Legislature(2001 - 2002)

06/07/2001 02:56 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                     ALASKA STATE LEGISLATURE                                                                                   
                  SENATE TRANSPORTATION COMMITTEE                                                                             
                           June 7, 2001                                                                                         
                             2:56 p.m.                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
Senator John Cowdery, Chair                                                                                                     
Senator Jerry Ward, Vice Chair                                                                                                  
Senator Robin Taylor                                                                                                            
Senator Gary Wilken                                                                                                             
Senator Kim Elton                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All Members Present                                                                                                             
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR HOUSE BILL NO. 260(FIN) am                                                                                               
"An Act  requiring  the owners  or operators  of certain  commercial                                                            
passenger  vessels operating  in the marine  waters of the  state to                                                            
register  with   the  Department   of  Environmental  Conservation;                                                             
establishing  information-gathering,  record keeping, and  reporting                                                            
requirements relating  to the vessels' graywater,  sewage, hazardous                                                            
substances,  hazardous wastes, solid  wastes, and other pollutants;                                                             
establishing  certain  sampling,  testing,  reporting,  and  record-                                                            
keeping  requirements   as  terms   and  conditions  of   permitting                                                            
discharges   from  the  vessels;   authorizing  the  Department   of                                                            
Environmental  Conservation to provide for independent  verification                                                            
of  compliance  by  the  vessels,  and  to  monitor   and  supervise                                                            
discharges from the vessels;  prohibiting the discharge of untreated                                                            
sewage from  the vessels;  placing limits  on discharges of  treated                                                            
sewage and  graywater from the vessels;  providing that there  is no                                                            
audit report  privilege for  complying with  a requirement  that the                                                            
owner  or operator  of a  commercial  passenger vessel  must  report                                                            
discharges of sewage or  graywater that violate laws; establishing a                                                            
fee, ranging from  $.70 - $1.75 per berth, with a  maximum of $3,750                                                            
per voyage,  on commercial passenger  vessels that are not  operated                                                            
by the  state for each  voyage during which  the vessels operate  in                                                            
the marine waters of the  state based on the overnight accommodation                                                            
capacity of the  vessels determined with reference  to the number of                                                            
lower berths; providing  for a fee for vessels operated by the state                                                            
to  be determined   by an  agreement  between  the  commissioner  of                                                            
environmental  conservation and the  commissioner of transportation                                                             
and public facilities;  authorizing the Department  of Environmental                                                            
Conservation   to  research,  monitor,  and  study  discharges   and                                                            
releases from  commercial passenger  vessels, including the  opacity                                                            
of  air emissions  from  the  vessels;  establishing  penalties  for                                                            
failure  to  comply  with certain  laws  relating  to  the  vessels;                                                            
authorizing   the  Department  of   Environmental  Conservation   to                                                            
encourage and  recognize superior  environmental protection  efforts                                                            
related to commercial passenger  vessels; authorizing the Department                                                            
of Environmental  Conservation  to  adopt regulations  to  implement                                                            
laws relating  to  commercial passenger  vessels  and directing  the                                                            
department   to   use   negotiated   regulation   procedures,   when                                                            
appropriate, to  develop the regulations; establishing  a commercial                                                            
passenger vessel  coastal protection  fund; requiring a report  from                                                            
the  Department of  Environmental  Conservation  concerning  matters                                                            
relating to the vessels; and providing for an effective date."                                                                  
     MOVED SCS CSHB 260(TRA) OUT OF COMMITTEE                                                                                   
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                              
                                                                                                                                
HB 260 - See Transportation minutes dated 5/6/01.                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
Mr. Bill Wolf                                                                                                                   
Assistant to Senator Frank Murkowski                                                                                            
United States Senate                                                                                                            
322 Hart Building                                                                                                               
Washington, DC 20510-0202                                                                                                       
POSITION STATEMENT:  Explained  the provisions of the federal cruise                                                          
ship discharge legislation.                                                                                                     
                                                                                                                              
Lt. Commander Spencer Wood                                                                                                      
Vessel Compliance                                                                                                               
17th Coast Guard District                                                                                                       
Juneau, AK  99801                                                                                                               
POSITION STATEMENT:  Answered  questions about SCS CSHB 260(TRA) and                                                          
the Coast Guard's operations.                                                                                                   
                                                                                                                                
Lt. Commander Mike Tousley                                                                                                      
Assistant Legal Officer                                                                                                         
17th Coast Guard District                                                                                                       
Juneau, AK  99801                                                                                                               
POSITION STATEMENT:  Answered  questions about SCS CSHB 260(TRA) and                                                          
the Coast Guard's operations.                                                                                                   
                                                                                                                              
Commissioner Michele Brown                                                                                                      
Department of Environmental Conservation                                                                                        
410 Willoughby Ave. Ste. 105                                                                                                    
Juneau, AK  99801-1795                                                                                                          
POSITION STATEMENT: Answered  questions regarding SCS CSHB 260(TRA).                                                          
                                                                                                                                
Mike Conway, Director                                                                                                           
Division of Statewide Public Service                                                                                            
Department of Environmental Conservation                                                                                        
410 Willoughby Ave. Ste. 105                                                                                                    
Juneau, AK  99801-1795                                                                                                          
POSITION STATEMENT: Answered  questions regarding SCS CSHB 260(TRA).                                                          
                                                                                                                                
Mr. Mike Harcourt                                                                                                               
Oceans Blue Foundation                                                                                                          
405-134 Abbott St.                                                                                                              
Vancouver, B.C.  V6B2K4                                                                                                         
POSITION  STATEMENT:  Expressed  support for  cruise ship  discharge                                                          
legislation.                                                                                                                    
                                                                                                                                
Randy Ray, President                                                                                                            
U.S. Cruiseship Association                                                                                                     
P.O. Box 979                                                                                                                    
Mercer Island, WA  98040                                                                                                        
POSITION  STATEMENT:  Expressed  support for  cruise ship  discharge                                                          
legislation and requested SCS CSHB 260(TRA) be amended.                                                                         
                                                                                                                                
John Palmes                                                                                                                     
No address provided                                                                                                             
Juneau, AK  99801                                                                                                               
POSITION STATEMENT: Believes  that SCS CSHB 260(TRA) is unnecessary.                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 01-19, SIDE A                                                                                                            
Number 001                                                                                                                      
                                                                                                                                
                                                                                                                                
[THE FOLLOWING IS A VERBATIM TRANSCRIPT.]                                                                                       
                                                                                                                                
CHAIRMAN  JOHN COWDERY:  ...about 2:56  on the 7th  of June.   Today                                                          
we're hearing  testimony on the cruise ship bill.   I'd just like to                                                            
say early on that I've  done quite a bit of work on this bill when I                                                            
was back  East with my wife  who is doing  quite well.  I  contacted                                                            
Senator Leman,  as well as  my staff, three  or four times a  day at                                                            
times to try to work on  this subject and did extensive work on this                                                            
bill.  The  first thing I'd  like to adopt  - a motion to  adopt the                                                            
committee substitute.                                                                                                           
                                                                                                                                
SENATOR  WARD:  Mr.  Chairman,  I  would  move  to  adopt  SCS  CSHB
260(TRA), Version R, along  with the accompanying [fiscal] notes and                                                            
ask unanimous consent.                                                                                                          
                                                                                                                                
CHAIRMAN COWDERY:  Hearing  no objections, so moved.  We're going to                                                            
hear  today -  I'd like  to note  that we  have a  quorum here  too,                                                            
Senator Wilken, Senator  Ward and myself and I see Senator Elton and                                                            
Senator Taylor  in the hall just coming  inside, so with  that we'll                                                            
move along.  I apologize  for the wait and the witnesses that had to                                                            
wait for this  but this is a very  important issue so we  had a more                                                            
important  issue that  we dealt with  in the  Judiciary -  certainly                                                            
more important  than this. But anyway, here we are  and the first up                                                            
- I notice  the Coast Guard has been  here and I'd like to  ask them                                                            
to come forward  and identify themselves  and, if I could,  before I                                                            
get to you, I  just got notice that Senator Murkowski's  staff is on                                                            
line so as a courtesy to  them - it's 7 or 8 o'clock back there now.                                                            
Bill Wolf, are you there?                                                                                                       
                                                                                                                                
MR. BILL WOLF,  congressional aide  to Senator Murkowski:   Yes, Mr.                                                            
Chairman, I'm here.                                                                                                             
                                                                                                                                
CHAIRMAN  COWDERY:  Okay,  if you  could give  a brief statement  on                                                            
Senator Murkowski's behalf I'd appreciate it.                                                                                   
                                                                                                                                
MR.  WOLF:   All right,  thank  you  Mr. Chairman.    It's always  a                                                            
pleasure to  visit with members of  the Legislature.  I've  had that                                                            
opportunity  several times  in my career  back here.   I did  not, I                                                            
will  confess,  come prepared  to  make  much of  a statement.    My                                                            
purpose in being with you  at Senator Murkowski's request is to make                                                            
myself  available basically  to answer  any questions  that you  may                                                            
have  on the  purpose and  scope  of the  federal  legislation.   As                                                            
everyone I think knows,  Senator Murkowski took the lead on crafting                                                            
federal legislation  to address the wastewater issue  that came to a                                                            
head over the last couple  of years.  Although we began with various                                                            
parties expressing various  degrees of concern, we ended with a bill                                                            
that  all  of the  major  parties,  all  of  the  different  federal                                                            
agencies that  are involved, the state, the environmental  community                                                            
and the  industry, all agreed  was a good  approach. And so,  if you                                                            
have questions on that, I'd be pleased to answer them.                                                                          
                                                                                                                                
CHAIRMAN COWDERY:  Yes, Senator Ward.                                                                                           
                                                                                                                                
SENATOR WARD:   Can you just briefly outline what  point the Senator                                                            
was trying  to get across in the letter  that he sent to  all of us?                                                            
                                                                                                                                
MR. WOLF:   Yes,  Mr. Chairman.   We've been  following, with  great                                                            
interest,  the press  on this subject  because of  the history  this                                                            
office has with it.  It  appeared clear to us in doing so that there                                                            
were some  misunderstandings.   There  was not a  clear picture,  we                                                            
felt, of the scope and  extent of the federal legislation as to what                                                            
it did  and didn't  do and so  forth.  Senator  Murkowski  obviously                                                            
knew you all  were moving into a special  session.  It has  gotten a                                                            
great  deal  of  attention.    This  is  a  crucial  -  both  as  an                                                            
environmental  matter and as an economic matter and  we wanted to be                                                            
sure  that there  was  a clear  understanding  of what  the  federal                                                            
legislation  actually accomplishes  in  the hope  that would  better                                                            
inform the  deliberations that you're  going to be undertaking  here                                                            
today.                                                                                                                          
                                                                                                                                
SENATOR WARD:   Thank you.  Mr. Chairman, just  a follow up  on that                                                            
and then  I assume the  Coast Guard  will be able  to fill us  in on                                                            
exactly what those misunderstandings may be or did you want to?                                                                 
                                                                                                                                
CHAIRMAN COWDERY:   I'd prefer that the Senator's  staff do that.  I                                                            
don't think  we should put the Coast  Guard on - make an  opinion on                                                            
what that ....                                                                                                                  
                                                                                                                                
MR. WOLF:  Mr. Chairman,  if I may, I don't have a full set of press                                                            
clippings in front  of me to point out every little  thing but I can                                                            
give  you one  example  off  of the  top  of my  head.   One  writer                                                            
suggested  that there was  no control over  hazardous waste  and, in                                                            
fact, there is.   We have a situation and let me describe  - perhaps                                                            
it would be helpful  if I described in a little bit  greater detail.                                                            
As we went in  to this, we had a situation in which  certain vessels                                                            
had been  found to be  discharging unacceptable  materials  in their                                                            
wastewater.   We also  had a  situation where  allegations had  been                                                            
made  that vessels  were being  directed  into the  so-called  donut                                                            
holes,  the small  enclaves  of  federal  waters that  are  actually                                                            
within the  Alexander Archipelago,  to discharge  untreated  sewage.                                                            
Both of  those things are  just intolerable  and unacceptable  so we                                                            
undertook to address them.                                                                                                      
                                                                                                                                
