Legislature(2013 - 2014)SENATE FINANCE 532

02/07/2013 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 29 CRUISE SHIP WASTEWATER DISCHARGE PERMITS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 80 CRUISE SHIP WASTEWATER DISCHARGE PERMITS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 7, 2013                                                                                           
                         9:03 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:03:15 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer  called the Senate Finance  Committee meeting                                                                    
to order at 9:03 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Kevin Meyer, Co-Chair                                                                                                   
Senator Anna Fairclough, Vice-Chair                                                                                             
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Lynn Kent, Deputy  Commissioner, Department of Environmental                                                                    
Conservation;  Chip Thoma,  President, Responsible  Cruising                                                                    
in   Alaska;   John   Binkley,  President,   Alaska   Cruise                                                                    
Association;  Pete  Wedin,  Homer;  Dave  Wetzel,  Admiralty                                                                    
Environmental, Juneau; Andy Rogers,  Alaska State Chamber of                                                                    
Commerce,  Anchorage;   Dr.  K.  Koski,   Salmon  Biologist,                                                                    
Juneau;  Karla  Hart,  Alaska Community  Action  on  Toxics,                                                                    
Juneau; Daven Hafey,  Southeast Alaska Conservation Council,                                                                    
Juneau;  James   Sullivan,  Southeast   Alaska  Conservation                                                                    
Council,  Juneau;  Jim  Powell, Juneau;  Michelle  Ridgeway,                                                                    
Juneau;  Melissa   Kookesh,  Assistant  to   the  President,                                                                    
Central Council  Tlingit and Haida  Indian Tribes  of Alaska                                                                    
(CCTHITA).                                                                                                                      
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Rick  Rogers,  Executive   Director,  Resources  Development                                                                    
Council; Rick Harness, Homer;  Michael McCarthy, Homer; Eric                                                                    
Yancey,  Wrangell; David  Beebe,  Kupreanof; Byron  Charles,                                                                    
Ketchikan; Bernahard Richert,  Anchorage; George Pletnikoff,                                                                    
Palmer; Darlene  Dobds, California;  Vi Waghiyi,  Village of                                                                    
Savoonga;  Delice  Calcote,  Alaska  Inter  Travel  Council,                                                                    
Sutton; Piama Oleyer, Unalaska; Harrold Borbidge, Sitka.                                                                        
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB  29    CRUISE SHIP WASTEWATER DISCHARGE PERMITS                                                                              
                                                                                                                                
          SB 29 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB  80    CRUISE SHIP WASTEWATER DISCHARGE PERMITS                                                                              
                                                                                                                                
          HB 80 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 29                                                                                                            
                                                                                                                                
     "An Act relating to the regulation of wastewater                                                                           
     discharge from commercial passenger vessels in state                                                                       
     waters; and providing for an effective date."                                                                              
                                                                                                                                
9:03:23 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked the deputy commissioner  to detail the                                                                    
differences between the house and the senate bills.                                                                             
                                                                                                                                
LYNN KENT, DEPUTY  COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL                                                                    
CONSERVATION stated  that there were no  differences between                                                                    
the two bills.                                                                                                                  
                                                                                                                                
SB  29  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 80                                                                                                             
                                                                                                                                
     "An Act relating to the regulation of wastewater                                                                           
     discharge from commercial passenger vessels in state                                                                       
     waters; and providing for an effective date."                                                                              
                                                                                                                                
9:04:05 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer noted  that HB  80 would  replace SB  29. He                                                                    
stated that invited and public testimony would be heard.                                                                        
                                                                                                                                
CHIP  THOMA,  PRESIDENT,  RESPONSIBLE  CRUISING  IN  ALASKA,                                                                    
discussed  past accomplishments  regarding  cruise ship.  He                                                                    
stated that  his organization  formed in  1999 to  propose a                                                                    
local  cruise ship  head tax  for  the City  and Borough  of                                                                    
Juneau.  He  addressed  the  prior  meeting's  testimony  by                                                                    
Deputy Commissioner  Kent. The  Department of  Justice found                                                                    
that   major  shipping   lines   were  violating   pollution                                                                    
requirements  by rerouting  pipes  in  their sewage  system,                                                                    
allowing  the ships  to discharge  at night.  These shipping                                                                    
lines were  fined $30  million in 2000.  A survey  in Alaska                                                                    
found that  that none of  the advanced  wastewater treatment                                                                    
systems were operational.                                                                                                       
                                                                                                                                
Mr.  Thoma recalled  Deputy Commissioner  Kent voicing  that                                                                    
the  state  could   not  meet  all  of   the  water  quality                                                                    
standards, but  he agreed that the  progress was remarkable.                                                                    
He understood that many of  the water treatment systems were                                                                    
functional. He expressed concern  about discharge of ammonia                                                                    
and  copper.   He  stated  that  copper,   nickel  and  zinc                                                                    
discharge resulted from pipes on  the ship and ammonia was a                                                                    
component of  large volumes of  grey water. He  informed the                                                                    
committee  that water  softeners  used in  the cruise  ships                                                                    
dissolved the  metal in  the pipes and  led to  copper being                                                                    
discharged  in the  ocean. He  acknowledged that  some ships                                                                    
were copper and metal free.                                                                                                     
                                                                                                                                
