Legislature(2017 - 2018)CAPITOL 17

01/26/2017 01:30 PM House TRANSPORTATION

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Audio Topic
01:33:46 PM Start
01:33:53 PM HB51
02:01:32 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 51 SMALL VESSEL WASTEWATER EXEMPTION TELECONFERENCED
Heard & Held
            HB 51-SMALL VESSEL WASTEWATER EXEMPTION                                                                         
                                                                                                                                
1:33:53 PM                                                                                                                    
                                                                                                                                
CO-CHAIR STUTES announced  that the only order  of business would                                                               
be  HOUSE BILL  NO. 51,  "An Act  relating to  the regulation  of                                                               
wastewater discharge  from small commercial passenger  vessels in                                                               
state waters; and providing for an effective date."                                                                             
                                                                                                                                
1:34:09 PM                                                                                                                    
                                                                                                                                
MATT GRUENING, Staff, Representative  Louise Stutes, Alaska State                                                               
Legislature, presented HB 51 on  behalf of Representative Stutes,                                                               
prime  sponsor.   Mr. Gruening  read from  the sponsor  statement                                                               
included in the committee packet, which read as follows:                                                                        
                                                                                                                                
          House  Bill  51   would  reinstate  statutes  that                                                                    
     exempt  the state  ferries  and  other small  passenger                                                                    
     vessels  from large  cruise  ship wastewater  discharge                                                                    
     requirements,  instead   allowing  them   to  discharge                                                                    
     wastewater  under   Best  Management   Practices  (BMP)                                                                    
     plans.                                                                                                                     
                                                                                                                                
          Alaska   Statutes  require   commercial  passenger                                                                    
     vessels to have a permit  from the Alaska Department of                                                                    
     Environmental    Conservation   (DEC)    to   discharge                                                                    
     wastewater  into  waters  of the  state.  The  effluent                                                                    
     limits  in the  permit are  to  be based  on levels  of                                                                    
     treatment  that  can  be  achieved  using  an  advanced                                                                    
     wastewater treatment system (AWTS).                                                                                        
                                                                                                                                
          An exemption  in the statute was  made for smaller                                                                    
     ships    including the state  ferries    in recognition                                                                    
     of  the problems  they would  have  installing AWTS  on                                                                    
     board their smaller vessels.                                                                                               
     Alternative measures designed  to protect Alaska waters                                                                    
     and fish,  primarily through  the employment  BMP plans                                                                    
     and designation of no-discharge  areas, were imposed on                                                                    
     these vessels. The  intent of the BMP plans  is for the                                                                    
     vessels   to  continually   improve  their   wastewater                                                                    
     performance.   Sampling,   monitoring  and   compliance                                                                    
     assistance  along  with  BMP review  and  approval  has                                                                    
     generated  improved operation  of  these systems  since                                                                    
     the program's inception.                                                                                                   
                                                                                                                                
          The exemption  language in the statute  expired on                                                                    
     January  1, 2016  leaving the  small vessels  without a                                                                    
     viable means  to comply  with the  statutory permitting                                                                    
     provisions.  This  bill  would  restore  the  statutory                                                                    
     exemption  along with  DEC's authority  to require  the                                                                    
     alternative requirements  such as  BMP for  the smaller                                                                    
     vessels.                                                                                                                   
                                                                                                                                
          Without the  changes in  the proposed  bill, state                                                                    
     ferries and  small cruise ships  would have  to install                                                                    
     AWTS  technology,   which  would  be  cost   and  space                                                                    
     prohibitive. Additionally, most  small cruise ships and                                                                    
     state ferries lack available  space and weight capacity                                                                    
     to install AWTS, creating potential stability issues.                                                                      
     DOT&PF estimates the cost to retrofit ferries is over                                                                      
     $5 million.                                                                                                                
                                                                                                                                
LARRY   HARTIG,   Commissioner,   Department   of   Environmental                                                               
Conservation (DEC), testified in support of  HB 51.  He said that                                                               
the  BMP  plan  has  been used  for  small  commercial  passenger                                                               
vessels for  over 10  years and that  there has  been significant                                                               
improvement  in  the  quality of  wastewater  from  the  vessels.                                                               
Commissioner  Hartig offered  his belief  that the  BMP plan  has                                                               
worked really well  in terms of protecting  the environment while                                                               
simultaneously ensuring the economic  viability of Alaska ferries                                                               
and small cruise vessels.  He  stated that HB 51 would return the                                                               
regulation  to  what  was  in  place before  the  sunset  of  the                                                               
provision in  AS 46.03.462(a)(2)  that occurred  automatically in                                                               
2016.   Commissioner  Hartig explained  that the  change was  not                                                               
foreseen and  came as  a surprise.   He  further stated  that the                                                               
department  is looking  to return  to  the status  quo, which  he                                                               
opined has been working well.                                                                                                   
                                                                                                                                
