                                                       
that  if   fuel  leakage   monitoring   technology    exists,   DEC  would                                                      
want to be aware of it.                                                                                                         
                                                                                                                                
REPRESENTATIVE    HOPKINS   offered   that   the  amounts   of  discharge                                                       
from   small   boats   are  not   a  concern   in   the   same  way   that                                                      
discharges    from    multi-thousand     passenger    ships   are.      He                                                      
maintained    that  he   expects   DEC  to   continue   to  look   at  the                                                      
environmental   hazards   coming  out  of  the "small   cities"  that  are                                                      
coming  into  Alaska  ports.    He asserted   that fuel  leakages   should                                                      
be  electronically   monitored   and regulated;   the  overhaul  of  DEC's                                                      
environmental   monitoring    should  be  made  to  work  for  protecting                                                       
Alaska's oceans.                                                                                                                
                                                                                                                                
COMMISSIONER     BRUNE   stated    that    if   there    is   a   way   to                                                      
electronically     monitor    fuel    leakages,    DEC    is   absolutely                                                       
interested.     He   offered   to  provide   more  information    on  that                                                      
possibility.                                                                                                                    
                                                                                                                                
3:55:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   FIELDS  commented   on the  many  polluting   discharges   from                                                      
ships and his interest in electronic monitoring.                                                                                
                                                                                                                                
REPRESENTATIVE    HOPKINS    referred   to   slide   12  and   asked   the                                                      
question:     Who  would   be  responsible   for  scheduling    the  early                                                      
season inspections?                                                                                                             
                                                                                                                                
COMMISSIONER   BRUNE  answered   that  DEC  staff  would  be  responsible                                                       
for  them  -  namely   the  Division   of  Water   under  Director   Randy                                                      
Bates.                                                                                                                          
                                                                                                                                
REPRESENTATIVE    HOPKINS  asked  whether   there  is  adequate  staff  to                                                      
schedule inspections and perform the monitoring.                                                                                
                                                                                                                                
COMMISSIONER   BRUNE   answered   yes  -  with  what  has  been  proposed                                                       
with   the   fiscal    note   (FN)   and   supplemental     appropriation                                                       
request.     He  reiterated   that   under  CSHB   74,  the  cruise   ship                                                      
industry   would  still   be  regulated   significantly    more  than  any                                                      
other  industry   or  community   wastewater   discharge   system  or  air                                                      
emissions.    He  asserted  that  DEC  has sufficient   staff  to  inspect                                                      
ships  and  meet  the  demand  from  the  Alaska  public  that  ships  use                                                      
Alaska waters in an environmentally responsible way.                                                                            
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS    referred  again   to  observer   coverage  in                                                      
the  fishing  industry   and  acknowledged   that  the  primary  function                                                       
of   observers   is   to  collect    biological    data,   species   being                                                      
caught,  and  to  ensure  fishermen  are  not  cheating;  however,   it is                                                      
very  much  an  oversight   and  regulatory  function.     In any  of  the                                                      
fishing   vessels  there  is  100  percent   coverage.    He  opined  that                                                      
it  is not  fair  to  consider   the  cruise  ship  industry   a complete                                                       
and total outlier in terms of regulatory oversight.                                                                             
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS   referred   to  slide  17  and  asked  how  the                                                      
DEC vessel registration system worked and its function.                                                                         
                                                                                                                                
MS.  POKON  answered   that  any  vessel  intending   to  operate  in  the                                                      
marine   waters   of  the  state   registers   with   the  department   in                                                      
advance  of  entering  the  waters.   Some  of  those  vessels  intend  to                                                      
discharge   while  in state  waters,   therefore,  must  obtain  a  permit                                                      
or  if   a  small   vessel,   follow   the  best   management   practices                                                       
(BMP).    Through   the  registration   program,   DEC  has  a  record  of                                                      
the  vessels   that  are   going  to  be  in  state   waters   during  the                                                      
operating season.                                                                                                               
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS   asked   whether  all  vessels   with  over  50                                                      
overnight berths are registered in the system.                                                                                  
                                                                                                                                
