Legislature(2017 - 2018)SENATE FINANCE 532
03/08/2018 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB92 | |
| SB158 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 321 | TELECONFERENCED | |
| += | SB 92 | TELECONFERENCED | |
| + | SB 158 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 8, 2018
9:01 a.m.
9:01:58 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Peter Micciche
Senator Donny Olson
Senator Gary Stevens
Senator Natasha von Imhof
MEMBERS ABSENT
None
ALSO PRESENT
Rachel Hanke, Staff, Senator Peter Micciche; Commander
Graham Lanz, United States Coast Guard, Juneau; Kristin
Ryan, Director, Division of Spill Prevention and Response,
Department of Environmental Conservation, Juneau; Fabienne
Peter-Contesse, homeowner, Juneau.
SUMMARY
SB 92 VESSELS: REGISTRATION/TITLES; DERELICTS
SB 92 was HEARD and HELD in committee for further
consideration.
SB 158 OIL/HAZARDOUS SUB.:CLEANUP/REIMBURSEMENT
SB 158 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 92
"An Act relating to abandoned and derelict vessels;
relating to the registration of vessels; relating to
certificates of title for vessels; relating to the
duties of the Department of Administration; relating
to the duties of the Department of Natural Resources;
establishing the derelict vessel prevention program;
establishing the derelict vessel prevention program
fund; and providing for an effective date."
9:03:02 AM
Co-Chair MacKinnon directed attention to SB 92. she relayed
that the committee had heard the bill on March 1, 2018;
public hearing had been opened and closed.
Vice-Chair Bishop MOVED to ADOPT proposed committee
substitute for SB 92, Work Draft 30-LS0481\U (Bruce,
3/7/18).
RACHEL HANKE, STAFF, SENATOR PETER MICCICHE, stated that
most of the changes to the bill were technical. She
discussed the substantive changes detailed on "Explanation
of Changes Ver.O to Ver.U"(copy on file):
16. Page 13, Lines 19, 20: Rewrites to read "develop
and maintain a publicly available database of known
derelict vessels in the state." This clarifies that
this database is only for existing derelict vessels
and not for all vessels.
17. Page 13, Line 31: Adds new subsection (4), which
allows the fund to be used to pay for administration
costs.
18. Page 14, Lines 11-28: Adds new subsection that
grants departments, municipalities and peace officers
to enforce the chapter.
9:05:26 AM
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, it was so ordered.
9:05:54 AM
Ms. Hanke gave a high-level overview of the bill. She
detailed that SB 92 rewrote AS 30.30, which had been
largely unchanged since the 1970s. She said that the bill
would make procedures for dealing with derelict vessels
through the state clear for local governments, strengthened
vessel owners due process rights, expanded current boat
registration to capture U.S. Coast Guard documented vessel
and barges, allowed for the titling of vessels, and created
a Derelict Vessel Program Prevention Fund. The revenue
sources for the fund were the barge registration funds,
titles, federal receipts, donations, vessel sales under the
chapter, and civil penalties. The fund would pay for
establishment and administration of the Derelict Vessel
Prevention Program, education and community outreach, an
advisory council, and the Derelict Vessel data base. The
fund may pay for reimbursement costs of vessel removal on
state and municipal property, development and
implementation of programs to incentivize compliance with
the chapter, subsidizing Derelict Vessel Prevention Program
projects, and fund administration.
9:07:19 AM
Senator Stevens understood that the requirement for a title
did not include a requirement for small boats such as
skiffs. He wondered whether there was a size threshold
included in the legislation.
Ms. Hanke stated that all boats required to register would
be titled.
Senator Stevens asked again whether the bill excluded
vessels such as skiffs.
Senator Micciche stated that all motorized boats and barges
would be required to register and have a title. He stated
that he was working with the Department of Motor Vehicles.
He said that the bill did not include vessels like canoes.
All motorized vessels were required to have a title.
Senator Stevens asked whether a skiff with an outboard
motor (and moved by a trailer) would be included in the
requirement. He asserted that the danger of a skiff sinking
and causing problems was not equivalent to the danger cause
by a fishing boat or barge. He wondered whether there
should be an exclusion for smaller vessels.
