Legislature(2001 - 2002)
01/22/2001 03:45 PM Senate RES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 16-OIL DISCH PREVENTION: NONTANK VESSELS/RR
CHAIRMAN JOHN TORGERSON called the Senate Resources Committee
meeting to order at 3:45 p.m. and announced SB 16 to be up for
consideration. He noted that two fiscal notes had arrived from the
Marine Highway System and the Department of Environmental
Conservation.
MR. LARRY DIETRICK, Director, Division of Spill Prevention and
Response, said the total number of plans was based on the number of
financial responsibility applications the state had received since
SB 273 went into affect last September and totals about 500 plans
covering about 900 vessels. He assumed that the shore-based
companies, the marine exchange, the spill co-ops, and the ships'
agencies were being very optimistic that the streamlined plan would
be the dominant one chosen by all these vessels. That is the
desire of the Task Force. However, they kept the option open for a
variety of other plans. Based on this, the Department estimated
that it would take two people to sustain the program. They inserted
a measurement point at the end of FY04, so they can make
adjustments based on actual applications at that point in time.
MR. DIETRICK explained that the fiscal note starts by funding one
person for one year who would put the program together and develop
regulations. That person would also flesh out the training and
prevention credit programs. There will be registration of primary
response action contractors, working with the coops, the marine
exchange, and other entities that will come on line to provide the
services called for by the bill.
MR. DIETRICK explained that in FY03 the actual plans start "coming
in the door" and the division would be reviewing all of the plans
on a staggered basis. The report calls for them to stamp all the
plans "approved" as they come in the door and to do the detailed
reviews in a staggered fashion to even out the workload. In FY03 -
04 two temporary people will help do the reviews. He envisions an
ample amount of technical assistance in helping vessel owners get
their packages together. The end of FY04 is also the point in time
when the equipment capitalization has to be completed and then the
division would drop back down to two people for the long run. They
would also take stock at the end of '04 to see if adjustments need
to be made.
Number 440
SENATOR TAYLOR asked about the funding source.
MR. DIETRICK answered that the Task Force report recommends that
there be no user fees charged for the group. The basic direction
given was toward the response fund and has a three-cent surcharge.
SENATOR TAYLOR asked what the cost was of operating the marine
exchange.
Number 547
MR. DIETRICK replied that the marine exchange evolved out of the
Task Force work. It's a one-stop source for all vessels plying
Alaska's waters. It's a source one can go to to get any service
one might need from a propeller repair to meeting the response
planning standards. It is planned to be a nonprofit corporation
and a board of directors has already been selected as well as an
executive director. It is scheduled to start April 1, 2001.
SENATOR TAYLOR said he was concerned that everyone in the private
sector who might possibly spill anything would have to get into
this organization.
SENATOR PEARCE noted that "there are a number of spill response
entities. They don't have to go to the marine exchange."
CHAIRMAN TORGERSON asked Mr. Dietrick if he had "looked at" the
$3,500 annual membership fee.
MR. DIETRICK said that he had and Mr. Fuhs would explain those
costs further.
Number 848
MR. GEORGE CAPACCI, General Manager, Alaska Marine Highway System,
said SB 16 requires the DOTPF to have approved oil discharge c-
plans for the system vessels in place. The primary cost to DOTPF
will be the contracts with oil spill primary response action
contractors. The Marine Highway has Coast Guard approved shipboard
oil pollution and emergency plans(SOPEP) and an incident command
system required by the International Safety Management Code. They
will not have to contract for incident management team services
because they could be done in-house.
For the seven vessels in Southeast Alaska there is an annual
membership fee of $4,000 based on the amount of fuel that is
carried in their hulls. In Southwest Alaska there is a one-time
initiation fee and a $16,000 fee based on the three ships that
would be operating there.
MR. CAPACCI noted that these figures were based on some quotes from
oil spill response contractors using today's rates, which are
expected to go down when more members join the cooperative. He has
assumed the c-plans and contracts would not be required until FY03.
CHAIRMAN TORGERSON asked if vessel owners pay their dues to the
marine exchange.
MR. CAPACCI answered that the fees are paid to the different
contractors.
MR. PAUL FUHS, consultant to the Task Force on Marine Issues,
explained further that the Alaska Marine Highway has incident
command and has access to the DEC's incident command. There are
two sides to a cleanup - one is equipment and a spill response
contract and the other is the incident command team. Someone has
to be qualified to coordinate the effort and keep track of funds
being spent. DEC has enough in house expertise to do that. The
marine exchange was formed as a nonprofit corporation to make it
cost effective for people who don't have expertise. A system needs
to be in place so that when vessels come to Alaska, they can comply
with the law and also keep costs down.
Number 932
SENATOR LINCOLN asked why the fiscal note "assumed" the funding
would come from the state's Oil Spill Response Fund.
MR. DIETRICK answered that the Department made that assumption when
they put the package together for SB 273.
CHAIRMAN TORGERSON added that it fits the mandate for the Oil Spill
Response Fund and the assumption is, therefore, correct. The total
cost of the fully implemented bill is around $330,000 in FY03.
SENATOR LINCOLN said she wanted some assurance regarding the Alaska
Railroad's concern about the inspections being done by a qualified
inspector.
MR. DIETRICK answered that according to Phyllis Johnson, Alaska
Railroad general counsel, the Railroad was a Task Force member and
had participated all along the way. She worked with Breck
Tostevin, Department of Law, to see if there was need for an
amendment, but there wasn't.
CHAIRMAN TORGERSON asked if he had received a letter stating that.
MR. DIETRICK answered no he hadn't, but he would be glad to get one
if the committee wanted it.
Number 1148
SENATOR PEARCE moved to pass SB 16 from committee with the two
fiscal notes with individual recommendations. There were no
objections and it was so ordered.
| Document Name | Date/Time | Subjects |
|---|