Legislature(2007 - 2008)CAPITOL 17

02/20/2007 01:30 PM House TRANSPORTATION


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01:39:49 PM Start
01:39:55 PM Overview: Ocean Ranger Program
03:31:17 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Ocean Ranger Program TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                       February 20, 2007                                                                                        
                           1:39 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kyle Johansen, Chair                                                                                             
Representative Mark Neuman, Vice Chair                                                                                          
Representative Anna Fairclough                                                                                                  
Representative Craig Johnson                                                                                                    
Representative Vic Kohring                                                                                                      
Representative Mike Doogan                                                                                                      
Representative Woodie Salmon                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Andrea Doll                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  OCEAN RANGER PROGRAM                                                                                                 
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
JOE GELDHOF                                                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As co-author of the 2006 initiative that                                                                   
established the Ocean Ranger Program, presented information and                                                                 
answered questions regarding the authors' intent.                                                                               
                                                                                                                                
RENE ROUSSEL, Vice President                                                                                                    
Nautical and Compliance Programs                                                                                                
Holland America Line ("Holland America")                                                                                        
Seattle, Washington                                                                                                             
POSITION STATEMENT:  Presented information regarding regulation                                                                 
compliance by Holland America ships and answered questions                                                                      
related to the Ocean Ranger Program.                                                                                          
                                                                                                                              
DAVID WETZEL, President                                                                                                         
Admiralty Environmental                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     Presented   information  and   answered                                                               
questions related to the Ocean Ranger Program.                                                                                  
                                                                                                                                
LYNN TOMICH KENT, Director                                                                                                      
Division of Water                                                                                                               
Department of Environmental Conservation (DEC)                                                                                  
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     Presented   information  and   answered                                                               
questions about the impact of the Ocean Ranger Program on DEC.                                                                  
                                                                                                                                
RUTH HAMILTON HEESE, Assistant Attorney General                                                                                 
Environmental Section                                                                                                           
Civil Division (Juneau)                                                                                                         
Department of Law (DOL)                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Answered  questions related  to the  Ocean                                                               
Ranger Program.                                                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  KYLE JOHANSEN  called  the  House Transportation  Standing                                                             
Committee  meeting  to  order at  1:39:49  PM.    Representatives                                                             
Johansen,  Salmon,  Doogan,  Neuman, Johnson,  and  Kohring  were                                                               
present at the call to  order.  Representative Fairclough arrived                                                               
as the meeting was in progress.   Representative Doll was also in                                                               
attendance.                                                                                                                     
                                                                                                                                
^OVERVIEW:  OCEAN RANGER PROGRAM                                                                                              
                                                                                                                                
1:39:55 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN  announced that the  only order of  business would                                                               
be  the  Ocean Ranger  Program  that  was established  under  the                                                               
Cruise Ship Ballot  Initiative passed by Alaska  voters in August                                                               
2006.                                                                                                                           
                                                                                                                                
JOE GELDHOF stated that he is  a co-author of the initiative.  He                                                               
said  that the  initiative is  the culmination  of many  years of                                                               
work,  including work  done by  former Speaker  of the  House and                                                               
former  Department  of Revenue  Commissioner,  Hugh  Malone.   He                                                               
advised  that  while  he  would answer  questions  and  give  his                                                               
opinion to the  committee, the only "intent" that  would be given                                                               
weight  by  a  court  is  the  statements  that  accompanied  the                                                               
initiative when it was submitted  to the Office of the Lieutenant                                                               
Governor.                                                                                                                       
                                                                                                                                
MR. GELDHOF, in  response to questions, stated that he  has had a                                                               
number of  clients over the  years and  that he works  for Marine                                                               
Engineers'  Beneficial Association  (MEBA), an  organization that                                                               
represents licensed  marine engineers  working for  Alaska Marine                                                               
Highway System (AMHS), Alaska Tanker  Company, Horizon Lines, and                                                               
Samson Tug and Barge.                                                                                                           
                                                                                                                                
MR. GELDHOF explained  that the initiative was put  together by a                                                               
broad-based   coalition  of   people  interested   in  pollution,                                                               
revenue,  and  consumer  protection.   Discussion  about  how  to                                                               
verify whether  [cruise ships] were  really doing what  they were                                                               
supposed to be doing resulted in  the idea of onboard observers -                                                               
ocean rangers  - similar  to what is  done on  commercial fishing                                                               
vessels.  The Ocean Ranger  Program would be funded by collecting                                                               
a user  fee of four dollars  [per passenger].  It  was determined                                                               
that  an ocean  ranger  should  be an  engineer  licensed by  the                                                               
United  States  Coast  Guard  (USCG).   While  [engineer]  is  an                                                               
undefined term and  is probably someone with more  than a "6-pack                                                               
license," it  does not mean  the ocean  ranger must have  a chief                                                               
engineer's license with an unlimited rating.                                                                                    
                                                                                                                                
1:46:35 PM                                                                                                                    
                                                                                                                                
MR. GELDHOF  stated that  the ocean rangers  would report  to the                                                               
Department of  Environmental Conservation (DEC),  with incidental                                                               
reporting  to the  USCG and  other federal  agencies.   The ocean                                                               
rangers  would  serve as  observers  to  ensure that  state,  and                                                               
perhaps  federal, law  is being  followed.   The rangers  are not                                                               
watchstanding, they  do not put a  license in the rack,  and they                                                               
do not  serve in the  engine room or  other place on  the vessel.                                                               
They are  there to report to  and monitor testing as  required by                                                               
DEC and  ensure that the laws  of Alaska are followed.   If there                                                               
is a violation,  the ocean ranger would then  be the verification                                                               
agent witness  for the  state attorney  general and  possibly the                                                               
U.S.  attorney general.   He  said that  it was  never envisioned                                                               
that the Ocean  Ranger Program would entail coverage  of 24 hours                                                               
a day, 7 days a week ("24/7").                                                                                                  
                                                                                                                                
MR. GELDHOF, in response to  a question, said that the initiative                                                               
specifically states that its provisions  are applicable to "large                                                               
passenger vessels"  which are  defined as  vessels having  250 or                                                               
more berths.  It was decided  not to have the initiative apply to                                                               
smaller vessels for various environmental and revenue reasons.                                                                  
                                                                                                                                
MR.  GELDHOF, in  response  to another  question,  said that  the                                                               
primary responsibility  of the  ocean rangers  is to  oversee the                                                               
discharge of wastewater materials.                                                                                              
                                                                                                                                
1:50:26 PM                                                                                                                    
                                                                                                                                
MR.  GELDHOF  stated  that  ocean   ranger  duties  also  address                                                               
healthcare and  sanitation.  He  related that the people  who put                                                               
together the  initiative acknowledged that  there was no  need to                                                               
monitor  visible [smokestack]  emissions and  particulate because                                                               
this  problem had  been commendably  addressed  by the  industry.                                                               
However, there  was sentiment that ship  ventilation systems, and                                                               
possibly  some food  service functions,  should  be monitored  to                                                               
prevent the spread  of viruses to passengers who,  in turn, could                                                               
spread  them  to people  in  Alaska's  coastal communities.    He                                                               
emphasized that the Ocean Ranger  Program is primarily related to                                                               
water  quality   and  the  protection  of   Alaska's  waters  and                                                               
fisheries from pollution.                                                                                                       
                                                                                                                                