Senator Micciche thought the topic was worthy of discussion
and noted that excluding smaller vessels would shrink the
size of the fund. He thought that smaller vessels could
sometimes be part of the problem. He reiterated that the
issue was worth consideration but would remove a
significant amount of the funding for the fund.
9:11:12 AM
Senator Stevens wondered what the requirements under the
bill would be to register a Boston Whaler.
Senator Micciche explained that the bill would add $2 per
year to the registration fee, as well as a one-time $20
title fee that would extend for as long as the person
registering owned the boat.
9:12:02 AM
Co-Chair Hoffman asked whether the cost would be the same
for an 18-foot skiff and a large yacht.
Senator Micciche replied in the affirmative.
Ms. Hanke stated that all boat registration would cost $30
under the bill; except for barges, which would cost $75;
titling of vessels would be $20 across the board.
Co-Chair Hoffman thought the committee should consider
different fees for different sizes of vessels. He discussed
different size thresholds. He thought the bill should treat
the registration of various sizes of boats in an equitable
manner.
Senator Micciche agreed. He added that the current cost of
$24 was applied to all state registered vessels, regardless
of size. This would remain the same whether the bill passed
committee. He said that the legislation was largely
targeted at bigger vessels. He noted that the original
version of the bill had included a differential on cost and
well as an insurance requirement for larger vessels. He
thought that the $20 title fee could be augmented to
recognize vessel size.
Co-Chair Hoffman suggested setting policy now that
recognized the issue.
9:16:20 AM
Co-Chair MacKinnon recapped that there were boats in Alaska
waters that were abandoned and afloat and were sometimes
harming the environment and creating a safety hazard. She
concluded that the intent of the bill was to alleviate this
issue.
Senator Micciche added that there were thousands of vessels
that were derelict and abandoned, and the problem affected
the entire state. He detailed that there were 3,100 vessels
between 28 feet and 59 feet that were more than 45 years
old, which he believed was a precursor to future problems.
He reiterated that the bill was largely targeted at larger
vessels. He argued that knowing who owned vessels would
help to deal with derelict vessels before they sink.
Co-Chair MacKinnon noted that Senator Micciche was open to
suggestions. She discussed derelict cars and trucks, for
which individuals were held accountable, and thought that
the issue was similar.
9:20:01 AM
Senator Stevens expressed concern about the definition of
"derelict" and wondered what criteria would be used to
determine whether a vessel was derelict.
Senator Micciche said that you could tell that vessels were
derelict by looking at them. He reiterated that it was
important that vessels owners be known in order to hold
derelict vessel owners accountable. He argued that the bill
provided a method for dealing with the problem before it
became expensive for the state.
Co-Chair MacKinnon stated that she wanted the committee to
provide a clear definition of derelict vessels.
9:24:08 AM
COMMANDER GRAHAM LANZ, UNITED STATES COAST GUARD, JUNEAU,
explained that the Coast Guard did not have a definition
for derelict or abandoned vessels. He stated that the Coast
Guard regulated vessels on their intended service.
Co-Chair MacKinnon used the analogy of overdue parking
fines.
Senator Micciche thought the definition of the term
derelict was present in the bill.
Ms. Hanke stated that Section 22 on page 12 of the bill
provided various situations in which a vessel would be
considered derelict.
Vice-Chair Bishop asked whether the Coast Guard had
protocol for what determined whether a vessel was
seaworthy. Theoretically, a derelict vessel could be made
seaworthy again with enough work and a reinspection.
Commander Lanz answered in the affirmative. He added that
the Coast Guard would not make the decision on whether a
boat was no longer fixable, just when it was no longer safe
to get underway.
9:27:26 AM
Co-Chair MacKinnon directed Senator Micciche to work with
Senator Stevens on language defining derelict. She asked
Senator Stevens to provide feedback on the language already
found in Section 22.
Senator Micciche thought the section suggested that if the
vessel was in immediate danger of sinking, had already
sunk, or if ownership could not be determined, it would be
considered derelict.
