Legislature(1999 - 2000)
03/27/2000 01:05 PM House RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE RESOURCES STANDING COMMITTEE
March 27, 2000
1:05 p.m.
MEMBERS PRESENT
Representative Bill Hudson, Co-Chair
Representative John Cowdery, Vice Chair
Representative John Harris
Representative Carl Morgan
Representative Jim Whitaker
Representative Reggie Joule
Representative Mary Kapsner
MEMBERS ABSENT
Representative Beverly Masek, Co-Chair
Representative Ramona Barnes
COMMITTEE CALENDAR
HOUSE BILL NO. 359
"An Act relating to notice requirements for certain final
findings concerning the disposal of an interest in state land or
resources for oil and gas; relating to administrative appeals and
petitions for reconsideration of decisions of the Department of
Natural Resources; and providing for an effective date."
- MOVED HB 359 OUT OF COMMITTEE
CS FOR SENATE BILL NO. 266(RES)
"An Act relating to the use of a TBT-based marine antifouling
paint or coating on certain vessels; and providing for an
effective date."
- MOVED CSSB 266(RES) OUT OF COMMITTEE
PREVIOUS ACTION
BILL: HB 359
SHORT TITLE: DEPT NAT RES ADMIN APPEALS/ OIL & GAS
Jrn-Date Jrn-Page Action
2/09/00 2148 (H) READ THE FIRST TIME - REFERRALS
2/09/00 2148 (H) RES, JUD, FIN
2/09/00 2148 (H) ZERO FISCAL NOTE (DNR)
2/09/00 2148 (H) GOVERNOR'S TRANSMITTAL LETTER
3/27/00 (H) RES AT 1:00 PM CAPITOL 124
BILL: SB 266
SHORT TITLE: MARINE ANTI-FOULING PAINTS
Jrn-Date Jrn-Page Action
2/11/00 2281 (S) READ THE FIRST TIME - REFERRALS
2/11/00 2281 (S) RES
3/01/00 (S) RES AT 3:00 PM BUTROVICH 205
3/01/00 (S) Moved CS(Res) Out of Committee
3/01/00 (S) MINUTE(RES)
3/02/00 (S) RLS AT 11:45 AM FAHRENKAMP 203
3/02/00 (S) MINUTE(RLS)
3/02/00 2492 (S) RES RPT CS 1DP 3NR NEW TITLE
3/02/00 2492 (S) NR: HALFORD, PETE KELLY, GREEN;
3/02/00 2492 (S) DP: PARNELL
3/02/00 2493 (S) ZERO FISCAL NOTE (DEC)
3/03/00 2509 (S) RLS TO CALENDAR 03/03/00
3/03/00 2512 (S) READ THE SECOND TIME
3/03/00 2512 (S) RES CS ADOPTED UNAN CONSENT
3/03/00 2512 (S) ADVANCED TO THIRD READING
UNAN CONSENT
3/03/00 2512 (S) READ THE THIRD TIME CSSB 266(RES)
3/03/00 2512 (S) PASSED Y17 N1 E2
3/03/00 2513 (S) EFFECTIVE DATE(S) SAME AS PASSAGE
3/03/00 2513 (S) TAYLOR NOTICE OF RECONSIDERATION
3/06/00 2533 (S) RECONSIDERATION NOT TAKEN UP
3/06/00 2533 (S) TRANSMITTED TO (H)
3/08/00 2443 (H) READ THE FIRST TIME - REFERRALS
3/08/00 2443 (H) RES
3/08/00 2464 (H) CROSS SPONSOR(S): KERTTULA
3/27/00 (H) RES AT 1:00 PM CAPITOL 124
WITNESS REGISTER
BOB LOEFFLER, Director
Division of Mining, Land and Water
Department of Natural Resources
3601 C Street, Suite 800
Anchorage, Alaska 99503-5935
POSITION STATEMENT: Testified on HB 359.
JIM HANSEN, Lease Manager
Division of Oil & Gas
Department of Natural Resources
550 West Seventh Avenue, Suite 800
Anchorage, Alaska 99501-3510
POSITION STATEMENT: Testified on HB 359.
ANNETTE KREITZER, Staff
for Senator Loren Leman
Alaska State Legislature
Capitol Building, Room 115
Juneau, Alaska 99801
POSITION STATEMENT: Introduced SB 266 on behalf of the sponsor.
JOHN HANSEN, President
Northwest Cruise Ship Association (NWCSA)
(Address not provided)
POSITION STATEMENT: Testified in support of CSSB 266(RES).
JOHN KELLY Technical Director
International Paints
(Address not provided)
POSITION STATEMENT: Answered questions regarding antifouling
paints and SB 266.
ACTION NARRATIVE
TAPE 00-25, SIDE A
Number 0001
CO-CHAIR HUDSON called the House Resources Standing Committee
meeting to order at 1:05 p.m. Members present at the call to
order were Representatives Hudson, Cowdery, Harris, Morgan,
Whitaker, Joule and Kapsner.