MR. GELDHOF said  it was envisioned that the  ocean rangers could                                                               
be either  state employees or  contracted personnel.   He related                                                               
that  due to  the seasonal  and licensing  requirements, the  co-                                                               
authors realized  that contracting the  work might be  better for                                                               
the state.   Since there is  a revenue stream, DEC  would be able                                                               
to  retain a  marine management  or shipping  company that  could                                                               
hire and train personnel in  accordance to DEC standards and then                                                               
dispatch them as needed.                                                                                                        
                                                                                                                                
1:54:28 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN asked  where personnel would be found  to fill the                                                               
ocean ranger positions as they are written in the initiative.                                                                   
                                                                                                                                
MR. GELDHOF  replied that there is  not a talent pool  in Alaska,                                                               
at  least not  before May  4, 2007,  when the  first cruise  ship                                                               
sails in the Alaska trade.  He said  that if DEC waits even a few                                                               
more weeks it will be very  difficult to identify, train, and put                                                               
into place  the ocean  rangers.   There is a  talent pool  in the                                                               
U.S. that could be available  with enough notice and the training                                                               
could be done  through a 25-hour certification program.   He said                                                               
there are  young, maritime  academy graduates  who would  like to                                                               
get the sea time even though  it is not watchstanding.  There are                                                               
also  older  people, such  as  50-year-old  chief engineers,  who                                                               
might have an  illness such as diabetes that  precludes them from                                                               
standing  watch  under USCG  rules,  but  that  could act  as  an                                                               
observer for the state.                                                                                                         
                                                                                                                                
MR.  GELDHOF pointed  out that  there  is absolutely  no need  to                                                               
transfer the ranger  at sea.  He said it  was envisioned that the                                                               
ranger would  board the  vessel in port,  probably in  Seattle or                                                               
Vancouver, complete  the paperwork on  the way up to  Alaska, and                                                               
stay onboard for  possibly up to two weeks depending  on what DEC                                                               
and   the  marine   management  company   work  out   during  the                                                               
procurement process.   The ranger could then  disembark in Juneau                                                               
and  board another  vessel.   Mr. Geldhof  noted that  having the                                                               
same  person  onboard  a  vessel  for  weeks  and  weeks  is  not                                                               
advisable for "familiarity" reasons.  He  said he did not mean to                                                               
sound harsh  about DEC because  the department is doing  the best                                                               
it  can  to  come  to  terms with  this  program,  but  that  the                                                               
initiative's authors were anxious  because DEC is getting "behind                                                               
the curve" for meeting the deadline of the first ship's arrival.                                                                
                                                                                                                                
1:59:01 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN inquired whether this  will have any affect on Mr.                                                               
Geldhof's  clients  who  predominantly  work on  the  AMHS.    He                                                               
expressed his concern  that the Ocean Ranger  Program will impact                                                               
the AMHS  because many  of those  employees are  perfectly suited                                                               
for this program.                                                                                                               
                                                                                                                                
MR.  GELDHOF answered  that  he does  not  anticipate a  negative                                                               
effect  on the  AMHS,  but that  it would  affect  the people  he                                                               
represents through  the MEBA.   He pointed  out that the  new law                                                               
does not require  marine engineers from the MEBA and  it does not                                                               
require union  or non-union  personnel, those  options are  up to                                                               
DEC.     He  acknowledged  that   through  the   marine  engineer                                                               
procurement process,  it is conceivable  that some of  the people                                                               
he represents from throughout the U.S.  could end up in Alaska on                                                               
a cruise  ship.  In  respect to AMHS  employees, he said  that he                                                               
thought it would be unusual for  any of them to take a temporary,                                                               
seasonal job  with a  contractor.  However,  if an  AMHS employee                                                               
had  a  2-week-on/2-week-off  schedule,   that  person  might  be                                                               
interested in  taking a 2-week  dispatch as an ocean  ranger, and                                                               
that he did not think this would be a bad thing.                                                                                
                                                                                                                                
2:01:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN asked how  much income was anticipated from                                                               
the initiative.                                                                                                                 
                                                                                                                                
MR. GELDHOF replied that in  respect to the Ocean Ranger Program,                                                               
it was anticipated that $3.8 million  would be brought in for use                                                               
in  paying   ocean  ranger  salaries  and   DEC's  administrative                                                               
overhead.  This was based on  an estimate of 1 million passengers                                                               
coming through the Alaska trade per year.                                                                                       
                                                                                                                                
2:02:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN requested  Mr. Geldhof's comments regarding                                                               
reference to the  Ocean Ranger Program on page 3  of the December                                                               
2006 DEC  transition team report  to Governor Palin  which states                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     The   Cruise  Ship   Ballot  Initiative   substantively                                                                    
     duplicates    DEC's    existing    commercial    vessel                                                                    
     environmental  compliance program  and  includes a  new                                                                    
     permit and  ocean ranger program.   DEC  estimates that                                                                    
     60 employees will have to  be hired, which result in at                                                                    
     least a  $2 million  shortfall to implement  the ballot                                                                    
     initiative.                                                                                                                
                                                                                                                                
MR. GELDHOF  responded that he  thinks DEC  erroneously concluded                                                               
that  there needed  to be  24-hour  watchstanding coverage  which                                                               
would require  a minimum of two  ocean rangers on all  vessels at                                                               
all times.  He said that  the intent of the initiative's sponsors                                                               
was to  only have a single  ranger assigned to a  vessel and that                                                               
this  ranger would  only be  on duty  8-10 hours  per day.   This                                                               
would  substantially reduce  DEC's estimate  and bring  it within                                                               
the bounds of the $3.8 million in income from the program.                                                                      
                                                                                                                                
2:04:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  commented  that several  years  ago  the                                                               
state  responded   to  wastewater  problems  by   passing  a  law                                                               
requiring  that  cruise  ships   have  an  environmental  officer                                                               
onboard.  He asked whether there  is a way to have these officers                                                               
report directly to DEC in order to avoid duplication of effort.                                                                 
                                                                                                                                
MR.  GELDHOF stated  that he  is not  aware of  any current  law,                                                               
other than  the Ocean  Ranger Program,  that mandates  the cruise                                                               
ships in  Alaska have  an environmental  official who  reports to                                                               
DEC.   He related  that certain  cruise lines  in Hawaii  have an                                                               
officer and an engineer onboard  as the result of consent decrees                                                               
from  federal actions.   In  Alaska  there is  no active  onboard                                                               
monitoring.   There  are some  reporting  requirements where  the                                                               
industry gathers data  according to DEC regulations and  law.  An                                                               
onboard observer would  cut down the incidents  of pollution like                                                               
those that have taken place in the past.                                                                                        
                                                                                                                                
