Legislature(2013 - 2014)SENATE FINANCE 532

02/08/2013 09:00 AM Senate FINANCE


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09:01:21 AM Start
09:01:54 AM HB80
09:25:03 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 80 CRUISE SHIP WASTEWATER DISCHARGE PERMITS
Moved HB 80 Out of Committee
*+ SB 42 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS TELECONFERENCED
<Above Item Removed from Agenda>
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 8, 2013                                                                                           
                         9:01 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:01:21 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the Senate Finance Committee meeting                                                                      
to order at 9:01 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Kevin Meyer, Co-Chair                                                                                                   
Senator Anna Fairclough, Vice-Chair                                                                                             
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Lynn Kent, Deputy Commissioner, Department of Environmental                                                                     
Conservation; Michelle Bonnet Hale, Director, Water Quality                                                                     
Division, Department of Environmental Conservation.                                                                             
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 80     CRUISE SHIP WASTEWATER DISCHARGE PERMITS                                                                              
                                                                                                                                
          HB 80 was REPORTED out of committee with "no                                                                          
          recommendation" and with one previously published                                                                     
          zero fiscal note: FN1 (DEC).                                                                                          
                                                                                                                                
HOUSE BILL NO. 80                                                                                                             
                                                                                                                                
     "An Act relating to the regulation of wastewater                                                                           
     discharge from commercial passenger vessels in state                                                                       
     waters; and providing for an effective date."                                                                              
                                                                                                                                
                                                                                                                                
9:01:54 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  discussed that there had  been a significant                                                                    
amount of public  testimony and communications on  HB 80. An                                                                    
opinion  letter from  the Department  of Fish  and Game  had                                                                    
been added  to members' files  (copy on file). He  asked the                                                                    
Department  of Environmental  Conservation (DEC)  to address                                                                    
the committee.                                                                                                                  
                                                                                                                                
9:03:13 AM                                                                                                                    
                                                                                                                                
LYNN KENT, DEPUTY  COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL                                                                    
CONSERVATION,  did not  have  additional  comments; she  was                                                                    
happy to answer any questions.                                                                                                  
                                                                                                                                
Co-Chair  Meyer  asked  for an  explanation  of  DEC's  zero                                                                    
fiscal  note. Ms.  Kent replied  that the  permitting regime                                                                    
changes did  not financially impact DEC.  She explained that                                                                    
when  HB 134  had  passed  in 2009  the  department had  not                                                                    
requested funding  for the creation of  the science advisory                                                                    
panel.  She   relayed  that  DEC  was   looking  forward  to                                                                    
returning to its work that  had been deferred to accommodate                                                                    
the panel.                                                                                                                      
                                                                                                                                
Co-Chair Meyer  queried whether DEC asked  permit applicants                                                                    
if they were  using the latest technology.  Ms. Kent replied                                                                    
in the affirmative.                                                                                                             
                                                                                                                                
Co-Chair   Meyer   asked   for  confirmation   that   permit                                                                    
applicants  should  use  the  latest  technology.  Ms.  Kent                                                                    
answered in the affirmative.                                                                                                    
                                                                                                                                
Senator Olson asked whether there  were any studies that had                                                                    
been done on  the effects of copper on  salmon migration. He                                                                    
recalled that  DEC had  testified that  there were  no known                                                                    
studies on copper's impact on fish.                                                                                             
                                                                                                                                
Ms.  Kent replied  that DEC's  water  quality standards  for                                                                    
copper  included standards  for acute  and chronic  affects;                                                                    
the   standards   were   adopted  based   on   Environmental                                                                    
Protection   Agency  (EPA)   criteria.  The   criteria  were                                                                    
developed  subsequent  to many  studies  on  the effects  of                                                                    
copper in fresh  and marine waters. She  stressed that DEC's                                                                    
standards  were  based on  a  significant  number of  marine                                                                    
water toxicity tests.  The lack of studies  for marine water                                                                    
was related to behavioral effects  that had been observed in                                                                    
a couple  of fresh water  studies; researchers on  the fresh                                                                    
water   study  indicated   that  the   data  could   not  be                                                                    
extrapolated  to  marine  waters.  She  understood  that  an                                                                    
additional study was underway  related to behavioral affects                                                                    
in marine waters; DEC would  review the study when it became                                                                    
available to  determine whether it  would drive a  change to                                                                    
water quality standards.                                                                                                        
                                                                                                                                
