Legislature(2021 - 2022)BARNES 124

04/26/2022 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 402 IDENTIFICATION OF CONTRACTOR IN ADS TELECONFERENCED
Moved HB 402 Out of Committee
+= HB 303 PASSENGER VESSEL ENVIRONMENTAL COMPLIANCE TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
    HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                   
                         April 26, 2022                                                                                         
                           8:09 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Sara Hannan, Co-Chair                                                                                            
Representative Calvin Schrage, Co-Chair                                                                                         
Representative Harriet Drummond                                                                                                 
Representative Ken McCarty                                                                                                      
Representative Kevin McCabe                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Josiah Patkotak, Vice Chair                                                                                      
Representative Mike Prax                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 303                                                                                                              
"An  Act relating  to commercial  passenger vessel  environmental                                                               
compliance;  relating   to  commercial  passenger   vessel  fees;                                                               
establishing the wastewater  infrastructure grant fund; repealing                                                               
the  authority   for  citizens'  suits  relating   to  commercial                                                               
passenger   vessel   environmental  compliance;   repealing   the                                                               
commercial  passenger vessel  recognition program;  and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 402                                                                                                              
"An Act  relating to identification requirements  for contractors                                                               
and home inspectors."                                                                                                           
                                                                                                                                
     - MOVED HB 402 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 303                                                                                                                  
SHORT TITLE: PASSENGER VESSEL ENVIRONMENTAL COMPLIANCE                                                                          
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/04/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/04/22       (H)       CRA, RES, FIN                                                                                          
04/21/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/21/22       (H)       -- MEETING CANCELED --                                                                                 
04/26/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
                                                                                                                                
BILL: HB 402                                                                                                                  
SHORT TITLE: IDENTIFICATION OF CONTRACTOR IN ADS                                                                                
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
03/18/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/18/22       (H)       CRA, L&C                                                                                               
03/29/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
03/29/22       (H)       -- MEETING CANCELED --                                                                                 
04/05/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/05/22       (H)       -- MEETING CANCELED --                                                                                 
04/07/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/07/22       (H)       -- MEETING CANCELED --                                                                                 
04/12/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/12/22       (H)       Heard & Held                                                                                           
04/12/22       (H)       MINUTE(CRA)                                                                                            
04/14/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/14/22       (H)       Heard & Held                                                                                           
04/14/22       (H)       MINUTE(CRA)                                                                                            
04/21/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/21/22       (H)       -- MEETING CANCELED --                                                                                 
04/26/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
EMMA POKON, Deputy Commissioner                                                                                                 
Department of Environmental Conservation                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 303 on behalf of the House                                                                  
Rules Standing Committee, sponsor by request of the governor.                                                                   
                                                                                                                                
RANDY BATES, Director                                                                                                           
Division of Water                                                                                                               
Department of Environmental Conservation                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 303 on behalf of the House                                                                  
Rules Standing Committee, sponsor by request of the governor.                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:09:10 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  SARA HANNAN  called the  House  Community and  Regional                                                             
Affairs  Standing  Committee  meeting   to  order  at  8:09  a.m.                                                               
Representatives  Drummond, McCarty,  McCabe, Schrage,  and Hannan                                                               
were present at the call to order.                                                                                              
                                                                                                                                
        HB 303-PASSENGER VESSEL ENVIRONMENTAL COMPLIANCE                                                                    
                                                                                                                                
8:10:26 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN announced that the  first order of business would                                                               
be HOUSE BILL  NO. 303, "An Act relating  to commercial passenger                                                               
vessel   environmental   compliance;   relating   to   commercial                                                               
passenger    vessel    fees;    establishing    the    wastewater                                                               
infrastructure grant fund; repealing  the authority for citizens'                                                               
suits  relating  to  commercial  passenger  vessel  environmental                                                               
compliance;   repealing    the   commercial    passenger   vessel                                                               
recognition program; and providing for an effective date."                                                                      
                                                                                                                                
8:10:54 AM                                                                                                                    
                                                                                                                                
EMMA   POKON,   Deputy   Commissioner,   Alaska   Department   of                                                               
Environmental Conservation  (DEC), presented HB 303  on behalf of                                                               
the House  Rules Standing  Committee, sponsor  by request  of the                                                               
governor.   She stated  that she  would be  sharing what  DEC has                                                               
been  doing  over  the  last few  years,  including  outreach  to                                                               
communities  and stakeholders,  the work  to understand  baseline                                                               
water  quality  conditions,  and  specifics  for  DEC's  proposed                                                               
program going forward.                                                                                                          
                                                                                                                                