2:06:04 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHANSEN  noted that  other  people  have interpreted  the                                                               
initiative's  language  in  different  ways than  stated  by  Mr.                                                               
Geldhof.   He asked Mr.  Geldhof to reiterate  his interpretation                                                               
of the initiative's language regarding  when a vessel must have a                                                               
marine engineer  onboard.  Is it  when the ship leaves  port?  Is                                                               
it when the ship crosses into Alaska  waters?  Is it at the pilot                                                               
station?  Is it at the port of entry?                                                                                           
                                                                                                                                
MR. GELDHOF stated  that the intention was when  "it is entering"                                                               
and  that this  is stated  in  the new  law.   He  said that  the                                                               
initiative's authors thought that  the ocean ranger should embark                                                               
with the  vessel from Seattle  or Vancouver so that  the observer                                                               
is there from the "get go".   The authors left the tail end loose                                                               
so that there  would be enough flexibility for DEC  or the marine                                                               
management company  to move  the observers  in an  efficient way.                                                               
He relayed that  the authors specifically rejected  the idea that                                                               
an  observer  would  come  aboard  in  Dixon  Entrance  or  other                                                               
potentially  rough  place  with  the pilot.    The  authors  also                                                               
thought  that  boarding the  observers  in  Seattle or  Vancouver                                                               
would  provide   the  opportunity   for  cost-sharing   with  the                                                               
governments of  Canada or  Washington.  The  details of  how long                                                               
the observer  would be onboard  the ship were  intentionally left                                                               
to DEC and/or the marine management company.                                                                                    
                                                                                                                                
2:09:20 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHANSEN  inquired  whether  it was  envisioned  that  the                                                               
observer would  be on  call 24/7  once he or  she was  onboard or                                                               
would there be two observers onboard with 12-hour shifts.                                                                       
                                                                                                                                
MR. GELDHOF stated that the  authors specifically rejected having                                                               
two observers onboard.  He said  that the intention was to have a                                                               
single  ranger onboard  each vessel  when it  entered Alaska  and                                                               
that the ranger would be "available"  24 hours a day, but not "on                                                               
duty" 24 hours  because it is not a watchstanding  type of marine                                                               
job.                                                                                                                            
                                                                                                                                
2:10:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DOOGAN  asked  whether any  of  the  initiative's                                                               
authors  had talked  with DEC  personnel regarding  the program's                                                               
scope and where the rangers would board the ships.                                                                              
                                                                                                                                
MR. GELDHOF replied  that he had talked with DEC  and that DEC is                                                               
moving  slowly  on  implementing   the  program.    However,  the                                                               
Department   of  Revenue   (DOR)  is   moving  expeditiously   on                                                               
regulations for collecting  the program fees.   He commented that                                                               
DEC appears  to be in  a quandary as  to what  to do.   He stated                                                               
that he has  told DEC that the initiative only  requires a single                                                               
ocean ranger, so  there is no need for an  extra general fund GF)                                                               
appropriation of  $2 million.   Mr.  Geldhof said  that he  had a                                                               
constructive discussion with  then-Commissioner Fredriksson about                                                               
options,  and that  he also  had  discussions with  DEC staff  in                                                               
November and  December 2006 and  again in either late  January or                                                               
early February 2007.                                                                                                            
                                                                                                                                
2:13:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN requested  further clarification on whether                                                               
Section 46.03.476 of the statute  requires that the ocean rangers                                                               
be DEC employees.                                                                                                               
                                                                                                                                
MR. GELDHOF stated  that the new law "on its  face" gives DEC the                                                               
discretion  to  either hire  ocean  rangers  as employees  or  to                                                               
contract  out.   The  intent  was  to  give the  department  this                                                               
flexibility so that it could get the job done.                                                                                  
                                                                                                                                
2:14:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH   inquired  as  to  how   many  marine                                                               
engineers are in Alaska.                                                                                                        
                                                                                                                                
MR.  GELDHOF  said  that there  are  conceivably  300-400  during                                                               
summer months  when there are  marine engineers  holding licenses                                                               
from  the Netherlands  and Indonesia.   There  are always  marine                                                               
engineers  on  the Alaska  Marine  Highway  System and  on  ships                                                               
picking  up  crude  oil  in  Valdez,  some  of  whom  are  Alaska                                                               
residents and some  of whom are not.   He said that  he could not                                                               
give a  firm number of Alaska  residents who hold a  USCG license                                                               
at an "unlimited thirds rating" or  above, which is what the USCG                                                               
believes is probably warranted under the new law.                                                                               
                                                                                                                                
2:15:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  pointed out that the  statute language                                                               
asks  for USCG  certified marine  engineers, and  that it  is her                                                               
understanding that there are only  about 80 USCG certified marine                                                               
engineers employed by  the AMHS.  She expressed  her concern that                                                               
the  Ocean Ranger  Program  may attract  some  of those  licensed                                                               
engineers,  subsequently damaging  the ferry  system.   She asked                                                               
how will  the state qualify prospective  engineers from elsewhere                                                               
and where will those people be found.                                                                                           
                                                                                                                                
MR. GELDHOF  replied that the  new law gives DEC  the flexibility                                                               
to  work with  a marine  management company  to contract  for the                                                               
services of  an ocean ranger.   He said that the  wages should be                                                               
set at  the entry  level of  third engineer,  and that  this wage                                                               
level would not be attractive  to AMHS employees who are "chiefs,                                                               
firsts,  or  seconds"  and  who have  "permanent  billets".    He                                                               
advised  that the  only thing  DEC or  the contractor  would then                                                               
need to  do is determine  the details  of what the  ocean rangers                                                               
will do, give  them training in those  responsibilities, and then                                                               
deploy them.   Structuring the wages  at an entry level  will not                                                               
cause "cannibalism" of AMHS and private marine companies.                                                                       
                                                                                                                                
2:19:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  voiced her concern that  there may not                                                               
be enough  time to  hire people  and get  them USCG  certified by                                                               
May.                                                                                                                            
                                                                                                                                
2:20:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  asked how  long would  an ocean  ranger be                                                               
employed during the year.                                                                                                       
                                                                                                                                
MR. GELDHOF  explained that  in the  maritime industry  people go                                                               
where the work  is, taking dispatches of varying  lengths in time                                                               
that can be as  short as two weeks or as long as  five months.  A                                                               
young  marine  academy  graduate   could  take  an  ocean  ranger                                                               
position for  as short a  time as a few  weeks or for  the entire                                                               
summer.   He said that the  cruise ship season in  Alaska is from                                                               
early May to late September, and  that an ocean ranger could work                                                               
all or part of the season.                                                                                                      
                                                                                                                                
2:22:14 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHANSEN  noted  that  state  regulation  of  cruise  ship                                                               
wastewater began in 2001 with the  passage of House Bill 260.  He                                                               
referred to  DEC's 2004  compliance report  entitled, "Assessment                                                               
of  Cruise Ship  and Ferry  Wastewater  Impacts in  Alaska".   He                                                               
requested  Mr. Geldhof  to clarify  his earlier  statements about                                                               
there being no oversight by DEC.                                                                                                
                                                                                                                                