MS. POKON said, "I believe so."                                                                                                 
                                                                                                                                
4:00:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    VANCE   referred   to  slide   13  and  asked   how  the                                                      
supplemental    budget    request   would   coordinate    with   the   new                                                      
positions   and the  transition   to prepare   for the  2020  cruise  ship                                                      
season.                                                                                                                         
                                                                                                                                
COMMISSIONER    BRUNE  explained    that  the   supplemental   line   item                                                      
shows   $900,000,   which  includes   the  four   new  DEC  positions   as                                                      
well  as a  contract  to  hire  marine  engineers  for  the  early  season                                                      
inspections.     The   four  positions   would   consist  of  one   marine                                                      
engineer   and  three   regular   inspectors.      It  is  expected   that                                                      
those  individuals    would  be  retained   for  the   subsequent   fiscal                                                      
year.    It  is  unclear  at  this   point  whether   the  work  would  be                                                      
done  by  DEC   staff  or  DEC  staff   in  conjunction   with   a  marine                                                      
engineer contract.                                                                                                              
                                                                                                                                
REPRESENTATIVE     VANCE    asked    whether    there    is   uncertainty                                                       
regarding   filling    the  four   positions,    therefore,   a  contract                                                       
would be needed to fill the gap.                                                                                                
                                                                                                                                
COMMISSIONER    BRUNE  replied   that  he  is  confident    that  DEC  can                                                      
fill  three   of  the  positions   because  they   don't  require   marine                                                      
engineers.     He  said  he  is  hopeful  that   DEC  can  hire  a  marine                                                      
engineer   for  the  fourth   position.     He  said  that   in  order  to                                                      
perform   the  early   season   inspections   to   cover  all   the  ships                                                      
coming   into   Alaska,   DEC   may   need   to  contract    with   marine                                                      
engineers or hire seasonal employees.                                                                                           
                                                                                                                                
4:03:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HOPKINS   referred  to  the fourth   bullet  on slide  9,                                                      
which  read:    "New  technology   could  provide   for  24/7  electronic                                                       
monitoring   of ships'  discharge   ports."    He asked  whether   "could"                                                      
means  that  future   technology   could  provide   for  24/7  electronic                                                       
monitoring   of  ships'   discharge   ports  or  whether   the  potential                                                       
exists now and could provide the monitoring.                                                                                    
                                                                                                                                
COMMISSIONER    BRUNE  relayed   that  some   of  the  newer  ships   have                                                      
technology   that  documents   when  the  ports  are  open;  some  of  the                                                      
older   ships  still   rely  on  hand-written    logbooks.    He   offered                                                      
that  the  goal   is  that  when  internet   connectivity   is  "amazing"                                                       
and  ships   are  underway   and  open   their  ports,   there   would  be                                                      
real-time   notification   to  DEC   that  a  port  is  open.    He  added                                                      
that  the  possibility   is  that  DEC  would  acquire  a  great  deal  of                                                      
data.   He  said  that  DEC  could  potentially   do  "geofencing,"   that                                                      
is,  associating    an   open  port   with  a   geographic   location   to                                                      
notify   DEC  of  ports   being  opened   in  areas   not  allowed.     He                                                      
reminded   the committee   that  most  of  the  violations  of  which  DEC                                                      
becomes   aware  are  self-reported.     He  mentioned   that  the  recent                                                      
violation    that   occurred   in   Glacier    Bay  National    Park   and                                                      
Preserve   [the  illegal   discharge   of  grey  water   in  the  park  on                                                      
9/11/18] was self-reported.                                                                                                     
                                                                                                                                
REPRESENTATIVE    STORY  mentioned  the  value  of  the  Marine  Exchange                                                       
of Alaska in vessel monitoring and tracking.                                                                                    
                                                                                                                                
4:06:29 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
4:06:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   FIELDS  moved   to  adopt  the  CS  for  HB  74,  Version   31-                                                      
GH1117\S,   Marx,  2/10/20,   as  the  working  document.     There  being                                                      
no objection, Version S was before the committee.                                                                               
                                                                                                                                