At that  time,  and to  the best  of my  knowledge,  still the  only                                                            
issues of illegal  discharge have involved wastewater  discharges of                                                            
one type or another.  As  we began to address it, we discovered that                                                            
the issues  we were  trying to look  at could  be broken into  three                                                            
basic parts:  there's the  issue of untreated  sewage, the  issue of                                                            
treated sewage,  and the issue of  graywater.  Hazardous  materials,                                                            
toxic  chemicals, such  as photo-processing  chemicals  or  solvents                                                            
used in dry cleaning,  were and are and will continue  to be illegal                                                            
under  federal  law  as  inclusions  in  wastewater.    One  of  the                                                            
companies  that ended  up paying  a substantial  penalty was  caught                                                            
because  of the federal  Clean  Water Act, other  regulations  under                                                            
which those  types of discharges  are already  illegal.  So  what we                                                            
dealt with  were the types  of discharges  that were of concern  but                                                            
had not  yet been  addressed  by federal  law and  I've named  those                                                            
three.  Raw  sewage  was addressed  very  simply  by  outlawing  the                                                            
discharge  of raw  sewage  in the  waters of  the  state of  Alaska,                                                            
including  the  federal   waters  that  are  within  the   Alexander                                                            
Archipelago  or occur  in the Kachemak  Bay  estuary preserve  area,                                                            
which also has  some federal waters.  Treated sewage  has a standard                                                            
that should be adhered  to in federal law already.  It is a standard                                                            
that was established  for the operation of Type 2  marine sanitation                                                            
devices.  As  an interim measure,  because there is no science  that                                                            
we  are aware  of  that examines  in  detail  the effects  of  those                                                            
discharges on  marine organisms, we chose to adopt  the standard for                                                            
the Type 2 MSD.  Graywater,  again there are no standards other than                                                            
saying  that it  is illegal  to put  chemicals and  salts and  those                                                            
sorts  of  things  in it.    For graywater,  additional   scientific                                                            
analysis  is needed  we feel.   And so,  in both  of the latter  two                                                            
cases,  our bill  directs  the Environmental  Protection  Agency  to                                                            
continue a  study that it already  has ongoing - do the science  and                                                            
come up  with appropriate  regulations  based  on the environmental                                                             
concerns that are revealed  by the scientific analysis and the types                                                            
of materials  that  can be  found in  these two  different types  of                                                            
discharge.                                                                                                                      
                                                                                                                                
CHAIRMAN  COWDERY:   Thank  you.   When  I first  got  this bill,  I                                                            
studied  what Senator  Murkowski had  done and -  you know,  the old                                                            
political  statement of, if  it isn't broken,  don't fix it  - and I                                                            
didn't ever  see and still don't understand  what is really  broken.                                                            
I know  that  we've had  testimony  - the  last time,  or I've  been                                                            
reading in  the paper, there's been  a lot of press on this,  sold a                                                            
lot of newspapers,  that we need this just because  of the couple of                                                            
incidents where  there were illegal  discharges recently.   Well, in                                                            
my opinion,  it was taken  care of timely.   The Coast Guard  was on                                                            
top of it.  They did their  job.  I think they're the best suited to                                                            
do  this  and   having  other  laws,   or  another  body,   to  have                                                            
jurisdiction over this,  I fail to see where that would have stopped                                                            
anything.  The  illegal discharges were taken care  of.  They should                                                            
have been taken  care of but, anyway, that's just  a statement on my                                                            
part.  Do you have anything else or do you want to standby?                                                                     
                                                                                                                                
MR. WOLF:   Mr. Chairman, I'd be happy  to stand by if you  have any                                                            
other questions.   I think  that pretty well  covers, although  very                                                            
basically,  the bulk of  the bill -  at least that  part of  it that                                                            
pertains to  actual discharges.  Obviously  the bill contains  other                                                            
provisions providing  for substantial administrative,  civil and, in                                                            
some cases, criminal  penalties if those are required.   It contains                                                            
language  that  directs  the  Coast  Guard  and  the  Environmental                                                             
Protection  Agency to  work together  to sample  and test  effluents                                                            
from cruise  ships, wastewater discharges  from cruise ships  and to                                                            
respond appropriately.   There  are provisions,  also I would  note,                                                            
that specifically  allow  the state  to take what  action the  state                                                            
deems appropriate.  That pretty well covers it.                                                                                 
                                                                                                                                
CHAIRMAN COWDERY:  Okay,  thank you, and if you would stand by there                                                            
may be some  questions and  feel free to interrupt  if you  have any                                                            
comments.  I'd like to  go now - we have two gentlemen here from the                                                            
Coast Guard.   If you'd identify yourself  and make a brief  opening                                                            
statement and then we will maybe have some questions.                                                                           
                                                                                                                                
LIEUTENANT COMMANDER  MIKE TOUSLEY, United States  Coast Guard, 17th                                                            
District:   Mr. Chairman, Senators,  I'm Lt. Commander Mike  Tousley                                                            
and I'm with the Coast Guard District legal office.                                                                             
                                                                                                                                
LIEUTENANT COMMANDER  SPENCER WOOD, United States  Coast Guard, 17th                                                            
District:   Senator  -  Lt. Commander  Spencer  Wood  with the  17th                                                            
District Coast Guard Office  here in Juneau and I have been co-chair                                                            
of the Wastewater  Group for the Alaska  Cruise Ship Initiative  for                                                            
the last two years.                                                                                                             
                                                                                                                                
CHAIRMAN COWDERY:   Thank you.  I'll start it off,  if I could ask a                                                            
few questions.   I don't expect you  to get involved in opinions  or                                                            
anything, but  I would like to ask, do the Coast Guard  ships comply                                                            
with the  provisions -  presently comply  with these provisions  for                                                            
sanitary systems that we're trying to achieve?                                                                                  
                                                                                                                                
LT. COMMANDER  WOOD:  Mr. Chairman, Coast Guard cutters  have Type 2                                                            
marine sanitation  devices  on board that meet  the standards  in 33                                                            
CFR 159, which are the 200 and 150.                                                                                             
                                                                                                                                
CHAIRMAN COWDERY:   All Coast Guard  ships will comply then  or just                                                            
part of them?                                                                                                                   
                                                                                                                                
LT. COMMANDER WOOD:  All Coast Guard cutters comply, yes sir.                                                                   
                                                                                                                                
CHAIRMAN COWDERY:  What about the Navy?                                                                                         
                                                                                                                                
LT. COMMANDER WOOD:  I can't speak to the Navy.                                                                                 
                                                                                                                                
CHAIRMAN COWDERY:   What about the large and small  fishing vessels?                                                            
Do they comply with this?                                                                                                       
                                                                                                                                
LT. COMMANDER  WOOD:  There are varying standards,  depending on the                                                            
size of the  fishing vessel.  Some  do and some don't.  The  smaller                                                            
ones don't.  They  typically have either a holding  tank onboard and                                                            
they  pump it  ashore  or they  get  outside of  areas  where it  is                                                            
allowed  to  be  dumped  -  discharged   -  and  they  discharge  it                                                            
untreated.                                                                                                                      
                                                                                                                                
CHAIRMAN COWDERY:   But they do -  the question is, if this  bill is                                                            
adopted,  would they -  to your  knowledge would  the large  and the                                                            
small ones comply  or would they have to do work to  make it comply?                                                            
                                                                                                                                
LT. COMMANDER  WOOD:  Would they comply with the bill  that's before                                                            
you sir?                                                                                                                        
                                                                                                                                
CHAIRMAN COWDERY:  Yes.                                                                                                         
                                                                                                                                
LT. COMMANDER WOOD:  Fishing vessels, no.                                                                                       
                                                                                                                                
CHAIRMAN COWDERY:   Does the Coast Guard - have they  checked all of                                                            
the  Alaska Marine  Highway  vessels regarding  the  gray and  black                                                            
water for standards.                                                                                                            
                                                                                                                                
LT. COMMANDER WOOD:  No.                                                                                                        
                                                                                                                                
CHAIRMAN COWDERY:  Who has jurisdiction over the Alaska waters?                                                                 
                                                                                                                                
LT. COMMANDER  WOOD:  Out  to three miles,  the State of Alaska  has                                                            
jurisdiction,  and  the federal  government  has jurisdiction.    It                                                            
depends on what laws you're speaking to.                                                                                        
                                                                                                                                
LT. COMMANDER TOUSLEY:   From the three miles - or from the baseline                                                            
out to 200 miles, the federal government has jurisdiction.                                                                      
                                                                                                                                
CHAIRMAN COWDERY:  Or the Coast Guard or the Navy or whoever.                                                                   
                                                                                                                                
LT. COMMANDER TOUSLEY:  Yes, sir.                                                                                               
                                                                                                                                
SENATOR WARD:  Mr. Chairman, the baseline?                                                                                      
                                                                                                                                
LT. COMMANDER TOUSLEY:  The baseline is mean low water.                                                                         
                                                                                                                                
CHAIRMAN COWDERY:   Do you see - I don't want to get  you in a tight                                                            
spot  - I know  our  good Representative  congressman  has  recently                                                            
appropriated a  lot of money for the Coast Guard to  bring - it will                                                            
be well spent and I'm sure  you appreciate that but - do you see any                                                            
duplicate  efforts between  the federal law,  or the Murkowski  bill                                                            
and this present HB 260?                                                                                                        
                                                                                                                                
LT.  COMMANDER TOUSLEY:    I think  the  two bills  complement  each                                                            
other.   There  are  things in  the state  legislation  that  aren't                                                            
accomplished in the federal legislation.                                                                                        
                                                                                                                                
CHAIRMAN  COWDERY:  One  last question  on my part.   When will  the                                                            
proposed  federal regulations  of the Murkowski  bill be in  effect?                                                            
Do you know?                                                                                                                    
                                                                                                                                
LT. COMMANDER  WOOD:  Well,  the Title 14  legislation is in  effect                                                            
right now - as of December  21st.  There are self-executing portions                                                            
of that Murkowski  legislation, which the cruise ships  have to meet                                                            
today -  right now.  And  then there are  sections of Title  14 that                                                            
require promulgation  of regulations  in order to implement.   We've                                                            
just  gone through  the proposed  rulemaking  process.   The  public                                                            
comment  closed on that  on May  25th and we're  now completing  the                                                            
packet for the  final rule.  We expect that to complete  the process                                                            
by  mid-July  and when  it  is published  -  we  expect that  to  be                                                            
published and enforceable on the date of publication.                                                                           
                                                                                                                                
CHAIRMAN COWDERY:  Thank  you.  Are there any other questions of the                                                            
Coast Guard?  Senator Taylor.                                                                                                   
                                                                                                                                
SENATOR TAYLOR:   Recently  we had a tour  ship in Southeast  Alaska                                                            
that turned itself in.   It made some press.  It was rumored that it                                                            
could suffer  a fine of up  to $25,000.   Was that on inside  waters                                                            
where that boat  was located and, if so, can you tell  me about that                                                            
incident?                                                                                                                       
                                                                                                                                
LT. COMMANDER  WOOD:  There  were actually  two incidents.   I think                                                            
the one  you're referring  to was a vessel  headed toward  Ketchikan                                                            
from Juneau,  it was underway at the  time.  That vessel  was in the                                                            
old donut holes - beyond  three miles but still within the Alexander                                                            
Archipelago.   We had  received a  letter from  that company  saying                                                            
that they would hold their  wastes while in the applicable waters of                                                            
Alaska and  that they would  only pump those  beyond the  three-mile                                                            
limit  outside of  the Alexander  Archipelago.   They  had a  second                                                            
engineer  onboard that, for  some reason,  either thought they  were                                                            
beyond those waters  or, for whatever reason, started  the system up                                                            
and pumped treated  sewage while still within the  applicable waters                                                            
of Alaska.  As  soon as the company discovered that,  they shut that                                                            
down.  They  notified the Coast Guard.   We went down to  do samples                                                            
of the waste representative  of what they were discharging  and they                                                            
exceeded the parameters  in Title 14 and so civil  penalty action is                                                            
underway.                                                                                                                       
                                                                                                                                
SENATOR TAYLOR:  This was a vessel of more than 500 passengers?                                                                 
                                                                                                                                
LT. COMMANDER WOOD:  Yes sir.                                                                                                   
                                                                                                                                
SENATOR TAYLOR:   So it would fall both within [HB]  260 but it also                                                            
falls  - and  I'm assuming  at  that point  you were  enforcing  the                                                            
Murkowski law, weren't you?                                                                                                     
                                                                                                                                
LT. COMMANDER WOOD:  Yes sir.                                                                                                   
                                                                                                                                
Number 1210                                                                                                                     
                                                                                                                                
SENATOR  TAYLOR:   So  that law  is  not only  in effect,  but  it's                                                            
actually  being enforced  right now  on inside  waters in  Southeast                                                            
Alaska?                                                                                                                         
                                                                                                                                
LT. COMMANDER WOOD:  Yes sir.                                                                                                   
                                                                                                                                
SENATOR TAYLOR:   Is there any right  for anybody, under  federal or                                                            
state law,  to dump cleaning solvents  or processing chemicals  from                                                            
photographic ...?                                                                                                               
                                                                                                                                
