Legislature(1999 - 2000)

04/20/2000 09:13 AM House RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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           HOUSE RULES STANDING COMMITTEE                                                                                       
                   April 20, 2000                                                                                               
                     9:13 a.m.                                                                                                  
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative John Cowdery, Chairman                                                                                           
Representative Joe Green                                                                                                        
Representative Gail Phillips                                                                                                    
Representative Pete Kott                                                                                                        
Representative Ethan Berkowitz                                                                                                  
Representative Reggie Joule                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Representative Brian Porter                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
SENATE CONCURRENT RESOLUTION NO. 1                                                                                              
Suspending provisions of Rule 1(e), Uniform Rules of the Alaska                                                                 
State Legislature, relating to proportional minority membership on                                                              
standing committees as it applies to the Senate Finance Committee                                                               
during the Twenty-First Alaska State Legislature.                                                                               
                                                                                                                                
     - MOVED HCS SCR 1(RLS) OUT OF COMMITTEE                                                                                    
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: SCR  1                                                                                                                    
SHORT TITLE: MOTORIZED OIL TRANSPORT TASK FORCE                                                                                 
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/19/99         8     (S)  SPECIAL ORDER OF BUSINESS Y15 N4 A1                                                                 
 1/19/99         8     (S)  READ THE FIRST TIME                                                                                 
 1/19/99         9     (S)  READ SECOND TIME AND ON FINAL PASSAGE                                                               
 1/19/99         9     (S)  PASSED Y14 N5 A1   SCR 1                                                                            
 1/19/99        23     (S)  TRANSMITTED TO (H)                                                                                  
 1/21/99        44     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 1/21/99        44     (H)  RLS                                                                                                 
 4/20/00               (H)  RLS AT  9:00 AM BUTROVICH 205                                                                       
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
JOE KYLE                                                                                                                        
Alaska Steamship Association                                                                                                    
234 Gold Street                                                                                                                 
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified in support of this approach to                                                                   
resolving this nontanker contingency plan issue.                                                                                
                                                                                                                                
CHARLOTTE MacCAY, Senior Administrator                                                                                          
Environmental and Regulatory Affairs                                                                                            
Cominco Alaska Incorporated                                                                                                     
1133 West 15th Avenue                                                                                                           
Anchorage, Alaska 99501                                                                                                         
POSITION STATEMENT:  Testified on HCS SCR 1.                                                                                    
                                                                                                                                
MARCO PIGNALBERI, Staff                                                                                                         
     to Representative Cowdery                                                                                                  
Alaska State Legislature                                                                                                        
Capitol Building, Room 204                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Reviewed the differences between HCS SCR 1                                                                 
labeled LS0304\H, Cook, 4/19/00 and the forthcoming CS.                                                                         
                                                                                                                                
JIM CLARK, Attorney                                                                                                             
Robertson, Monagle & Eastaugh, PC                                                                                               
801 West 10th Street, Suite 300                                                                                                 
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Reviewed a change to be included in the                                                                    
forthcoming CS.                                                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-7, SIDE A                                                                                                               
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN JOHN COWDERY called the House Rules Standing Committee                                                                 
meeting to order at 9:13 a.m.  Members present at the call to order                                                             
were Representatives Cowdery, Green, Phillips, Kott, Berkowitz and                                                              
Joule.                                                                                                                          
                                                                                                                                
SCR  1-MOTORIZED OIL TRANSPORT TASK FORCE                                                                                       
                                                                                                                                
                                                                                                                                
CHAIRMAN COWDERY announced that the only order of business before                                                               
the committee is SENATE CONCURRENT RESOLUTION NO. 1, Suspending                                                                 
provisions of Rule 1(e), Uniform Rules of the Alaska State                                                                      
Legislature, relating to proportional minority membership on                                                                    
standing committees as it applies to the Senate Finance Committee                                                               
during the Twenty-First Alaska State Legislature.  [Before the                                                                  
committee, pending adoption, is version LS0304\H, Cook, 4/19/00,                                                                
with the following title:  HOUSE CS FOR SENATE CONCURRENT                                                                       
RESOLUTION NO. 1(RLS), Relating to the Task Force on Motorized Oil                                                              
Transport.]                                                                                                                     
                                                                                                                                