MR.  GELDHOF  stated that  beginning  in  2000 or  2001  Alaska's                                                               
standards  led the  world in  addressing  cruise ship  pollution.                                                               
However, he  said, what was  not implemented was the  same degree                                                               
of permitting  that is required  of seafood processors  and other                                                               
industries.   The [2001 legislation]  was a  half-measure because                                                               
it  did not  have active  onboard  observers.   The ocean  ranger                                                               
portion of  the initiative requires  the cruise ship  industry to                                                               
get a permit and meet all  Alaska water quality standards, and it                                                               
puts onboard an active agent of  the state to monitor the testing                                                               
and  to monitor  that  Alaska's  laws are  being  followed.   Mr.                                                               
Geldhof stressed  that he did  not mean  to imply that  the state                                                               
does  not do  anything.   The  initiative ratchets  up where  the                                                               
state was  in 2000 and Alaska  is once again in  the forefront of                                                               
protecting its marine waters.                                                                                                   
                                                                                                                                
2:26:01 PM                                                                                                                    
                                                                                                                                
RENE ROUSSEL,  Vice President, Nautical and  Compliance Programs,                                                               
Holland America  Line ("Holland America"), reviewed  his years of                                                               
marine  experience  and  the   responsibilities  of  his  current                                                               
position.   He reported that  Holland America had eight  ships in                                                               
Alaska  in 2006  and that  all of  them have  advanced wastewater                                                               
treatment  systems (AWWTS).   The  systems treat  both gray-  and                                                               
blackwater  and meet  both USCG  and Alaska  standards.   He said                                                               
that items  such as plastics  are filtered out of  the wastewater                                                               
and disposed ashore and that  biomass from the aerobic process is                                                               
discharged outside 12 miles; with  the resulting permeate meeting                                                               
or  exceeding drinking  water qualities.   Mr.  Roussel explained                                                               
that bi-monthly samples  must be taken in order  to maintain USCG                                                               
certification.  Additionally, samples  are taken twice monthly by                                                               
DEC.    He distributed  a  USCG  article entitled,  "Cleaning  Up                                                               
Wastewater".                                                                                                                    
                                                                                                                                
2:34:13 PM                                                                                                                    
                                                                                                                                
MR. ROUSSEL  concurred with Mr.  Geldhof's statement  that Alaska                                                               
set the pace for  the rest of the world in the  early 2000s.  Mr.                                                               
Roussel  pointed   out  that  those   standards  have   now  been                                                               
replicated  by  other  states.    He read  from  page  6  of  the                                                               
aforementioned DEC  report and then  cited a 2004  DEC PowerPoint                                                               
presentation which  states that no hazardous  chemicals are being                                                               
discharged through cruise ship wastewater  systems and that large                                                               
ship  effluents meet  all Alaska  quality standards  in receiving                                                               
water.    He said  the  reports  indicate  that the  cruise  ship                                                               
industry is  doing a  good job  of taking  pollutants out  of its                                                               
wastewater discharges.                                                                                                          
                                                                                                                                
MR. ROUSSEL reported that cruise  ships must now comply with many                                                               
layers  of  regulations,   including  air  emission  regulations,                                                               
because other  states and countries have  followed Alaska's lead.                                                               
He noted that human error accounts  for over 80 percent of marine                                                               
casualties and violations, and that  one way to reduce this error                                                               
is  to provide  clear, unambiguous  guidance on  what conduct  is                                                               
expected.   Different  and  multiple  layered regulations  across                                                               
jurisdictional boundaries  complicate this process and  should be                                                               
avoided  -  standardization  and  uniformity  are  desired.    He                                                               
reviewed  other  rules and  regulations  that  are impacting  the                                                               
cruise ship industry.                                                                                                           
                                                                                                                                
2:46:36 PM                                                                                                                    
                                                                                                                                
MR. ROUSSEL pointed out that  Holland America is also voluntarily                                                               
implementing  several programs.    For example,  the company  has                                                               
installed monitoring  systems on its  ships that record  the time                                                               
and  ship's location  whenever an  overboard  discharge valve  is                                                               
opened or closed.   This system will sound an  alarm if discharge                                                               
is occurring  at an improper  time or location.   Holland America                                                               
is also  testing electronic recordkeeping  systems on one  of its                                                               
ships to reduce the amount of  time officers spend in the keeping                                                               
and verifying of records.                                                                                                       
                                                                                                                                
2:49:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked whether there was  anyone currently                                                               
on  Holland America's  ships who  would  meet the  qualifications                                                               
being required for an ocean ranger.                                                                                             
                                                                                                                                
MR. ROUSSEL answered yes, the environmental officers.                                                                           
                                                                                                                                
2:50:41 PM                                                                                                                  
                                                                                                                                
REPRESENTATIVE  JOHNSON inquired  whether environmental  officers                                                               
have responsibility beyond what the ship's captain or crew says.                                                                
                                                                                                                                
MR.  ROUSSEL responded  that  the  environmental officers  report                                                               
directly to the master of the ship.                                                                                             
                                                                                                                                
2:51:15 PM                                                                                                                  
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  whether there  is  anything  that                                                               
would  keep the  environmental officers  from being  certified by                                                               
the State of  Alaska so that they could become  ocean rangers and                                                               
provide DEC with  reports that would fulfill  the requirements of                                                               
the initiative.                                                                                                                 
                                                                                                                                
MR. ROUSSEL replied that this  would be a possibility because the                                                               
environmental officers' duties already  far exceed what the Ocean                                                               
Ranger  Program envisions.    However, he  said,  what is  really                                                               
being  asked  for  is  transparency  in  what  the  environmental                                                               
officers are  doing onboard  the ships.   What would  be reported                                                               
would need to be defined.                                                                                                       
                                                                                                                                
2:53:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  stated that the citizens  of Alaska passed                                                               
the initiative, that  they want a more open  government, and that                                                               
it  is  the  legislature's  responsibility to  ensure  that  this                                                               
happens.    He   requested  Mr.  Roussel's  ideas   for  how  the                                                               
environmental officers  could serve  this dual purpose  and still                                                               
ensure an open process.                                                                                                         
                                                                                                                                
MR. ROUSSEL  responded that he  thinks there is the  potential of                                                               
doing  more   than  the  initiative   proposed.    A   series  of                                                               
discussions could  be undertaken to determine  where the "rubbing                                                               
points" are  and then a  Memorandum of Understanding  (MOU) could                                                               
be  developed  and  tested  for  implementing  the  Ocean  Ranger                                                               
Program.    After  testing  the  MOU  and  making  any  necessary                                                               
changes, it could be then  used for developing into a regulation.                                                               
Regarding   the  suggestion   that  experienced   engineers  with                                                               
disabilities could  be hired as  ocean rangers, Mr.  Roussel said                                                               
that  Holland  America's  insurance  companies  would  not  allow                                                               
disabled personnel  in a  ship's engine  room.   He said  that he                                                               
likes the idea of an  environmental officer having a relationship                                                               
with the regulators, and that this could be fleshed out.                                                                        
                                                                                                                                
2:57:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DOOGAN  inquired how  a  person  working for  the                                                               
cruise  ship company  being regulated  would fulfill  his or  her                                                               
duties in  a case where a  vessel violated the standards.   Would                                                               
the person  first report the violation  to the cruise ship  or to                                                               
the regulatory agency?                                                                                                          
                                                                                                                                