LT. COMMANDER WOOD:  No sir.                                                                                                    
                                                                                                                                
SENATOR TAYLOR:  So, we're  not gaining anything by passing this law                                                            
- that one, because  you can't legally do that anyhow  today.  You'd                                                            
be fined under federal law, wouldn't you?                                                                                       
                                                                                                                                
LT.  COMMANDER TOUSLEY:    That's correct  but there  are  different                                                            
things  other than the  areas that  are otherwise  addressed  by the                                                            
federal legislation that  Mr. Wolf referred to that are in the state                                                            
legislation  that  otherwise  complement  the  federal legislation.                                                             
There's different stuff  besides that.  There's a greater assessment                                                            
scheme.  I  think that the federal  legislation is trying  to get at                                                            
more of an enforcement  scheme.  The state legislation  has that, as                                                            
well  as more  of an  assessment -  what is  going on,  what is  the                                                            
discharge  on a  vessel.   There's  some  uncertainty  as to  what's                                                            
there, and the state's  trying to capture data so they can determine                                                            
exactly what is  being discharged.  The federal statute  isn't after                                                            
that  assessment  portion   so  much  as  just  enforcement  of  the                                                            
standard.                                                                                                                       
                                                                                                                                
SENATOR TAYLOR:   But at least, under  those two vessels  that I was                                                            
inquiring about,  the Murkowski law is working and  having an effect                                                            
upon them?  And that was all on inside waters?                                                                                  
                                                                                                                                
LT. COMMANDER WOOD:  Absolutely sir.                                                                                            
                                                                                                                                
SENATOR  TAYLOR:    Did you  gentlemen  notice  an  article  in  the                                                            
newspaper here  in Juneau yesterday  that talked about more  than 50                                                            
percent of  the vessels who  may become subjected  to this  law have                                                            
already declared,  so to speak, publicly  that they would  be moving                                                            
offshore  now and dumping  the very same products  in the waters  of                                                            
the Pacific but  would do so offshore and they talk  about a 12 mile                                                            
area?                                                                                                                           
                                                                                                                                
LT.  COMMANDER WOOD:    Senator, Mr.  Chairman,  yes.   I read  that                                                            
article and  I'm also very familiar  with that issue.  We  currently                                                            
have 11  vessels that  are participating  in  the ongoing  voluntary                                                            
program  that was  established last  year and  continued this  year.                                                            
The remainder  of the vessels that come to Alaska  have opted not to                                                            
be involved  in  the voluntary  sampling  because  they are  holding                                                            
their  waste and  not discharging  it in  the applicable  waters  of                                                            
Alaska.   The reasoning that  I've heard from  them is that  we know                                                            
we're not meeting  the standard 100 percent of the  time through our                                                            
systems and so we've opted  to hold this waste until we get offshore                                                            
where we  can legally  dump it and  so, the point  of sampling  that                                                            
waste seems  moot because we know  the numbers are going  to be high                                                            
and  what  are  we  going  to learn  from  that?    That  was  their                                                            
reasoning.                                                                                                                      
                                                                                                                                
SENATOR TAYLOR:  Thank you very much.                                                                                           
                                                                                                                                
CHAIRMAN COWDERY:  Senator Ward.                                                                                                
                                                                                                                                
SENATOR WARD:  Thank you.   I just wanted to clarify something here.                                                            
You said that  all Coast Guard vessels in Alaska meet  the standards                                                            
under HB 260 as it currently is written.  Is that correct?                                                                      
                                                                                                                                
LT. COMMANDER  WOOD:  No, I think  I misunderstood the question.   I                                                            
thought you were speaking to the existing laws.                                                                                 
                                                                                                                                
SENATOR WARD:  No.  And,  so this is what I would like to know - are                                                            
the ships  that are currently  under the  jurisdiction of the  Coast                                                            
Guard, if  HB 260 was in  law today, would  they be in violation  of                                                            
the law?                                                                                                                        
                                                                                                                                
LT. COMMANDER  WOOD:  Senator and  Chairman,  as I read  the bill  I                                                            
understood those vessels to be exempted.                                                                                        
                                                                                                                                
SENATOR WARD:   All right, if I can maybe restate  it.  If they were                                                            
to come  under the  same rules  as we  are going  to put the  cruise                                                            
ships under  - you know, we the people  - the government  - own your                                                            
ships.   We the people  buy passage  on the other  ones. So,  if our                                                            
government-owned  ships were under the same regulations  as the ones                                                            
that the people  are buying tickets  on, would they be in  violation                                                            
today under HB 260?                                                                                                             
                                                                                                                                
LT.  COMMANDER WOOD:   No  sir, I  don't believe  they  would be  in                                                            
violation.                                                                                                                      
                                                                                                                                
SENATOR WARD:  So they  have this cleaning stuff already in them  or                                                            
do they go out to sea and dump?                                                                                                 
                                                                                                                                
LT. COMMANDER  TOUSLEY:  They do both, depending on  class and size.                                                            
                                                                                                                                
SENATOR WARD:   Okay.  Do you have any of them that  do not have the                                                            
capabilities of self cleaning  itself and have to go out 12 miles in                                                            
order to  be legal?   I need some  help here  because I'm trying  to                                                            
understand boats so you guys are it.  Are you both lawyers?                                                                     
                                                                                                                                
LT. COMMANDER WOOD:  Even  as a ship driver, generally, our rule was                                                            
if  we  had  sewage  waste,  it  was  beyond  three  miles  that  we                                                            
discharged  it because there  are variances  and whether or  not our                                                            
equipment is  working properly occasionally,  so our rule  was, just                                                            
to make sure that everything  was working right, that we went beyond                                                            
three  miles.   I'm  not  a  naval  engineer  so I  can't  tell  you                                                            
specifically ....                                                                                                               
                                                                                                                                
SENATOR WARD:   All right, then how  - just some common sense  stuff                                                            
here.  We're  going to tell these  guys you have to do some  certain                                                            
things  in order to  come into  our waters.   Do  we now have  Coast                                                            
Guard ships that  are going to go outside of the limit  because they                                                            
can't meet  those same criteria we're  putting on the cruise  ships?                                                            
                                                                                                                                
LT. COMMANDER  TOUSLEY:   Our  operations  will not  be modified  by                                                            
what's in HB 260.                                                                                                               
                                                                                                                                
CHAIRMAN COWDERY:  We understand that.                                                                                          
                                                                                                                                
SENATOR WARD:  That was not my question.                                                                                        
                                                                                                                                
CHAIRMAN COWDERY:  We understand you're exempt, but say if ....                                                                 
                                                                                                                                
LT. COMMANDER  TOUSLEY:    Even  absent the exemption  we would  not                                                            
have to modify our operations.                                                                                                  
                                                                                                                                
SENATOR WARD:  Would you  not - if I might, Mr. Chairman - would you                                                            
not modify  it because you are going  out to dump at sea  or because                                                            
you had the capability of taking care of it?                                                                                    
                                                                                                                                
LT.  COMMANDER TOUSLEY:    We don't  have  the same  clean  disposal                                                            
equipment that  would necessarily  be required for all of  what's in                                                            
[HB] 260.                                                                                                                       
                                                                                                                                
SENATOR WARD:   And what would it  cost the Coast Guard to  make all                                                            
their ships  the same as what we're  going to make the cruise  ships                                                            
do?  Rough ball park - how many ships do you have?                                                                              
                                                                                                                                
LT. COMMANDER  TOUSLEY:  That's a hard question, Senator.   I really                                                            
would -  it would be  millions sir,  just as  it's millions  for the                                                            
cruise vessels.                                                                                                                 
                                                                                                                                
SENATOR  WARD:  How  many millions?   We're  the state legislature,                                                             
millions don't bother us.                                                                                                       
                                                                                                                                
LT. COMMANDER TOUSLEY:  No idea.                                                                                                
                                                                                                                                
SENATOR WARD:  Would it be $30 million?                                                                                         
                                                                                                                                
CHAIRMAN  COWDERY:  I don't  think that we  should put them  through                                                            
the ....                                                                                                                        
                                                                                                                                
SENATOR WARD:  I was just  trying to figure out what we are doing to                                                            
people, Mr. Chairman.                                                                                                           
                                                                                                                                
CHAIRMAN  COWDERY:  It's  obvious they  are not  going to break  the                                                            
law.   It's obvious  this bill  doesn't have  jurisdiction with  the                                                            
Coast Guard  but I  think that what  we were trying  to get  at, you                                                            
dump offshore,  you don't  break any  laws and  you don't intend  to                                                            
break any laws.   But the reason you have to dump  offshore, most of                                                            
your  facilities onboard  would  not meet  the criteria  that  we're                                                            
trying to establish here. Is that a true statement?                                                                             
                                                                                                                                
LT. COMMANDER TOUSLEY:  Okay, thank you.                                                                                        
                                                                                                                                
CHAIRMAN  COWDERY:  I'd like  to make note  too that we have  a full                                                            
quorum. I acknowledged  you when you were outside.  I saw you in the                                                            
window.  So Senator Elton,  Senator Taylor, and Ward and Wilken have                                                            
been here for the entire meeting.  But anyway ....                                                                              
                                                                                                                                
SENATOR ELTON:   Commander  Wood, you've been  a part of the  cruise                                                            
ship initiative  process  since the  beginning and  late in 1999,  I                                                            
think.  And  one of you, and I'm sorry  I can't remember  which one,                                                            
described  HB 260  as  complementing  the federal  law.   Could  you                                                            
articulate  for the committee those  discharges that are  covered in                                                            
HB 260 that aren't covered in the Murkowski bill?                                                                               
                                                                                                                                
LT. COMMANDER  WOOD:  Yes,  Senator, Mr. Chairman.   As I have  read                                                            
[HB]  260 and  the  latest  version of  that,  I think  the  primary                                                            
discharge  that has specific  standards that  is not in Title  14 is                                                            
the  graywater  beyond  a  mile  and  going  more  than  six  knots.                                                            
Currently,  Title 14  allows the  EPA to establish  standards  which                                                            
have not yet been set for  graywater.  This bill would set standards                                                            
for graywater.                                                                                                                  
                                                                                                                                
SENATOR  ELTON:  And  my understanding,  if I  could follow  up, Mr.                                                            
Chair, my understanding  also is that the federal law does not cover                                                            
air emissions.                                                                                                                  
                                                                                                                                
LT. COMMANDER WOOD:  Right, right.                                                                                              
                                                                                                                                
LT. COMMANDER  TOUSLEY:   The Murkowski legislation  does not  cover                                                            
air emissions.                                                                                                                  
                                                                                                                                
SENATOR WARD:  But federal law does?                                                                                            
                                                                                                                                
LT. COMMANDER TOUSLEY:  Yes, sir.                                                                                               
                                                                                                                                
SENATOR ELTON:  That's delegated to the state now?                                                                              
                                                                                                                                
LT. COMMANDER WOOD:  You'd have to speak to the EPA.                                                                            
                                                                                                                                
SENATOR ELTON:  Thanks, Mr. Chair.                                                                                              
                                                                                                                                
SENATOR WARD:  Mr. Chairman?                                                                                                    
                                                                                                                                
CHAIRMAN COWDERY:  Yes.                                                                                                         
                                                                                                                                
SENATOR WARD:  Graywater  and six knots makes something legal - that                                                            
means how fast the boat  is going when we dump the graywater and the                                                            
shower water  or bathroom water?   Can you tell me more about  that?                                                            
                                                                                                                                
LT. COMMANDER  WOOD:  Yes, sir.  In Title 14, for  vessels operating                                                            
within the  applicable waters of Alaska,  the standard is  200 fecal                                                            
coliform  and  150   total  suspended  solids  for  treated   sewage                                                            
discharges.   For  graywater,  there is  no standard  for  graywater                                                            
established  for either fecal  coliform or  total suspended  solids.                                                            
For less than a mile from  shore, or for vessels going less than six                                                            
knots in  speed within the  applicable waters  of Alaska, there  are                                                            
standards for graywater  and there are standards for treated sewage.                                                            
They are  much stricter  standards that  they have  to meet  with an                                                            
associated  sampling regime, but as  long as the vessel is  going at                                                            
least six knots  and the vessel is  at least a mile from  shore, the                                                            
graywater standard doesn't apply.                                                                                               
                                                                                                                                
SENATOR WARD:  Thank you Mr. Chairman.                                                                                          
                                                                                                                                
CHAIRMAN COWDERY:   We appreciate  that.  I think that's  all of the                                                            
questions we  have.  If you want to  sit by through this  issue that                                                            
would be  fine.  Whatever.   I think you  answered and I  appreciate                                                            
you standing by and holding for us.                                                                                             
                                                                                                                                