Number 0071                                                                                                                     
                                                                                                                                
JOE KYLE, Alaska Steamship Association, testified in support of                                                                 
this approach to resolving this nontanker contingency plan issue.                                                               
The association believes that this approach allows the association                                                              
to adhere to Senator Pearce's original time schedule to get the                                                                 
nontank vessels into the state safety net.  Furthermore, this                                                                   
allows the association "to flesh out the unknowns that we had in                                                                
the current bill, figure out how the other states operate more                                                                  
clearly, understand what the requirements and costs may be to work                                                              
with one of the co-ops in the state, examine whether we should form                                                             
our own co-ops to comply."  The association feels that this is a                                                                
broad-based approach that will allow compliance with safety net                                                                 
issues that concern Commissioner Brown, Department of Environmental                                                             
Conservation.                                                                                                                   
                                                                                                                                
REPRESENTATIVE BERKOWITZ noted that he has not seen Senator                                                                     
Pearce's bill.  Therefore, he asked if the intent is to reach the                                                               
same number of vessels that Senator Pearce intends to reach.                                                                    
                                                                                                                                
MR. KYLE replied yes.  He specified that this resolution doesn't                                                                
exempt anyone from the original intent of Senator Pearce's bill.                                                                
If the resolution softens anything it would be the compliance                                                                   
standards for those "way North in Western Alaska and way West in                                                                
Western Alaska."  In those areas it is difficult to meet the 48                                                                 
hour and 15 percent standard.  The association has requested that                                                               
[those standards] be loosened for those areas.  In response to                                                                  
Representative Phillips, Mr. Kyle agreed that the difficulty in                                                                 
complying with the aforementioned standards is primarily due to the                                                             
distance [of these locations].                                                                                                  
                                                                                                                                
Number 0232                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN pointed out that there is a spill contingency                                                              
group "way up there."  He asked if the concern is that the cruise                                                               
ships wouldn't go that far because there would still be commerce.                                                               
                                                                                                                                
MR. KYLE specified that [the vessels] to which this speaks are spot                                                             
trampers that service the fishing industry and that will respond to                                                             
remote places in which there is no infrastructure to fly in                                                                     
equipment nor is there a port.  Therefore, this [equipment] would                                                               
have to be taken by watercraft to some of these remote locations in                                                             
Western Alaska; in areas where it takes days to transport                                                                       
equipment.  With such a situation, the association felt that the 48                                                             
hour and 15 percent standard is not doable in those areas unless                                                                
the ships themselves are loaded with equipment.  However, that runs                                                             
counter to the recent Intertanko U.S. Supreme Court ruling that                                                                 
just occurred.  He acknowledged that "we" could return to the 48                                                                
hour and 15 percent standard through this process, but this allows                                                              
"us" not to have to start there.                                                                                                
                                                                                                                                
REPRESENTATIVE GREEN noted his observation that [this resolution]                                                               
addresses vessels of 400 gross tons.  He recalled that at one                                                                   
point, "they" were banning [vessels] around 300 [gross tons].                                                                   
                                                                                                                                
MR. KYLE clarified that the original legislation [SB 273] [referred                                                             
to vessels] of 300 gross tons.  He recalled that Senator Taylor                                                                 
amended that [reference to vessels of] 400 gross tons.                                                                          
                                                                                                                                
Number 0340                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOULE inquired as to the difference between a 300                                                                
and 400 gross ton vessel.                                                                                                       
                                                                                                                                
MR. KYLE remarked that it is difficult to say because the manner in                                                             
which gross tonnage is measured is mysterious.  However, he                                                                     
suggested that [with the change from 300 to 400 gross tons] some of                                                             
the smaller tenders and fishing vessel tenders would probably drop                                                              
out.  He didn't believe that any catcher/processors or factory                                                                  
trawlers would drop out.  Certainly, no trampers drop out.                                                                      
                                                                                                                                
REPRESENTATIVE GREEN inquired as to the average amount of fuel that                                                             
would be onboard a 300 and a 400 ton vessel.                                                                                    
                                                                                                                                
MR. KYLE answered that the difference would be negligible.                                                                      
                                                                                                                                
REPRESENTATIVE GREEN surmised that the amount of fuel onboard is                                                                
really the concern versus the tonnage of the vessel itself.                                                                     
                                                                                                                                
MR. KYLE agreed.  He reiterated that the difference in the amount                                                               
of fuel carried on a 300 ton vessel versus a 400 ton vessel is                                                                  
negligible.  He estimated that the difference would be between                                                                  
4,500 gallons [of fuel] and 5,000 gallons [of fuel].                                                                            
                                                                                                                                