9:09:02 AM                                                                                                                    
                                                                                                                                
Mr.   Thoma   addressed   questions  posed   by   Vice-Chair                                                                    
Fairclough.   He explained that onshore  permits existed for                                                                    
areas that were easily tested  and for ocean rangers. Juneau                                                                    
had four connections to the  sewage treatment plant for grey                                                                    
water. He  mentioned the Ocean Ranger  Program. Mixing zones                                                                    
remained  the same  including Chatham  straight and  Stevens                                                                    
Passage.  The  salmon migration  routes  were  the same.  He                                                                    
stated that  14 of  the ships  discharged offshore  and they                                                                    
were  permitted to  do so,  while 7  discharged in  harbors,                                                                    
which  lessened the  impact. He  advocated  for leaving  the                                                                    
present law  in place, as  it maintained a  higher standard.                                                                    
He  recommended extending  permits  to 2020.  He added  that                                                                    
lowering the copper count discharged  by cruise ships was as                                                                    
simple  as eliminating  the use  of water  softeners on  the                                                                    
ships.   Since  the   copper   affected   salmon  only,   he                                                                    
recommended relocation of the ships with copper pipes.                                                                          
                                                                                                                                
9:11:46 AM                                                                                                                    
                                                                                                                                
Mr. Thoma  stated that testing  for mobile mixing  zones was                                                                    
complicated, as cruise ship discharge  occurred at night. He                                                                    
recommended  simple  solutions to  many  of  the issues.  He                                                                    
added  that   metal  ball  valves  used   during  port  time                                                                    
increased  the copper  counts. When  the  metal ball  valves                                                                    
were  replaced with  plastic,  the  copper counts  decreased                                                                    
dramatically.                                                                                                                   
                                                                                                                                
Mr.  Thoma discussed  Deputy  Commissioner Kent's  affidavit                                                                    
presented  four years  ago regarding  the  cruise ships.  He                                                                    
offered to attach  copies of the affidavit  to his testimony                                                                    
for committee members.                                                                                                          
                                                                                                                                
9:13:29 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer understood Mr. Thoma's  opinion was to extend                                                                    
the permit and  allow technology "time to catch  up." If the                                                                    
cruise lines  with copper pipes  continued to  struggle, the                                                                    
ships could be recycled and used elsewhere.                                                                                     
                                                                                                                                
9:14:17 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:14:50 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
JOHN  BINKLEY, PRESIDENT,  ALASKA CRUISE  ASSOCIATION, noted                                                                    
that he represented an organization  that contributed to the                                                                    
economy in Alaska. He commended  Deputy Commissioner Kent on                                                                    
her  testimony during  the prior  meeting. He  discussed the                                                                    
work of  the science  panel that  generated the  impetus for                                                                    
the bill.  The issues addressed  in HB 80 had  been reviewed                                                                    
for  many years.  He provided  history of  cruise ships  and                                                                    
discharge of  wastewater in Alaska.  He stated that  a group                                                                    
of scientists researched wastewater in Alaska.                                                                                  
                                                                                                                                
Mr. Binkley explained that in  June 2001 under Governor Tony                                                                    
Knowles, review  of cruise ship  wastewater led  to numerous                                                                    
studies  performed by  a panel  of renowned  scientists. New                                                                    
legislation was adopted to control  the discharge of treated                                                                    
wastewater  from  cruise ships  in  Alaska.  The ships  were                                                                    
required  to have  advanced  wastewater treatment  stations.                                                                    
The  industry invested  over $200  million  on the  required                                                                    
systems. The industry  employed technology changes including                                                                    
the decision to appoint  an environmental officer to oversee                                                                    
the  regulations.  The  officer  reported  to  the  CEO  and                                                                    
supervised the management  practices regarding environmental                                                                    
matters.                                                                                                                        
                                                                                                                                
9:19:45 AM                                                                                                                    
                                                                                                                                
Mr. Binkley stated that the  ships discharged "near drinking                                                                    
water" effluent  on a continuous basis  following treatment.                                                                    
The industry reached  a much higher quality  of discharge in                                                                    
2004. In 2006, a  ballot initiative was passed, implementing                                                                    
5 different  taxes on  the cruise  industry. He  opined that                                                                    
the  ballot initiative  established a  requirement that  was                                                                    
unique to large ships  and was unattainable. The legislature                                                                    
reviewed the  ballot initiative in  2009 through a  long and                                                                    
heated debate. The legislature in  2009 opted for additional                                                                    
time  and  a  review  by   a  science  advisory  panel.  The                                                                    
preliminary  report  in  January  2013  concluded  that  the                                                                    
technology  employed  by  the  cruise  ships  was  the  best                                                                    
available. New and emerging technologies  were sought by the                                                                    
panel  without success.  The science  panel determined  that                                                                    
all marine  species were protected.  He maintained  that the                                                                    
bill  allowed the  Department of  Environmental Conservation                                                                    
(DEC) to  make sound  decisions when protecting  the Alaskan                                                                    
environment.                                                                                                                    
                                                                                                                                