1:36:22 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HARTIG suggested that the  key provision in HB 51 is                                                               
Section 4.   He explained  that the  language in Section  4, "the                                                               
best management  practices for protecting the  environment to the                                                               
maximum extent feasible," is the  criteria used to approve a BMP.                                                               
He  referred  to language  in  Section  4  [beginning on  line  6                                                               
through line 9] of the bill, which read as follows:                                                                             
                                                                                                                                
     "best   management   practices"  means   schedules   of                                                                    
     activities,  prohibitions   of  practices,  maintenance                                                                    
     procedures, and  other management practices  to prevent                                                                    
     or reduce  the pollution  of the  marine waters  of the                                                                    
     state.                                                                                                                     
                                                                                                                                
COMMISSIONER HARTIG reiterated that  this language worked for the                                                               
state,  the   vessels,  and  the  environment   before,  and  the                                                               
department urges passage of HB 51.                                                                                              
                                                                                                                                
COMMISSIONER HARTIG  explained that small vessels  are defined by                                                               
Alaska  statute  as having  50-249  lower  berths and  that  that                                                               
definition includes the Alaska state ferries.                                                                                   
                                                                                                                                
1:39:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  inquired about the difference  of language                                                               
in subsection (k) for operators  of small vessels as "may" verses                                                               
the  department  "shall."   He  offered  his interpretation  that                                                               
"may" means operators  of small commercial vessels  don't have to                                                               
submit plans  for alternative terms if  they do not want  to.  He                                                               
suggested that subsection (k) appears  to be the "nuts and bolts"                                                               
of the  bill but  lacks any  "concept of  where they're  going on                                                               
that."  Representative Neuman asked the commissioner to respond.                                                                
                                                                                                                                
1:41:00 PM                                                                                                                    
                                                                                                                                
COMMISSIONER   HARTIG  answered   that  before   its  sunset   AS                                                               
46.03.462(a)  provided   two  ways  small   commercial  passenger                                                               
vessels  could   discharge  wastewater  into  marine   waters  in                                                               
compliance  with state  requirements.   Under  the first  option,                                                               
small vessels elect  the same permitting process  as large cruise                                                               
ships  and would  need an  advanced  wastewater treatment  system                                                               
(AWTS).   This  option exists  now  and would  continue to  exist                                                               
under HB  51; however  small vessel operators  are not  likely to                                                               
opt  for it.    The  proposed legislation  would  bring back  the                                                               
second  option, which  was  "sunsetted," and  that  is for  small                                                               
vessel operators  to submit a  best management practice  (BMP) to                                                               
DEC for  approval.  He stated  that if the plan  met the criteria                                                               
in Section 4 of the bill,  "shall" would direct the department to                                                               
approve the plan.                                                                                                               
                                                                                                                                
1:42:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN requested information  on the intentions of                                                               
the department  in implementing these  regulations.   He stressed                                                               
his  strong concern  for  the amount  of  regulations already  in                                                               
place.                                                                                                                          
                                                                                                                                
CO-CHAIR STUTES  offered her  understanding that  the regulations                                                               
are already in place.                                                                                                           
                                                                                                                                
COMISSIONER HARTIG answered  that is correct. He  stated that the                                                               
department's intention  is to reinstate what  has previously been                                                               
in place  for at  least the past  10 years and  that there  is no                                                               
need to create any new  regulations.  Commissioner Hartig offered                                                               
the  expertise of  Mr.  White and  others in  the  room from  the                                                               
department to  speak in more  detail to how the  regulations have                                                               
worked in the past.                                                                                                             
                                                                                                                                
REPRESENTATIVE CLAMAN  raised awareness to  the purpose of  HB 51                                                               
in addressing the "sunsetting" of  the regulations last year, and                                                               
he asked if there is a sunset date for the proposed legislation.                                                                
                                                                                                                                
COMISSIONER HARTIG offered his  understanding that the department                                                               
does  not  intend  to  sunset   the  proposed  legislation.    He                                                               
explained  that the  legislation  is self-renewing  in the  sense                                                               
that the best [emphasis on "best"]  BMP must be in place in order                                                               
for the  department to approve  and the provision allows  for the                                                               
integration of upgraded technology, as it becomes available.                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN  clarified   his  understanding  that  the                                                               
aforementioned  scenario  would be  a  regulatory  issue and  not                                                               
something for  which the department  would have to  seek approval                                                               
from the legislature every time technology improves.                                                                            
                                                                                                                                
