Legislature(1999 - 2000)
04/28/2000 04:20 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 28, 2000
4:20 P.M.
TAPE HFC 00 - 139, Side 1.
CALL TO ORDER
Co-Chair Therriault called the House Finance Committee
meeting to order at 4:20 P.M.
PRESENT
Co-Chair Therriault Representative Foster
Co-Chair Mulder Representative Grussendorf
Representative Austerman Representative G. Davis
Representative Bunde Representative Phillips
Representative J. Davies Representative Williams
Representative Moses was not present for the meeting.
ALSO PRESENT
Senator Drue Pearce; Pat Carter, Staff, Senator Drue Pearce;
Larry Dietrick, Acting Director, Division of Spill
Prevention and Response, Department of Environmental
Conservation; Alison Elgee, Deputy Commissioner, Department
of Administration.
TESTIFIED VIA TELECONFERENCE
Michele Brown, Commissioner, Department of Environmental
Conservation, Anchorage; Breck Tostevin, Anchorage; Tom
Rueter, North Star Terminal, Anchorage.
SUMMARY
HB 52 An Act making and amending capital appropriations
and reappropriations and capitalizing funds; and
providing for an effective date.
CS HB 52 (FIN) was reported out of Committee with
individual recommendations.
SB 273 An Act requiring oil discharge prevention and
contingency plans and proof of financial
responsibility for non-tank vessels and railroad
tank cars; authorizing inspection of non-tank
vessels and trains; and providing for an effective
date.
HCS CS SB 273 (WTR) was reported out of Committee
with a "do pass" recommendation and with fiscal
notes by Department of Environmental Conservation
dated 4/26/00 and Department of Community &
Economic Development 4/17/00.
SB 298 An Act relating to the compensation of certain
public employees and officials not covered by
collective bargaining agreements; and providing
for an effective date.
SB 298 was SCHEDULED but not HEARD.
SB 310 An Act providing for and relating to the issuance
of general obligation bonds for the purpose of
paying the state cost of school, University of
Alaska, and port and harbor capital projects; and
providing for an effective date.
SB 310 was SCHEDULED but not HEARD.
SB 311 An Act providing for and relating to the issuance
of general obligation bonds for the purpose of
paying the state cost of port and harbor capital
projects; and providing for an effective date.
SB 311 was SCHEDULED but not HEARD.
HOUSE CS FOR CS FOR SENATE BILL NO. 273(RES)
An Act regarding oil discharge prevention, and relating
to contingency plans and proof of financial
responsibility for all self-propelled non-tank vessels
exceeding 400 gross registered tonnage and for railroad
tank cars; and providing for an effective date.
SEANTOR DRUE PEARCE stated that Alaska has the world's best
oil spill prevention and response program. The current
program is limited to vessels that carry oil as cargo and
on-shore oil facilities such as oil wells, pipelines,
refineries and tank farms.
Most of Alaska's oil spills come from carriers that are
currently not required to prepare for spill response. Since
1995, 93 spills totaling 5,286 gallons of oil came from
regulated vessels and facilities. During the same period,
945 spills totaling 258,000 gallons oil came from non-
regulated carriers. SB 273 will expand the prevention and
response program to include larger non-tank vessels and the
railroads transporting oil in bulk.
Senator Pearce continued, specifically, non-tank vessels
covered by the bill are defined as self-propelled watercraft
of 400 or greater gross registered tons. These vessels
include larger fishing and processing vessels, cargo and
cruise ships and public vessels engaged in commerce such as
the Alaska State ferries. SB 273 would establish the spill
response planning standard of containment and control up to
15 percent of the vessel's maximum capacity within 48 hours,
and clean up the spill as quickly as possible with minimal
damage to the environment. SB 273 would require the vessels
and the Railroad to provide proof of financial ability to
respond to damage resulting from a spill.
Senator Pearce noted that SB 273 would establish a task
force to study and report back to the Legislature by the
first day of next session on how to achieve the planning
standard in a way that minimizes any potential adverse
impacts to industry. She commented that Alaska is the only
state on the West Coast that has not extended it's
contingency plan and financial responsibility laws to
include non-tank vessels. In light of recent spills from
these vessels and from the Railroad on the land, it is time
to strengthen oil spill laws. SB 273 would provide a
heightened awareness of prevention and response readiness
and would reduce the number of consequences of oil spills in
the future.
Vice Chair Bunde asked why concerns on the compliance issues
had been voiced. Senator Pearce replied that inspections
are presently required in law, however, the inspection
portion of the bill was deleted in one of the committees.
She added that inspections had always been done in concert
with the National Coast Guard inspection team. There has
never been a boarding by Department of Environmental
Conservation following a complaint by the ship boarded. She
acknowledged that she did not understand the concern
regarding inspections, reiterating that it had been deleted
from the bill.
Representative Phillips noted that the World Trade Committee
amended the bill taking out the inspections because the
scope of the bill did not deal with ships providing proof of
financial ability. The inspection process was not needed
for that. Instead, it was added to the task force purview
so to address procedures and regulations for dealing with
the inspections. She emphasized that it would be covered.
Representative J. Davies asked if a table had been prepared
for the Alaska Railroad Corporation. Senator Pearce replied
it had not. She noted that before the bill was introduced,
the Commissioner had already been in negotiations with the
Railroad. There was a verbal understanding that they would
return with a completed contingency plan.
Representative Austerman commented that he had received
calls regarding impact to the U.S. Navy vessels. He
understood that the potentially the Department of
Environmental Conservation could impose requirements too
strict on the Navy. Co-Chair Therriault pointed out that
there was a memo in member's packets indicating that the
Department must work in cooperation with the Navy.