LT. COMMANDER WOOD:  Thank you, Mr. Chairman.                                                                                   
                                                                                                                                
CHAIRMAN COWDERY:  The  next up - I've asked the DEC, Michele Brown,                                                            
to come  and make -  we're trying  to get through  this so we  don't                                                            
need a lot  of rhetoric and more statements  but we're here  to have                                                            
you answer some questions so if you'd ....                                                                                      
                                                                                                                                
MS.  MICHELE  BROWN,  Commissioner   of  the  Alaska  Department  of                                                            
Environmental  Conservation:  With  your permission, can  Mr. Conway                                                            
join us?                                                                                                                        
                                                                                                                                
CHAIRMAN  COWDERY:   Sure.  If  you'd identify  yourselves and  your                                                            
department?                                                                                                                     
                                                                                                                                
COMMISSIONER  BROWN:   Thank  you sir.   Mr. Chairman,  I'm  Michele                                                            
Brown from the Alaska Department of Environmental Conservation.                                                                 
                                                                                                                                
MR. MICHAEL  CONWAY, Director  of the Division  of Statewide  Public                                                            
Service,  Alaska  Department  of  Environmental   Conservation:  I'm                                                            
Michael  Conway   from  the  Alaska   Department  of  Environmental                                                             
Conservation.                                                                                                                   
                                                                                                                                
COMMISSIONER BROWN:   And with your caveat in mind,  Mr. Chairman, I                                                            
will not  make a lengthy  opening statement.   I would just  like to                                                            
say we have worked at DEC  long and hard with the industry, both the                                                            
small operators  and the  large operators,  and with members  of the                                                            
House to craft a bill that  provides protections to Alaska's air and                                                            
water  and has reasonable  operating  rules that  do not  negatively                                                            
affect the  industry.  We  do have support  for language, which  the                                                            
bill that  came over  to you on  [HB] 260, for  those provisions  as                                                            
well  as  for  the  CS  that  we  had  offered  you  that  did  some                                                            
housekeeping changes, minor  changes that legal drafting didn't take                                                            
care of, and also  some changes to the small operators.   The reason                                                            
we did  that -  and they'll  be testifying  later so  if I make  any                                                            
misstatements - but the  reason we did it, with the small operators,                                                            
they are  configured  differently.   They have  different  operating                                                            
constraints  and we need to  be sensitive to  that.  They wanted  to                                                            
comply  right  away  with  the  monitoring,  reporting  and  testing                                                            
provisions because they  do believe in doing what they think is best                                                            
in  protecting  waters.    They  needed   some  time  to  come  into                                                            
compliance with  the standards and to budget for the  fees.  But the                                                            
one  mile,  six  knots requirements   could  be -  make  a  complete                                                            
restraint for them actually  coming into our waters because they are                                                            
not sized  so that they  can hold sufficient  wastewater.   So those                                                            
amendments  address those things and  that's the package  you had in                                                            
front of you.                                                                                                                   
                                                                                                                                
CHAIRMAN COWDERY:  Senator Ward.                                                                                                
                                                                                                                                
SENATOR WARD:   Okay, and on that - and thank you  for coming today,                                                            
Michele.  Can  you - I think I know the answer to  it but I probably                                                            
should ask the  question just so that I'm sure of  it.  Can you tell                                                            
the committee what graywater is?                                                                                                
                                                                                                                                
COMMISSIONER  BROWN:   Yes sir.   Through the  Chair, Senator  Ward.                                                            
Graywater is basically  the wastewater that's not  from the toilets.                                                            
It's not the sewage  water, which is called black  water.  Graywater                                                            
comes from sinks, showers, laundry, galley water.                                                                               
                                                                                                                                
SENATOR WARD:  If I may,  Mr. Chairman, laundry but not dry cleaning                                                            
- soap laundry.                                                                                                                 
                                                                                                                                
COMMISSIONER BROWN:  Exactly.                                                                                                   
                                                                                                                                
SENATOR WARD:   And if I might Mr. Chairman?  And  if this graywater                                                            
is shoved  out or  let go  if it's going  six knots,  then it's  all                                                            
fine?  Is that correct?                                                                                                         
                                                                                                                                
COMMISSIONER BROWN:  Under  the language of [HB] 260, that graywater                                                            
has  to be  treated  to a  level that  limits  the amount  of  fecal                                                            
coliform  and TSS [total  suspended  solids] that  comes out  in the                                                            
discharge as well  as authorizes us to work with folks  to set other                                                            
effluent limits  on other parameters that may be of  concern.  So it                                                            
does have to meet a level  of treatment, which it currently does not                                                            
have to do under federal law.                                                                                                   
                                                                                                                                
SENATOR WARD:   And if I  might, Mr. Chairman?   One last  question.                                                            
And the [HB]  260 would not allow  that to be discharged  any closer                                                            
or at any less speed?                                                                                                           
                                                                                                                                
COMMISSIONER BROWN:  Not  unless it was treated to a higher quality.                                                            
If it were treated to a  higher quality it could be, but if it's not                                                            
treated to  a higher quality  then it needs  to be at one  mile, six                                                            
knots.                                                                                                                          
                                                                                                                                
SENATOR WARD:  Thank you Mr. Chairman.                                                                                          
                                                                                                                                
CHAIRMAN  COWDERY:  On the  graywater issue,  I have - I'm  sure you                                                            
have a better  understanding  than I, but shower  water - what  if a                                                            
guy didn't  take a shower and jumped  in the ocean.  Would  he be in                                                            
violation?   I mean, you know, this  is a very, very fine  line here                                                            
that I'm wondering what  we're trying to achieve if it's reasonable.                                                            
Or, even if  you talk about laundry  - if he had his clothes  on and                                                            
did it - would it be in  violation?  I just wanted to point out that                                                            
some of these are difficult  to justify the reasoning of where we're                                                            
trying  to go  on this.   We  all want  clean water,  clean air  and                                                            
everything.                                                                                                                     
                                                                                                                                
COMMISSIONER BROWN:  I  think most people thought that graywater was                                                            
going  to be benign.   That's  why it  hasn't  been regulated  under                                                            
federal law.  I think the  industry believed it was benign.  When we                                                            
did  the testing  is  when we  discovered  it was  not  benign.   70                                                            
percent  of  the  graywater  samples   that  we  took  exceeded  the                                                            
standards for  treated sewage  - some of them 50 thousand  times the                                                            
level.   So, graywater does  need to be treated  as it comes  off of                                                            
these  vessels because  it does  have high levels  of contaminants.                                                             
One individual  jumping into  the sea is  different than the  wastes                                                            
over the course of a season,  a million people, passengers and crew.                                                            
                                                                                                                                
CHAIRMAN COWDERY:  Or a million people jumping into the sea.                                                                    
                                                                                                                                
COMMISSIONER BROWN:  A million lemmings jumping into the sea.                                                                   
                                                                                                                                
CHAIRMAN  COWDERY:  I  just wanted  to get that  clarified.  When we                                                            
were here before  we called this special session,  I leaned a little                                                            
bit  on   the  cruise  ship   industry  to   get  a  memorandum   of                                                            
understanding, which they  finally developed, not that they - well I                                                            
kind  of leaned  on  them  a little  bit.   Your  response,  or  the                                                            
Administration's    response,   you   don't   do   memorandums    of                                                            
understanding,  you want it by law.  I have to take  issue with that                                                            
because I think  we did one with BP recently on the  merger problem.                                                            
I think we did  one a few years ago on the gas - the  flaring in the                                                            
gas that was going  on in the North Slope and I think  it even had -                                                            
the pollution  that was created.  But, anyway, you  said that - just                                                            
getting  back  to your  statement,  we  don't  do  it -  in  Section                                                            
46.03.020  it  tells  the  powers  of  your  department.    It  says                                                            
departments  may  enter into  contracts  and  compliance  agreements                                                            
necessary  or convenient to  carry out the  functions and powers  of                                                            
the department.   Then, later on, it's a lengthy document  but under                                                            
definitions,   it  has  -  compliance   agreement  means   a  mutual                                                            
understanding  and voluntary  enforceable agreement  on a course  of                                                            
action  for a specific  set of  circumstances, entered  into  by the                                                            
department  or a person to  control, prevent,  or abate air,  water,                                                            
land and subsurface land  pollution.  So, the fact is, you do have -                                                            
you  could have  done  that -  am I  correct  in saying,  getting  a                                                            
memorandum  of understanding  so we wouldn't  have had to have  this                                                            
special session?                                                                                                                
                                                                                                                                
COMMISSIONER   BROWN:  Mr.  Chairman,   we  have  authority   to  do                                                            
memorandums  of  understanding  but  we  have never  used  that  for                                                            
regulatory matters.  We  do that, for instance, if we're going to do                                                            
a study  and we need to  receive money or  we need to work  out with                                                            
the municipality  who is  going to  do which task  so we don't  have                                                            
duplication,  but  we have  never  used a  memorandum  to  establish                                                            
regulatory  authority.    That is  a  matter  and, certainly  in  my                                                            
opinion, that  ought to be done in discussion with  the legislature.                                                            
You are the  body that makes laws  and gives us our authorities  and                                                            
so we have never done it for regulatory matters.                                                                                
                                                                                                                                
On the issue  - the BP Charter was  specifically for non-regulatory                                                             
matters.   It  was  for things  that  go  over and  above.   It  was                                                            
commitments from  them for environmental improvements  that are over                                                            
and above  regulatory  requirements.   So, it's  not something  they                                                            
were already required to  do by law or something that we intended to                                                            
make  them want  to do by  proposing  a law  to you.   It was  other                                                            
commitments  that  they  would  make.   I  don't  know, on  the  gas                                                            
flaring,  I  could  see what  I  can find  out  what  that  is.   On                                                            
compliance agreements,  those are when you have a  violation of law,                                                            
and rather than  go to court and seek enforcement  action, you enter                                                            
into a compliance agreement.                                                                                                    
                                                                                                                                
CHAIRMAN COWDERY:  Isn't that what we had here?                                                                                 
                                                                                                                                
COMMISSIONER  BROWN:  No,  because we didn't  have a state  law that                                                            
they were violating.  We  didn't have the premise of - you know when                                                            
we  have  a  law,  they  violate  it,  we  then  make  a  settlement                                                            
agreement, which is a compliance order.                                                                                         
                                                                                                                                
CHAIRMAN COWDERY:  Senator Taylor.                                                                                              
                                                                                                                                
SENATOR TAYLOR:   I was curious, Michele, in light  of the discovery                                                            
that you made on graywater,  and this seems somewhat shocking to you                                                            
people, what are  our current graywater standards  in Alaska for the                                                            
average house?  Aren't they different?                                                                                          
                                                                                                                                
COMMISSIONER BROWN:  We don't regulate the average house.                                                                       
                                                                                                                                
SENATOR TAYLOR:  Well why  not?  If it's 3,500 times higher in fecal                                                            
coliform, shouldn't we be doing that?                                                                                           
                                                                                                                                
COMMISSIONER BROWN:  Well, our law ....                                                                                         
                                                                                                                                
SENATOR TAYLOR:   Or are we only going to do this  with the guy that                                                            
comes in from out of town?                                                                                                      
                                                                                                                                
COMMISSIONER  BROWN:   We're going to  do this  where the volume  is                                                            
greatest.   We didn't write  the laws that  didn't require us  to do                                                            
reviews  of  individual   septic  systems.    State  water   quality                                                            
standards do set a limit  though for fecal coliform that would be in                                                            
black water or graywater.   And so when we do permits for facilities                                                            
that are permitted, we do set a graywater effluent standard.                                                                    
                                                                                                                                
SENATOR TAYLOR:  You have  the capacity right now, don't you, to set                                                            
those regulations and standards on graywater?                                                                                   
                                                                                                                                
COMMISSIONER   BROWN:    Yes,  for   permitted  facilities   we  set                                                            
standards.   For people  that are  not subject  to our oversight  we                                                            
don't without  coming back to you for laws.  For instance,  we don't                                                            
permit individual septic systems.                                                                                               
                                                                                                                                
SENATOR TAYLOR:  Who does that?                                                                                                 
                                                                                                                                
COMMISSIONER BROWN:   Either no one or local government.   I mean if                                                            
we  have  somebody  discharging  so  much  from  the  system  that's                                                            
creating a nuisance, then  we have a violation of a state law in the                                                            
sense of creating a nuisance or harm.                                                                                           
                                                                                                                                