MR. ROUSSEL noted  that personnel are already  required to report                                                               
violations, and that it is worse  to not report something than to                                                               
cover it  up because  failing to report  is a  criminal violation                                                               
under most  statutes.  If the  captain on a Holland  America ship                                                               
refuses to report an incident,  the environmental officer is then                                                               
required  to report  it to  the Vice  President of  Environmental                                                               
Compliance.    He  stated that  Holland  America's  own  incident                                                               
reporting  requirements are  lower  than Alaska's,  and that  any                                                               
incident  covered by  regulation would  then be  reported to  the                                                               
USCG,  the flag  state,  or the  local state,  as  required.   He                                                               
suggested that  the MOU  could stipulate  the reporting  of other                                                               
things that are not already  required by regulation.  Mr. Roussel                                                               
said  that  he does  not  see  a  conflict because  reporting  is                                                               
required by regulation.                                                                                                         
                                                                                                                                
3:01:04 PM                                                                                                                    
                                                                                                                                
DAVID WETZEL, President, Admiralty  Environmental, noted that his                                                               
business  provides sampling  and project  management services  to                                                               
the  cruise  line  companies  operating in  Alaska  waters.    He                                                               
explained that cruise  ships are currently subject  to testing of                                                               
their  effluent under  both state  and  federal regulations,  and                                                               
that Admiralty  Environmental provides a third  party independent                                                               
sampling  service   to  meet   these  requirements.     Admiralty                                                               
Environmental  employees are  trained  in standard  environmental                                                               
sampling   procedures,  wastewater   chemistry,  and   the  basic                                                               
concepts of marine advanced wastewater treatment systems.                                                                       
                                                                                                                                
MR. WETZEL related that all  cruise ship sampling activities must                                                               
be  performed under  the guidelines  of the  cruise ship  Quality                                                               
Assurance  Quality Control  Plan  (QA/QCP).   He  said that  this                                                               
document was composed  in 1999 as a guideline  for monitoring the                                                               
effluent from  large ships and that  it is reviewed each  year to                                                               
reflect changes  in regulatory framework and  improvements in the                                                               
program.    He  stated  that  all  of  Admiralty  Environmental's                                                               
employees are  fully trained in  the activities directed  by this                                                               
plan,  including  sampling,  field   testing,  safety,  chain  of                                                               
custody procedures,  quality control, and delivery  of samples to                                                               
the laboratory.   Mr. Wetzel  said that the QA/QCP  also mandates                                                               
the  service  of  a  third party  quality  assurance  officer  to                                                               
oversee  all  sampling and  analytical  testing  on the  project.                                                               
This  position is  currently held  by Dr.  Lisa Hoferkamp  of the                                                               
University  of  Alaska  Southeast.     She  performs  independent                                                               
sampling  and data  audits throughout  the Alaska  cruise season.                                                               
She  reports directly  to DEC  and the  USCG regulators  with her                                                               
findings.                                                                                                                       
                                                                                                                                
3:02:49 PM                                                                                                                    
                                                                                                                                
MR.  WETZEL pointed  out  that DEC  audits  the sampling  program                                                               
regularly  throughout the  season.   These  audits are  performed                                                               
against  the QA/QCP  to  ensure that  all  proper procedures  are                                                               
being followed.   He noted that  the basis of the  QA/QCP is that                                                               
it is a  random, unannounced sampling and analysis  program.  The                                                               
program began  as a voluntary activity  in the year 2000  and was                                                               
later adopted into  state and federal law.  Each  ship is sampled                                                               
twice per  season for  a comprehensive  list of  conventional and                                                               
priority pollutants.   He noted  that this sampling can  occur at                                                               
any  location where  ships are  discharging  into Alaska  waters.                                                               
This particular  plan mandates that  all sampling  activities and                                                               
analytical  work  are supervised  by  a  third party  independent                                                               
project  manager,   and  this  is  the   service  that  Admiralty                                                               
Environmental provides.                                                                                                         
                                                                                                                                
MR.  WETZEL stated  that Admiralty  Environmental reports  all of                                                               
its  activities   directly  to  the  regulatory   agencies.    He                                                               
emphasized that  the plan includes  very detailed  directions for                                                               
the flow of information between  the project manager, regulators,                                                               
quality assurance officers, lab  managers, and the vessel owners.                                                               
The plan is adopted by  the entire industry through the Northwest                                                               
Cruise Ship Association  and all ships are  treated equally under                                                               
this plan.   The data  produced from this project  is distributed                                                               
concurrently to the regulators and the vessel owners.                                                                           
                                                                                                                                
3:04:12 PM                                                                                                                    
                                                                                                                                
MR.  WETZEL  also  discussed  federal  regulation  33CFR159  that                                                               
contains a provision for continuous  discharge into Alaska waters                                                               
for  vessels  when  certain  conditions  are  met.    Ships  must                                                               
demonstrate  compliance with  federal effluent  limits with  five                                                               
satisfactory samples over a 30 day  period.  Once the USCG grants                                                               
a certification to discharge under  this program, the vessel must                                                               
present  two  satisfactory sample  results  per  month that  meet                                                               
these  federal effluent  limits  to  maintain the  certification.                                                               
Ships must  maintain this testing  year around even  when sailing                                                               
outside of Alaska waters.                                                                                                       
                                                                                                                                
MR. WETZEL  explained that in  order to operate cleanly  and meet                                                               
these  standards,  most  of  the   cruise  ships  have  installed                                                               
advanced  wastewater  systems to  allow  them  to discharge  into                                                               
Alaska waters.   He related  that in the  2006 season, all  26 of                                                               
the large  ships that regularly  call in Alaska waters  had these                                                               
advanced  treatment  systems onboard.    Of  these 26  ships,  23                                                               
applied for  and received the continuous  discharge certification                                                               
from the USCG.   He said that he expects to see  the same type of                                                               
numbers for the 2007 season.                                                                                                    
                                                                                                                                
3:05:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON asked  whether Admiralty  Environmental's                                                               
employees  are  USCG  certified   and  whether  they  are  marine                                                               
engineers.                                                                                                                      
                                                                                                                                
MR.  WETZEL  replied  no,  they  are  not  USCG  certified.    He                                                               
explained that  Admiralty Environmental is certified  through the                                                               
State of  Alaska to do the  sampling, and that the  USCG does not                                                               
have  a  certification program  for  sampling.   He  stated  that                                                               
Admiralty  Environmental's employees  are  not marine  engineers.                                                               
Mr.  Wetzel  related  that the  company  has  standard  operating                                                               
procedures that  employee's must follow  for all of  the sampling                                                               
and  chain of  custody activities,  and that  the company  has an                                                               
internal structure  for training its employees  in the activities                                                               
that they perform.                                                                                                              
                                                                                                                                
MR.   WETZEL,   in   response  to   a   further   question   from                                                               
Representative   Johnson,  confirmed   that  none   of  Admiralty                                                               
Environmental's  employees would  meet the  initiative's criteria                                                               
of being  a [USCG licensed]  marine engineer.  He  explained that                                                               
the  activities  performed  by  Admiralty  Environmental  do  not                                                               
pertain to, nor require, a marine engineer license.                                                                             
                                                                                                                                