Number 0434                                                                                                                     
                                                                                                                                
MR. KYLE said, in response to Chairman Cowdery, that [the                                                                       
association] feels that [the membership of the task force] covers                                                               
the broad spectrum of nontank vessels that are operating in Alaska                                                              
and the people that are responsible for their actions.  With the                                                                
two [task force members from the] spot charter vessels, "we" tried                                                              
to cover the mining, timber and fishing industry.  The task force                                                               
includes one member from the Alaska Steamship Association and one                                                               
member who is a registered maritime [shipping] agent.  Therefore,                                                               
there are four members of the task force that are from the maritime                                                             
transportation industry.  The task force also includes one member                                                               
from the United States Coast Guard and three members from DEC.  Mr.                                                             
Kyle felt that the [membership of the] task force covers the issue                                                              
well.                                                                                                                           
                                                                                                                                
REPRESENTATIVE JOULE noted that he is not sure of the definition of                                                             
a tanker vessel, although he assumed that such a vessel is similar                                                              
to the kind of boat that goes to Valdez.  He pointed out that on an                                                             
annual basis [Valdez] receives fuel supply boats.  He asked if this                                                             
[resolution] would cover these fuel supply boats.                                                                               
                                                                                                                                
MR. KYLE clarified that fuel supply boats are already covered under                                                             
the Oil Pollution Act of 1990 (OPA 90).  Basically if a vessel                                                                  
carries fuel for sale, then that is a tank vessel.  The vessels                                                                 
that are being addressed in this resolution are those that carry                                                                
fuel for their own propulsion purposes.                                                                                         
                                                                                                                                
Number 0536                                                                                                                     
                                                                                                                                
REPRESENTATIVE PHILLIPS suggested that the committee discuss the                                                                
House Current Resolution [HCR 27] while waiting for the committee                                                               
substitute (CS) for SCR 1.  Representative Phillips explained,                                                                  
that SCR 1 is a Senate resolution, which would allow the Senate to                                                              
change the rules for the makeup of the Senate Finance Committee.                                                                
The Senate passed SCR 1 at the beginning of the session two years                                                               
ago.  This resolution is now in the House and can be used as the                                                                
vehicle with a different title in order to insert the task force                                                                
and return it to the Senate for consideration.  Representative                                                                  
Phillips noted that the committee packet includes a House                                                                       
Concurrent Resolution [HCR 27].                                                                                                 
                                                                                                                                
REPRESENTATIVE PHILLIPS moved that the committee adopt HCR [27],                                                                
which would suspend the rules regarding SCR 1 and make the title                                                                
change.                                                                                                                         
                                                                                                                                
REPRESENTATIVE BERKOWITZ objected.  He remarked that for two years                                                              
now the Senate has been passing bills through the Senate Finance                                                                
Committee illegally and now "we're" going to overlook that because                                                              
it affords a vehicle to accomplish this.  Representative Berkowitz                                                              
withdrew his objection.                                                                                                         
                                                                                                                                
CHAIRMAN COWDERY asked if there were any objections.  There being                                                               
none, it was so ordered and the House Rules Committee adopted HCR                                                               
[27].                                                                                                                           
                                                                                                                                
Number 0663                                                                                                                     
                                                                                                                                
CHARLOTTE MacCAY, Senior Administrator, Environmental and                                                                       
Regulatory Affairs, Cominco Alaska Incorporated, commended Senator                                                              
Pearce in putting forth this legislation as it is important and is                                                              
valuable to and desired by the industry.  With regard to the spot                                                               
charter vessels, [Cominco Alaska] brings in 14 different vessels                                                                
taken from fleets all around the world each summer.  The next                                                                   
summer there may be 14 different vessels.  Therefore, it is                                                                     
important for [Cominco Alaska] to ensure that those vessels have a                                                              
way to respond to an oil spill if one of those vessels were to have                                                             
one.  She noted that [Cominco Alaska] does have oil spill                                                                       
contingency planning at its port along with the materials and the                                                               
response contractors.  She reiterated the importance of this                                                                    
legislation passing through, however [Cominco Alaska] is concerned                                                              
with the structures and mechanism that go into this legislation.                                                                
Ms. MacCay turned to Mr. Kyle's comments regarding the regions in                                                               
the North and West.  She disagreed with him in that, "We're not                                                                 
looking for a different 'in' up in the North and the West,                                                                      
different in the standards.  What we may be needing is a difference                                                             
in the mechanism to achieve that standard due to the remoteness."                                                               
She stated that it is very difficult to place the type of                                                                       
requirement on the worldwide fleets when they may only come in                                                                  
once.  Therefore, it is of major concern to receive the                                                                         
coordination of the shipping agents, who bring in these boats and                                                               
know best how to get them to comply effectively.                                                                                
                                                                                                                                