8:11:32 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 8:11 a.m.                                                                                 
                                                                                                                                
8:12:16 AM                                                                                                                    
                                                                                                                                
DEPUTY COMMISSIONER  POKON stressed  how seriously DEC  takes its                                                               
responsibilities   with   wastewater   discharge   oversight   in                                                               
particular.     She  said  DEC   questions  how  it   could  most                                                               
effectively  provide   oversight  of  the  food   industry  while                                                               
protecting  water  quality   in  the  state,  as   well  as  most                                                               
effectively   use  available   funding   to   provide  the   best                                                               
environmental outcomes overall.                                                                                                 
                                                                                                                                
8:14:23 AM                                                                                                                    
                                                                                                                                
RANDY  BATES,   Director,  Division   of  Water,   Department  of                                                               
Environmental Conservation (DEC),  presented a PowerPoint, titled                                                               
"HB  303 Commercial  Passenger  Vessel Environmental  Compliance"                                                               
[hardcopy  included in  the committee  packet].   He stated  that                                                               
specific to  the commercial passenger vessel  oversight, there is                                                               
currently  one  marine  engineer,  one  environmental  protection                                                               
specialist, and  two halftime program  specialists.   He informed                                                               
the  committee how  many vessels  were in  service over  the last                                                               
couple of years.   He noted that the larger  vessels had a "clean                                                               
bill  of health"  and  did not  incur  any discharge  violations,                                                               
whereas the  smaller vessels  [50 to  249 berths]  had challenges                                                               
with  their discharges  the past  season.   Once the  inspections                                                               
were completed  and troubleshooting  was done, he  explained, the                                                               
water quality discharges improved by the end of the season.                                                                     
                                                                                                                                
8:19:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  questioned whether  250 was  an indication                                                               
of passenger berths or total berths.                                                                                            
                                                                                                                                
MR. BATES answered passenger berths [not crew].                                                                                 
                                                                                                                                
REPRESENTATIVE   MCCABE  referred   to   DEC   being  given   the                                                               
opportunity to  correct some issues  with the small  cruise ships                                                               
and asked whether any fines were levied.                                                                                        
                                                                                                                                
MR.  BATES responded  that the  smaller vessels  operate under  a                                                               
best  management practice  to maintain  a standard.   He  did not                                                               
recall issuing  fines, but the calculations  and negotiations are                                                               
ongoing, he said.                                                                                                               
                                                                                                                                
8:22:43 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN sought to confirm  that the number of vessels was                                                               
13  small and  8 large.   Of  the 13  small, she  asked how  many                                                               
different corporate lines or businesses are involved.                                                                           
                                                                                                                                
MR. BATES confirmed  those numbers to be correct  and offered his                                                               
understanding  that 4  of  the 13  small  vessels operated  under                                                               
parent lines.                                                                                                                   
                                                                                                                                
CO-CHAIR  HANNAN  asked  whether   the  violations  were  equally                                                               
distributed amongst the fleet.                                                                                                  
                                                                                                                                
MR.  BATES  said  they  were equally  distributed.    He  further                                                               
explained that  he had conversations  with the owners of  each of                                                               
the companies and vessels.                                                                                                      
                                                                                                                                
CO-CHAIR HANNAN  asked what was  being done prior to  COVID-19 in                                                               
terms of monitoring the small vessels.                                                                                          
                                                                                                                                
8:25:33 AM                                                                                                                    
                                                                                                                                
MR. BATES replied that their  staff looked at the best management                                                               
practices and worked  with the operators on the  sampling to move                                                               
them toward compliance.   To his knowledge,  he said, inspections                                                               
on the small vessels had not been done before.                                                                                  
                                                                                                                                
CO-CHAIR HANNAN  observed that by  design and  advertisement, the                                                               
small vessels are going into  much more remote locations, such as                                                               
small bays  and "nooks."   She referred  to the staffing  and how                                                               
much time it took on the 24 ships that were monitored.                                                                          
                                                                                                                                
MR. BATES replied that monitoring  means water quality monitoring                                                               
and  sampling, which  was  performed  by a  specific  staff.   In                                                               
regard to the  inspections, the marine engineer,  the "EPS3," and                                                               
the  two part-timers  are dedicated  cruise ship  individuals, he                                                               
said.                                                                                                                           
                                                                                                                                