9:07:18 AM                                                                                                                    
                                                                                                                                
Senator  Olson  referred to  prior  testimony  by Dr.  Koski                                                                    
[Salmon  Biologist, Juneau]  who had  mentioned a  report on                                                                    
copper  and salmon  by Dr.  Carol  Ann Woody  and other.  He                                                                    
asked if  there was a lack  of validity to the  studies that                                                                    
had been underway for years.                                                                                                    
                                                                                                                                
Ms.  Kent  responded  that  Dr.  Koski  had  referred  to  a                                                                    
National  Oceanic  and   Atmospheric  Administration  (NOAA)                                                                    
study by Nathaniel  Scholz. She quoted from  the study: "The                                                                    
extent to  which our  results can be  extended to  fishes in                                                                    
estuaries or salt  water is less clear."  She furthered that                                                                    
chemical  and  physiological  reasons  were  listed  by  the                                                                    
researcher.   She   noted   that  the   report   recommended                                                                    
additional  studies using  seawater acclimated  fish because                                                                    
the  application of  the freshwater  studies was  not clear.                                                                    
The department  was not disputing  the freshwater  work, but                                                                    
there  was  currently  no  research or  data  to  drive  any                                                                    
changes to the state's marine criteria for copper.                                                                              
                                                                                                                                
Senator  Olson wondered  why the  law should  be changed  if                                                                    
there was  no conclusive evidence  [on the impact  of copper                                                                    
on  salmon].  Ms.  Kent  answered  that  the  water  quality                                                                    
standards  were a  different set  of regulations  and issues                                                                    
from permitting and what was covered under HB 80.                                                                               
                                                                                                                                
9:08:53 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  noted that Senator Olson  had covered                                                                    
most  of  the responses  included  in  the DFG  letter.  She                                                                    
referred  to an  email received  by members  that referenced                                                                    
the use  of a preliminary  report. She asked why  the report                                                                    
was called "preliminary."                                                                                                       
                                                                                                                                
Ms.  Kent responded  that the  law requiring  a report  is a                                                                    
report by the  department to the legislature;  the law spoke                                                                    
to  a preliminary  and  final report  based  on timing.  She                                                                    
elaborated  that  DEC  provided   a  preliminary  report  in                                                                    
January 2013 and would provide a final report in two years.                                                                     
She furthered  that the science  advisory panel  had elected                                                                    
to  provide its  advice  to DEC  in a  report  and had  used                                                                    
"preliminary"  as its  report name  as well.  She emphasized                                                                    
that the  word preliminary should  not be confused  with the                                                                    
word  "draft." The  panel had  gone through  multiple drafts                                                                    
and had  submitted a final  report that provided  a thorough                                                                    
analysis of current, new, and emerging technologies.                                                                            
                                                                                                                                
Vice-Chair Fairclough  pointed to the removal  of one person                                                                    
from the scientific advisory panel.  She asked if the person                                                                    
had  testified  the  prior  day. Ms.  Kent  replied  in  the                                                                    
negative.                                                                                                                       
                                                                                                                                
Vice-Chair  Fairclough   asked  whether  the   selection  of                                                                    
members had  been based on geographic  diversity, expertise,                                                                    
or both. Ms. Kent responded that  the panel had been made up                                                                    
of both; the  goal had been to include experts  to help with                                                                    
the analysis of technology.                                                                                                     
                                                                                                                                
Vice-Chair  Fairclough asked  why  one person  had not  been                                                                    
moved forward  for inclusion on  the panel. She  stated that                                                                    
the  person's  removal  had   caused  speculation  that  the                                                                    
panel's information may be biased.                                                                                              
                                                                                                                                