9:24:21 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough  recalled  an  allegation  of  felony                                                                    
charges regarding the discharge of  raw sewage at night. She                                                                    
asked  if every  cruise  ship entering  Alaskan waters  used                                                                    
advanced treatment systems.                                                                                                     
                                                                                                                                
Mr. Binkley  replied that  much misinformation  was released                                                                    
to  the public.  He stressed  that DEC  would not  allow the                                                                    
practice.  He  argued  that  the  statements  regarding  raw                                                                    
sewage were reckless. He noted  that prosecution would occur                                                                    
for  the  gross  violation.  He  stated  that  cruise  ships                                                                    
discharged drinking water quality effluence continuously.                                                                       
                                                                                                                                
9:26:40 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  stated that DEC confirmed  that clear                                                                    
water  was  discharged.  Four  components  were  identified;                                                                    
ammonia, nickel,  copper and zinc  existed at  higher levels                                                                    
than  were  recommended  by the  initiative.  She  expressed                                                                    
interested in  the conversation regarding nickel  and copper                                                                    
in ocean waters.                                                                                                                
                                                                                                                                
Mr.  Binkley  testified  that "as  an  Alaskan"  his  family                                                                    
relied on the  tourism industry. The issue was  framed as an                                                                    
one  supporting  industry, when  he  opined  that the  issue                                                                    
supported Alaskans. He stressed  that the cruise ships would                                                                    
take their business elsewhere and  Alaskans would be hurt by                                                                    
the lack of tourism dollars.                                                                                                    
                                                                                                                                
9:29:59 AM                                                                                                                    
                                                                                                                                
Senator  Olson asked  about how  many of  Mr. Binkley's  170                                                                    
employees  were  Alaskan  and   received  a  Permanent  Fund                                                                    
Dividend (PFD).                                                                                                                 
                                                                                                                                
Mr. Binkley  responded that his company  hired Alaskans, but                                                                    
he was not sure about his employees' PFDs.                                                                                      
                                                                                                                                
Senator Olson asked if he  visited the "Riverboat Discovery"                                                                    
and  asked the  employees what  part of  Nebraska they  were                                                                    
from, how they would answer.                                                                                                    
                                                                                                                                
Mr.  Binkley  responded  that  he   had  no  employees  from                                                                    
Nebraska.                                                                                                                       
                                                                                                                                
9:31:21 AM                                                                                                                    
                                                                                                                                
Senator Olson  stated that many  summer employees  in Alaska                                                                    
were visiting from other states.                                                                                                
                                                                                                                                
Mr.  Binkley responded  that there  was validity  to Senator                                                                    
Olson's concern.  He admitted that many  seasonal businesses                                                                    
took advantage of the visitor season.                                                                                           
                                                                                                                                
Senator  Olson stated  that  many of  the  products sold  in                                                                    
tourism shops  were not  made in Alaska.  He argued  that it                                                                    
was   not   Alaskans    directly   affected,   but   instead                                                                    
opportunists taking advantage of the tourist season.                                                                            
                                                                                                                                
Mr. Binkley argued  that many Alaskans were  employed by the                                                                    
tourism industry. He recommended  an inquiry with Department                                                                    
of Labor and Workforce  Development regarding statistics. He                                                                    
understood  that  statistics  suggested   a  high  level  of                                                                    
employment by Alaska in the visitor industry.                                                                                   
                                                                                                                                
9:32:58 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer opened public testimony.                                                                                         
                                                                                                                                
9:33:33 AM                                                                                                                    
                                                                                                                                
PETE  WEDIN, HOMER,  stated  that he  owned  and operated  a                                                                    
small fishing  charter in Alaska. He  informed the committee                                                                    
that  the Alaska  Seafood Marketing  Industry (ASMI)  stated                                                                    
that  Alaskan   waters  were   pure.  He   recommended  that                                                                    
legislators  and the  public visit  www.alaskaseafood.org to                                                                    
become  more familiar  with the  campaign  that would  spend                                                                    
over  $20 million  in  2013 to  promote  Alaska's image.  He                                                                    
suggested that  the legislation would compromise  the image.                                                                    
He  explained  that  his  fishing   area  was  designated  a                                                                    
critical  habitat  area  in 1974.  The  area  included  many                                                                    
oyster farms  and he requested  that the committee  amend HB
80  to  prevent discharges  in  sensitive  areas around  the                                                                    
state.  He concluded  that the  preliminary  report was  not                                                                    
"final" and  he appealed  to allow  the scientific  panel to                                                                    
finish its research and provide the final report.                                                                               
                                                                                                                                