COMISSIONER  HARTIG  explained  that  the  department  would  set                                                               
standard,   five-year  terms   on  the   permits  to   allow  for                                                               
improvements in technology.                                                                                                     
                                                                                                                                
1:44:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   STUTES   asked   Mr.   White  to   address   some   of                                                               
Representative Neuman's concerns.                                                                                               
                                                                                                                                
BEN  WHITE, Program  Manager, Cruise  Ships Program,  Division of                                                               
Water, Department of  Environmental Conservation (DEC), explained                                                               
that 18  AAC 69.046 is the  current regulation in place  with DEC                                                               
that describes requirements  for BMP plans; it has  been in place                                                               
since 2006.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOPP  provided  his   understanding  that  HB  51                                                               
wouldn't  change  anything about  the  regulations  and that  the                                                               
proposed  legislation  is intended  to  allow  the department  to                                                               
continue doing  business the way it  has been in terms  of how it                                                               
treats commercial passenger vessels below a certain size.                                                                       
                                                                                                                                
MR. WHITE responded that is correct.                                                                                            
                                                                                                                                
1:46:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  asked why  a small passenger  vessel would  have a                                                               
large cruise ship wastewater discharge requirement.                                                                             
                                                                                                                                
MR. WHITE  elucidated that  there are  currently two  options for                                                               
wastewater   discharge   permitting  for   commercial   passenger                                                               
vessels: one  is through  the general  permit for  large vessels,                                                               
which was issued in 2013, and  the other is through the exemption                                                               
for smaller vessels.  He  explained that without the small vessel                                                               
exemption in existence, the only  option would be for all vessels                                                               
to go through the same permitting process as large vessels.                                                                     
                                                                                                                                
CO-CHAIR  WOOL  offered  his  understanding,  that  [without  the                                                               
exemption for  smaller vessels, which  would be renewed  under HB
51] there is a "one-size-fits-all"  requirement that doesn't work                                                               
for all vessels.                                                                                                                
                                                                                                                                
MR. WHITE confirmed that is correct.                                                                                            
                                                                                                                                
1:48:06 PM                                                                                                                    
                                                                                                                                
MICHAEL  NEUSSL,  Deputy   Commissioner,  Alaska  Marine  Highway                                                               
System (AMHS),  Department of Transportation &  Public Facilities                                                               
(DOT&PF),  testified that  DOT&PF and  AMHS  support HB  51.   He                                                               
explained  that HB  51  would reinstate  the  BMP plan  exemption                                                               
which is  valuable to  the AMHS because  it allows  operations to                                                               
continue as they have been without major expense.                                                                               
                                                                                                                                
MR.  NEUSSL,  in  response  to  Representative  Neuman's  earlier                                                               
question  about the  language of  "may verses  shall," said  that                                                               
"may" is used  because small vessel operators, such  as the AMHS,                                                               
can choose  to use  the BMP  plan alternative  compliance method.                                                               
He conveyed that  if small vessel operators do not  choose to use                                                               
the  exemption, then  the higher  standards of  the large  cruise                                                               
ships apply.   He  reiterated that  it is  not a  requirement for                                                               
small commercial passenger vessel operators  to apply for the BMP                                                               
plan  alternative, but  that in  some  cases it's  in their  best                                                               
interest.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  NEUMAN  offered   his  understanding  that  small                                                               
vessel operators could either decide  to upgrade their wastewater                                                               
or elect to not upgrade.                                                                                                        
                                                                                                                                
MR. NEUSSL  answered that is  correct.   He explained that  HB 51                                                               
contains two options:  the standards that exist  for large cruise                                                               
ships,  which  could  be  complied  with  by  everyone,  and  the                                                               
exemption [for small commercial  passenger vessels], which allows                                                               
the alternative compliance method of  an approved BMP plan, which                                                               
HB 51 attempts to reinstate.                                                                                                    
                                                                                                                                
1:50:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  STUTES  inquired  about  the water  quality  under  the                                                               
current BMP  plan in comparison  to the water quality  that comes                                                               
from the wastewater facility in Juneau.                                                                                         
                                                                                                                                
MR.  NEUSSL  illustrated that  the  discharge  standards are  not                                                               
specified in  the BMP portion  of the bill  and that the  goal of                                                               
not specifying  a limit  is to  allow for  continued improvement.                                                               
He  said  that  with  each   successful  upgrade  to  the  marine                                                               
sanitation devices, the water quality  improves.  He deferred Co-                                                               
Chair  Stutes'  question  about  municipal  wastewater  treatment                                                               
plant discharge standards to DEC.                                                                                               
                                                                                                                                