3:07:12 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN  requested further explanation of  how the program                                                               
actually works in the field.                                                                                                    
                                                                                                                                
MR.  WETZEL stated  that different  cruise  lines have  different                                                               
approaches.    He explained  that  for  the unannounced  program,                                                               
Admiralty Environmental conducts  two unannounced sampling events                                                               
on all  the ships  calling in Alaska  waters under  the Northwest                                                               
Cruise  Ship  Association.    For  the  23  ships  that  maintain                                                               
continuous   discharge  certification,   Admiralty  Environmental                                                               
conducts sampling of each ship a  minimum of twice per month.  He                                                               
noted that several  of the other cruise  lines voluntarily exceed                                                               
that  amount  of  sampling,   and  that  Admiralty  Environmental                                                               
samples them every  port call in Juneau or elsewhere  so they are                                                               
sampled at least once a week.                                                                                                   
                                                                                                                                
MR.  WETZEL, in  further  response to  Chair Johansen,  explained                                                               
that  all the  ships  calling in  Alaska  now have  environmental                                                               
officers.    These  officers  are  charged  by  their  individual                                                               
companies to  administrate the sampling program,  so the officers                                                               
escort  Admiralty  Environmental  employees throughout  the  time                                                               
that they are onboard for sampling.   In addition to the official                                                               
tests conducted  by Admiralty Environmental,  the company  has in                                                               
some cases  trained the environmental  officers to  perform their                                                               
own onboard tests  to monitor the quality of their  effluent.  He                                                               
stated that these officers are  fairly well informed in how their                                                               
ship's systems operate and the chemistry that is involved.                                                                      
                                                                                                                                
3:09:29 PM                                                                                                                    
                                                                                                                                
LYNN  TOMICH KENT,  Director, Division  of  Water, Department  of                                                               
Environmental Conservation  (DEC), introduced  assistant attorney                                                               
general, Ruth Hamilton Heese.  She  noted that Ms. Heese has been                                                               
instrumental in  helping DEC implement its  current program along                                                               
with  the changes  that the  ballot initiative  is driving.   Ms.                                                               
Kent related that  in 2006 there were 29 large  vessels that took                                                               
a total of  about 550 voyages to Alaska, and  there were 17 small                                                               
vessels that  took a total of  about 200 voyages.   She explained                                                               
that a  large vessel  has 250  or more lower  berths and  a small                                                               
vessel has  50-250 lower  berths.  These  vessels carry  over one                                                               
million passengers  and crew each  year to  Alaska.  Most  of the                                                               
vessels  coming  to  Alaska have  advanced  wastewater  treatment                                                               
systems,  she reported.   They  treat to  meet federal  and state                                                               
requirements,  and they  are  approved  by DEC  and  the USCG  to                                                               
discharge  continuously while  they are  in Alaska  waters.   The                                                               
standards that  they have  to meet for  their discharge  are much                                                               
more  stringent than  for vessels  that want  to discharge  under                                                               
different circumstances.                                                                                                        
                                                                                                                                
MS. KENT said that there was  a handful of vessels last year that                                                               
chose  to  hold  their  wastewater while  in  Alaska  waters  and                                                               
discharge  outside of  Alaska waters.   Therefore,  those vessels                                                               
did not have  to meet specific requirements  for their discharges                                                               
other than to not discharge while  here.  She reported that there                                                               
was one vessel that discharged  per DEC's regulations, meaning it                                                               
was going  at least six  knots at the  time of discharge  and was                                                               
one mile from shore.                                                                                                            
                                                                                                                                
3:11:53 PM                                                                                                                    
                                                                                                                                
MS. KENT stated that DEC's  current oversight program is run with                                                               
a staff  of just over  two full-time equivalents (FTE)  plus some                                                               
contractor assistance.   The current  program requires  an annual                                                               
registration for all  of the large and small vessels  and they do                                                               
this  through an  electronic online  registration  system.   This                                                               
will continue  under the new  initiative.  Ms. Kent  related that                                                               
there  are  regulatory  limits  that limit  the  quality  of  the                                                               
wastewater that can be discharged  from the vessels.  The vessels                                                               
are  required to  have a  vessel-specific sampling  plan that  is                                                               
approved by  DEC and they  must have a quality  assurance project                                                               
plan that  is approved by the  department to ensure that  DEC can                                                               
have confidence  in the data  that is  generated.  She  said that                                                               
she would skip  a review of the sampling  requirements since that                                                               
was covered by Mr. Wetzel.   Ms. Kent explained that vessels must                                                               
also record the dates, times,  locations, volumes, and flow rates                                                               
of any  discharges of  sewage, graywater,  and other  wastes into                                                               
waters of  the state.  She  said that these records  must be made                                                               
available  to  DEC if  requested  and  that the  department  does                                                               
occasionally request  the records  to make  sure the  vessels are                                                               
complying.                                                                                                                      
                                                                                                                                
MS. KENT noted  that some independent inspections  of vessels are                                                               
conducted.   A contractor  is used  to conduct  visible emissions                                                               
readings  to measure  the opacity  of vessel  air emissions,  and                                                               
this is  done about 250 times  a year on different  vessels while                                                               
they  are  in   port.    She  said  that   the  department  takes                                                               
enforcement  action   when  a  violation  occurs   in  wastewater                                                               
discharge  or   air  emission.     She   pointed  out   that  DEC                                                               
occasionally  conducts  special  studies,  such  as  ambient  air                                                               
monitoring.                                                                                                                     
                                                                                                                                
MS.  KENT  explained  that  DEC  collects fees  based  on  a  fee                                                               
structure in existing statutes for  running the program, and that                                                               
the  fee  is still  in  place  under  the  new initiative.    She                                                               
remarked that Alaska's  program has been very  effective and that                                                               
other states and countries look at Alaska as the model.                                                                         
                                                                                                                                
3:13:57 PM                                                                                                                    
                                                                                                                                
MS. KENT  cited the current  program's successes.  She  said that                                                               
air opacity  violations decreased from 15  in 2000 to 2  in 2005,                                                               
the last year for which she has  data.  She noted that the number                                                               
of violations issued each year  for exceeding the limits on fecal                                                               
coliform bacteria are either zero or  one.  She said that several                                                               
compliance letters  are sent  each year,  primarily having  to do                                                               
with sampling protocols  or a small vessel that did  not take the                                                               
samples it was required to take.                                                                                                
                                                                                                                                
MS. KENT informed  the committee that the  ballot initiative took                                                               
effect  in December  2006.   The initiative  requires changes  to                                                               
DEC's current  program and it  requires some new functions.   She                                                               
said  that DEC  is taking  the initiative  very seriously  and is                                                               
working diligently  to implement the  program as it  is currently                                                               
written.   She emphasized  that regardless  of the  intent behind                                                               
the words  on paper, DEC  must implement  what is written  in the                                                               
statute despite any ambiguity in  the initiative's language.  She                                                               
pointed out that  most of the changes under  the initiative apply                                                               
to the large vessels.                                                                                                           
                                                                                                                                