9:36:11 AM                                                                                                                    
                                                                                                                                
DAVE WETZEL,  ADMIRALTY ENVIRONMENTAL, JUNEAU,  testified in                                                                    
favor of  HB 80. He  stated that advanced  wastewater system                                                                    
manufacturers  created solutions  that  worked  to meet  the                                                                    
standards. He stated that he  was personally involved in all                                                                    
of the sampling and witnessed  a high level of compliance in                                                                    
the  effluent   tested.  He  stated   that  if   ships  were                                                                    
discharging   at  night,   which  was   when  sampling   was                                                                    
performed. The  sampling program would catch  any night time                                                                    
illegal discharge.  He noted  the remarkable  consistency in                                                                    
results  between   the  different  treatment   systems.  The                                                                    
problem  was  already  solved   via  the  implementation  of                                                                    
stricter   regulations.  The   regulations   were  met.   He                                                                    
expressed admiration  for the industry and  their compliance                                                                    
with and concern about test results.                                                                                            
                                                                                                                                
9:41:45 AM                                                                                                                    
                                                                                                                                
ANDY ROGERS,  ALASKA STATE  CHAMBER OF  COMMERCE, ANCHORAGE,                                                                    
testified in  favor of policies  that improved  the business                                                                    
climate  and  protected  the  environment.  Members  of  the                                                                    
organization gathered  to establish  positions prior  to the                                                                    
legislative session  and the  proposed legislation  became a                                                                    
priority. He advocated for policies  based on sound science.                                                                    
He  spoke to  the  economic impact  of  cruise ship  tourism                                                                    
across   the  state.   He  testified   in  support   of  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
9:45:02 AM                                                                                                                    
                                                                                                                                
Senator Olson asked  if the next generation  of Alaska would                                                                    
condemn  the  legislature  for ignoring  the  risks  to  the                                                                    
salmon  population by  passing  the  legislation. He  voiced                                                                    
that   his  constituents   were  faced   with  many   salmon                                                                    
"disasters" that led to significant losses for fishermen.                                                                       
                                                                                                                                
9:46:09 AM                                                                                                                    
                                                                                                                                
Mr. Rogers encouraged  the legislature to lean  on the state                                                                    
agencies  and trust  that  they have  the  best interest  in                                                                    
protecting Alaska. He  could not predict the  threats to the                                                                    
environment.   The   wastewater   treatment   systems   were                                                                    
preforming exceptionally well.                                                                                                  
                                                                                                                                
9:47:26 AM                                                                                                                    
                                                                                                                                
Senator Olson  expressed a lack  of trust in  the scientific                                                                    
panel. He stated  that the removal of one  scientist who had                                                                    
an adverse opinion suggested that  the panel was designed to                                                                    
create a report that would facilitate the industry's goal.                                                                      
                                                                                                                                
Mr.  Rogers  could  not  speak to  the  credentials  of  the                                                                    
members of  the science panel and  was not in a  position to                                                                    
critique their performance.                                                                                                     
                                                                                                                                
Senator  Dunleavy  asked  about   Alaska  State  Chamber  of                                                                    
Commerce members with seafood trade associations.                                                                               
                                                                                                                                
Mr. Rogers  replied that several  members had  seafood trade                                                                    
associations.  He  offered  to  provide  a  list  of  active                                                                    
members of the chamber of commerce.                                                                                             
                                                                                                                                
Senator Dunleavy clarified that  the Alaska State Chamber of                                                                    
Commerce  represented  both  the  cruise  industry  and  the                                                                    
seafood trade associations.                                                                                                     
                                                                                                                                
Mr. Rogers  agreed that his membership  consisted of private                                                                    
sector  businesses and  did  not  distinguish by  geographic                                                                    
location,  size  or  industry.  Because  of  the  diversity,                                                                    
decisions were well vetted.                                                                                                     
                                                                                                                                
9:50:09 AM                                                                                                                    
                                                                                                                                
DR.  K.  KOSKI,  SALMON   BIOLOGIST,  JUNEAU,  testified  in                                                                    
interest of maintaining the  pristine environment for salmon                                                                    
in Alaska.  He offered to  answer questions. He  stated that                                                                    
very low  concentrations of copper did  affect the olfactory                                                                    
function of salmon, which was  essential to their migration.                                                                    
He suggested  that the  fishing industry  would suffer  as a                                                                    
result of cumulative copper counts  in the ocean. He opposed                                                                    
the legislation.                                                                                                                
                                                                                                                                
Senator Dunleavy  asked about the Copper  River king salmon.                                                                    
The Copper  River was  named because of  the copper  mine in                                                                    
the vicinity. He assumed that  there was copper in the river                                                                    
and wondered why the salmon runs were not impacted.                                                                             
                                                                                                                                
Dr. Koski  replied that he  did not have the  data regarding                                                                    
copper counts in the Copper River.                                                                                              
                                                                                                                                
Senator   Dunleavy  assumed   that  prior   to  the   mining                                                                    
regulations; copper may have been  discharged into the river                                                                    
via the  mine. He  added that ice  melt from  glaciers might                                                                    
lead to copper leaching into the river.                                                                                         
                                                                                                                                
9:54:21 AM                                                                                                                    
                                                                                                                                
Dr. Koski respected the question  as one posed by proponents                                                                    
of Pebble Mine.  He opined that the levels of  copper in the                                                                    
Copper  River   represented  an   important  piece   of  the                                                                    
discussion.                                                                                                                     
                                                                                                                                