HB 359 - DEPT NAT RES ADMIN APPEALS/ OIL & GAS
Number 0094
CO-CHAIR HUDSON announced that the first order of business would
be HOUSE BILL NO. 359, "An Act relating to notice requirements
for certain final findings concerning the disposal of an interest
in state land or resources for oil and gas; relating to
administrative appeals and petitions for reconsideration of
decisions of the Department of Natural Resources; and providing
for an effective date."
Number 0152
BOB LOEFFLER, Director, Division of Mining, Land and Water,
Department of Natural Resources (DNR), testified via
teleconference from Anchorage. He explained that the bill does
two things. First, it provides for a uniform appeal process for
DNR. Second, it fixes a technical error that sometimes confuses
the public with respect to oil and gas notices. Right now, the
appeal process in DNR is split between Title 38 and the
Administrative Procedure Act; those two, passed at different
times, tend to create duplicative and overlapping requirements
that apply to different things.
MR. LOEFFLER explained that as a result, there is an appeals
process that gives someone multiple bites at the apple for the
same issue. In most cases, one can appeal a decision to the
director, then to the commissioner; then one can ask for
reconsideration by the commissioner. This takes up a lot of time
but frequently has little public benefit. This bill fixes that
by creating a uniform appeal whereby there is one appeal, to the
commissioner, and that is it.
MR. LOEFFLER explained a second problem: different appeals apply
to different types of decisions. With disposals, there is one
bite of the apple; with nondisposals, however, there are multiple
bites and the timelines are slightly different. This creates
confusion for the public, especially. Furthermore, it is a
problem when a project has multiple permits, with some being some
disposals and some nondisposals. Therefore, this bill creates a
straightforward administrative appeals process. There is one
appeal to the commissioner, and a person has 20 days to appeal.
Mr. Loeffler said he believes the uniform appeal process will be
better for the public and for his own staff.
MR. LOEFFLER deferred to Jim Hansen to explain the technical
error relating to oil and gas notices.
Number 0454
JIM HANSEN, Lease Manager, Division of Oil & Gas, Department of
Natural Resources, testified via teleconference from Anchorage.
He stated:
What Section 4 of this bill does is repeal noticing
under [AS 38.05].945(a)(3)(B). A number of years ago
the Ninth Court filing notice statute was changed to
require a preliminary best-interest finding prior to an
oil and gas lease sale. And there's a noticing
requirement for that finding. When that was done, they
left in the requirement to notice a final written
finding. The final written finding is noticed at the
same time the preliminary finding is noticed, but by
leaving this (a)(3)(B) in the law, it requires us, 30
days prior to issuing the final finding, to issue
another notice saying we're issuing a final finding.
At the time the finding is issued, we ... issue a
notice of sale, so essentially the public has a
preliminary finding notice and a notice of sale to let
them know that there is going to be a sale. The notice
that there is going to be issued a finding, to us, is
kind of an unnecessary expense. It costs in excess of
$5,000 - up to $10,000 - to do these notices. And just
to let people know there's a final finding coming out
30 days prior to it, when they've already been informed
90 days prior to it, to us, is unnecessary, which is
why we believe this specific statute should be
repealed.
Number 0711
REPRESENTATIVE WHITAKER indicated that the bill serves a purely
administrative function and he has no objection to it.
CO-CHAIR HUDSON said he views HB 359 as a streamlining process to
get rid of duplicative reporting.
Number 0798
REPRESENTATIVE COWDERY made a motion to move HB 359 from
committee with individual recommendations and attached zero
fiscal note; he asked for unanimous consent. There being no
objection, HB 359 moved from the House Resources Standing
Committee.
SB 266 - MARINE ANTI-FOULING PAINTS
Number 0841
CO-CHAIR HUDSON announced that the next order of business would
be CS for SENATE BILL NO. 266(RES), "An Act relating to the use
of a TBT-based marine antifouling paint or coating on certain
vessels; and providing for an effective date."
ANNETTE KREITZER, Staff for Senator Loren Leman, Alaska State
Legislature, presented CSSB 266(RES) on behalf of Senator Leman,
the sponsor. She pointed out that the Alaska State Legislature
had outlawed the use of paints based on TBT [tributyltin] in
1987, anticipating the federal Organotin Antifouling Paint
Control Act. She explained that Alaska law made exceptions for
vessels of the U.S. Government, foreign vessels in state waters
fewer than 90 consecutive days, and vessels of 4,000 gross tons
or more. The bill [SB 266] phases those exemptions from law
effective 2001, putting those vessels in the same class as small
[boats] that had to meet the ban in 1987.
MS. KREITZER indicated the committee substitute [CSSB 266(RES)]
does not allow repainting between 2001 and 2003, when the
International Maritime Organization (IMO) ban is expected to take
effect. In other words, on the international level there is
already a move to ban TBT-based paints from these vessels, but
their ban would take effect in 2003; Alaska's stand on SB 266
would just be more aggressive. She noted that the industry's
testimony in the Senate was that the January 1, 2001, deadline
would still allow companies that have pre-purchased their paint
the opportunity to use it; therefore, it would not cause
financial hardship.