MR.  CONWAY:   Mr. Chair,  if I  could amplify  that  a little  bit?                                                            
First,  the treated  facilities  that  the Commissioner  is  talking                                                            
about, the  homes that are  on treatment systems  going to  a sewage                                                            
treatment  plant,  so  that's  the  connection   for  the  permitted                                                            
facility.   For septic systems, the  state does not have  a program.                                                            
There  used to  be a program  for septic  systems  years ago  before                                                            
budget cuts  of the  '90s hit.   We do have  a program for  multiple                                                            
dwelling complexes.  We  have the resources and the funding for plan                                                            
approval, plan  review and approvals and so forth,  if there were to                                                            
be an apartment  building or a multi-complex  building that  had its                                                            
own treatment  system - it  wasn't on the  municipal treatment  then                                                            
there is regulation  of that.  It's  just a matter of the  number of                                                            
people that  you have, the  amount of funding  that you have  in the                                                            
agency,  how far  down you  can get  in doing  that so  we don't  do                                                            
individual septic systems.                                                                                                      
                                                                                                                                
SENATOR TAYLOR:  How do you prioritize it - based on money?                                                                     
                                                                                                                                
MR. CONWAY:   And the  risk, the  risk that's posed  by the  kind of                                                            
discharge.                                                                                                                      
                                                                                                                                
SENATOR TAYLOR:  If you're  not measuring, I'm kind of wondering how                                                            
you'd know the risk.  I guess you don't.                                                                                        
                                                                                                                                
MR. CONWAY:  Well  the risk is - as I said before,  we had a program                                                            
before where we  had information on that and then,  when you look at                                                            
a complex  of four  or five housing  units together,  as opposed  to                                                            
ones  that  are  along  the beach  kinds  of  things,  so  there  is                                                            
information that  is there that was used to evaluate  that risk back                                                            
when the funding  was cut to be able to decide what  facilities will                                                            
we continue  to regulate and which  of those could we not  regulate.                                                            
                                                                                                                                
SENATOR TAYLOR:   I guess the concern I have is, apparently,  we now                                                            
are going to regulate  graywater standards on boats  - oh I'm sorry,                                                            
on some  boats, not all boats,  only boats  that are above 250.   Is                                                            
that it?                                                                                                                        
                                                                                                                                
COMMISSIONER  BROWN:    No,  it  will  be  vessels   with  overnight                                                            
accommodations that carry over 50 passengers but ....                                                                           
                                                                                                                                
SENATOR TAYLOR:   But that  won't take effect  for four years,  will                                                            
it?                                                                                                                             
                                                                                                                                
COMMISSIONER BROWN:   No, for the large ships it takes  effect right                                                            
away.  For the smaller  vessels, it would take effect in three years                                                            
for the standards.                                                                                                              
                                                                                                                                
SENATOR TAYLOR:   That's something  I meant  to ask you.  When  does                                                            
this bill take  effect?  If we pass  it tomorrow, when does  it take                                                            
effect?                                                                                                                         
                                                                                                                                
COMMISSIONER BROWN:  July 1.                                                                                                    
                                                                                                                                
SENATOR TAYLOR:  There's  no immediate effective date on this thing?                                                            
We  have a  special session  and  we don't  even have  an  immediate                                                            
effective date?                                                                                                                 
                                                                                                                                
COMMISSIONER  BROWN:   Well,  if you pass  it through  this  special                                                            
session it will be in effect in time.                                                                                           
                                                                                                                                
SENATOR TAYLOR:  No, it  would be in effect July 1, not immediately.                                                            
Immediately would be June  8th or 9th, as soon as the Governor could                                                            
sign  it.   It seemed  to  me he  was pretty  concerned  about  this                                                            
because he said every day's  delay in legislative action - these are                                                            
the  Governor's  words  -  means   up to  4.5  million   gallons  of                                                            
pollution.   Human  waste  and  wastewater  from kitchen  sinks  and                                                            
laundries are dumped unregulated  into Alaska's coastal waters.  Are                                                            
you guys  recommending that  - an immediate  effective date  to stop                                                            
that 4.5 million  that's going to  get dumped in the water  tomorrow                                                            
or do you care?                                                                                                                 
                                                                                                                                
COMMISSIONER BROWN:  No, we're recommending the July 1 date.                                                                    
                                                                                                                                
SENATOR TAYLOR:   That's not my question.   The question  is, do you                                                            
recommend  that  this  committee   modify  the  bill  to  insert  an                                                            
immediate  effective  date  so  that  the  Governor  can  stop  this                                                            
quicker?                                                                                                                        
                                                                                                                                
COMMISSIONER BROWN:  It  would certainly be fine if you want to move                                                            
the effective date.                                                                                                             
                                                                                                                                
SENATOR TAYLOR:  In fact,  how many amendments have you suggested to                                                            
the Chairman or to this committee, total?                                                                                       
                                                                                                                                
COMMISSIONER  BROWN:  We offered a  CS to you and I don't  know what                                                            
the  total number  of  amendments  were.   There  were  a number  of                                                            
housekeeping and then the ones for the small operators.                                                                         
                                                                                                                                
MR. CONWAY:  13.                                                                                                                
                                                                                                                                
COMMISSIONER BROWN:  13.                                                                                                        
                                                                                                                                
SENATOR TAYLOR:   Yes, I heard the  number 13 Michele, but  I didn't                                                            
count them up to figure that out either.                                                                                        
                                                                                                                                
COMMISSIONER BROWN:  I hadn't counted them either.                                                                              
                                                                                                                                
CHAIRMAN  COWDERY: Just to  clarify that, that  was 13 when  we were                                                            
here in the regular session.  Is that right?                                                                                    
                                                                                                                                
UNIDENTIFIED SPEAKER:  Yes.                                                                                                     
                                                                                                                                
CHAIRMAN  COWDERY:   And there's  been other  amendments since  then                                                            
that have been proposed.                                                                                                        
                                                                                                                                
SENATOR WARD:  From other people.                                                                                               
                                                                                                                                
CHAIRMAN COWDERY:  Yes.                                                                                                         
                                                                                                                                
MR. CONWAY:  13 based upon what passed the House.                                                                               
                                                                                                                                
COMMISSIONER  BROWN:  Yes, and I don't  know that those were  from -                                                            
ours were the package that we gave to you.                                                                                      
                                                                                                                                
CHAIRMAN COWDERY:  Excuse me, Senator Taylor.                                                                                   
                                                                                                                                
SENATOR  TAYLOR:   And  apparently  effective  date -  an  immediate                                                            
effective date  was apparently another  one that we should  consider                                                            
that the  department endorses.   The question,  I guess, that  I had                                                            
was - this article  just came out on June 5 and it  was the Governor                                                            
that wrote  it and he says,  now a handful  of Senators continue  to                                                            
use irrelevant  issues  to try  to divert  attention  from what  the                                                            
public demands.  Is he  referring to your 13 amendments because, you                                                            
see, all  his article  talks about  is passing [HB]  260 the  way it                                                            
came over from the House with no changes in it.                                                                                 
                                                                                                                                
COMMISSIONER BROWN:  No,  I think what he was referring to - if [HB]                                                            
260 - it can be  a better document with the changes  we amended.  If                                                            
[HB] 260 were  to pass this body,  that would also be an  acceptable                                                            
outcome but  the amendments actually  do make it better,  especially                                                            
for  the  small operators.    But  I  think what  the  Governor  was                                                            
referring to were  issues that were raised earlier  of the impact on                                                            
the marine highway  system and the fact that it might  put the small                                                            
operators  out of  business  - that  those  issues really  had  been                                                            
addressed through the amendment package.                                                                                        
                                                                                                                                
SENATOR TAYLOR:   I'm really confused.  When we first  got the bill,                                                            
Mr.  Chairman,  we were  told  there was  no  impact on  the  marine                                                            
highway system.  Then two  days before the legislature adjourned, we                                                            
got   a  $7.5   million  fiscal   note   from  the   Department   of                                                            
Transportation saying that  it would cost $7.5 million to modify our                                                            
ships.   Is that another  one of those irrelevant  issues to  divert                                                            
attention  or is  that  something  of substance  and  import to  the                                                            
Administration  that they would like to have changed?   I'm assuming                                                            
we made those changes that the Administration asked for.                                                                        
                                                                                                                                
CHAIRMAN COWDERY:  No we didn't.                                                                                                
                                                                                                                                
SENATOR TAYLOR:  Oh, those haven't been ....                                                                                    
                                                                                                                                
CHAIRMAN COWDERY:   We got handed them a couple of  days just before                                                            
we got the bill.                                                                                                                
                                                                                                                                
SENATOR TAYLOR:   Has anybody ever found out whether  or not it is a                                                            
$7 million fiscal note or $20 million or zero?                                                                                  
                                                                                                                                
CHAIRMAN COWDERY:   We've got a lot  of fiscal notes in front  of us                                                            
now.                                                                                                                            
                                                                                                                                
SENATOR TAYLOR:  Is that right?  By DOT?                                                                                        
                                                                                                                                
CHAIRMAN COWDERY:  We have some from DOT.                                                                                       
                                                                                                                                
MR. DON SMITH,  Senate Transportation Committee Aide:   It's on your                                                            
desk.                                                                                                                           
                                                                                                                                
CHAIRMAN  COWDERY:  You've  got about four  - three laying  there in                                                            
front of you.                                                                                                                   
                                                                                                                                
SENATOR TAYLOR:  $10.5  million now.  This must be - obviously John,                                                            
the Governor needs  to talk to somebody over at DOT  and somebody in                                                            
DEC because you  keep coming up with these irrelevant  $10.5 million                                                            
issues that  we shouldn't be considering  and we should have  passed                                                            
this bill  in five days,  at the end of the  session.  I'm  a little                                                            
confused by  what the departments  are bringing in here at  the last                                                            
minute.  Maybe they're just trying to kill this bill in Finance.                                                                
                                                                                                                                
SENATOR WARD:   Michele - and thank  you for answering my  questions                                                            
before [END OF TAPE 01-19, SIDE A].                                                                                             
                                                                                                                                
TAPE 01-19, SIDE B                                                                                                            
                                                                                                                                
SENATOR  WARD:  ... meeting  too,  but from  the  tone  of our  last                                                            
meeting,  which I assume you  watched, and  a lot of people  in this                                                            
room and since  have brought forth that there's not  only the Alaska                                                            
ferry system  but communities, the  fishing industry, small  boats -                                                            
there's a lot  of people that some people feel aren't  being held to                                                            
the  same standard.    Assuming  that  this bill  has  passed,  what                                                            
thought  has  the  Administration  or  you  given to  how  we  start                                                            
addressing  the  rest of  them?    I think  it  is going  to  become                                                            
painfully  clear, especially  if we  start exempting  our own  ships                                                            
from this when  they are not only [indisc.] alongside,  but they are                                                            
competing  with the other  ships.  None of  us want dirty water  and                                                            
pollution.  So,  what is the long term plan?  Granted,  I think that                                                            
right now, at least in  my mind, and we talked about communities and                                                            
sewage and the city of  Anchorage - you have a waiver to dump it in,                                                            
Juneau having  to rig their own testing in order to  pass things and                                                            
all of this stuff but what  is the long term plan that we'll be able                                                            
to address at  the next regular session so that we  can bring all of                                                            
these entities  into compliance  if, in fact,  we're going  to bring                                                            
this entity in?                                                                                                                 
                                                                                                                                
Thank you, Mr. Chairman,  and I know this is kind of a long question                                                            
but that's  kind of what  this is all about  right now because  that                                                            
was the hold up last time.   It seemed like we were singling out one                                                            
industry  because it  was politically  correct to  get them  because                                                            
it's, don't tax  you, don't tax me, let's tax the  fellow behind the                                                            
tree and, sure  enough, those boats  aren't from here so  who cares,                                                            
and there's  5,000 people  polluting us  all at once  so we  can get                                                            
them.  If, in  fact, this is a problem, how are we  going to address                                                            
all of  the other  ones,  especially if  we don't  exempt the  ferry                                                            
system  or the fishing  industry.   They are concerned  and  I don't                                                            
know how you'd  do that with people out here just  fishing in a boat                                                            
if they have to do what they have to do every day.  Have at it.                                                                 
                                                                                                                                