Vice-Chair  Fairclough referred  to Pebble  Mine advertising                                                                    
and  conflicting   information  about  copper   levels.  She                                                                    
wondered if the effect of  the copper compromised the health                                                                    
of  the   fish.  She  noted   that  land   based  facilities                                                                    
discharged levels  across the Alaskan coast,  which had been                                                                    
deemed acceptable. She  wondered if the effect  of copper in                                                                    
the  water damaged  the fish  or  compromised the  olfactory                                                                    
sense.                                                                                                                          
                                                                                                                                
Dr. Koski  suggested that  both homing  and survival  of the                                                                    
salmon were  affected by copper.  He referenced  research by                                                                    
Dr.  Shultz  that  observed urban  run-off  in  streams  and                                                                    
mortalities  were   found  in   adult  salmon.   The  copper                                                                    
pollution  was  an  effect of  both  terrestrial  and  water                                                                    
sources.  He  offered  to   provide  research  about  copper                                                                    
toxicity  and effects  on  the olfactory  of  salmon to  the                                                                    
committee. He  apologized that  he had  very little  time to                                                                    
prepare for the presentation.                                                                                                   
                                                                                                                                
Co-Chair Meyer offered to copy the research.                                                                                    
                                                                                                                                
9:57:15 AM                                                                                                                    
                                                                                                                                
KARLA  HART,  ALASKA  COMMUNITY ACTION  ON  TOXICS,  JUNEAU,                                                                    
advocated for  fairness. She testified in  opposition to the                                                                    
legislation. She  pointed out arguments  that municipalities                                                                    
and  ferries were  not held  to  the same  standards as  the                                                                    
cruise  ships. The  ferry and  community wastewater  systems                                                                    
were  serving a  public  purpose. The  cruise ship  industry                                                                    
benefited  from externalizing  costs to  the maximum  extent                                                                    
for corporate profits.                                                                                                          
                                                                                                                                
10:02:24 AM                                                                                                                   
                                                                                                                                
DAVEN HAFEY, SOUTHEAST  ALASKA CONSERVATION COUNCIL, JUNEAU,                                                                    
explained  that the  Southeast  Alaska Conservation  Council                                                                    
advocated  for   members  from  18   communities  throughout                                                                    
Southeast  Alaska.  Many  members' livelihoods  depended  on                                                                    
healthy water. He stressed that  his council was not opposed                                                                    
to the cruise  ship industry, but he  advocated for thriving                                                                    
in a way  that honored and respected the  waters. He pointed                                                                    
out that the legislation was  based on a preliminary report,                                                                    
rather than a final report. He opposed the legislation.                                                                         
                                                                                                                                
10:04:10 AM                                                                                                                   
                                                                                                                                
JAMES  SULLIVAN,  SOUTHEAST   ALASKA  CONSERVATION  COUNCIL,                                                                    
JUNEAU,    expressed    concern    regarding    the    word,                                                                    
"unattainable."  He disagreed  with  the  argument that  the                                                                    
restrictions   and  regulations   were  "unattainable."   He                                                                    
requested a  final science report.  He argued that,  in many                                                                    
instances, the requested criterion  was attained. He pointed                                                                    
out  instances stated  in  the  science panel's  preliminary                                                                    
report  stating compliance  of attainment  of zinc,  copper,                                                                    
nickel, and  ammonia levels in  2011. He requested  a review                                                                    
of the  preliminary report to further  examine the successes                                                                    
in compliance  that some cruise ships  attained. He proposed                                                                    
hearing testimony from the science panel.                                                                                       
                                                                                                                                
10:07:26 AM                                                                                                                   
                                                                                                                                
RICK  ROGERS,   EXECUTIVE  DIRECTOR,   RESOURCE  DEVELOPMENT                                                                    
COUNCIL   (via   teleconference),    grow   Alaska   through                                                                    
responsible  development.  He   advocated  for  predictable,                                                                    
timely and efficient state  and federal permitting processes                                                                    
based  on   sound  science  and  economic   feasibility.  He                                                                    
believed  that  public policy  based  on  rhetoric, fear  or                                                                    
misinformation  would negatively  impact resource  policy in                                                                    
Alaska.  He commended  the cruise  ship advisory  panel, who                                                                    
met  approximately  15  times   to  help  shape  a  rational                                                                    
wastewater  discharge policy  for  the  cruise industry.  He                                                                    
supported  the  legislation  because the  evidence  did  not                                                                    
suggest that  the health and  productivity of  the fisheries                                                                    
would  be  compromised.  The  fisheries  were  an  important                                                                    
renewable  resource. The  legislation was  based on  science                                                                    
and the  advice of DEC.  The advanced systems on  the cruise                                                                    
ships   were   more   efficient    than   those   found   in                                                                    
municipalities or on ferry ships.                                                                                               
                                                                                                                                