8:31:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND questioned  how sanitation  is accounted                                                               
for on larger vessels with a large number of people.                                                                            
                                                                                                                                
MR.  BATES  responded that  DEC  follows  the federal  definition                                                               
under the  Vessel and  Discharge Act,  based on  passenger berths                                                               
not including crew.  The  discharge requirements stand regardless                                                               
of  the  number of  passengers  on  board,  as  there must  be  a                                                               
treatment system that meets water quality standards, he said.                                                                   
                                                                                                                                
REPRESENTATIVE  DRUMMOND  spoke  of  a time  when  she  toured  a                                                               
Princess  cruise   ship  and  saw  how   duties  were  performed,                                                               
especially  in  reference to  sanitation.    She asked  how  paid                                                               
equipment was going unutilized on large ships.                                                                                  
                                                                                                                                
DEPUTY  COMMISSIONER POKON  noted that  Alaska Statutes  followed                                                               
federal rules  as far as  the number of passengers  and discharge                                                               
protocol.                                                                                                                       
                                                                                                                                
8:35:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY referred  to page 4 of the  bill and asked                                                               
whether his interpretation of the language was correct.                                                                         
                                                                                                                                
MR. BATES stated  that within the bill there is  a provision that                                                               
provides an incentive  for a small or  large commercial passenger                                                               
vessel (CPV) to  provide DEC with electronic  monitoring if their                                                               
wastewater discharges.  If in a  manner supported by DEC, the CPV                                                               
would get $1  off of their $5  per berth fee.   He explained that                                                               
people still  need to be  on the  vessels for inspections  and to                                                               
run  the pipes,  adding  that  he would  love  to see  additional                                                               
electronic monitoring from  the vessels to be able  to track flow                                                               
rates, particularly if issues rise.                                                                                             
                                                                                                                                
REPRESENTITIVE  MCCARTY   asked  whether  technology   exists  in                                                               
reference to the flow rate.                                                                                                     
                                                                                                                                
MR. BATES did not know the answer.                                                                                              
                                                                                                                                
8:40:16 AM                                                                                                                    
                                                                                                                                
MR. BATES returned  to the presentation on slide  3, titled "2021                                                               
Cruise  Ship   Oversight,"  which   read  as   follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
    multiply DEC led on-board inspections of small and large                                                                    
     discharging vessels operating in Alaska                                                                                    
      multiplyRespectful of COVID-19 protocols and safety                                                                       
          measures                                                                                                              
          multiplyInspections scheduled and unscheduled,  in-port                                                               
          and underway                                                                                                          
     multiply Vessel sampling results                                                                                           
  multiply Port and common corridor transit area water quality                                                                  
     sampling                                                                                                                   
                                                                                                                                
MR. BATES  added that despite  the limitation of cruise  ships in                                                               
2020 and  2021, DEC saw  high bacteria concentrations  at several                                                               
ports.  He  said that DEC looks forward to  continuing to monitor                                                               
for  water quality  into 2022  and  beyond and  will continue  to                                                               
collect  data  to  tell  a  story about  water  quality  in  port                                                               
communities throughout Alaska.                                                                                                  
                                                                                                                                
8:41:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY asked how far back the samplings went.                                                                   
                                                                                                                                
MR.  BATES replied  since  2015.   More  recently,  he said,  DEC                                                               
dedicated  additional   funding  specific  to   evaluating  water                                                               
quality in  more areas.   He continued  to slide 4,  titled "2022                                                               
Season and  Beyond," which read as  follows [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     multiply DEC marine engineers and inspectors will                                                                          
    multiplyperform initial and annual inspections on ships                                                                     
     operating in Alaska as early in the season as possible                                                                     
      multiplywill perform both scheduled and unscheduled                                                                       
     inspections in-port and while vessel is underway                                                                           
 multiply Small vessels will be subject to the same inspection                                                                  
     requirements                                                                                                               
                                                                                                                                
8:44:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE asked  whether Mr.  Bates is  part of  the                                                               
inspection team  that goes on board  the vessel in the  first few                                                               
weeks.                                                                                                                          
                                                                                                                                
MR. BATES replied  yes and no.   He said DEC works  with the U.S.                                                               
Coast Guard  and, thus,  has an understanding  of what  the Coast                                                               
Guard's inspections  look like.  He  added that DEC and  the U.S.                                                               
Coast Guard  each have specific compliance  focuses under federal                                                               
law.                                                                                                                            
                                                                                                                                