MS. KENT  related that  the initiative  includes a  provision for                                                               
citizen suits  against owners  and operators  of the  vessels for                                                               
alleged violations of the statutes.   It allows for suits against                                                               
DEC for failure to  perform any of the parts of  the law that are                                                               
not discretionary.   She stressed  that DEC is therefore  "in the                                                               
hot seat"  to implement the bill  as it is written.   The citizen                                                               
suit provision also  provides that 25-50 percent of  any fines or                                                               
penalties go  to the person  who provided  information sufficient                                                               
to  commence   the  investigation  of  the   enforcement  action.                                                               
However,  she  said, it  is  not  clear  if that  last  provision                                                               
applies only to  the public or if it applies  to vessel staff, or                                                               
ocean rangers,  or DEC staff.   Ms. Kent said that  the provision                                                               
appears to be limited to  Alaska residents; therefore a passenger                                                               
on a  vessel who notices  a violation  would be ineligible  for a                                                               
share of the penalty.                                                                                                           
                                                                                                                                
3:16:54 PM                                                                                                                    
                                                                                                                                
MS.  KENT pointed  out that  the initiative  will require  DEC to                                                               
revise  its  current  regulations because  it  makes  substantive                                                               
changes.   The  department has  hired a  contractor to  assist in                                                               
looking  at the  current  regulations  to see  what  needs to  be                                                               
changed.   While it  is important to  amend the  regulations, she                                                               
said,  it is  not quite  as time  critical as  some of  the other                                                               
provisions in the initiative such as the new permit requirement.                                                                
                                                                                                                                
MS. KENT explained that the  initiative requires DEC to now issue                                                               
wastewater  discharge  permits  to  the vessels,  much  like  the                                                               
permits  that   are  issued  to  other   industrial  or  domestic                                                               
wastewater  dischargers.   The department  is in  the process  of                                                               
drafting a general  permit.  A general permit is  a single permit                                                               
under which  multiple vessels or multiple  regulated entities are                                                               
covered  together  -  this  is   done  when  the  discharges  are                                                               
relatively the same.   She stated that DEC plans  to go to public                                                               
notice soon  and is hoping  to have  the general permit  in place                                                               
for the coming  cruise ship season.  If  possible, the department                                                               
intends to use the current  online vessel registration system for                                                               
the  general   permit  so  as   not  to  add  another   layer  of                                                               
requirements on the  industry.  She expects that  the permit will                                                               
include most  of the same  monitoring and  reporting requirements                                                               
that DEC currently  has in place for the industry  outside of the                                                               
context of the permit.                                                                                                          
                                                                                                                                
MS.  KENT  reported  that  the  initiative  requires  hourly  GPS                                                               
tracking  of both  large  and  small vessels  while  they are  in                                                               
Alaska waters.  She said  that DEC is using contractor assistance                                                               
in  order to  have the  system operational  by the  coming cruise                                                               
ship season.                                                                                                                    
                                                                                                                                
3:18:32 PM                                                                                                                    
                                                                                                                                
MS. KENT noted  that the Ocean Ranger Program is  by far the most                                                               
significant change to  DEC's current program.  It  will require a                                                               
USCG licensed marine  engineer on the large ships  while they are                                                               
in Alaska.  The ocean ranger's  job is to serve as an independent                                                               
observer  to  monitor both  state  and  federal requirements  for                                                               
marine  discharge and  pollution and  to ensure  that passengers,                                                               
crew,  and   residents  at  port  are   protected  from  improper                                                               
sanitation, health, and safety practices.   She advised that this                                                               
is an incredibly  broad mandate that goes  beyond the traditional                                                               
mandates  that DEC  has  had, particularly  in  regard to  safety                                                               
issues.   In  addition to  the  safety issues,  it could  include                                                               
wastewater discharge,  solid waste, air opacity,  drinking water,                                                               
and food service.                                                                                                               
                                                                                                                                
MS.  KENT related  that a  contractor was  hired to  evaluate the                                                               
needs  and to  make  recommendations regarding  the Ocean  Ranger                                                               
Program,  and that  DEC is  currently reviewing  the contractor's                                                               
draft report.   Copies of  the report  will be made  available to                                                               
the  legislature  once  it  is   finished.    The  contractor  is                                                               
evaluating whether  the ocean rangers should  be state employees,                                                               
contracted  personnel,  or  some  combination  of  the  two,  and                                                               
whether onboard coverage should be  24/7, or 8-12 hour shifts, or                                                               
some  other  level  of  oversight.    Ms.  Kent  noted  that  the                                                               
initiative is silent  on the coverage and DEC  must determine the                                                               
level  that  is sufficient  to  meet  what  DEC believes  is  the                                                               
initiative's intent.                                                                                                            
                                                                                                                                
MS. KENT said that the contractor  is also looking at whether the                                                               
ocean  rangers should  embark  on a  voyage  from Washington,  or                                                               
British Columbia, or an Alaskan  port of call.  Additionally, the                                                               
contractor is  looking into how  the cruise industry  will assess                                                               
for room and  board of the ocean rangers while  they are onboard,                                                               
the  logistics  for   getting  them  on  and   off  the  vessels,                                                               
scheduling and  dispatch needs,  the required  qualifications and                                                               
job  descriptions,  training  needs,   and  the  availability  of                                                               
qualified marine  engineers.  She  warned that there  will likely                                                               
be  a problem  for this  first  year in  having enough  qualified                                                               
marine engineers  available.  Lastly,  the contractor  is looking                                                               
at  the  costs   of  the  various  options  as   they  will  vary                                                               
significantly if coverage is less than 24/7.                                                                                    
                                                                                                                                
3:21:01 PM                                                                                                                    
                                                                                                                                
MS. KENT  outlined the challenges  that DEC is facing  in finding                                                               
marine engineers.   She explained that a  marine engineer license                                                               
requires training in  a maritime academy and  sufficient sea time                                                               
and experience in  the vessel power and propulsion  systems.  The                                                               
department believes  that an  unlimited third  engineer's license                                                               
is  probably the  appropriate license  needed to  qualify for  an                                                               
ocean ranger.   A licensed third engineer would  come with skills                                                               
and knowledge in propulsion,  power generation systems, essential                                                               
auxiliary  systems,  and vessel  safety  systems.   However,  she                                                               
noted, a licensed third engineer would  not be trained in all the                                                               
state  and federal  environmental laws,  public health  laws, and                                                               
the safety  rules that the  initiative requires the  engineers to                                                               
know and watch for while they are onboard the cruise ships.                                                                     
                                                                                                                                
MS. KENT  pointed out that a  big part of this  effort is dealing                                                               
with  the  training  challenges  for  the  ocean  rangers.    For                                                               
example,  there are  DEC employees  who are  focused only  on air                                                               
issues,  or only  on wastewater  issues, or  only on  solid waste                                                               
issues.   Now DEC must have  marine engineers who are  trained in                                                               
all of those  subject areas and the department must  do this in a                                                               
very  short time  period.   Ms.  Kent explained  that the  marine                                                               
engineers/ocean  rangers will  need to  know about  the technical                                                               
wastewater management systems,  permitting and permit compliance,                                                               
and inspection  and enforcement protocols.   They will  also need                                                               
onboard  training  for  each vessel-specific  wastewater  system.                                                               
Lastly, DEC must  determine what training is  necessary for ocean                                                               
rangers  regarding the  protection  of residents  at  port.   The                                                               
initiative does not give any guidance on this issue.                                                                            
                                                                                                                                