10:11:43 AM                                                                                                                   
                                                                                                                                
RICK  HARNESS,  HOMER  (via  teleconference),  testified  in                                                                    
opposition   to  the   legislation.  He   voiced  that   the                                                                    
legislation   was  pushed   through   the  legislature.   He                                                                    
advocated for  taking time  to study  the issue  further. He                                                                    
argued that  a mixing zone  was technically a  dumping zone,                                                                    
where many chemicals and metals  were dumped into the water.                                                                    
He advocated  for clean and  pristine oceans. He  wanted the                                                                    
legislature to hold the industry  to a high standard for the                                                                    
protection of the communities.                                                                                                  
                                                                                                                                
10:15:43 AM                                                                                                                   
                                                                                                                                
MICHAEL  MCCARTHY,  HOMER   (via  teleconference)  testified                                                                    
against the  legislation. He  stated that  he read  the bill                                                                    
along  with a  62  page report.  He  mentioned that  Haines'                                                                    
residents had  boycotted the  cruise industry  after reports                                                                    
that  cruise ships  dumped raw  sewage into  Lynn Canal.  He                                                                    
recommended vetting  the issue  further as  the consequences                                                                    
of  a bad  decision were  great. He  pointed out  section 2,                                                                    
lines  10  - 13  of  HB  80,  which he  opined  circumvented                                                                    
Alaska's best interest to protect  water and fish. He quoted                                                                    
Abraham Lincoln,  "I do the very  best I know how,  the very                                                                    
best I  can and I  mean to keep doing  so until the  end. If                                                                    
the end  brings me out  all right,  what is said  against me                                                                    
won't amount  to anything. If  the end brings me  out wrong,                                                                    
ten angels swearing I was right will make no difference."                                                                       
                                                                                                                                
10:19:44 AM                                                                                                                   
                                                                                                                                
ERIC   YANCEY,  WRANGELL   (via  teleconference),   provided                                                                    
history  about   the  cruise   ship  wastewater   issue.  He                                                                    
understood that heavy metals were  the major risk to salmon.                                                                    
He  worried  that  the  interior  benefitted  tourism  while                                                                    
southeast  Alaska suffered  from the  effects of  the cruise                                                                    
ship wastewater.                                                                                                                
                                                                                                                                
                                                                                                                                
DEVID  BEEBE, KUPREANOF  (via teleconference),  testified in                                                                    
opposition  to HB  80. He  stated  that the  fish could  not                                                                    
survive in the  cesspool of Alaskan waters.  He claimed that                                                                    
most  of  the fish  caught  were  not  safe to  consume.  He                                                                    
advocated for commercial fishing.                                                                                               
                                                                                                                                
10:26:15 AM                                                                                                                   
                                                                                                                                
BYRON CHARLES, KETCHIKAN  (via teleconference), testified in                                                                    
opposition  to  HB  80. He  mentioned  a  conversation  with                                                                    
Representative Peggy Wilson  regarding fisheries and waters.                                                                    
He suggested that municipal tanks  be installed to allow for                                                                    
cruise ship wastewater disposal.                                                                                                
                                                                                                                                
10:30:55 AM                                                                                                                   
                                                                                                                                
BERNAHARD  RICHERT, ANCHORAGE  (via teleconference),  stated                                                                    
that sales of  resources were an important  part of Alaska's                                                                    
economy. He testified against  the legislation. He advocated                                                                    
for the pristine image used to market Alaskan resources.                                                                        
                                                                                                                                
10:31:43 AM                                                                                                                   
                                                                                                                                
GEORGE  PLETNIKOFF, PALMER  (via  teleconference) worked  as                                                                    
the Alaska  Ocean's campaigner for Greenpeace.  He expressed                                                                    
concern for the  impacts of the legislation.  He stated that                                                                    
the  melting of  the arctic  ice would  open the  waters for                                                                    
cruise ships. He wished for  caution regarding the precedent                                                                    
set  regarding cruise  ship  regulations.  He advocated  for                                                                    
clean  waters in  Southeast  Alaska as  well  as the  Arctic                                                                    
Ocean.  He  added  that some  municipalities  classified  as                                                                    
native  villages  discharged  "primary one"  treated  sewage                                                                    
into waters.                                                                                                                    
                                                                                                                                
10:34:12 AM                                                                                                                   
                                                                                                                                
JIM POWELL,  JUNEAU, appreciated  the difficult  position of                                                                    
the  legislature. He  understood that  the state  needed the                                                                    
cruise  ship industry.  He recognized  that the  legislature                                                                    
was in a position where they  must predict the future in the                                                                    
balance.  He  wished  to  hear  from  the  Coast  Guard  and                                                                    
Department  of Fish  and Game  (DF&G). He  thought that  the                                                                    
opinions   of   both   entities   would   provide   valuable                                                                    
information. He added  that DEC was not the  expert in fish.                                                                    
He wished  to know  the cost of  monitoring the  mixing zone                                                                    
through bio  monitoring. He  commented on  cumulative impact                                                                    
of  discharge,  which  could   be  ascertained  through  bio                                                                    
monitoring.  He  concluded   that  California  had  recently                                                                    
passed a law regarding discharge zones.                                                                                         
                                                                                                                                