8:45:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND  sought  to  confirm  that  1.6  million                                                               
passengers are expected in 2022.                                                                                                
                                                                                                                                
MR. BATES confirmed that is correct.                                                                                            
                                                                                                                                
8:47:35 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN sought  to confirm that 1.6 million  was based on                                                               
the scheduled number of births available.                                                                                       
                                                                                                                                
MR. BATES answered that is correct.                                                                                             
                                                                                                                                
CO-CHAIR  HANNAN  sought  to verify  that  the  passenger  vessel                                                               
charge was applied only on a full birth.                                                                                        
                                                                                                                                
MR.  BATES  answered  no.   He  said  structurally,  vessels  are                                                               
required to tell  DEC by March 1 how many  passengers are on each                                                               
voyage port to  port, which dictates the  passenger vessel charge                                                               
and the ocean ranger fee.                                                                                                       
                                                                                                                                
8:51:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY  inquired about cruise ships'  septic tank                                                               
discharge and asked whether the release occurs in open water.                                                                   
                                                                                                                                
MR. BATES said that is  accurate, adding that some vessels choose                                                               
to  wait until  they are  12  miles off  the coast  of Alaska  to                                                               
discharge.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  MCCABE sought  to confirm  that discharge  limits                                                               
are the same regardless of the number of passenger and crew.                                                                    
                                                                                                                                
MR. BATES confirmed that is correct.                                                                                            
                                                                                                                                
8:55:49 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN referred to onboard  inspections when the vessels                                                               
are underway and sought to understand  how similar it is to ocean                                                               
ranger programs.                                                                                                                
                                                                                                                                
MR. BATES replied that last year,  with such a limited season, it                                                               
brought the  opportunity for existing  staff to set  up protocols                                                               
for inspection.   He stated that  it is different than  the ocean                                                               
ranger  program.   Additionally,  the DEC  inspectors have  badge                                                               
authority, whereas  ocean rangers do  not have the  same capacity                                                               
to "get behind all the doors."                                                                                                  
                                                                                                                                
8:59:22 AM                                                                                                                    
                                                                                                                                
MR.  BATES proceeded  to slide  5, titled  "Existing Challenges,"                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     multiply Commercial Passenger Vessel Environmental Compliance                                                              
     Program statutes were passed in 2001                                                                                       
          multiply Statutes require outdated, inefficient reporting                                                             
     methods                                                                                                                    
          multiply Statute-based standards are difficult to change                                                              
     when  waste   treatment  and   monitoring  technologies                                                                    
     improve                                                                                                                    
     multiply 2006 ballot initiative put ocean ranger observers on                                                              
     large vessels                                                                                                              
          multiply DEC staff spent significant time going through                                                               
     ocean ranger reports                                                                                                       
          multiply Ocean ranger observations produced 6 notices of                                                              
     violation over 12 years                                                                                                    
          multiply Small vessels did not get the same attention as                                                              
     large vessels                                                                                                              
     multiply Water quality in port communities is impacted by                                                                  
     cruise passengers using onshore facilities                                                                                 
                                                                                                                                
MR. BATES pointed out that for  the first time, small vessels are                                                               
getting the same level of attention as the large vessels.                                                                       
                                                                                                                                
9:02:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE referred  to the  bullet point  describing                                                               
ocean  ranger observations  producing six  notices of  violations                                                               
over twelve  years and asked  how many sailings were  included in                                                               
this time period.                                                                                                               
                                                                                                                                
MR. BATES replied six violations through thousands of voyages.                                                                  
                                                                                                                                
CO-CHAIR HANNAN opined that there  should be zero violations with                                                               
an observer on board.                                                                                                           
                                                                                                                                
REPRESENTATIVE  MCCABE  suggested  that  the cost  of  the  ocean                                                               
ranger program should be compared to the benefits.                                                                              
                                                                                                                                
CO-CHAIR HANNAN offered her understanding  that no one is opposed                                                               
to better  monitoring and  more compliance  for cleaner  water in                                                               
Alaska.                                                                                                                         
                                                                                                                                