CO-CHAIR STUTES  shared her  insight that  while the  majority of                                                               
the ferries in  AMHS are old, the wastewater  systems onboard are                                                               
not antiquated.                                                                                                                 
                                                                                                                                
MR. NEUSSL confirmed that regardless  of what year the vessel was                                                               
built, there  have been  many upgrades  to the  marine sanitation                                                               
devices  or  wastewater treatment  systems.  He  stated that  the                                                               
larger vessels in  the AMHS fleet - which would  be covered under                                                               
HB 51 -  all had major upgrades to the  marine sanitation devices                                                               
between 2009  and 2011.   He noted  the relationship  that formed                                                               
between  departments,  as part  of  the  BMP plan,  where  DOT&PF                                                               
worked and  trained under  the guidance of  DEC to  improve water                                                               
quality   discharge  standards   within  the   limits  of   space                                                               
feasibility of holding the equipment onboard.                                                                                   
                                                                                                                                
CO-CHAIR  STUTES asked  what actions  AMHS would  be required  to                                                               
take in  order to  upgrade the  wastewater systems  equivalent to                                                               
that of the 250-plus berth requirements.                                                                                        
                                                                                                                                
1:52:32 PM                                                                                                                    
                                                                                                                                
MR. NEUSSL explained  that the requirement would  pertain to four                                                               
vessels currently  in the fleet and  would require an AWTS  to be                                                               
installed.   He stated that  the department conducted a  study in                                                               
2008  on the  M/V Taku  and found  the estimated  cost was  $1.25                                                               
million.    He  disclosed  that   the  Motor  Vessel  (M/V)  Taku                                                               
estimated cost  would have  to be multiplied  four or  five times                                                               
and then  calculated for inflation  from 2008 to 2016  dollars in                                                               
order to assess  the cost of installing an AWTS  on all necessary                                                               
AMHS vessels.   He restated that  the expense for the  AMHS fleet                                                               
to meet the advanced wastewater  discharge standards would exceed                                                               
$5 million.                                                                                                                     
                                                                                                                                
CO-CHAIR  STUTES  requested  information on  what  the  available                                                               
space requirement would be on the ships.                                                                                        
                                                                                                                                
MR.  NEUSSL answered  that an  AWTS is  not only  a more  complex                                                               
marine sanitation  device for handling graywater  and black water                                                               
discharges and processing  it accordingly, but is  also larger in                                                               
size  than  the  existing  marine  sanitation  systems  that  are                                                               
currently  onboard  the  vessels.   He  further  stated  that  it                                                               
remains to be seen if an  AWTS would fit into the existing marine                                                               
sanitation device  spaces or whether modifications  would need to                                                               
be  made.   Mr.  Neussl  disclosed that  the  department has  not                                                               
conducted  advanced  studies of  exactly  which  system would  be                                                               
placed  on which  ships  or  what that  would  mean  in terms  of                                                               
stability.   He added that  at this  time the department  is just                                                               
working off estimates from the contractors.                                                                                     
                                                                                                                                
1:54:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP clarified  that the exemption in  HB 51 would                                                               
apply to five  state ferries and 10  smaller commercial passenger                                                               
vessels  with carrying  capacities of  between  50 and  249.   He                                                               
raised awareness  to a  provision in the  BMP plan  approval that                                                               
prohibits   discharging   in   areas   designated   as   refuges,                                                               
sanctuaries,  and critical  habitat  areas, as  defined under  AS                                                               
16.20,  and  he mentioned  that  Cook  Inlet  is now  a  critical                                                               
habitat for  beluga.  Representative Kopp  expressed concern that                                                               
[the no discharge zone provision] may  come as a surprise for any                                                               
of the aforementioned vessels.                                                                                                  
                                                                                                                                
MR.  NEUSSL  answered  that  the   department  is  aware  of  the                                                               
prohibited areas  and has existing  BMP plans that  clearly spell                                                               
out where  the vessels  can and cannot  discharge.   He disclosed                                                               
that because  of the vessels  running to  Bellingham, Washington,                                                               
the department has  been closely watching a  recent proposal that                                                               
is looking  to place  the entirety  of the Puget  Sound in  a "no                                                               
discharge zone."   He said the  issue is a matter  of whether the                                                               
AMHS vessels  have the  space available  to store  the wastewater                                                               
until a  dump zone  is reached.   He  explained that  the vessels                                                               
discharge  far  from  shore,  while underway,  so  as  to  ensure                                                               
maximum mixing of  discharge rather than dumping  in areas closer                                                               
to shore where the discharge would be more concentrated.                                                                        
                                                                                                                                