10:38:39 AM                                                                                                                   
                                                                                                                                
MICHELLE RIDGEWAY,  JUNEAU, stated  that she was  a research                                                                    
diver and  lifelong Alaskan.  She served  on the  DEC cruise                                                                    
ship  wastewater  science   panel.  She  expressed  concerns                                                                    
regarding  the   report.  She  provided  a   letter  to  the                                                                    
committee regarding  the science  panel's final  report. She                                                                    
highlighted  the  zero  fiscal   note  associated  with  the                                                                    
action. She  argued that the  action of the bill  would lead                                                                    
to  fiscal impact  for the  development of  a moving  mixing                                                                    
zone model  that would adequately  address the needs  of the                                                                    
bill's requirements. Studies suggested  that the cost of the                                                                    
model could range from $50  thousand to $200 thousand range.                                                                    
The science panel cost $310  thousand. She added that public                                                                    
testimony  indicated that  the public  was unhappy  with the                                                                    
legislation. She  concluded that  the science panel  did not                                                                    
address mixing  zones in their  incomplete report.  Text was                                                                    
added to  the report in  the final hour  by a member  of the                                                                    
panel  who  represented  the  cruise  ships.  She  expressed                                                                    
concern  about the  myth of  instantaneous  dilution in  the                                                                    
mixing  zones. She  mentioned DEC  studies that  stated that                                                                    
waters were not diluted instantaneously.                                                                                        
                                                                                                                                
10:44:34 AM                                                                                                                   
                                                                                                                                
Mr. Pletnikoff  continued with  his testimony.  He testified                                                                    
in opposition  to HB 80.  He stated that the  discharge from                                                                    
400 additional ships would enter  the Bering Sea as a result                                                                    
of the  legislation. He expressed  concern about  the salmon                                                                    
due to the pollutants in the ocean water.                                                                                       
                                                                                                                                
10:47:29 AM                                                                                                                   
                                                                                                                                
DARLENE  DOBDS, CALIFORNIA  (via teleconference),  expressed                                                                    
concern about  the diminishing salmon population  in Alaska.                                                                    
She advocated  for weighing both  sides of the  issue before                                                                    
passing HB 80.                                                                                                                  
                                                                                                                                
10:48:44 AM                                                                                                                   
                                                                                                                                
VI  WAGHIYI,  VILLAGE   OF  SAVOONGA  (via  teleconference),                                                                    
represented native  population. She  spoke in  opposition to                                                                    
the  legislation.  She  represented the  native  village  of                                                                    
Savoonga  on  Saint Lawrence  Island.  She  stated that  her                                                                    
people  were  very  concerned  about  cruise-ship  discharge                                                                    
contaminating  the  ocean  waters  in the  Bering  Sea.  She                                                                    
explained that her people depended  on the sea for physical,                                                                    
cultural  and spiritual  sustenance.  She expressed  concern                                                                    
about the ammonia  discharge because of its  impact on toxic                                                                    
algae in the area. Heavy metals  were also a concern as they                                                                    
could concentrate  in the  flesh of  traditional subsistence                                                                    
foods.  The  copper  in  the  cruise  ship  discharge  could                                                                    
adversely affect a salmon's ability  to navigate through the                                                                    
ocean.  The legislation  would  affect  the villages'  food,                                                                    
safety, health and wellbeing.                                                                                                   
                                                                                                                                
Senator Olson  asked about the evidence  of abnormalities in                                                                    
the sea animals.                                                                                                                
                                                                                                                                
Ms. Waghiyi  replied that  global contaminants  were trapped                                                                    
in the arctic through air  and ocean currents. She mentioned                                                                    
a   community   based    project   identifying   pesticides,                                                                    
Polychlorinated   biphenyl  (PCB)   and   heavy  metals   in                                                                    
traditional  foods. She  insisted on  proactive measures  to                                                                    
protect the people of Alaska.                                                                                                   
                                                                                                                                
10:55:11 AM                                                                                                                   
                                                                                                                                
DELICE  CALCOTE, ALASKA  INTER TRAVEL  COUNCIL, SUTTON  (via                                                                    
teleconference),    testified   in    opposition   to    the                                                                    
legislation. She reminded about  article 12, section 12, the                                                                    
disclaimer and  agreement of the  constitution of  Alaska as                                                                    
well  as section  4  of  the Compact  or  agreement for  the                                                                    
Statehood Act. "Our lands, our  people, our water, our fish,                                                                    
our  fish  habitats  are  to   be  protected  forever."  She                                                                    
expressed  that   she  felt   harassed  by   the  discharged                                                                    
wastewater from cruise  ships that accumulated significantly                                                                    
leading  to adverse  effects. She  wondered about  pollution                                                                    
discharged  into the  air and  water  affecting the  coastal                                                                    
communities.                                                                                                                    
                                                                                                                                