MS. KREITZER pointed out that the Alaska Marine Highway had
reported that they do not use TBT-based paint. The Northwest
Cruise Ship Association has reported that some of the ships are
still using TBT-based paint, but they will be TBT-based-paint-
free by the IMO phaseout date of 2003, and also will be able to
meet the 2001 deadline set out in SB 266. Contact with Holland
America Line/ Westours indicates they use TBT-based paint, but
they will be able to meet the IMO deadline.
MS. KREITZER indicated Lieutenant Commander John Bingaman would
be speaking on behalf of the U.S. Coast Guard. She said that
they spoke with Newport Petroleum, a barge line that brings
freight into the state, which is TBT-based-paint-free. She
further stated that the U.S. Navy does not use TBT-based paint
any longer. As for the large oil tankers, ARCO Alaska, Inc. said
it would meet the IMO deadline; Exxon said its tankers are
already TBT-based-paint-free; and BP Amoco said it isn't using
TBT-based paint. She added that Dr. John Kelly, who is a
representative to the IMO and of the International Paint Company
- which provides TBT-based paint to 50 percent of the world's
tonnage - was on teleconference to answer technical questions.
Number 1122
REPRESENTATIVE JOULE wondered how [the state] would know if
people were in compliance after the deadline.
MS. KREITZER indicated that between 2001 and 2003, the
enforcement responsibility would be on the Department of
Environmental Conservation (DEC). She added that DEC foresees -
similar to what the U.S. Coast Guard currently has - that when a
ship comes into Alaska waters, certain paperwork will be required
to be filled out regarding whether or not TBT-based paint is
being used; then a certificate would be issued.
CO-CHAIR HUDSON noted that every vessel that leaves the yard is
also inspected.
Number 1231
JOHN HANSEN, President, Northwest Cruise ship Association
(NWCSA), testified via teleconference. He stated that the NWCSA
represents the following companies: Holland America, Carnival,
Norwegian Cruise lines, Princess, Celebrity, Royal Caribbean,
World Explorer and Crystal Cruises. He explained that this
summer those companies will operate a total of 22 ships roughly
between mid-May and the end of September. These cruise ships
operate in a number of different jurisdictions around the world,
which means that the safety and environmental standards are
agreed upon by the IMO. The IMO has deliberated extensively over
the last few years regarding antifouling paints, specifically,
the concerns raised over the TBT-based paints. He indicated that
the companies that the NWCSA represents agree and comply with the
IMO regulations involving the gradual replacement of TBT-based
paint. He noted that the January 1, 2001, deadline should not be
a problem. He added that they [NWCSA] support CSSB 266(RES).
CO-CHAIR HUDSON wondered if Canadian law restricts the use of
TBT-based paint at the present time.
MR. HANSEN indicated that at the present time he does not believe
there is a restriction, but the IMO restrictions apply in
Canadian waters as well.
REPRESENTATIVE COWDERY wondered about the new products that have
come out, such as trilux (ph).
MR. HANSEN explained that approximately half of the cruise ships
in Alaska do not use TBT-based paint.
REPRESENTATIVE COWDERY wondered how often the bottoms of cruise
ships must be repainted.
MR. HANSEN replied, "Once every three years."
CO-CHAIR HUDSON wondered if they can paint over the TBT-based
paint with the newer restrictive paints.
MR. HANSEN replied that there are paints that will paint
satisfactorily over TBT-based paint.
Number 1630
JOHN KELLY, Technical Director, International Paints, testified
via teleconference. He indicated that all antifouling paints
used in Canada and in the United States have to be registered.
At the moment, the Canadian and United States regulations allow
tributyltin antifouling paints that have a particular low release
rate; the trilux (ph) antifouling [paint] does release copper
into the water, but all the antifouling [paints] used in Alaska
are registered with the U.S. Environmental Protection Agency
(EPA) and with the State of Alaska. The proposal, with regard to
the IMO regulations, is that as of January 1, 2003, there will be
no tributyltin applications allowed. He added that there is also
supposed to be a five-year period for those vessels that still
have the tributyltin on, to get the life out of the tributyltin;
however, by January 1, 2008, there should be no exposed
tributyltin on those vessels. Mr. Kelly also indicated support
for SB 266.
[Lieutenant Commander John Bingaman came forward and offered to
answer questions.]
Number 1886
REPRESENTATIVE COWDERY made a motion to move CSSB 266(RES) from
committee with individual recommendations and attached zero
fiscal note. There being no objection, CSSB 266(RES) moved from
the House Resources Standing Committee.
ADJOURNMENT
Number 1946
CO-CHAIR HUDSON adjourned the House Resources Standing Committee
meeting at 1:35 p.m.
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