1:56:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN  stated his  understanding that one  of the                                                               
hazards of  not renewing the  statute would be that  small vessel                                                               
owners  would be  forced to  update and  upgrade their  vessel to                                                               
have large  cruise ship standard wastewater  treatment facilities                                                               
onboard,  which could  make the  vessel  unstable and  ultimately                                                               
nonfunctional.   He stressed that  failure to enact  this statute                                                               
would have negative regulatory effects  not only on the AMHS, but                                                               
also  on   existing  commercial   operators  who  have   been  in                                                               
compliance over the past decade.                                                                                                
                                                                                                                                
MR. NEUSSL  offered his  belief that  is correct.   He  said that                                                               
there   are   potentially   unintended   consequences   of   that                                                               
regulation.  He restated that the  BMP plan has been in place for                                                               
10  years and  that during  that time  the department  has worked                                                               
closely  with  DEC  and  seen   significant  improvement  of  its                                                               
wastewater discharge quality.                                                                                                   
                                                                                                                                
1:58:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  asked whether HB  51 would allow  "a carve                                                               
out for state ferries."  He  clarified that he was asking whether                                                               
the same standards would apply  if the fleet were owned privately                                                               
and not by the state.                                                                                                           
                                                                                                                                
MR. NEUSSL  replied that  HB 51  would enact  a BMP  statute that                                                               
would  require the  owner/operator of  the vessel,  regardless of                                                               
whether that is the state or  a private operator, to submit a BMP                                                               
plan to  DEC for approval.   He further explained that  HB 51 and                                                               
the BMP plan exemption is not a specific "carve out" for AMHS.                                                                  
                                                                                                                                
CO-CHAIR WOOL  inquired about which  standard would apply  to the                                                               
two new ferries currently under construction.                                                                                   
                                                                                                                                
MR. NEUSSL answered that the two  new Alaska Class Ferries do not                                                               
have  onboard  processing  and underway  discharge  systems,  but                                                               
instead  have hold  and pump-ashore  capabilities.   He explained                                                               
that because  many of AMHS's smaller  ferries - such as  the fast                                                               
ferries and the  Alaska Class Ferries - are day  boats or shorter                                                               
operating  vessels that  contain both  black and  gray water  but                                                               
have no  discharge system,  they pump ashore  at home  port where                                                               
the  discharge  is  then  piped   or  trucked  to  the  municipal                                                               
wastewater facility.                                                                                                            
                                                                                                                                
1:59:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR STUTES  [moved] to  change the sponsorship  of HB  51 to                                                               
the House Transportation Standing Committee.                                                                                    
                                                                                                                                
2:00:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN objected.                                                                                                 
                                                                                                                                
CO-CHAIR STUTES clarified the motion.                                                                                           
                                                                                                                                
2:00:34 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives Kopp,  Drummond,                                                               
Claman,  Wool,  and   Stutes  voted  in  favor   of  the  motion.                                                               
Representatives  Neuman and  Sullivan-Leonard  voted against  it.                                                               
Therefore, the motion passed by a vote of 5-2.                                                                                  
                                                                                                                                
[HB 51 was held over.]                                                                                                          

Document Name Date/Time Subjects
HB051 Sponsor Statement 1.24.17.pdf HTRA 1/26/2017 1:30:00 PM
HB 51
HB051 Supporting Document-2008 Foss Report on Malaspina MSD Upgrades 1.18.17.pdf HTRA 1/26/2017 1:30:00 PM
HB 51
HB051 Fiscal Note DEC-DW 1.22.17.pdf HTRA 1/26/2017 1:30:00 PM
HB 51
HB051 Fiscal Note DOT&PF-Commissioner's Office 1.22.17.pdf HTRA 1/26/2017 1:30:00 PM
HB 51
HB051 Discharge Volume Comparison Chart 1.21.17.pdf HTRA 1/26/2017 1:30:00 PM
HB 51
HB051 Supporting Document-CPVEC BMP Info Sheet 1.18.17.pdf HTRA 1/26/2017 1:30:00 PM
HB 51
HB051 Supporting Document-FINAL Small Ship 2016 Sampling Report 1.18.17.pdf HTRA 1/26/2017 1:30:00 PM
HB 51
HB051 Supporting Documents-Small Vessel Discharge Bill FAQs 1.18.17.pdf HTRA 1/26/2017 1:30:00 PM
HB 51
HB051 ver D 1.21.17.pdf HTRA 1/26/2017 1:30:00 PM
HB 51