Co-Chair MacKinnon supported the bill. She referenced page
12, lines 8 and 9, which cited environmental concerns as a
factor for defining derelict vessels. She thought that the
bill could be clearer in the issue.
9:29:43 AM
Senator von Imhof recalled previous testimony that
referenced derelict versus abandoned vessels. She stated
that there were different consequences for derelict vessel
and abandoned vessels.
Co-Chair MacKinnon supported the concept of a tiered
approach to fees as suggested by Co-Chair Hoffman. She felt
that lager vessels were more likely to cause public safety
issues than smaller vessels.
Senator Micciche stated that separating the definition of
derelict from abandoned had no function. He felt that
either way the vessel would need to be dealt with and the
legislation would provide additional tools to deal with
those vessels. He admitted that there was further work to
be done on the bill.
SB 92 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 158
"An Act relating to oil and hazardous substances and
waiver of cost recovery for containment and cleanup of
certain releases; and providing for an effective
date."
9:33:39 AM
KRISTIN RYAN, DIRECTOR, DIVISION OF SPILL PREVENTION AND
RESPONSE, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, JUNEAU,
discussed SB 158. The bill would offer cost recovery to
homeowners when they had a release of oil of hazardous
substance from equipment used for space heating or
electrical power generation. Current statutes require the
Department of Environmental Conservation to seek complete
cost recovery for cleaning up spilled petroleum or other
hazardous substances. This can deter homeowners from
reporting or cooperating with the department when they
experience a spill at their home, such as a spill from a
heating oil tank. She added that the language of the bill
had been crafted specifically for small homeowners that due
to lack of expertise were least able to deal with a spill.
9:37:42 AM
Ms. Ryan discussed the fiscal impact of the bill. She said
that costs related to spills ranged from $200 to $4,000.
She believed that guidance from the department was cost
effective. She stated that the money currently collected
from cost recover went into the Prevention Account, which
was utilized by the legislature to provide the division's
annual operating costs. She relayed that several other
sources of funds that went into the account would be
adequate to cover costs into the future. She felt that the
reduction in revenue was worth the value that would be
gained by cleaning up the environment and helping
individuals through a stressful situation.
9:39:55 AM
Senator von Imhof noted that she had heard the bill in the
Senate Resources Committee. She recalled testimony that had
clarified the reticence of homeowners to contact the
department because of the financial repercussions. She
asked how much the fuel tax the division received.
Ms. Ryan replied that the division received $.095 per
gallon.
Co-Chair MacKinnon clarified that the question was how much
was received in total on an annual basis.
Ms. Ryan stated that there were 2 sources of monies that
went to the fund. One was the $.095 per gallon for refined
fuel, which she believed would end up generating $6 million
per year; additionally, there was a $.04 per barrel tax
from Trans-Alaska Pipeline System (TAPS). Because of
declining production, there had been a decline in the
revenue, which had prompted the refined fuel tax.
9:41:54 AM
Vice-Chair Bishop asked about the release amount that
constituted a recordable spill.
Ms. Ryan stated that the amount varied depending on the
receiving environment. She stressed that all spills should
be reported to the division. She said that water spills
should be reported immediately, land spills were less
immediate depending on size. She relayed that large
companies on the North Slope provided a monthly report of
spills, rather than reporting each minor spill.
Co-Chair MacKinnon asked Ms. Ryan to walk through the
Sectional Analysis.
Ms. Ryan addressed the Sectional Analysis (copy on file):
Section 1 (Page 1, lines 4 -8): provides an exception
to existing mandatory cost recovery requirements.
Section 2 (Page 1, line 9 13): allows the Department
to adopt regulations to waive cost recovery efforts in
situations defined by the proposed legislation.
Section 3 (e) (Page 1, line 14 Page 2 line 16):
Establishes reasons the Department may waive cost
recovery efforts. The Department must find the release
was from a home or building with four or fewer housing
units; the release was not willful and was reported to
the Department immediately; the homeowner took
immediate measures to stop and contain the release;
and the homeowner granted access to the property and
is cooperative.