REPRESENTATIVE BERKOWITZ pointed out that the composition of the                                                                
task force doesn't include a member of the environmental community.                                                             
He related his experience that bringing in stakeholders initially                                                               
makes for a smoother process.                                                                                                   
                                                                                                                                
MS. MacCAY said that the [membership] of the task force is such                                                                 
because the objectives are not being changed.  She stated, "These                                                               
are the environmentalists' objectives; this is what the whole                                                                   
objective is.  We aren't asking to change the objective, we're just                                                             
looking at how to structure and coordinate to get there."                                                                       
                                                                                                                                
REPRESENTATIVE BERKOWITZ inquired as to who has spearheaded this.                                                               
                                                                                                                                
MS. MacCAY answered that she didn't know as she entered into this                                                               
very late.                                                                                                                      
                                                                                                                                
REPRESENTATIVE BERKOWITZ reiterated that it seems the process works                                                             
better if diverse views are incorporated early on.                                                                              
                                                                                                                                
Number 0871                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN remarked that Representative Berkowitz makes                                                               
a good point.  He recalled, having worked with the environmental                                                                
groups, that there was a "train wreck" when anything was attempted.                                                             
Then about 10-11 years ago, agency personnel and environmental                                                                  
representatives were included and the final product was arrived at                                                              
quickly.  Therefore, he indicated agreement with Representative                                                                 
Berkowitz that including them would make for a better process.  He                                                              
felt that even if [environmental groups] are not a member, they                                                                 
should be invited.                                                                                                              
                                                                                                                                
MS. MacCAY interjected that this is a public meeting.                                                                           
                                                                                                                                
REPRESENTATIVE PHILLIPS informed the committee that much of this                                                                
has been driven by the Commissioner of DEC and thus the                                                                         
environmental voice has been included, as far as she knew, for the                                                              
entire time that Senator Pearce's bill has been discussed.  She                                                                 
noted that when she questioned whether the Commissioner of DEC is                                                               
the appropriate person to be the chairman of this task force, all                                                               
the group members agreed as they wanted to assure that                                                                          
environmental protection was first and foremost.  Therefore, she                                                                
felt that [the environmental representation on the task force] is                                                               
covered.  With regard to why the Regional Citizens Advisory                                                                     
Councils (RCAC) and SIRCAC (ph) and other such groups are not                                                                   
included, Representative Phillips pointed out that the director of                                                              
the Division of Spill Prevention and Response within DEC is the                                                                 
head of all of the RCACs.  She asked if that director was the                                                                   
conduit between the federal government and DEC.                                                                                 
                                                                                                                                
REPRESENTATIVE GREEN answered yes, but specified that the director                                                              
of the Division of Spill Prevention and Response are more involved                                                              
with the spill programs.  The plan that any applicant files is                                                                  
generally what is reviewed and thus doesn't necessarily bring the                                                               
true environmental groups.                                                                                                      
                                                                                                                                
REPRESENTATIVE PHILLIPS commented that there was much thought given                                                             
with regard to the makeup of this task force.                                                                                   
                                                                                                                                
REPRESENTATIVE GREEN noted that there is a time frame, and                                                                      
therefore it might be better to bring [the environmental groups]                                                                
along.                                                                                                                          
                                                                                                                                
Number 1035                                                                                                                     
                                                                                                                                
MARCO PIGNALBERI, Staff to Representative Cowdery, Alaska State                                                                 
Legislature, announced that he would review the differences between                                                             
version H of HCS SCR 1 and the forthcoming CS.  He directed the                                                                 
committee to page 2, lines 2-10, of version H; that language will                                                               
be slightly modified in the forthcoming CS.  On page 3, line 10, of                                                             
version H the word "Alaska" will be inserted before "statutes" in                                                               
the forthcoming CS.  On page 3, line 11, of version H following the                                                             
word "transport", delete "and ways to attain the goals".  Those                                                                 
changes will be encompassed in the forthcoming CS.                                                                              
                                                                                                                                