COMMISSIONER  BROWN:   Senator  Ward, through  the Chair.   Just  to                                                            
clarify - and  I do appreciate the interest you shared,  by the way,                                                            
during this  time in getting  ready for the  session and learning  a                                                            
lot about this, is - the  marine highway systems were always covered                                                            
in the bill so we never  had any intention of exempting them.  We do                                                            
think that if other vessels  similarly situated are doing their part                                                            
to protect  our waters,  so should  the marine  highway system.   On                                                            
shore  side  facilities,  they  are under  a  very  detailed  permit                                                            
program where  we look at what's going in those facilities,  how are                                                            
they treating it, how are  the operators trained.  We constantly are                                                            
checking  on  whether  they're  doing  their  job.   They  are  self                                                            
checking,  whether they  are doing their  job.  We  look at  what is                                                            
coming  out  of  the  pipe,  what's  the  nature  of  the  receiving                                                            
environment,  how fast are the currents,  how much mixing  is there,                                                            
what wildlife  or resources are there,  how sensitive are  they.  We                                                            
look at  all of those things  and set standards  that, we believe  -                                                            
and it's a very  public process, standards that, if  they meet those                                                            
standards  the  waters  will  be protected.    And  then  there's  a                                                            
rigorous compliance  check and, yes, sometimes people  don't do what                                                            
they're supposed  to and  then there's an  enforcement action.   So,                                                            
there is a rigorous climate for those kind of facilities.                                                                       
                                                                                                                                
When we initially started  this inquiry, and we didn't do it because                                                            
this is  an out-of-state  business,  what really set  it off  in our                                                            
mind was  two events.  One  is, just seeing  year by year,  more and                                                            
more and larger and larger  ships, but having no sense at all of how                                                            
that waste  was handled and  those ships generate  a lot more  waste                                                            
because of  their size than a fishing  vessel, even a large  fishing                                                            
vessel. And  then there were the actions  that were taken  when they                                                            
mixed  up priority  pollutants  into  their  wastewater.   So  those                                                            
things caused us to start  looking at this and we didn't start with,                                                            
okay, let's  come regulate.   What we started  with, let's  see what                                                            
the facts are.  Do we have a problem?   If we don't have  a problem,                                                            
then maybe  the systems that are in  place are okay.  What  we found                                                            
out is we did have a problem.   We had a serious problem and then we                                                            
set about,  well how do we,  in the future,  figure out how  to have                                                            
better technology,  better waste management practices?   We did this                                                            
with industry  and with  the public.   And then,  how do you  verify                                                            
compliance  because long term compliance  is what we want  here.  We                                                            
initially, in the Governor's  bill, proposed a permit system similar                                                            
to what the  shore side facilities  have so we would really  look at                                                            
their operations, look  what they're capable of doing - treatment at                                                            
a reasonable  cost, look at the receiving  environment, look  at the                                                            
mixing  and then  offer them  a number,  an excellent  number,  that                                                            
meets those conditions.                                                                                                         
                                                                                                                                
Although we  never did the analysis,  my best guess is the  effluent                                                            
number  would have been  higher by  the time you  do that  analysis.                                                            
The industry  did not  want to do  that. They did  not want  to have                                                            
that  kind of  scrutiny  because they  go from  port  to port,  they                                                            
didn't  want to have  any chance  of somebody  trying to tell  them,                                                            
gee, you  ought to look  at other equipment  because they  obviously                                                            
can't change equipment  as they go from one area to  the next.  They                                                            
wanted to have  more of what's called  a performance standard  - set                                                            
the standard,  they'll test against it, if they meet  it, they're in                                                            
compliance,  if they don't, they have  a violation.  That  was their                                                            
preferred methodology  and we, in  working with them, said  okay, if                                                            
that's your  preferred, it still will  do the trick for us  so we'll                                                            
do it and that  will give us the same assurance we  have as with the                                                            
shore side  facilities  but through  very different  means.   One is                                                            
where  you do  an analysis  instead  of a limit,  and  so it can  be                                                            
higher because  you know it's safe or you set a safe  number because                                                            
you're not  doing that analysis and  you expect them to meet  it and                                                            
that was  their preferred  option so  that's what  came out  in [HB]                                                            
260.                                                                                                                            
                                                                                                                                
For fishing vessels,  we have not looked at is there  a problem with                                                            
their MSDs in  part because they don't carry that  many people.  For                                                            
those of you who've been  on them, they sure don't feed them the way                                                            
they feed  them on cruise  ships so the  waste volume is  different.                                                            
Where we do look  at their MSDs is on processing vessels  because if                                                            
they are  taking in water  to deal with  processing fish, you  don't                                                            
want it to have  been mixed with any waste that's  coming out of the                                                            
vessel so we do  do checks with them there - our seafood  inspectors                                                            
do that.   So, it's both  a level of risk  and a scale of  risk that                                                            
made us look at this particular  industry.  The other difference is,                                                            
at  least  in  my  mind,  a shore  side  facility   providing  waste                                                            
treatment  for  a  community  is  an  absolutely  essential   public                                                            
function.  They  have to do it for the residents who  live there and                                                            
you  need to  make  sure  that they  can  do  it in  a way  that  is                                                            
protective  but also affordable.   That's  different than a  private                                                            
enterprise that's using our water for their waste discharges.                                                                   
                                                                                                                                
SENATOR WARD:   One quick follow-up.  So that I clearly  understand.                                                            
Then,  if  in  fact [HB]  260  is  enacted,  this  bill,  then  your                                                            
department  would - and I  think I do understand,  I just came  from                                                            
the Kenai and  I saw quite a few commercial fishing  boats out there                                                            
and I've also  seen them out there  for all of my life.   That's not                                                            
the same as a  ship of 4-5,000 people dumping all  at once.  At some                                                            
point,  there's   4-5,000  boats  so,  at  some  point,   does  your                                                            
department anticipate some  kind of an analysis because I don't mind                                                            
exempting  onshore or fishing  boats or any  of those things  if, in                                                            
fact, they  are not causing damage  but just because it's  easier to                                                            
see the damage from 4-5,000  people huddled in one place, then it is                                                            
from 4-5,000  people huddled in one  place but on separate  boats or                                                            
living in a  small community like  Bethel, that doesn't make  it any                                                            
less into the pollution  of the waters.  I guess what I'm getting at                                                            
is the harder question  of what steps are you administratively going                                                            
to take  to bring into  at least  analysis to say  we have done  the                                                            
proper  thing by not  addressing those  fishing  boats or Bethel  at                                                            
this time.                                                                                                                      
                                                                                                                                
COMMISSIONER  BROWN:   Thank you  Senator Ward,  through the  Chair.                                                            
Right now  we don't necessarily  have any  plans.  We're looking  at                                                            
what was the highest  risk that we saw.  The large  vessels were, of                                                            
course, the highest  risk.  As we go through our clean  water action                                                            
plan, which is  a way - Senator Leman's familiar with  it - a way of                                                            
assessing -  it's trying to put our  resources to our most  critical                                                            
water issues.   That issue  may very well  come to the forefront  if                                                            
you have  a very  important  watershed,  like the  Kenai River,  and                                                            
there are  starting to be  water quality impacts  on there,  then we                                                            
will need  to be looking  at what  are the sources  of those  and is                                                            
there  a way to  address it  and should  that be  handled through  a                                                            
permit, should that be  handled by a performance standard, should it                                                            
be handled by  some other innovative way.  All those  things will be                                                            
on the table  so as we see where risks  arise, then I do  think it's                                                            
proper, as you've raised,  that we look at it, see if it's a problem                                                            
and, if  it is a  problem, figure  out a good  way - good meaning  a                                                            
protective and reasonable way to address it.                                                                                    
                                                                                                                                
SENATOR WARD:  Thank you Mr. Chairman.                                                                                          
                                                                                                                                
CHAIRMAN COWDERY: On that  point, you keep saying what's affordable,                                                            
what isn't.  Who makes  those decisions?  Is it a deep pocket theory                                                            
that  you're  working  on?   You  know  the  - I  know  the  coastal                                                            
communities  here, you talk  about pollution,  approximately  77,000                                                            
people that dump,  at a very lower standard, waste  into our waters.                                                            
I think  they dump something  like 3.4 billion,  is my calculation,                                                             
3.4 billion  gallons a year  into our clean  waters and everything.                                                             
With that,  it seems to me anyway,  and I know you made a  statement                                                            
in one  of the things I've  got here, something  about me  comparing                                                            
shore side  facilities with cruise  ships was like comparing  apples                                                            
to broccoli, I think.   My question was, how can you tell after it's                                                            
digested  whether it's apples  or broccoli?   That was my answer  to                                                            
that so  it seems to  me that we're  all trying  to get to the  same                                                            
goal but  I'm just  a little concerned  when you  talk about  what's                                                            
affordable.  You  know, we all want that and clean  water and things                                                            
are expensive  as the cruise ships  can tell you but it seems  to me                                                            
with the money it brings  in, say for Juneau - I don't know how many                                                            
are in here  today - we  don't even have a  dump site that  they can                                                            
unload their  sewage.  Of all the  money that comes in, why  doesn't                                                            
Juneau,  or some of  the communities,  at least  try to accommodate                                                             
some of their  problems?  That's more of a statement.   I don't know                                                            
if you  want to  answer it  or not,  that's fine.   Senator  Elton's                                                            
next.                                                                                                                           
                                                                                                                                
COMMISSIONER BROWN:   Just one point, if I may, Mr.  Chairman, is we                                                            
did - in talking  in the industry  about better waste practices,  we                                                            
did look at the  idea of shore side dumping.  I don't  want to speak                                                            
for them and I'm sure they'll  testify in due time, but it was their                                                            
preference  to look at onboard treatment  because that way  they can                                                            
treat well wherever they go.                                                                                                    
                                                                                                                                
CHAIRMAN  COWDERY:  Just  the large ones  you're talking about,  not                                                            
the ferries or the smaller ones?                                                                                                
                                                                                                                                
COMMISSIONER  BROWN:  The large ones.   I think the small  operators                                                            
are also aggressively looking  at better treatment options.  I think                                                            
while Mike  may want to address the  apples and broccolis,  but what                                                            
we were  talking about  - yes, it's  all wastewater  going into  the                                                            
marine environment  so, to that extent,  it's wastewater  and that's                                                            
in common.    But what  we're talking  about  is how  that waste  is                                                            
managed and the level of  confidence that we have that it's safe. On                                                            
the shore  side facilities,  because  of the  aggressive program  we                                                            
have, we believe  that it's safe and  that they can discharge  that.                                                            
When I talk about affordability,  it's that kind of analysis that we                                                            
go through  with them of,  let's say, it cost  $100 million  to meet                                                            
the strictest water quality  standards but for $10 million, they can                                                            
get 90 percent  of the way  there, so is  it really worth  the other                                                            
$90 million  if you  know that  the receiving  environment has  good                                                            
mixing, there's  no critters that  would be negatively impacted,  it                                                            
would disperse  - if you have a mixing zone of 100  feet and then at                                                            
the  end  of  the  100  feet,  they  will  meet  the  water  quality                                                            
standards?   That's when I  talk about - you  look at the  amount of                                                            
improvement for the amount  of cost and figure out a way to get them                                                            
into compliance without causing any harm.                                                                                       
                                                                                                                                
CHAIRMAN  COWDERY:   You mean there's  no critters  in these  mixing                                                            
zones?                                                                                                                          
                                                                                                                                
COMMISSIONER BROWN:  Critters that will not be harmed.                                                                          
                                                                                                                                
CHAIRMAN COWDERY:  I guess they need nutrients too.                                                                             
                                                                                                                                
SENATOR  ELTON:  Two  things, thanks  Mr. Chair,  and I'm sorry  the                                                            
member who  raised the  issue isn't  here.  I  think it's unfair  to                                                            
criticize the different fiscal notes....                                                                                        
                                                                                                                                
CHAIRMAN COWDERY:  He'll be back shortly if you want to wait.                                                                   
                                                                                                                                
SENATOR ELTON:  If you  want to re-recognize me or maybe we can just                                                            
pass it  on again.   It just  seems unfair  to me  to criticize  the                                                            
fiscal  notes when the  bills before  both bodies  have had  several                                                            
different iterations and,  in fact, the most recent fiscal note from                                                            
the Department  of Transportation for $10.5 is for  a bill that they                                                            
first saw  late yesterday  afternoon.   I don't  think it's  fair to                                                            
criticize somebody for  having different fiscal notes when we've had                                                            
different iterations of  the issue in front of us.  The second thing                                                            
is, the  Commissioner spoke  to this but I  think it's important  to                                                            
make  sure  that  everybody  understands.     When  you  talk  about                                                            
developing standards  with other industries, you were  talking about                                                            
industries   like  mining,   timber,  fishing,   a  host  of   other                                                            
industries.  You  were talking about communities that  you developed                                                            
standards with  and for, to protect  public health and safety.   You                                                            
right now  don't have the  ability to develop  any standards  at all                                                            
for this one  industry, the cruise  ship industry. Is that  correct?                                                            
                                                                                                                                
COMMISSIONER BROWN:  That is correct.                                                                                           
                                                                                                                                