Section 4 (Page 2, lines 17-22): establishes the
ability for the Department to adopt regulations.
Section 5 (Page 2, lines 23-26): makes sections 1-3 of
the legislation retroactive to January 2018.
Section 6 (Page 2, line 27): allows the Department to
adopt regulations under section 4 immediately.
9:44:06 AM
Senator Stevens asked for an explanation of the term "small
homeowners."
Ms. Ryan explained that any sized home would meet the
exemption requirement.
Co-Chair MacKinnon referenced Ms. Ryan's comments about
unexpected exemptions. She requested further details.
Ms. Ryan stated that the most significant exemption was
municipalities that provided fuel for heat generation. She
recalled that the initial fiscal note had assumed $7.6
million would be generated, which had dropped to $6
million. She said that the most significant exemptions had
been for municipalities and power generation in villages.
Ms. Ryan stated that there was a section in statute that
spoke to the exemptions.
Co-Chair MacKinnon asked whether there was spills in
municipalities that the state was responsible for.
Ms. Ryan affirmed that there wherever there was fuel used
there would be spills. She said that the first goal was to
have the responsible party address the problem.
9:47:08 AM
Co-Chair MacKinnon OPENED public testimony.
9:47:28 AM
FABIENNE PETER-CONTESSE, HOMEOWNER, JUNEAU, testified in
support of the bill. She recounted that she had an
underground fuel spill at her home and had immediately
called Department of Environmental Conservation. She
detailed her process working with the department. She had
spent many tens of thousands of dollars to mitigate the
problem. She lamented that homeowner's insurance did not
cover her spill. She expressed appreciation for the ease
with which the department's staff had worked with her. She
revealed that overtime she began to receive bills for the
day to day operations of the division. She felt that the
billing of the public put a barrier between the public and
the department. She shared that she had recently received a
letter and expected that she would receive a bill for them
having written the letter. She expressed concern for people
who would be financially burdened for clean up efforts, on
top of the stress of dealing with the spill. She encouraged
full support of the legislation.
9:51:52 AM
Vice-Chair Bishop appreciated the testimony. He related
that he had heard similar stories from constituents.
Co-Chair MacKinnon CLOSED public testimony.
Vice-Chair Bishop discussed FN 1 from Department of
Environmental Conservation, OMB component number 3094. He
believed that the division had effectively explained the
note.
Senator Micciche supported the bill. He asked whether DEC
had increased its outreach to the public about the program
and spill prevention measures.
Ms. Ryan stated that the division had spent quite a bit of
time at home building association meetings and various
fairs that highlighted home products. She discussed the
concept of increasing prevention and noted that most spills
were occurring where fuel was stored in large volumes. She
said that the division only regulated tanks of 420,000
gallons or larger and had not role in prevention regualtion
below that threshold. She stated that regulation was
recently drafted that would require tanks below that
threshold, down to 13,000 gallons, to register with the
division. She believed that building relationships through
providing technical assistance would improve the dialogue
surrounding the maintenance of tanks.
9:56:18 AM
Ms. Ryan shared that the goal was setting standards in
regulation but thought this would be difficult to apply
universally throughout the state because of varied resource
availability in different areas of the state.
SB 158 was HEARD and HELD in committee for further
consideration.
9:58:08 AM
Co-Chair MacKinnon informed that amendments to the bill
were due by 5:00 p.m. on the following Friday.
ADJOURNMENT
9:58:53 AM
The meeting was adjourned at 9:58 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB158 Sectional Analysis.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 158 |
| SB158 Supporting Document-DEC Fact Sheet.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 158 |
| SB158 Transmittal Letter.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 158 |
| SB 92 J. Murgas SFIN written testimony.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 92 |
| SB 92 Explanation of Changes Ver. O to Ver. U.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 92 |
| SB 92 FAQ Sheet.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 92 |
| SB 92 Work Draft Version U.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 92 |
| SB 92 Support Doc - Northern Economics 2015 Survey Summary.pdf |
SFIN 3/8/2018 9:00:00 AM |
SB 92 |