REPRESENTATIVE BERKOWITZ asked if there would be a fiscal note with                                                             
this since DEC will provide support staff for the task force.                                                                   
                                                                                                                                
MR. PIGNALBERI related his understanding that there will be a zero                                                              
fiscal note as the department will absorb the costs.                                                                            
                                                                                                                                
REPRESENTATIVE PHILLIPS interjected that the department has been                                                                
working on this for a couple of months now and there has been no                                                                
additional fiscal note for that activity.                                                                                       
                                                                                                                                
JIM CLARK, Attorney, Robertson, Monagle & Eastaugh, PC, informed                                                                
the committee that the forthcoming CS will include another change.                                                              
He directed the committee to page 3, line 10, where the words                                                                   
"consistent with" will be deleted and the language "not subject to                                                              
preemption by" will be inserted.  He explained that this language                                                               
change is included in order to have the task force review the                                                                   
aforementioned Intertanko case.                                                                                                 
                                                                                                                                
Number 1222                                                                                                                     
                                                                                                                                
REPRESENTATIVE PHILLIPS suggested that perhaps the committee could                                                              
adopt version H and the amendments to that draft[, which would                                                                  
result in the forthcoming CS].  She informed the committee that the                                                             
task force would be comprised of the following members which would                                                              
be specified in the forthcoming CS.  The membership would be as                                                                 
follows:                                                                                                                        
                                                                                                                                
     (1) one member appointed by the President of the Senate;                                                                   
     (2) one member appointed by the Speaker of the House of                                                                    
     Representatives;                                                                                                           
     (3) one member representing the [United States] Coast                                                                      
     Guard;                                                                                                                     
     (4) one member representing the response action co-op;                                                                     
     (5) one member from the Alaska Railroad;                                                                                   
     (6) one member from maritime shipping;                                                                                     
     (7) one member from the Alaska Steamship Association;                                                                      
     (8) one member from the container ship industry;                                                                           
     (9) two members from the spot charter vessel industry;                                                                     
   (10)the director of the division of spill prevention and                                                                     
     response in the Department of Environmental Conservation;                                                                  
     (11)the commissioner and deputy commissioner of the                                                                        
     Department of Environmental Conservation.                                                                                  
                                                                                                                                
Number 1275                                                                                                                     
                                                                                                                                
REPRESENTATIVE PHILLIPS moved that the committee adopt HCS SCR 1,                                                               
version LS0304\H, Cook, 4/19/00, as the working draft.  There being                                                             
no objection, HCS SCR 1 version H was adopted.                                                                                  
                                                                                                                                
REPRESENTATIVE PHILLIPS moved the following amendments:                                                                         
                                                                                                                                
     Page 2, lines 2-10,                                                                                                        
          Delete all material                                                                                                   
          Insert the aforementioned membership of the                                                                           
          task force [which is outlined above].                                                                                 
                                                                                                                                
     Page 3, line 10, before "statutes"                                                                                         
          Insert "Alaska"                                                                                                       
                                                                                                                                
     Page 3, line 10,                                                                                                           
          Delete "consistent with"                                                                                              
          Insert "not subject to preemption by"                                                                                 
                                                                                                                                
     Page 3, line 11,                                                                                                           
          Delete "and ways to attain the goals"                                                                                 
                                                                                                                                
There being no objection, it was so ordered and the above                                                                       
amendments were adopted.                                                                                                        
                                                                                                                                
REPRESENTATIVE KOTT asked if the task force delivers the report                                                                 
prior to the day that the Twenty-Second Legislature convenes will                                                               
it be delivered to the Twenty-Second Legislature or the                                                                         
Twenty-First Legislature.  He surmised that in such a case, it                                                                  
would have to be delivered to the Twenty-First Legislature as the                                                               
Twenty-Second Legislature would not be in place.  Therefore, the                                                                
language [on page 3, line 8] referring to whom to deliver the                                                                   
report is problematic.                                                                                                          
                                                                                                                                
There was discussion about how to remedy this problem, which                                                                    
resulted in the agreement to insert "second" on page 3, line 8,                                                                 
prior to the word "day".                                                                                                        
                                                                                                                                
[Although there was no formal motion, the House Rules Committee did                                                             
report HCS SCR 1 version LS0304\H, Cook, 4/19/00, as amended out of                                                             
committee.]                                                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
There being no further business before the committee, the House                                                                 
Rules Committee meeting was adjourned at 9:36 a.m.                                                                              
                                                                                                                                

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