SENATOR ELTON:  Under this  bill, the provisions of this bill, these                                                            
provisions, and I'll speak  specifically to the 200 colonies per 100                                                            
milliliters and  150 total suspended solids, those  are numbers that                                                            
the industry has told you  and has told the legislature that they're                                                            
comfortable with.  Is that correct?                                                                                             
                                                                                                                                
COMMISSIONER BROWN:  Yes, that's correct.                                                                                       
                                                                                                                                
SENATOR ELTON:  Just to  follow up on this point.  It's also correct                                                            
that the  standards  that we  will now -  if this  bill passes,  the                                                            
standards  that we will now  apply to the  cruise ship industry  are                                                            
still - they  don't give you the kind  of leverage on this  industry                                                            
as the  leverage that you  can now exert  over the mining,  fishing,                                                            
timber industries or individual communities.                                                                                    
                                                                                                                                
COMMISSIONER  BROWN:  Thank  you.  This is  the only large  industry                                                            
that we  have no  authority whatsoever  to manage  the waste  that's                                                            
coming from them.                                                                                                               
                                                                                                                                
MR. CONWAY:   I  was just  - through  permits, that's  the key  when                                                            
you're talking  about all of the other  people there's a  permitting                                                            
process,  they  get a  permit  and that  becomes  the  tool for  the                                                            
compliance  agreements  that  you  mentioned  before.   I  was  just                                                            
whispering  to her - through the permits,  that's how we  have that.                                                            
                                                                                                                                
SENATOR  ELTON:   And, in  fact, you  can revoke  those permits  but                                                            
because  we're adopting legislation  that  does not have  permitting                                                            
authority for  you, you have no ability  to revoke permits  for this                                                            
industry?                                                                                                                       
                                                                                                                                
COMMISSIONER  BROWN:   No,  we  cannot,  but we  can cite  them  for                                                            
violations of the performance standard.                                                                                         
                                                                                                                                
SENATOR ELTON:  And those  would be civil - they would be satisfied?                                                            
                                                                                                                                
COMMISSIONER   BROWN:    The  bill  has  both  civil   and  criminal                                                            
penalties.                                                                                                                      
                                                                                                                                
SENATOR ELTON:  Thanks Mr. Chairman.                                                                                            
                                                                                                                                
CHAIRMAN COWDERY:  Senator Ward.                                                                                                
                                                                                                                                
SENATOR  WARD:  So,  if I may,  then not having  authority over  the                                                            
cruise ships  - [HB] 260 giving you  authority over it, that  is the                                                            
emergency  that  has  brought  us all  down  here  today.   Is  that                                                            
correct?                                                                                                                        
                                                                                                                                
COMMISSIONER  BROWN:  That is correct.   We need to have  some state                                                            
authority to  ensure that our standards  for safe air and  water are                                                            
met with this  industry that currently  does not have an  obligation                                                            
to meet our standards.                                                                                                          
                                                                                                                                
SENATOR  WARD:   And, right  now, we  don't have  a clear  authority                                                            
without  this permitting  process to  do that so  that is why  we're                                                            
here.  I need  to know.  I've had  a lot of people that -  and maybe                                                            
because  I'm from  the Kenai  and Anchorage,  but there's  a lot  of                                                            
people  wondering  why  we're  spending  this  amount  of  money  on                                                            
something that  they maybe didn't  see as a big problem.   It's very                                                            
real what I'm  saying right now.  Not everybody is  as excited as 83                                                            
people in  this room  and most of  them are being  paid to be  here.                                                            
This is the emergency  then, so that we can now have  authority over                                                            
them to make them  - and they are self-complying but  make sure that                                                            
they comply.  Is that correct?                                                                                                  
                                                                                                                                
SENATOR WARD:  Okay.  Thank you Mr. Chairman.                                                                                   
                                                                                                                                
CHAIRMAN COWDERY:  One  other question and then maybe we've got some                                                            
other witnesses.   Under Alaska statute  40.030.040, it directs  the                                                            
department to  formulate and annually review and revise  a statewide                                                            
environmental  plan.  What  provisions does  your plan make  for the                                                            
growing  passenger  cruise  ship industry?    In other  words,  what                                                            
provisions  does your plan  have for this  growing passenger  cruise                                                            
ship  industry and  how does  your  environmental  plan address  the                                                            
other sources  of pollution in Southeast  waters, you know,  like in                                                            
Juneau and all of the coastal communities?  Do you have a plan?                                                                 
                                                                                                                                
COMMISSIONER  BROWN: For many  years the department  - it's  been as                                                            
long as  I can remember and  that's been back  since about  the late                                                            
'80s,  the department  has used  our agreement  with  EPA as to  the                                                            
federal monies we will  get from them because the bulk of our budget                                                            
is federal dollars  and what that money will be allocated  for to be                                                            
our environmental  plan.  We have not done a separate  one from that                                                            
document.                                                                                                                       
                                                                                                                                
CHAIRMAN COWDERY:   So you have really not, in this  Administration,                                                            
updated any plans.  Is that what you're saying?                                                                                 
                                                                                                                                
COMMISSIONER  BROWN:  Well we update  our plan with EPA and  that is                                                            
put  out for  public notice  and because  that  is the  bulk of  our                                                            
funding that  explains what  we will be working  on and so  that has                                                            
been in  effect as our  plan and that gets  re-noticed and  reviewed                                                            
every - it's now every two years.  It was every year.                                                                           
                                                                                                                                
CHAIRMAN  COWDERY:   Well  the  way  I understand,  this  is  Alaska                                                            
statute, not EPA or federal,  so you're not conforming to the Alaska                                                            
statute.  Is that right?                                                                                                        
                                                                                                                                
COMMISSIONER  BROWN:   We  do not  do a  separate  plan because  our                                                            
planners,  the people  who were in  the department  as planners  are                                                            
long gone  from budget  cutting.   What  we do to  comply with  that                                                            
statute is  where we have to make  agreements on how monies  will be                                                            
expended, either  through our budget or through this  agreement with                                                            
EPA that outlines  the activities  that we will undertake,  which is                                                            
essentially the plan for the next year's performance.                                                                           
                                                                                                                                
CHAIRMAN COWDERY:  You've  proposed that we empower you to deal with                                                            
the  smaller  cruise  ships  by  regulation.    That's  what  you're                                                            
proposing.  But  [indisc.] propose to base them on,  not in writing,                                                            
I mean you're  basing them  on some federal  statute that -  we have                                                            
federal  laws  -  maybe I'm  out  of  here  but it  seems  like  the                                                            
Murkowski bill  addresses what we're trying to do  and there's a lot                                                            
of duplication here, it seems to me.                                                                                            
                                                                                                                                
COMMISSIONER  BROWN:   The  Murkowski bill  does  take an  excellent                                                            
first  step  and  the  Coast  Guard,  I  agree  with  you,  does  an                                                            
outstanding job  but it doesn't set our own state  requirements.  It                                                            
doesn't give  us the independent authority.   There's no  other area                                                            
that I know of  where we just turn things over in  the environmental                                                            
arena to the federal government.   In fact, when they try to step in                                                            
over our  actions we  take great offense  at that.   We have  a dual                                                            
system  - all  the environmental  laws  have federal,  state,  often                                                            
local,  and Native  aspects  to them.    With  the  Coast Guard,  we                                                            
currently regulate  together the TAPS crude carriers,  the non-crude                                                            
carriers.    There's  a lot  of  areas  where  we  have overlapping                                                             
jurisdiction because  there are different interests  and we do it in                                                            
a way that  avoids duplication  so we have  a long history  of doing                                                            
that.                                                                                                                           
                                                                                                                                
CHAIRMAN COWDERY:   Speaking of duplication and the  time that we're                                                            
getting, are there  any more questions of DEC or comments?   We have                                                            
people on line waiting.   Thank you.  I'm trying to get through this                                                            
in a timely manner.  We've  got other matters to go and we also have                                                            
here from - Mike Harcourt - are you online?                                                                                     
                                                                                                                                
SENATOR WARD:  He's here.                                                                                                       
                                                                                                                                
CHAIRMAN COWDERY:   Oh, he's here?   Okay, Mike?  I'm sorry,  please                                                            
come forward and identify  yourself, who you represent and give us a                                                            
brief - I hope you can do it in a short time.                                                                                   
                                                                                                                                
MR. MIKE  HARCOURT,  OCEANS BLUE FOUNDATION:   Well,  Mr. Chair  and                                                            
Senators,  members  of  the  Senate Transportation   Committee,  I'm                                                            
delighted  to  be here  as  a  neighbor  from Canada,  as  the  past                                                            
Premiere  of British  Columbia  and  mayor  of Vancouver  for  three                                                            
terms, and  I want to thank  you for being  able to be here  to talk                                                            
with you about  the most magnificent coastal area  in the world that                                                            
we share.  I want to, first  of all, reinforce  what I think  we all                                                            
recognize,  which  is  the importance   of the  cruise  industry  to                                                            
British Columbia  and Alaska.   So, if you'll  permit me, I'll  just                                                            
briefly  expand  on  the  fact  that  from  Vancouver   and  British                                                            
Columbia's  part, we appreciate the  one million people a  year that                                                            
are now coming  through our facilities.   It's about a $500  million                                                            
plus  impact on  our economy  in  British Columbia.    Those are  in                                                            
Canadian dollarettes,  not American dollars. The importance  of that                                                            
activity is recognized by a variety of our authorities.                                                                         
                                                                                                                                
I happen to be  a member here today for the Oceans  Blue Foundation,                                                            
which  is a very  significant foundation,  a  charity, dealing  with                                                            
environmental  issues  that  was created  by  the  tourism  industry                                                            
itself.  It is  out of the business community in British  Columbia's                                                            
concern  about being  successful economically  and  also being  good                                                            
stewards, in terms  of environmental issues.  I also  am a member of                                                            
the Vancouver Port Authority  board of directors and a member of our                                                            
airport  authority  board  of  directors   where  we  are  investing                                                            
substantial  sums of money to accommodate  the growth in  the cruise                                                            
industry that we see.   $89 million has been invested as we speak on                                                            
an expansion  of our cruise  facilities that  will be ready  for the                                                            
2003  cruise  season.   At  the airport  we  have invested  over  $1                                                            
billion  in new  runways,  new  international  facilities,  domestic                                                            
facilities and another  $1 billion will be invested in upgrading the                                                            
airport  to accommodate  the  growth that  we see  - a  lot of  that                                                            
around the  cruise industry.  We're looking  at $1.5 billion  light,                                                            
rapid transit  system from  the airport to  the downtown.  A  lot of                                                            
that will be  to accommodate our visitors  who are coming  in aboard                                                            
the cruise ships that we  see now and we think there will be further                                                            
expansion  into the  future.   I just  wanted to  reinforce what  we                                                            
think  is a  very important  industry  to us  as good  neighbors  in                                                            
British Columbia  and Alaska.  Having  said that, I want  to let you                                                            
know about the Oceans Blue  Foundation's support for the legislation                                                            
that  you're  looking at  and  to  tell you  about  a complementary                                                             
program that  we are looking at introducing  with the industry  of a                                                            
stewardship program - a certification program.                                                                                  
                                                                                                                                
CHAIRMAN COWDERY:  Senator Ward.                                                                                                
                                                                                                                                
SENATOR  WARD:  Just  so that I  know, and thank  you very much  for                                                            
coming up on  this issue.  What is  the graywater standard  for your                                                            
community for cruise ships?                                                                                                     
                                                                                                                                
MR.  HARCOURT:    Well  that's  why  I'm  here.    We  do  not  have                                                            
legislation  yet. One of the points  that I was going to  make is we                                                            
welcome in British Columbia  the pioneering work that you are doing.                                                            
I'm introducing  some legislation  because I think it's going  to be                                                            
important that we cooperate  on this.  We have similar approaches in                                                            
British Columbia  and Washington.  So that was going  to be, through                                                            
you Mr.  Chair, Senator, one  of the points  I was going to  make is                                                            
that we see what you're  doing as very important so that we can have                                                            
similar standards  for cruise ships, not just in Alaska  but also in                                                            
British Columbia and I would say Washington state as well.                                                                      
                                                                                                                                
SENATOR  WARD:  Just  one follow-up.   Do you  intend on doing  just                                                            
cruise ships  or will you  do your communities  also under  the same                                                            
standards?                                                                                                                      
                                                                                                                                
MR. HARCOURT:   We have legislation for sewage treatment,  if you're                                                            
talking about ....                                                                                                              
                                                                                                                                
SENATOR WARD:   I'm talking  about onshore  communities, as  well as                                                            
fishing fleets and smaller boats.                                                                                               
                                                                                                                                