9:10:18 AM                                                                                                                    
                                                                                                                                
MR. BATES continued to slide  6, titled "Proposed Changes," which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     multiply Move detailed statutes to regulation                                                                              
     multiply Clarify DEC authority to board vessels while in port                                                              
     and underway                                                                                                               
     multiply Allow DEC to set format requirements for reports from                                                             
     vessels                                                                                                                    
     multiply Simplify fee structure                                                                                            
     multiply Incorporate technology                                                                                            
     multiply Repeal ocean ranger observers                                                                                     
     multiply Establish grant program to assist port municipalities                                                             
     to  upgrade  wastewater  treatment  facilities  serving                                                                    
     vessel passengers                                                                                                          
                                                                                                                                
MR.  BATES added  that  the bill  has  a zero  fiscal  note.   He                                                               
highlighted the  delayed effective date  for the change  in berth                                                               
fees, which would go  into effect in 2024.  He  moved to slide 7,                                                               
titled "What  Will Not Change,"  which read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     multiply DEC's authority to conduct inspections at reasonable                                                              
     times and ability to get a warrant if necessary                                                                            
     multiply DEC's vessel registration system, which is required                                                               
     for  all  passenger  vessels  with  over  50  overnight                                                                    
     berths                                                                                                                     
     multiply Air emission monitoring program                                                                                   
     multiply The large cruise ship wastewater discharge general                                                                
     permit                                                                                                                     
     multiply Separate discharge requirements for small vessels                                                                 
     multiply Sampling and reporting requirements                                                                               
     multiply What may not be discharged to Alaska's environment                                                                
     multiply Recognition program                                                                                               
                                                                                                                                
MR. BATES  advanced to slide  8, titled "Current  Fee Structure,"                                                               
which  highlighted  Commercial   Passenger  Vessel  Environmental                                                               
Compliance Fee  (CPVEC) fees compared  to ocean ranger fees.   He                                                               
moved to slide 9, titled  "Proposed Fee Structure," which read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     multiply All vessels over 50 berths pay $5 per lower berth                                                                 
          multiplyLarge vessels pay roughly the same                                                                            
          multiplySmall vessels will pay increased fees in 2024                                                                 
          multiplyThe fee would be reduced by $1 per lower berth                                                                
     for any  ship that maintains a  DEC-approved electronic                                                                    
     wastewater monitoring system                                                                                               
                                                                                                                                
9:14:38 AM                                                                                                                    
                                                                                                                                
MR.  BATES continued  to slide  10, titled  "Local Water  Quality                                                               
Disparity,"   which  read   as   follows  [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     multiply Large cruise ship permit allows up to 40 fecal colony                                                             
     forming units per 100 ml.                                                                                                  
     multiply Local wastewater treatment facility permit allows up                                                              
     to 1.5 million fecal colony forming units per 100 ml.                                                                      
     multiply Many of the over one million yearly cruise ship                                                                   
     passengers  will use  onshore  restrooms when  visiting                                                                    
     Alaska ports                                                                                                               
                                                                                                                                
MR.  BATES observed  that passenger  traffic in  port communities                                                               
has a strong correlation with increased treatment needs.                                                                        
                                                                                                                                
9:16:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE highlighted  the word  "allows" and  asked                                                               
whether the allowance is being  exceeded with the presence of all                                                               
the  passengers.    He  asked whether  the  allowance  should  be                                                               
changed.                                                                                                                        
                                                                                                                                
MR.  BATES replied  there are  water quality  standards uniformly                                                               
applied  throughout all  the industries,  and in  this case,  the                                                               
fecal limit  is 40 units per  100 ml which the  large vessels are                                                               
meeting.   On  small  vessels,  he said,  they  do  not have  the                                                               
advanced  wastewater treatment  systems the  large vessels  have.                                                               
He gave  examples of  various communities  and their  numbers, as                                                               
shown  on slide  11, titled  "Local Water  Quality," which  shows                                                               
three  columns  featuring  community, 301(h)  waiver,  and  fecal                                                               
colony forming unit effluent  limit(s) per pound/100 milliliters.                                                               
The figures  cover the Alaska  communities of  Juneau, Ketchikan,                                                               
Sitka, and Skagway.  He  reiterated that the number of passengers                                                               
and  crew  are stressing  the  system,  noting  that it  is  more                                                               
difficult for  smaller communities to maintain  systems necessary                                                               
to treat that type of wastewater from a transient population.                                                                   
                                                                                                                                
9:21:03 AM                                                                                                                    
                                                                                                                                
DEPUTY  COMMISSIONER POKON  stated that  a significant  factor is                                                               
which  treatment technology  is  available on  the large  vessels                                                               
versus the small vessels in terms discharge.                                                                                    
                                                                                                                                