Ms.  Kent  answered that  there  had  been  a long  list  of                                                                    
applicants for  the advisory panel.  One applicant  had been                                                                    
considered as a  candidate, but there had  been concern that                                                                    
he may have  been too strong an advocate due  to his backing                                                                    
of a citizen's initiative that  had passed in 2006. The goal                                                                    
had  been to  include  people with  expertise in  wastewater                                                                    
discharge  treatment  facilities   specifically  related  to                                                                    
their applicability on cruise ships.                                                                                            
                                                                                                                                
9:12:24 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough communicated  that committee  members                                                                    
had  received  emails  stating  that  some  systems  removed                                                                    
copper or  metal products better  than others;  however, the                                                                    
panel's report  indicated that  a single  advanced treatment                                                                    
system was  not able to  meet all of the  quality standards.                                                                    
She asked if the report's statement on the issue was true.                                                                      
                                                                                                                                
Ms. Kent answered that there  was not any single vessel that                                                                    
consistently met all of the standards.                                                                                          
                                                                                                                                
Vice-Chair Fairclough  asked about  Alaska's level  of water                                                                    
quality  standards in  comparison  to  other locations.  Ms.                                                                    
Kent  assumed Vice-Chair  Fairclough  was  referring to  the                                                                    
state's  water quality  standards  as  opposed to  discharge                                                                    
standards and  permitting. She  replied that  Alaska's water                                                                    
quality standards  were primarily  derived from the  EPA and                                                                    
EPA studies.                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough   pointed  to  language   marked  for                                                                    
removal in the  legislation: "If the keel of  the vessel was                                                                    
laid before January  1, 2004" (Section 2, lines  12 and 13).                                                                    
She  asked why  the administration  believed the  removal of                                                                    
the language was important.                                                                                                     
                                                                                                                                
Ms. Kent  replied that the  original intent of  the language                                                                    
was to provide relief  to small commercial passenger vessels                                                                    
that had been in operation and  to push new small vessels to                                                                    
meet the same point  of discharge requirements; however, DEC                                                                    
did not believe  any vessels could meet  the standards given                                                                    
the  results  of  the  science   advisory  panel  and  DEC's                                                                    
analysis of technology.                                                                                                         
                                                                                                                                
9:15:20 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough observed that  the issue was heartfelt                                                                    
and very  important to  many communities.  She pointed  to a                                                                    
fear by communities that the  bill would lower water quality                                                                    
standards or allow sewage to  be dumped along coastlines and                                                                    
in waters  where fish would  be harmed. She stated  that the                                                                    
science  panel did  not reflect  the comments.  She remarked                                                                    
that it did  not appear that anything  would change; permits                                                                    
were issued  because advanced  waste water  treatments could                                                                    
not currently  provide the  desired outcome  on a  ship. She                                                                    
continued that  there was emerging  technology on  land that                                                                    
proposed to  take out copper  and nickel in the  future. She                                                                    
asked for a comment on the issue.                                                                                               
                                                                                                                                
Ms.  Kent answered  that  the  passage of  HB  80 would  not                                                                    
permit cruise  ships to  make any  changes to  their current                                                                    
treatment practices. She  added that the ships  treated to a                                                                    
high level.                                                                                                                     
                                                                                                                                
Vice-Chair  Fairclough asked  if  DEC had  the resources  to                                                                    
continue  water  quality testing  to  ensure  the safety  of                                                                    
Alaska's  waters. Ms.  Kent affirmed  that  the program  was                                                                    
sufficiently funded.                                                                                                            
                                                                                                                                
Senator Olson  referred to prior discussions  about amending                                                                    
the bill's effective date to  2020. He wondered if the state                                                                    
would  be  adversely  impacted if  the  effective  date  was                                                                    
pushed out to 2020.                                                                                                             
                                                                                                                                
9:17:48 AM                                                                                                                    
                                                                                                                                
Ms. Kent asked for  verification that Senator Olson wondered                                                                    
what would  happen if the  requirement to all  water quality                                                                    
standards  at  the point  of  discharge  was extended  until                                                                    
2020.                                                                                                                           
                                                                                                                                
Senator Olson replied in the  affirmative. Ms. Kent believed                                                                    
that in a few years  DEC would present similar concerns that                                                                    
vessels could  not meet the  stringent requirements  for the                                                                    
last four parameters in a few years.                                                                                            
                                                                                                                                