4:07:19 PM                                                                                                                    
                                                                                                                                
MS.  POKON  reviewed   the sectional   analysis   for  CSHB  74, included                                                       
in   the   committee    packet,    with   the   use   of   a   PowerPoint                                                       
presentation.  The sectional analysis read as follows:                                                                          
                                                                                                                                
      Section  1     Amends   AS  46.03.460   to clarify   that  DEC                                                            
      has   organizational    flexibility    to   regulate    cruise                                                            
      ships   with   personnel   from   different    DEC   divisions                                                            
      (air,   water,    etc.)   and    directing    DEC   to   adopt                                                            
      regulations   implementing    the  simplified   environmental                                                             
      compliance statutes.                                                                                                      
                                                                                                                                
      Section   2      Repeals   and  reenacts    AS  46.03.463    to                                                           
      simplify   and  broadly  consolidate   existing   subsections                                                             
      (a)      (c),   (e),   and  (f)   and   (h)   into   a  single                                                            
      subsection,   enabling    DEC  to   set  specific    discharge                                                            
      limits and requirements in regulation.                                                                                    
                                                                                                                                
      Section  3    Amends  AS  46.03.465(a)   to provide   DEC with                                                            
      flexibility    to  establish    the   form   and  timing   for                                                            
      cruise ships to report to DEC.                                                                                            
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS    asked  what   the  desired   flexibility   or                                                      
timing the department envisions for submitting reports.                                                                         
                                                                                                                                
MS.  POKON  answered   that  currently   statute   requires  that  it  not                                                      
be  later  than  five  days  after   each  calendar  month  of  operation                                                       
in  state  waters  and be  provided  monthly.    She  relayed  that  under                                                      
the  proposed    legislation,   timing   would   be  depend   on   several                                                      
factors  and  what  is  workable  for  staff.    She  continued  with  the                                                      
sectional analysis, which read:                                                                                                 
                                                                                                                                
      Section  4     Amends   AS  46.03.465(c)   to  clarify   DEC's                                                            
      authority    to   inspect    vessel    wastewater    and   air                                                            
      emissions systems.                                                                                                        
                                                                                                                                
      Section 5  Conforming amendments to AS 46.03.465(d).                                                                      
                                                                                                                                
      Section  6    Amends  AS  46.03.465(d)   to authorize   DEC  to                                                           
      require   certain  reports   in  a  particular    form  (e.g.,                                                            
      electronic).                                                                                                              
                                                                                                                                
MS.  POKON  added  that  Section  4 would  allow  for  inspections   while                                                      
the  ship  is  underway.     Regarding  Section   6  and  in  response  to                                                      
Representative    Kreiss-Tomkins,    she  confirmed   that  records   were                                                      
submitted   to  DEC   in  the  form   of  photographs    of  hand-written                                                       
logs.                                                                                                                           
                                                                                                                                
COMMISSIONER     BRUNE    added    that    electronically     sending    a                                                      
photograph   of  a  hand-written   log  complied   with  the  requirement                                                       
in  the initiative   for  electronic   submission.    He maintained   that                                                      
the  time   DEC  staff   spent   transcribing   the   information   was  a                                                      
waste   of  technical   staff   time.    Electronic    submissions   in  a                                                      
format   that  could  "plug   into"  DEC's  system   would  allow   better                                                      
use of staff time.                                                                                                              
                                                                                                                                
4:11:55 PM                                                                                                                    
                                                                                                                                
MS. POKON continued with the sectional analysis, which read:                                                                    
                                                                                                                                
      Section 7  Conforming amendment to AS 46.03.465(h).                                                                       
                                                                                                                                
      Section 8  Conforming amendment to AS 46.03.465(i).                                                                       
                                                                                                                                
