Legislature(2009 - 2010)CAPITOL 17

03/23/2010 01:00 PM House TRANSPORTATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HJR 47 SMALL VESSEL CARGO EXEMPTION TELECONFERENCED
Moved Out of Committee
+= HB 257 BAN CELL PHONE USE WHEN DRIVING TELECONFERENCED
<Bill Hearing Canceled>
+= HB 357 AK RAILROAD CORP. LAND SALES TELECONFERENCED
Moved CSHB 357(TRA) Out of Committee
+ SB 272 RENTAL CAR CHARGES TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                              
1:03:54 PM                                                                                                                    
                                                                                                                                
              HJR 47-SMALL VESSEL CARGO EXEMPTION                                                                           
                                                                                                                                
CHAIR P. WILSON announced that  the first order of business would                                                               
be HOUSE JOINT RESOLUTION NO.  47, Urging the United States Coast                                                               
Guard  to  amend  its  regulations   relating  to  small  vessels                                                               
transporting  fuel   and  supplies  to  remote   communities  and                                                               
businesses in the state.                                                                                                        
                                                                                                                                
1:05:56 PM                                                                                                                    
                                                                                                                                
DAVID SCOTT,  Staff, Representative  Kyle Johansen,  Alaska State                                                               
Legislature, on behalf  of the prime sponsor,  explained that HJR
47  would  urge the  U.S.  Coast  Guard  (U.S.C.G.) to  amend  it                                                               
regulations  relating  to  small vessels  transporting  fuel  and                                                               
supplies to  remote communities and  businesses in the state.   A                                                               
constituent  brought  this  matter to  Representative  Johansen's                                                               
attention.  Mr. Spokely is on-line to testify today, he stated.                                                                 
                                                                                                                                
DAVID  SPOKELY,  Power Systems  and  Supply  Alaska, stated  that                                                               
problems  exist  in  delivering fuel  and  freight  to  Southeast                                                               
Alaska  and remote  sites.   He explained  that twenty  years ago                                                               
logging barges  were available in  Southeast Alaska to  help move                                                               
goods.  He modified a vessel for  fuel delivery.  He then built a                                                               
brand new vessel and worked  with the Department of Environmental                                                               
Conservation (DEC)  to develop  a spill  response that  meets the                                                               
U.S.  Environmental  Protection  Agency's (EPA)  2010  standards.                                                               
The  vessel he  designed and  built is  a triple-hull  high-speed                                                               
landing  craft.   Although the  local and  state branches  of the                                                               
U.S.C.G. liked  his system, when  he applied for an  exemption to                                                               
the federal law,  the national offices limited him  to one vessel                                                               
until the  matter could be  further investigated.  He  would like                                                               
to have  several ships in  order to serve local  communities, but                                                               
has since  been advised that  due to cutbacks the  U.S.C.G. would                                                               
not develop any regulations to allow operation of his vessels.                                                                  
                                                                                                                                
1:09:15 PM                                                                                                                    
                                                                                                                                
MR. SPOKELY  restated that  the local  and state  U.S.C.G. "liked                                                               
what  his  company was  doing."    He  explained that  his  spill                                                               
response plan meets the EPA's  2010 standards that the state will                                                               
implement for fuel delivery.   His triple-hull lightweight vessel                                                               
cruises at 23  knots and can navigate into  shallow waters, which                                                               
allows him  to traverse bays and  rivers.  During its  five years                                                               
of  operation  his vessel  has  never  "spilled  any fuel".    He                                                               
detailed  other aspects  of his  vessel's  system, including  the                                                               
self-regulating  pumping system.   The  state DEC  and the  local                                                               
U.S.C.G. offices assisted him with  the vessel design, certified,                                                               
and  inspected his  vessel as  a  passenger vessel,  a bulk  fuel                                                               
carrier, and a bulk cargo carrier.   He reported that as of today                                                               
his vessel is  the only vessel in the U.S.  that has obtained all                                                               
three designations  at once.   The U.S.C.G. did not  identify any                                                               
issues or  request any  modifications or  changes to  his vessel.                                                               
In fact,  the state DEC office  would like his company  to expand                                                               
throughout the state to serve coastal areas, he stated.                                                                         
                                                                                                                                