REPRESENTATIVE   MCCABE  expressed   his   confusion  about   the                                                               
allowances.   He  further conveyed  that it  appeared the  cruise                                                               
ships are  held to  a higher  standard than those  on shore.   He                                                               
wished  to  see  more  data,  opining that  there  are  too  many                                                               
variables.                                                                                                                      
                                                                                                                                
MR. BATES acknowledged  the "spot on" observation  and agreed the                                                               
cruise ships  are held to  a much  higher standard.   The average                                                               
monthly, weekly,  and maximum numbers  shown on slide 11  are the                                                               
maximum  allowances  over  the  course of  the  timeframes.    He                                                               
recognized  the need  to improve  community wastewater  treatment                                                               
facilities.   Even in the absence  of cruise vessels in  2020 and                                                               
2021, many of  the ports showed existing  problems of human-based                                                               
discharges that are unrelated to commercial passenger vessels.                                                                  
                                                                                                                                
9:25:43 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HANNAN  sought to  confirm  that  eight communities  in                                                               
Alaska currently  have the 301(h) waiver  treatment facilities of                                                               
the Clean Water  Act, meaning that their  local discharge systems                                                               
do not comply with the Clean Water Act discharge standards.                                                                     
                                                                                                                                
MR.  BATES clarified  that nine  communities are  operating under                                                               
the  U.S. Environmental  Protection  Agency (EPA)-based  waivers,                                                               
which only treat to a primary level of treatment.                                                                               
                                                                                                                                
REPRESENTATIVE  MCCABE  stated his  belief  that  it would  be  a                                                               
mistake  to blame  local communities'  sewer  issues strictly  on                                                               
cruise ships.  In previous  conversation, he said, it had already                                                               
been stated that the communities have problems regardless.                                                                      
                                                                                                                                
MR. BATES replied that DEC  is fully engaged with the communities                                                               
and wants to assist improving  their treatment so their water and                                                               
environment are  cleaner and healthier.   He stated HB  303 would                                                               
be a  "path forward" for  restructuring funding and  providing an                                                               
opportunity for the communities.                                                                                                
                                                                                                                                
9:29:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY stated  that  Alaska greatly  appreciates                                                               
cruise ships,  adding that  the money  communities make  from the                                                               
cruise  industry  could  go  towards   system  improvement.    He                                                               
discussed the  figure of  1.5 million  in terms  of contamination                                                               
levels.                                                                                                                         
                                                                                                                                
MR.  BATES stated  that  the water  quality  standard applied  to                                                               
fecal was  a level of 40  units, adding that seafood  caught from                                                               
that water  was still safe to  eat.  At 1.5  million, the seafood                                                               
was  not safe  to  eat.   He  discussed  the advanced  wastewater                                                               
treatment  facility  on  large   vessels,  which  produced  water                                                               
quality  standards of  40 units.    Alternatively, the  discharge                                                               
from  the 301(h)  waiver treatment  facilities onshore  could not                                                               
meet  water quality  standards.   He  identified "mixing  zones,"                                                               
which dispersed large  quantities of water with  the fecal matter                                                               
to meet water quality standards at  the edge of the boundary.  He                                                               
added  that   communities  are  provided  with   the  ability  to                                                               
discharge with a mixing zone to meet water quality standards.                                                                   
                                                                                                                                
REPRESENTATIVE  MCCARTY  commented  that  he  looked  forward  to                                                               
further discussions on water treatment processes.                                                                               
                                                                                                                                
CO-CHAIR   HANNAN  shared   her  observation   that  aside   from                                                               
wastewater  treatment, there  are  many houses  and lodges  along                                                               
coastal Alaska that have outflow lines.                                                                                         
                                                                                                                                
9:36:44 AM                                                                                                                    
                                                                                                                                
CO-CHAIR SCHRAGE acknowledged the  room for improvement regarding                                                               
onshore communities.  He imagined  that upgrades would be costly,                                                               
and   asked  to   what  extent   inspections  would   be  funded,                                                               
maintained, and  pursued.  Finding  the balance  between properly                                                               
monitored passenger  vessels in  sensitive areas and  the state's                                                               
job to protect its communities is key, he added.                                                                                
                                                                                                                                