      Section   9     Amends   AS  46.03.480(a)    to  establish    a                                                           
      simplified    environmental    compliance    fee  of   $5  per                                                            
      berth  per  voyage   on  all  commercial   passenger   vessels                                                            
      operating   in  state  waters.  This   replaces  both   the  $4                                                           
      fee  for  the  ocean  rangers   and  the  matrix   of  general                                                            
      environmental    compliance    fees.   This   amendment   also                                                            
      reduces   the   $5   fee   by  $1   for   vessels   that   use                                                            
      electronic   monitoring   systems  that  will   improve  DEC's                                                            
      ability     to     efficiently      oversee     environmental                                                             
      compliance.   As  noted  in Section   19,  this  amendment   to                                                           
      the  fee  structure   would   become   effective   January   1,                                                           
      2021.                                                                                                                     
                                                                                                                                
      Section   10     Repeals   and   re-enacts   46.03.480(c)    to                                                           
      conform   to   changes   created   by   deleting   clarifying                                                             
      language   included    with   the   fee   structure    in  the                                                            
      repealed  version   of 46.03.480(b).   This  does  not  change                                                            
      the effect of (c) as it currently exists in statute.                                                                      
                                                                                                                                
      Section  11    Amends  AS  46.03.482(c)   to remove   obsolete                                                            
      language  and  to  broaden  the  stated   purposes  for  which                                                            
      the  legislature   might   appropriate   the  collected   fees                                                            
      to include   a grant   or loan  program   created  by  Section                                                            
      12.                                                                                                                       
                                                                                                                                
      Section   12       Adds   a  new   section,    AS  46.03.483,                                                             
      authorizing   DEC  to  create  a  grant  or  loan  program   to                                                           
      support     improvements     to    shore-based     wastewater                                                             
      treatment    facilities    necessary    to   serve    visiting                                                            
      cruise ships and cruise ship passengers.                                                                                  
                                                                                                                                
      Section   13     Repeals   a  number  of   detailed   statutes                                                            
      governing commercial passenger vessels.                                                                                   
                                                                                                                                
      Section   14     Repeals   the   ocean  ranger   statute,    AS                                                           
      46.03.476,   separately   so that  it  may  have  a  different                                                            
      effective   date.   This  repeal   will   be  retroactive    to                                                           
      April  2020  (see Section   17)  so that  DEC  can transition                                                             
      to staff inspections this season.                                                                                         
                                                                                                                                
      Section    15       Transition    language    added   to   the                                                            
      uncodified  law  to  authorize  DEC  to  work  on regulations                                                             
      before  the  majority   of  the  bill  becomes   effective   in                                                           
      January 2021.                                                                                                             
                                                                                                                                
      Section  16    Includes   legislative   intent  language  that                                                            
      clarifies    that    the   $4   fee    collected    under    AS                                                           
      46.03.480(d)    may   be  used   for   funding   services    to                                                           
      passenger  vessels,   including   regulatory   services.  This                                                            
      ensures  DEC  can  collect  the  established   fee  this  year                                                            
      to  support    the  agency's    cruise   ship   environmental                                                             
      compliance    work  notwithstanding     the   repeal   of  the                                                            
      ocean rangers statute.                                                                                                    
                                                                                                                                
      Section   17      Section   14  (repeal   of   ocean   rangers                                                            
      requirement) is retroactive to April 2020.                                                                                
                                                                                                                                
      Section  18     Provides  an  immediate   effective  date  for                                                            
      Sections     14        17    including     intent     language                                                            
      specifically    for    the   summer    2020   cruise    season                                                            
      (Section    16)    and   transition     language     providing                                                            
      authority to work on regulations (Section 15).                                                                            
                                                                                                                                
      Section   19     Provides   a   special   effective   date   of                                                           
      January   1,  2021  for  the  majority   of   the  bill;  this                                                            
      ensures that DEC has time to adopt regulations before                                                                     
      the repeals in Section 13 and other amendments become                                                                     
      effective.                                                                                                                
                                                                                                                                