MR.  SPOKELY,  in response  to  Chair  Wilson, replied  that  his                                                               
vessel delivers fuel,  cargo, and passengers.   The difficulty is                                                               
that the regulations that apply  to his vessel were developed for                                                               
supertankers.     Thus,  the  U.S.C.G.  has   not  addressed  the                                                               
requirements  that apply  to smaller  vessels.   So  long as  his                                                               
vessel remains  under 15 gross  tons the bulk of  the regulations                                                               
do not  really apply, but since  his tanks are internal,  he must                                                               
meet the cargo  tanker vessel regulations intended  for large oil                                                               
tankers.  In  order to obtain relief, the U.S.C.G.  must create a                                                               
new subchapter in regulation that  would apply to smaller vessels                                                               
transporting  fuel,  freight,  and  passengers.    He  said,  "We                                                               
addressed  that through  this  exemption.   They  thought it  was                                                               
great.   They  loved  what we  did.   They  agreed  we should  be                                                               
building more of these and  supplying them everywhere.  Maine has                                                               
been  calling us  and asking  if they  can get  our boats."   The                                                               
limitation arises  since his  vessel is  built from  aluminum and                                                               
the regulations  require tankers to  be built from steel.   Thus,                                                               
his  issue requires  the U.S.C.G.  to  create a  new category  of                                                               
vessel.  The U.S.C.G. was  moving forward on regulations and then                                                               
decided on  other priorities to  fund.  Therefore, no  funding or                                                               
staff has been authorized to write the regulations.                                                                             
                                                                                                                                
1:13:58 PM                                                                                                                    
                                                                                                                                
MR. SPOKELY reported  that he has worked with  the local U.S.C.G.                                                               
office on draft regulations, but  the Juneau office does not have                                                               
resources  to move  forward, either.   Meanwhile,  he is  "stuck"                                                               
with one  boat in  Ketchikan while Alaska  needs more  boats like                                                               
his to serve  the small Alaskan communities.  He  pointed out the                                                               
exemption  would   apply  to  all  companies   providing  similar                                                               
service, not just his company.                                                                                                  
                                                                                                                                
1:14:57 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON related her understanding  that this resolution,                                                               
HJR  47, would  ask  the U.S.C.G.  to create  a  new category  of                                                               
vessel  and separate  it  out from  the  requirements for  larger                                                               
vessels.                                                                                                                        
                                                                                                                                
1:15:47 PM                                                                                                                    
                                                                                                                                
MR.  SCOTT, in  response to  Representative Gruenberg,  explained                                                               
that he had an expert witness  lined up to testify but the person                                                               
was  not  able to  make  the  meeting.    He explained  that  the                                                               
U.S.C.G.  personnel  offered to  answer  any  questions that  are                                                               
submitted in writing.                                                                                                           
                                                                                                                                
REPRESENTATIVE GRUENBERG  offered his belief that  it sounds like                                                               
the statutory authorization exists  but the U.S.C.G. must publish                                                               
a  regulation  to  cover  vessels that  carry  fuel,  cargo,  and                                                               
passengers concurrently at the same time.                                                                                       
                                                                                                                                
MR. SCOTT agreed.                                                                                                               
                                                                                                                                
1:17:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  stated  that  he  does  not  have  any                                                               
problem  passing HJR  47  out of  committee.   He  asked why  the                                                               
U.S.C.G.  has not  yet  adopted regulations  since  not doing  so                                                               
makes it  tough for Southeast  Alaska businesses.  He  asked what                                                               
needs to  happen, whether  a U.S.C.G.  Admiral could  come before                                                               
the committee or if the  U.S. Congressional delegation would need                                                               
to assist in addressing the issue.                                                                                              
                                                                                                                                