9:39:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND  noted that  cruise ship  populations are                                                               
often bigger  than some communities.   She agreed  that shoreside                                                               
facilities should be a priority.                                                                                                
                                                                                                                                
9:40:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE  reminded  the   committee  of  the  world                                                               
economy.    He  shared  an  example of  eating  fish  from  other                                                               
countries that may  not have the same water  quality standards as                                                               
the U.S.                                                                                                                        
                                                                                                                                
CO-CHAIR HANNAN shared her recollection  that CPVEC fees were not                                                               
allowed,  adding that  the use  of those  fees was  the focus  of                                                               
prior  litigation.   She questioned  whether the  legislation was                                                               
changing some of this in reference to the grant programs.                                                                       
                                                                                                                                
MR. BATES  stated that it  takes DEC approximately $4  million to                                                               
run  the  oversite program.    He  said  in  a normal  year  with                                                               
passenger  loads, there  is enough  to run  the state's  oversite                                                               
program and provide cost effective matter for port communities.                                                                 
                                                                                                                                
9:45:38 AM                                                                                                                    
                                                                                                                                
DEPUTY COMMISSIONER POKON expanded on  the use of funds collected                                                               
from commercial passenger vessels.   She stated that DEC needs to                                                               
be providing a service to  the vessel, adding that they "threaded                                                               
the needle" in  terms of language used in the  bill and how those                                                               
funds  can  be distributed.    She  recognized that  the  onshore                                                               
facilities  are getting  additional  volume  from passengers  and                                                               
crew  passing through  the  communities.   She  noted that  their                                                               
treatment technology is  not as robust as the  larger vessels and                                                               
cannot reach the same standard.                                                                                                 
                                                                                                                                
9:46:54 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HANNAN  highlighted  the   struggles  in  other  states                                                               
regarding local  limits and constraints.   She sought information                                                               
on  federal  limits in  terms  of  what  can  be done  in  Alaska                                                               
communities.                                                                                                                    
                                                                                                                                
DEPUTY  COMMISSIONER   POKON  offered  to  follow   up  with  the                                                               
requested information.                                                                                                          
                                                                                                                                
9:49:43 AM                                                                                                                    
                                                                                                                                
MR. BATES stated  that the bill would provide  an opportunity for                                                               
DEC to do a better management  and oversight job of the industry,                                                               
as  well   as  provide  an  opportunity   to  improve  wastewater                                                               
treatment in Alaska.                                                                                                            
                                                                                                                                
[HB 303 was held over.]                                                                                                         
                                                                                                                                
           HB 402-IDENTIFICATION OF CONTRACTOR IN ADS                                                                       
                                                                                                                                
9:50:38 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN announced that the  final order of business would                                                               
be  HOUSE  BILL  NO.  402, "An  Act  relating  to  identification                                                               
requirements for contractors and home inspectors."                                                                              
                                                                                                                                
9:50:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE expressed  his  support for  the bill  and                                                               
expressed hope it would be advanced today.                                                                                      
                                                                                                                                
CO-CHAIR HANNAN  reminded the committee that  the Alaska Division                                                               
of Corporations,  Business, and Professional Licensing  had staff                                                               
online to  answer any questions.   She relayed that  the division                                                               
had no concerns with updating the statute.                                                                                      
                                                                                                                                
9:51:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY  concurred with  moving bill, as  it would                                                               
not  impose on  contractors making  websites or  require them  to                                                               
become  specialists in  the trade.   He  proffered that  the bill                                                               
would make things easier.                                                                                                       
                                                                                                                                
9:52:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR SCHRAGE  moved to  report HB 402  out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection, HB 402  was reported out of  the House                                                               
Community and Regional Affairs Standing Committee.                                                                              
                                                                                                                                
9:53:01 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Community and Regional Affairs Standing Committee meeting was                                                                   
adjourned at 9:53 a.m.                                                                                                          

Document Name Date/Time Subjects
DEC HB 303 Cruise Ship Presentation.pdf HCRA 4/21/2022 8:00:00 AM
HCRA 4/26/2022 8:00:00 AM
HB 303
HB 303 - Letters of Opposition 4.25.22.pdf HCRA 4/26/2022 8:00:00 AM
HB 303
HB 402 - DCCED Zero Fiscal Note.pdf HCRA 4/26/2022 8:00:00 AM
HB 402
HB 303 HCRA - CPV Grant Program; tonnage clause-4.28.22.pdf HCRA 4/26/2022 8:00:00 AM
HB 303