Senator Olson asked for confirmation  that there would be no                                                                    
ill effects to Alaska, the  industry, or to residents if the                                                                    
effective date was  amended to 2020. Ms.  Kent answered that                                                                    
the industry  needed a  significant amount  of lead  time to                                                                    
plan its routes  and itineraries; a delay  would continue to                                                                    
put  industry  in  a  bind. She  surmised  that  the  cruise                                                                    
industry could provide a more detailed answer.                                                                                  
                                                                                                                                
Senator Olson remarked that he  did not realize the industry                                                                    
was in  a bind.  Ms. Kent answered  that without  changes to                                                                    
the current  law the point  of discharge  requirements would                                                                    
take  effect in  three  years; companies  were beginning  to                                                                    
plan itineraries for that time period.                                                                                          
                                                                                                                                
Co-Chair Kelly asked  whether fishing boats had  to meet the                                                                    
same  standards as  cruise ships.  Ms. Kent  replied in  the                                                                    
negative. Co-Chair  Kelly asked whether boats  in the Juneau                                                                    
harbors had  to meet  the standards.  Ms. Kent  responded in                                                                    
the negative.  Co-Chair Kelly  asked if  coastal communities                                                                    
were  held  to  the  standards. Ms.  Kent  answered  in  the                                                                    
negative.                                                                                                                       
                                                                                                                                
Co-Chair Kelly  opined that communities should  be looked at                                                                    
if the  concern was about  pollution in Alaska's  waters. He                                                                    
asked for  verification that  communities and  boats engaged                                                                    
in  commerce  in  Alaska were  discharging  pollution  at  a                                                                    
higher rate than cruise ships.  Ms. Kent answered that waste                                                                    
water mixing zones were allowed,  but the water was required                                                                    
to be treated beforehand.                                                                                                       
                                                                                                                                
9:20:24 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy  referred to prior public  testimony by Mr.                                                                    
Thoma.  He asked  for confirmation  that  the testifier  was                                                                    
satisfied  with everything  except for  4 issues  in several                                                                    
ships including zinc, copper, ammonia, and other.                                                                               
                                                                                                                                
Ms.  Kent  answered  that  the  large  commercial  passenger                                                                    
vessels were meeting  all of the water  quality standards at                                                                    
the  point  of  discharge  with the  exception  of  ammonia,                                                                    
copper, nickel, and zinc.                                                                                                       
                                                                                                                                
Senator  Dunleavy wondered  whether smaller  boats, harbors,                                                                    
or other were monitored to  the extent that the cruise ships                                                                    
were  monitored.  Ms.  Kent deferred  the  question  to  her                                                                    
colleague.                                                                                                                      
                                                                                                                                
MICHELLE  BONNET  HALE,  DIRECTOR, WATER  QUALITY  DIVISION,                                                                    
DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  answered  that                                                                    
there were  several permits covering smaller  vessels. There                                                                    
was a sampling  requirement of twice per year  for the small                                                                    
commercial passenger  vessel permit and the  best management                                                                    
practices   plan.  There   were   also   U.S.  Coast   Guard                                                                    
requirements  that  were  oriented towards  best  management                                                                    
practices for small vessels. Additionally,  there was an EPA                                                                    
vessel general  permit that had some  sampling requirements,                                                                    
but  the requirements  did not  typically  apply to  smaller                                                                    
vessels.                                                                                                                        
                                                                                                                                
9:23:11 AM                                                                                                                    
                                                                                                                                
Co-Chair Kelly MOVED  to REPORT HB 80 out  of committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
HB   80  was   REPORTED  out   of  committee   with  a   "no                                                                    
recommendation"  and  with  one  previously  published  zero                                                                    
fiscal note: FN1 (DEC).                                                                                                         
                                                                                                                                
Co-Chair  Meyer discussed  the  schedule  for the  following                                                                    
week.                                                                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
9:25:03 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:25 a.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB 80 ADF&G Letter.pdf SFIN 2/8/2013 9:00:00 AM
HB 80