MS. KENT noted that this is  the first and only program where DEC                                                               
actually places  a state  employee or  contractor in  a regulated                                                               
facility potentially  full-time, and that DEC  does not currently                                                               
do this  with any  other industry  in the  state.   She explained                                                               
that this comes with a host  of other issues that have never been                                                               
addressed by DEC, such as safety  of the ocean rangers while they                                                               
are onboard the  vessels and their conduct while  onboard but off                                                               
duty.    There  are  also   security  clearance  issues  and  the                                                               
potential need for  vessel staff to provide escorts  to the ocean                                                               
rangers when they are in sensitive portions of the ship.                                                                        
                                                                                                                                
3:23:18 PM                                                                                                                    
                                                                                                                                
MS. KENT reported  that DEC is working on  an implementation plan                                                               
for the  coming cruise ship season,  along with a schedule.   The                                                               
department is  trying to figure  out what  it can feasibly  do in                                                               
the  short amount  of time  remaining before  the season  starts.                                                               
She stated  that DEC would like  to conduct a public  workshop to                                                               
go  through  the contractor's  report  and  get feedback  on  the                                                               
implementation options.  The department  plans to have some ocean                                                               
rangers  onboard some  vessels  this coming  cruise ship  season.                                                               
However,  she  advised,  DEC  will not  have  a  fully  developed                                                               
program with suitably trained ocean  rangers on every vessel this                                                               
year.  The department will be  using this season to ramp up, gain                                                               
experience,  and refine  the program  for full  implementation in                                                               
2008.                                                                                                                           
                                                                                                                                
3:24:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH referred  to  the previous  discussion                                                               
with  Holland   America  regarding  use  of   the  cruise  line's                                                               
environmental  officers  for  implementing the  program.    While                                                               
acknowledging that this could be  considered the fox watching the                                                               
hen  house, she  asked whether  there might  be a  possibility of                                                               
entering into an MOU for this first year.                                                                                       
                                                                                                                                
MS. KENT said that this is  a new concept that had not previously                                                               
been contemplated by DEC.                                                                                                       
                                                                                                                                
3:24:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  commented that the voters  have spoken                                                               
and asked  Alaska to be  more diligent  in its management  of the                                                               
cruise  ship industry.   However,  she said,  the voters  may not                                                               
have  understood all  the unintended  regulatory consequences  or                                                               
questions involved with implementing the initiative.                                                                            
                                                                                                                                
MS.  KENT  replied   that  she  and  Ms.  Heese   looked  at  the                                                               
initiative's language  and it does say  "independent".  Therefore                                                               
DEC  needs  to determine  what  "independent"  means vis-à-vis  a                                                               
vessel crew member.                                                                                                             
                                                                                                                                
3:25:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  noted  that   Alaska  has  state  and                                                               
municipal  ombudsmen  who  are  tasked with  a  higher  level  of                                                               
reporting on  their own industry  or their personnel.   Therefore                                                               
it might  be helpful if  the state went  with that model  in some                                                               
way, at  least for year  one, so that  the state could  have some                                                               
sort of a systems analysis on how to gather the information.                                                                    
                                                                                                                                
MS.  KENT  observed  that  prior   to  the  state  enacting  laws                                                               
regulating the  cruise ships, the  industry worked with DEC  on a                                                               
voluntary basis to collect data  about their discharges, and this                                                               
information led to  the department's program.   She remarked that                                                               
DEC has  a good working  relationship with the industry  ahead of                                                               
rule making.                                                                                                                    
                                                                                                                                
3:26:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH   inquired  whether   the  information                                                               
gathering  is technical  in nature  so  that the  data cannot  be                                                               
altered  when it  comes in  or whether  it is  physical reporting                                                               
that is written down.                                                                                                           
                                                                                                                                
MS. KENT  explained that  DEC receives  the sampling  results for                                                               
the wastewater discharge monitoring  directly from the laboratory                                                               
and the samplers,  so there is no intervening step  by the cruise                                                               
ship  industry.   She said  that the  method of  collecting other                                                               
data varies.  Some vessels are  still manually keeping a log book                                                               
of when  the ship's  discharge valves are  opened and  closed and                                                               
the ship's  location at  the time.   Other vessels  are recording                                                               
this electronically.                                                                                                            
                                                                                                                                
3:27:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  what   the  penalty  is  for  not                                                               
reporting a violation.                                                                                                          
                                                                                                                                
RUTH  HAMILTON HEESE,  Assistant Attorney  General, Environmental                                                               
Section,  Civil  Division  (Juneau),  Department  of  Law  (DOL),                                                               
responded that if there is  an event of non-reporting, the vessel                                                               
can be held accountable under the  current system.  She said that                                                               
there are  fines for failure  to report violations, but  that she                                                               
is unsure of the  dollar value.  She said that  she would get the                                                               
information  for  the  committee.    In  response  to  a  further                                                               
question,  Ms.  Heese  stated  that  she  did  not  know  whether                                                               
criminal charges  are involved for failing  to report violations,                                                               
and  that she  would get  this  information to  the committee  as                                                               
well.                                                                                                                           
                                                                                                                                
REPRESENTATIVE JOHNSON  inquired whether  it would  be sufficient                                                               
for transparency  purposes to enact  legislation that  assesses a                                                               
substantial penalty  for violations by environmental  officers on                                                               
vessels that partner with the state to act as "ocean rangers".                                                                  
                                                                                                                                
MS.  HEESE  answered that  this  is  a  policy question  for  the                                                               
legislature and DEC.                                                                                                            
                                                                                                                                
3:29:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOOGAN  asked how  DEC resolved the  questions and                                                               
ambiguities that the department sees in the initiative.                                                                         
                                                                                                                                
MS. KENT  explained that DEC is  still trying to resolve  some of                                                               
them, one  example being the  expectations for health  and safety                                                               
of the public  at port.  Another example is  that statutes on the                                                               
books prior to the initiative  made reference to other provisions                                                               
in the law that  have now been deleted.  The  result is "roads to                                                               
nowhere" in  the statutes  that are  now causing  confusion about                                                               
small ships  and what they need  to comply with.   In response to                                                               
further questions, Ms. Kent stated  that the contractor was hired                                                               
two months  ago to  help look  at the  various options  for those                                                               
things having  no guidance in  the initiative.  She  related that                                                               
DEC began  looking at  the implementation  challenges as  soon as                                                               
the bill passed  in August 2006.   It took a lot of  time for DEC                                                               
and DOL  to sort  through the challenges  and determine  what the                                                               
issues were for the contractor to address.                                                                                      
                                                                                                                                
3:31:17 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHANSEN announced  that  he is  reserving  the right  for                                                               
further discussion of the issue at the next committee meeting.                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Transportation Standing  Committee meeting was adjourned  at 3:31                                                               
p.m.                                                                                                                            

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