4:14:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   FIELDS   summarized   the  questions   for  the  committee   to                                                      
consider,   for  which  more  information   from  DEC  is requested,   and                                                      
for  which   stakeholders'    input   is  needed.     They  were:     What                                                      
percentage   of  sailings  should   have  onboard  inspections?     What's                                                      
the  right   balance  of  details   for  an  inspection    regime  in  the                                                      
statute  versus  to  be  promulgated   subsequently   in regulation?    Is                                                      
the  $1  per   berth  fee   reduction   a  good  amount   to  incentivize                                                       
installation   and  operating  of  24/7  monitoring?    Can  the proposed                                                       
legislation   be  drafted   better?    Regarding   workforce,   are  there                                                      
highly   skilled   occupations,   other   than  marine   engineers,   that                                                      
could   augment  DEC's   inspection   regime?     Regarding   technology,                                                       
what  do  electronic   monitoring   systems  look  for  and  what  is  the                                                      
range   of  capacities    on  the  different    cruise   ships   owned  by                                                      
different   companies?    What  percentage   of  cruise  ships  in  Alaska                                                      
currently   have electronic   monitoring?    To  what  extent  could  they                                                      
report  to  a  contractor   like  the  Marine   Exchange   of  Alaska  and                                                      
how  long   would   that  transition    take?    If  the   submission   of                                                      
discharge    reports   is   not  monthly,    what   is  the   appropriate                                                       
frequency   of the  submissions?    Should  there  be  sideboards   on the                                                      
percentage   of  user  fees  invested   in  onboard  inspections    versus                                                      
onshore infrastructure investments?                                                                                             
                                                                                                                                
4:17:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE     STORY   added   the   question:       What   are   best                                                      
practices followed in other ports?                                                                                              
                                                                                                                                
REPRESENTATIVE HOPKINS asked about the penalty for a violation.                                                                 
                                                                                                                                
MS.  POKON  answered  that  it  varies  depending  on  the  violation  and                                                      
on  whether   it  falls  under  EPA   policy  or  Alaska   statute.    She                                                      
said  that  as  an  example,   the  Glacier   Bay  incident   generated  a                                                      
$17,000-$18,000 penalty for the state violations.                                                                               
                                                                                                                                
REPRESENTATIVE   HOPKINS   asked  what  the penalties   were  for the  six                                                      
violations discovered by the Ocean Rangers.                                                                                     
                                                                                                                                
COMMISSIONER     BRUNE   replied    that    DEC   would    provide    that                                                      
information.                                                                                                                    
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS   referred   to  Section   13  of the  proposed                                                       
legislation    and   asked   why  the   "Recognition    Program"    in  AS                                                      
46.03.485 would be repealed.  It read:                                                                                          
                                                                                                                                
      The  department   may engage   in efforts   to  encourage  and                                                            
      recognize   superior    environmental    protection    efforts                                                            
      made   by   the   owners    or   operators    of   commercial                                                             
      passenger    vessels     that   exceed    the    requirements                                                             
      established by law.                                                                                                       
                                                                                                                                
MS.  POKON  responded  that  DEC  has not  had  the  funding  or capacity                                                       
to   do   anything    explicitly.        The   department    can    always                                                      
acknowledge    good   environmental     performance    by   any   of   its                                                      
permittees,   but  in recent  years  DEC  has  not taken  the  time  to do                                                      
so for cruise ships.                                                                                                            
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS    summarized    as  follows:     DEC   has  not                                                      
engaged   in  this  activity   in  the  past,  it  does  not  need  a  law                                                      
permitting   it to  do so,  and  CDHB  74 would  take  it out  of  statute                                                      
to "tighten up the law."                                                                                                        
                                                                                                                                
MS. POKON agreed.                                                                                                               
                                                                                                                                
4:20:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS   referred   to  the  proposed   repeal  of  two                                                      
definitions   under  AS 46.03.490.    He  asked  why  the definition   for                                                      
"untreated sewage" - in paragraph (15) - would be repealed.                                                                     
                                                                                                                                