REPRESENTATIVE  JOHANSEN   said  he   appreciated  Representative                                                               
Gruenberg's point of  view.  He would like to  see the resolution                                                               
keep moving through the process.                                                                                                
                                                                                                                                
CHAIR P. WILSON  said she would also like to  pass the resolution                                                               
out of committee.   She asked the sponsor's staff  to contact the                                                               
U.S.C.G.                                                                                                                        
                                                                                                                                
1:18:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ related her  understanding that the U.S.C.G.                                                               
in Alaska  is supportive but  the matter just needs  attention at                                                               
the national level.                                                                                                             
                                                                                                                                
MR. SCOTT agreed.                                                                                                               
                                                                                                                                
CHAIR P.  WILSON commented that  she hoped this  resolution would                                                               
help alleviate the problem.                                                                                                     
                                                                                                                                
1:19:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   PETERSEN  asked   whether  the   Ketchikan  boat                                                               
building facility could build boats of that size.                                                                               
                                                                                                                                
MR. SCOTT answered yes.                                                                                                         
                                                                                                                                
REPRESENTATIVE PETERSEN expressed support  for using this type of                                                               
vessel in Western Alaska.  He offered his strong for HJR 47.                                                                    
                                                                                                                                
1:20:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  whether  this  vessel was  built                                                               
from the hull up.                                                                                                               
                                                                                                                                
MR. SPOKELY explained that his vessel  is a one of a kind vessel.                                                               
This  vessel is  44 feet  long and  he plans  to keep  any future                                                               
vessels under 65  feet and under 10,500 gallons.   He stated that                                                               
his  company does  not want  to compete  with "giant  barges" but                                                               
would like to  deliver small quantities of fuel in  a safe manner                                                               
to rural  areas.  He envisioned  using the 50 to  60 foot vessels                                                               
as well as  the 40-foot vessel designed  specifically for shallow                                                               
water navigation.  It takes less  than ten minutes to convert his                                                               
vessel  from a  freight or  passenger  vessel to  a fuel  vessel.                                                               
Fuel transport  operations cannot  occur while passengers  are on                                                               
board, which he characterized as a good policy.                                                                                 
                                                                                                                                
CHAIR P. WILSON related her  understanding that Mr. Spokely has a                                                               
"sister ship" waiting in the wings to be built.                                                                                 
                                                                                                                                
MR. SPOKELY answered yes.                                                                                                       
                                                                                                                                
REPRESENTATIVE MUNOZ  thanked Mr. Spokely for  his investment and                                                               
transportation in the Southeast Alaska region.                                                                                  
                                                                                                                                
1:22:42 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON, after first  determining no one else  wished to                                                               
testify, closed public testimony on HJR 47.                                                                                     
                                                                                                                                
REPRESENTATIVE  JOHANSEN remarked  that  the  vessel Mr.  Spokely                                                               
designed  is  in demand.    He  characterized  the vessel  as  an                                                               
"amazing  vessel"  manufactured  and  designed  in  Alaska,  with                                                               
potential  applications  statewide.    He said  he  is  proud  to                                                               
represent District 1.  He wants  to "cut that red tape" and allow                                                               
Mr. Spokely to  move forward with his second ship.   He said, "We                                                               
should all get behind it and make it happen."                                                                                   
                                                                                                                                
REPRESENTATIVE JOHANSEN removed his objection.                                                                                  
                                                                                                                                
REPRESENTATIVE  MUNOZ moved  to report  HJR 47  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  HJR 47 was reported  from the                                                               
House Transportation Standing Committee.                                                                                        
                                                                                                                                
1:24:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG added  he was  on a  landing ship  tank                                                               
(LST)  in Vietnam,  which he  thought  was very  similar to  this                                                               
vessel.   He stated that  the LSTs  hauled cargo and  people, but                                                               
did not need a pier to unload.                                                                                                  
                                                                                                                                

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