Co-Chair Mulder stated that currently under regulations, the
type of ships referenced by Representative Austerman are not
able to come up singularly into the State waters of Alaska
without being accompanied. He asked the intention of
Department when dealing with the U.S. Navy and potential
future problem.
MICHELE BROWN, (TESTIFIED VIA TELECONFERENCE), COMMISSIONER,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, ANCHORAGE, replied
that the Department had spoken with General Case of the
Alaska Command, and Admiral Marshall's Chief of Staff,
Admiral Barrett from the U.S. Coast Guard. The Department
knows that the issue must be addressed, as the ships can not
come into Alaska without being accompanied by tankers. She
noted that there is a Statement of Cooperation written and
in place, which allows the Department to work with the
military when there is conflict with State law.
Commissioner Brown pointed out that the intent is to have a
plan in place which mirrors the federal standard. The tools
to address these topics are already available under the
Department's State Water Quality Standards. She stressed
that a good solution is available.
Representative Austerman asked if it was correct that two
vessels would be required to accompany any given vessel at
the same time because of discharge. Commissioner Brown
understood that the Navy's concern was that in order to de-
balance, they would need an accompanying vessel. She knew
that was a financial concern for the Navy.
Representative Austerman questioned if there had been
dialogue regarding that concern. He requested all
correspondence with the U.S. Navy regarding patrolling of
outside waters.
Representative J. Davies referenced the overview and the
statement that "government owned and operated vessels that
are not engaged in commerce" would be exempt. He asked if
that language was related to an earlier draft.
PAT CARTER, STAFF, SENATOR DRUE PEARCE, replied that the
only State operated ships engaged in commerce are the
ferries. "Government" refers to State or federal
government.
Representative Williams questioned how the statement of
cooperation would work with the Navy. Commissioner Brown
explained that statement began between the State and all
federal services several years ago. It is a framework
document which clarifies how to interact on issues of
concern. The group meets at least once a year to go over
issues.
Co-Chair Therriault pointed out that Section #6 allows the
Department to draft regulations before the bill becomes
effective so that the regulations and the bill can go into
effect at the same time.
Representative Phillips congratulated the Department of
Environmental Conservation for lowering the note by $10
thousand dollars.
Co-Chair Mulder emphasized that the fiscal number is
inflated and should be considered temporary. Representative
Phillips clarified that the initial fiscal note was for $338
thousand dollars and a $130 dollar note for the task force.
Co-Chair Mulder MOVED to report HCS CS SB 273 (WTR) out of
Committee with individual recommendations and with the
accompanying fiscal notes. Vice Chair Bunde OBJECTED for
the purpose of making a comment. He stated that oil tankers
out of Valdez are paying for their own inspections. He
advised that is something to "look forward to in the
future".
TOM RUETER, (TESTIFIED VIA TELECONFERENCE), NORTH STAR
TERMINAL, ANCHORAGE, testified on the legislation. He
stated that he looked forward to working with the task
force. He voiced concern with the cost of the practical
application of the legislation.
There being NO further OBJECTION, the bill passed from
Committee. Co-Chair Therriault noted that the bill would
require a title change, HCR 28. He noted it would appear on
the calendar with the legislation.
HCS CS SB 273 (WTR) was reported out of Committee with a "do
pass" recommendation and with the accompanying fiscal notes
by Department of Environmental Conservation dated 4/6/00 and
Department of Community & Economic Development dated
4/17/00.
HOUSE BILL NO. 52
An Act making and amending capital appropriations and
reappropriations and capitalizing funds; and providing
for an effective date.
Representative J. Davies asked who would be covered in the
collective bargaining agreements and which non-covered
employees would be covered. Co-Chair Mulder replied that
everyone was covered. He referenced Page 2, Lines 13 & 14
which lists all three branches of government; the University
employees are covered on Page 3, Line 18. The only State
employees not covered would be the legislators.
Representative Phillips noted that the amount recommended
for the University was different than that previously
considered. Co-Chair Mulder explained that those listed
were "out funds". That would include the $5.2 million
dollars of general funds and $1.2 million dollars of other
funds.
Co-Chair Mulder pointed out that the total cost would be
$37.195 million dollars, and would be all other funds.
Representative Grussendorf asked what the "other funds"
consisted of. Co-Chair Mulder stated that he advised the
Administration that if they desired to have the contracts
funded, it was up to them to find the funding sources
outside the $30 million dollar general fund budget.
Representative Austerman MOVED to ADOPT work draft #1-
GH1022\H, Bannister, 4/28/00, as the version of the bill
before the Committee. There being NO OBJECTION, it was
adopted.
Representative J. Davies asked the effect of using all
"other funds". Co-Chair Mulder replied that the
Administration had been looking for a number of other funds
for some time. He believed that they had found the
financial sources to fund the contracts.
Vice Chair Bunde MOVED to report CS HB 52 (FIN) out of
Committee with individual recommendations. Representative
Grussendorf OBJECTED. He asked if there was anyone that
could identify the "other funds".
ALISON ELGEE, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, advised that "other fund" sources had been
identified. She was not aware of funding sources identified
to fill or replace funds in the budget amendments as general
funds. She pointed out that only half of the initial
request was going to be general funds. There are funding
sources appropriate for the employees being covered.
Representative Grussendorf WITHDREW his OBJECTION. There
being NO further OBJECTIONS, the bill was moved from
Committee.
CS HB 52 (FIN) was reported out of Committee with individual
recommendations.
ADJOURNMENT
The meeting adjourned at 4:40 P.M.
H.F.C. 7 4/28/00
| Document Name | Date/Time | Subjects |
|---|