MS.  POKON  pointed   out  that  there   is  a definition   for  "treated                                                       
sewage"    in   paragraph    (14);   therefore,    the   definition    for                                                      
untreated   sewage  is  superfluous.    Removal   of the  definition   was                                                      
a  recommendation    from  Legislative    Legal  Services.      She  added                                                      
that  under  the  proposed  legislation,   the  definition   in paragraph                                                       
(1)  - "agent  for  service  of  process"  -  would  be repealed   because                                                      
the term is no longer in existing statute.                                                                                      
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS    restated   that   both  definition    repeals                                                      
are effectively conforming changes.                                                                                             
                                                                                                                                
MS. POKON agreed.                                                                                                               
                                                                                                                                
REPRESENTATIVE    VANCE  commented   that  she  supports   Section  12  of                                                      
the  proposed  legislation,   which  adds  support  for  the  shore-based                                                       
treatment   facilities.     She  expressed   her  appreciation   that  the                                                      
proposed   legislation   would  continue   to maintain   the  regulations                                                       
that   were   previously    under    the   Ocean   Ranger    Program   and                                                      
additionally    provide   a  means   for   shore-based    communities   to                                                      
upgrade   their  systems   for  future   generations.     Although   Homer                                                      
has  a  modern  water  and   sewage  treatment   plant,  it  was  able  to                                                      
install   restrooms   downtown    with  the   funds  received    from  the                                                      
cruise ship industry.                                                                                                           
                                                                                                                                
4:24:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS   questioned   the  repeal  of  AS  46.03.462  -                                                      
"Terms   and  conditions   of  discharge   permits"   - proposed   in  the                                                      
legislation.      He  asked  whether   there   would   be  an  equivalent                                                       
reenactment.                                                                                                                    
                                                                                                                                
MS.  POKON  offered  that  the  broad  language  proposed   under  Section                                                      
2  of   CSHB   74,   which   repeals   and   reenacts   AS   46.03.463   -                                                      
"Prohibited    discharges",     would   authorize    DEC   to   put   into                                                      
regulation   the  comparable    provisions   that  are  currently   in  AS                                                      
46.03.462.                                                                                                                      
                                                                                                                                
CO-CHAIR   KREISS-TOMKINS    asked  for   confirmation   that   Section  2                                                      
repeals   and   reenacts    AS  46.03.463    and   to  some   extent,   AS                                                      
46.03.462.                                                                                                                      
                                                                                                                                
MS. POKON concurred.                                                                                                            
                                                                                                                                
4:26:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS stated that CSHB 74 would be held over.                                                                         

Document Name Date/Time Subjects
HB 74 Work Draft Committee Substitute v. S 2.10.20.pdf HSTA 2/11/2020 3:00:00 PM
HB 74
HB 74 Work Draft CS ver. S Sectional Analysis version 2.10.20.PDF HSTA 2/11/2020 3:00:00 PM
HB 74
HB 74 Draft Fiscal Note DEC-EH 02.10.20.pdf HSTA 2/11/2020 3:00:00 PM
HB 74
HB 74 CS Draft Fiscal Note DEC-AQ 02.10.20.pdf HSTA 2/11/2020 3:00:00 PM
HB 74
HB 74 CS Draft Fiscal Note DEC-DAS 02.10.20.pdf HSTA 2/11/2020 3:00:00 PM
HB 74
HB 74 CS Draft Fiscal Note DEC-SSS 02.10.20.pdf HSTA 2/11/2020 3:00:00 PM
HB 74
HB 74 CS Draft Fiscal Note DEC-WIF 02.10.20.pdf HSTA 2/11/2020 3:00:00 PM
HB 74
HB 74 HSTA CS Presentation - DEC 2.10.20.pdf HSTA 2/11/2020 3:00:00 PM
HB 74
HB 182 Work Draft Committee Substitute v. U 2.10.20.pdf HSTA 2/11/2020 3:00:00 PM
HB 182
HB 182 Letter of Support - Providence 1.31.20.pdf HSTA 2/11/2020 3:00:00 PM
HB 182
HB 182 Letter of Support - Testimony 2.5.20.pdf HSTA 2/11/2020 3:00:00 PM
HB 182