10:59:55 AM                                                                                                                   
                                                                                                                                
PIAMA OLEYER, UNALASKA  (via teleconference), explained that                                                                    
she  had raised  her  children in  Unalaska.  People in  her                                                                    
community died  from pollution. She testified  in opposition                                                                    
to the  legislation. She stated that,  according to studies,                                                                    
irradiation of  human waste purified  it. She was  unable to                                                                    
locate studies  stating that irradiation was  not harmful to                                                                    
humans. She voiced proof that  pollution affected foods near                                                                    
her home,  when she  found fish with  burns and  portions of                                                                    
rotten flesh. She found salmon  riddled with white pustules,                                                                    
which she sent  to DF&G it was deemed  a natural occurrence.                                                                    
She  stated   that  she  had   never  seen   these  "natural                                                                    
occurrences"  during her  childhood even  though her  family                                                                    
subsistence fished for generations.                                                                                             
                                                                                                                                
11:04:01 AM                                                                                                                   
                                                                                                                                
HARROLD BORBIDGE,  SITKA (via teleconference),  testified in                                                                    
opposition to  the legislation. He  asked why the  state did                                                                    
not  subsidize  the  needs  of  the  industry  to  meet  the                                                                    
stricter standards.                                                                                                             
                                                                                                                                
11:06:02 AM                                                                                                                   
                                                                                                                                
MELLISSA  KOOKESH,  ASSISTANT   TO  THE  PRESIDENT,  CENTRAL                                                                    
COUNCIL   TLINGIT  AND   HAIDA  INDIAN   TRIBES  OF   ALASKA                                                                    
(CCTHITA),  read  part  of a  letter  written  by  President                                                                    
Thomas (copy on  file). She opposed the  bill. She explained                                                                    
that Central Council served 22  villages and communities and                                                                    
had  over   28  thousand  tribal  citizens.   She  requested                                                                    
assurance from  DEC that the herring,  salmon, shellfish and                                                                    
seaweed  would not  be negatively  impacted by  the loosened                                                                    
discharged   standards.  She   advocated  for   uniform  and                                                                    
stringent standards  on permit  requirements for  the cruise                                                                    
ship industry.                                                                                                                  
                                                                                                                                
11:10:11 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer closed public testimony.                                                                                         
                                                                                                                                
HB  80  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Meyer stated that  the deliberations would continue                                                                    
on February 8, 2013. He  stated that DEC would testify again                                                                    
and the committee would vote.                                                                                                   
                                                                                                                                
Vice-Chair Fairclough requested testimony from DF&G.                                                                            
                                                                                                                                
Co-Chair  Meyer agreed  to either  invite the  department to                                                                    
the  following   day's  committee   meeting  or   solicit  a                                                                    
statement for the members.                                                                                                      
                                                                                                                                
Vice-Chair Fairclough voiced that the abundant testimony                                                                        
regarding subsistence fishing and habitat was the purview                                                                       
of DF&G. She remained very interested in the subject.                                                                           
                                                                                                                                
11:12:53 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 11:12 a.m.                                                                                         

Document Name Date/Time Subjects
HB 80 13 028 Edward K Thomas CSWD.pdf SFIN 2/7/2013 9:00:00 AM
HB 80
HB 80 cruise ship discharge senate finance SEACC.pdf SFIN 2/7/2013 9:00:00 AM
HB 80
HB 80 Opposition Shellfish.doc SFIN 2/7/2013 9:00:00 AM
HB 80
HB 80 oppostion letter.docx SFIN 2/7/2013 9:00:00 AM
HB 80
HB-80 opposition to HB80.msg SFIN 2/7/2013 9:00:00 AM
HB 29
HB80 SB29 -- PLEASE do NOT pass these bills!.msg SFIN 2/7/2013 9:00:00 AM
HB 80
SB 29
SB 29 copper hazards report.pdf SFIN 2/7/2013 9:00:00 AM
SB 29
SB 29 opposition letter Hanlon.doc SFIN 2/7/2013 9:00:00 AM
SB 29
HB80 Central Council Tlingit Haida Opposition Letter.pdf SFIN 2/7/2013 9:00:00 AM
HB 80
HB-80 opposition to HB80 Scholten.msg SFIN 2/7/2013 9:00:00 AM
HB 80
SB 29 Thoma Affidavit.pdf SFIN 2/7/2013 9:00:00 AM
SB 29
SB29 - K.Koski OppositionTestimony.pdf SFIN 2/7/2013 9:00:00 AM
SB 29
SB29 Opposition Bulloch.msg SFIN 2/7/2013 9:00:00 AM
SB 29
HB 80 Opposition SEACC - Questions.pdf SFIN 2/7/2013 9:00:00 AM
HB 80
HB80 Opposition Letter Woody.msg SFIN 2/7/2013 9:00:00 AM
HB 80
SB29 Opposition Letter Waghiyi.docx SFIN 2/7/2013 9:00:00 AM
SB 29
HB 80 Goldbelt Support Letter.pdf SFIN 2/7/2013 9:00:00 AM
HB 80
HB 80 UFA Recommensations.pdf SFIN 2/7/2013 9:00:00 AM
HB 80
HB 80 Ridgway Testimony.pdf SFIN 2/7/2013 9:00:00 AM
HB 80