MR. HARCOURT:   I think  that's a  very good issue  and I heard  you                                                            
raise that,  Senator, and I think  the question of other  vessels is                                                            
something  that  we're  going  to have  to  come  to grips  with  as                                                            
neighbors.  For  example, I think there is somewhere  around 250,000                                                            
recreational  boats  in Puget  Sound,  the  Strait of  Georgia,  and                                                            
Alaskan waters.   The issue of treatment facilities  for those boats                                                            
I think is one that we should address.                                                                                          
                                                                                                                                
SENATOR WARD:  Thank you Mr. Chairman.                                                                                          
                                                                                                                                
CHAIRMAN  COWDERY:   And  while  you're  on the  subject  about  the                                                            
economic  thing, a concern  that I have is  the - Boeing in  Seattle                                                            
thing.  Alaska  is unique, but I always  like to attract  dollars to                                                            
Alaska so I was always  concerned that we get the regulations to the                                                            
point where  they say - something  like Boeing did.  That  is just a                                                            
comment more than  anything.  I don't know if you  have any response                                                            
to that.                                                                                                                        
                                                                                                                                
MR.  HARCOURT:   Well that's  why  I think  it's important  that  we                                                            
cooperate  on similar  standards, Mr.  Chair.   That's the  interest                                                            
that we have in British  Columbia, particularly with the Oceans Blue                                                            
Foundation,  of trying to  not have different  regimes in  different                                                            
jurisdictions,  recognizing the importance  of this industry  to our                                                            
various communities.   I'm here to say that we welcome  what you are                                                            
doing.  We congratulate  you on the leadership that  you're showing.                                                            
It's of interest to us  to cooperate with you and we look forward to                                                            
a continuing  dialog  on the issue  of standards  for cruise  ships.                                                            
Now, as  well, and  I'm going  to table  with you,  the Oceans  Blue                                                            
Foundation,  as I said, which is an  environmental charity  that was                                                            
formed by the business  community itself to deal with this issue and                                                            
we are entering  into a certification  program with the industry  to                                                            
reward those cruise ship  lines that adopt the best standards so the                                                            
consumers can  see that there are shipping lines who  are attempting                                                            
to take  onboard the best  technology for  dealing with wastewater,                                                             
for dealing with discharges,  for dealing with air pollution issues,                                                            
the impact  on local communities,  and so  that will be a  voluntary                                                            
program between Oceans  Blue Foundation, which exists both in Canada                                                            
and the United  States, to work with the industry.   I'll leave this                                                            
with you rather  than getting into details and I am  really here not                                                            
to advise you  on the arcane details  of the various bills  that are                                                            
before  you but simply  in conclusion  to say  that we welcome  what                                                            
you're  doing.   We'd like  to cooperate  and to  see this  industry                                                            
become even more successful.                                                                                                    
                                                                                                                                
CHAIRMAN COWDERY:  Thank you.  Senator Taylor.                                                                                  
                                                                                                                                
SENATOR TAYLOR:   I just wanted to  thank Mike for his comments  and                                                            
it's wonderful  to see you  again, it's been  sometime and,  to note                                                            
for the record, the many  leadership positions that he's held in the                                                            
British  Columbia   government  and   the  great  efforts   that  he                                                            
personally has  made to work with our state over the  years.  He and                                                            
I go back some period of  time.  It's good to see you old friend and                                                            
I applaud  you  for coming  forward on  this because  the very  same                                                            
vessels that  we're attempting to  regulate are literally  based out                                                            
of Vancouver, most of them,  and operating out of your major city. I                                                            
know  that your  B.C.  fishermen  on the  coast,  many  of whom  are                                                            
friends,  and I've talked  with them at length  about this,  they're                                                            
just as  concerned as  the fishermen  in my district  are about  the                                                            
quality of  our waters, that  our products  live and ranch  and farm                                                            
and grow in.   I think Senator Ward's  question was very  good and I                                                            
know how strongly you personally  have worked to try to get Victoria                                                            
as an example  to quit pumping  sewage raw  into the Pacific  and to                                                            
work on Vancouver and Vancouver's  now done a great deal to clean up                                                            
their own waste  stream flows.  The  man sitting here has  had a lot                                                            
to do with that and I applaud  you for that.  I thank you for taking                                                            
your time to  come up here and join  with us in this effort.   As we                                                            
work toward that effort,  I hope we can come up with a standard that                                                            
is  uniform throughout  the  entire  coastal  regions  of the  North                                                            
American  continent  so that  a vessel  complying  in one  community                                                            
knows that  it is in compliance in  another so that each  of us have                                                            
the same level  of security about  purities of water that  you and I                                                            
have  talked  about  in the  past.    Again, thank  you  for  coming                                                            
forward.                                                                                                                        
                                                                                                                                
MR. HARCOURT:   Through you, Mr. Chair, Senator Taylor  I appreciate                                                            
seeing you again too.  We'll look at that road further.                                                                         
                                                                                                                                
CHAIRMAN  COWDERY:  I'm  purposely not  - we have  Randy Roy  here -                                                            
Ray, I'm  sorry.   I see  we have cruise  industry  people.  I  have                                                            
talked  with them and,  in the interest  of time,  unless they  have                                                            
something drastically  to add to this, they've given  me indications                                                            
that they support this bill.  So with that ....                                                                                 
                                                                                                                                
MR. RANDY  RAY, United States  Cruise Ship  Association:  I  do have                                                            
one amendment  that I - we're down  from 12 to one so I think  we've                                                            
made a  lot of progress.   First  of all, Randy  Ray, United  States                                                            
Cruise  Ship Association.   I want  to thank the  committee  for the                                                            
work on the legislation  and particularly the concern  the committee                                                            
has shown for  the small cruise ships.  We can tell  a lot of work's                                                            
been put into this, particularly  by you Senator Cowdery.  I want to                                                            
thank you  for putting  this in  while your  wife's been  undergoing                                                            
treatment  and there's been  some technical  changes on it  we think                                                            
that are  improving the bill  and I think  we have to thank  Senator                                                            
Leman for some  of those efforts as  well and we'd like to  do that.                                                            
As  we testified  at  the last  hearing,  while the  original  House                                                            
version exempted our types  of vessels for three years, once we were                                                            
put back into  the bill, essentially  we would have been  kicked out                                                            
of the  state because we  can't meet the  House version after  three                                                            
years.  We presented a  number of amendments to you at that point in                                                            
time  and,  again,  you have  perfected  those  amendments  and  now                                                            
included those  in the bill and so your version fixes  almost all of                                                            
our problems.                                                                                                                   
                                                                                                                                
There is one  issue that you did miss  that we would like  to - that                                                            
appears to be  inadvertent and we'd like to present  to you and that                                                            
has to do  with the fees  on the bill.   Since we are exempted  from                                                            
the regulatory  scheme  of the bill  for three  years, since  we are                                                            
doing our own  monitoring and test and we're just  reporting that to                                                            
DEC, we  are not really using  DEC's services  and we could  use the                                                            
money to try and figure  out how we're going to meet these standards                                                            
once the three  years are up.  One of the things I  described to you                                                            
is the new technology that's  available to the large cruise ships is                                                            
not available  to the small cruise ships. The manufacturers  are not                                                            
making those  for our size.   We've talked  to them and so,  besides                                                            
having to  buy new  technology, we  may actually  have to go  pay to                                                            
have  it designed  and built  and so  that's when  our expenses  are                                                            
going to be much  higher and so we've presented an  amendment to the                                                            
committee, which  is on your desk, that would, on  page 17, line 19,                                                            
add 'and 46.03.480'  which is the  fee section.  So we'd  ask you to                                                            
adopt that and  we'd like to close on a note and that  is that we're                                                            
all  here to  protect,  the Alaska  environment,  which  is our  top                                                            
priority, but  as we move forward  on this legislation what  you are                                                            
doing  here is  literally creating  the model  for the  rest of  the                                                            
planet.   I think we just  had British Columbia  here.  I  know that                                                            
Hawaii now  is looking at what you're  going to do.  California  and                                                            
Washington  will soon follow  and so the  piece of legislation  that                                                            
you pass  through this legislature,  this weekend,  is going  to set                                                            
the precedent  for  the planet  and that's  why  we appreciate  your                                                            
perfecting the bill.                                                                                                            
                                                                                                                                
CHAIRMAN COWDERY:  Thank  you.  We have, and I'm sorry, John Palmes?                                                            
Is he in the ....                                                                                                               
                                                                                                                                
SENATOR ELTON:   Excuse me - before we allow the U.S.  flag vessel -                                                            
just a short question.   I think that some of us may  understand the                                                            
special  problems  that  accrue  to the  smaller  vessels,  and  you                                                            
alluded to them.   It would be helpful if you could  articulate what                                                            
some of  those problems  are - size  of the vessel  and some  of the                                                            
other technology issues that the U.S. flagships have.                                                                           
                                                                                                                                
MR. RAY:  In the original  HB 260, it says that one cannot discharge                                                            
unless one is at least  a mile from port and is underway.  We simply                                                            
do not have  a holding capacity in  our tanks.  We might  be able to                                                            
hold our black  water for eight hours  but we are in port  for 12 to                                                            
14 hours  so all  of a sudden  we'd have  stuff coming  back up  the                                                            
system.  Many  of our graywater pipes do not at all  have - once you                                                            
turn the shower  on it just goes directly over the  side.  The other                                                            
thing we've  determined with our MSDs,  which is the old  technology                                                            
we're currently  using, they work  better if we run them  24 hours a                                                            
day.  We're  more likely to meet the  standard of 200 if  we can run                                                            
them 24 hours  a day.  If we have  to shut them down while  we're in                                                            
port and start  them back up, we're  probably guaranteed  to violate                                                            
the  200 limit  and then  be subject  to large  fines.   So, we  are                                                            
currently stuck with the old technology.                                                                                        
                                                                                                                                
As I said, the  new vessels, as you've seen, the large  cruise ships                                                            
have been moving on with  some great new technology.  We've met with                                                            
those manufacturers.   They  don't make those  for our size  vessel.                                                            
We just - they don't fit  and so we don't know whether they're going                                                            
to or  not.   We've asked  them and  their answer  currently is  no,                                                            
we're not  designing them  for your  ships.  So  the discharge,  the                                                            
holding capacity,  are a number  of things  that we have to  do.  On                                                            
the graywater,  we've got systems that - as it comes  over the side,                                                            
we don't  have holding  capacity.   We looked  at one  of our  ships                                                            
putting on 500  gallons for firefighting protection.   We would have                                                            
had to lengthen  the entire ship 20  feet.  That's a million  dollar                                                            
project  so, to  have a  4,000 gallon  holding tank  for  graywater,                                                            
black water,  which means  basically we'd have  to scrap the  entire                                                            
U.S. fleet and start all over.                                                                                                  
                                                                                                                                
And, so  we have got some  major technical  problems that we  cannot                                                            
meet under  the old  [HB] 260.   Now  we're exempt  for three  years                                                            
under the House version  of [HB] 260 but once we're thrown back into                                                            
in, that's  when we  have the problem.   Your  bill that you've  got                                                            
here in  front of us, perfects  all that stuff  now and so  we would                                                            
just like to ask you to consider that one last amendment.                                                                       
                                                                                                                                
CHAIRMAN COWDERY:  Thank you.                                                                                                   
                                                                                                                                
SENATOR TAYLOR:  I offer that amendment.                                                                                        
                                                                                                                                
CHAIRMAN  COWDERY:  Is there  any objection?   You make note  and we                                                            
will - if there's no objection?                                                                                                 
                                                                                                                                
SENATOR  ELTON:    Object,  just  for  the  purpose  of  asking  the                                                            
Administration  if  they  see  any  problems   with  the  additional                                                            
language.  Thanks Mr. Chairman.                                                                                                 
                                                                                                                                
[COMMISSIONER BROWN nodded in support of the amendment.]                                                                        
                                                                                                                                
SENATOR  TAYLOR:  I  just wanted to  make sure this  was not  one of                                                            
those irrelevant issues?  Okay.                                                                                                 
                                                                                                                                
SENATOR WILKEN:  I have a question.                                                                                             
                                                                                                                                
CHAIRMAN COWDERY:  Yes.                                                                                                         
                                                                                                                                
SENATOR  WILKEN:   Mr. Ray, when  you came  to us  9 a.m. on  Sunday                                                            
before we adjourned,  you had a single sheet of paper  that showed a                                                            
list of  ships that  you said  to us  that 80 percent  of that  list                                                            
wouldn't be able to ply Alaskan waters under [HB] 260.                                                                          
                                                                                                                                
MR. RAY:  Yes.                                                                                                                  
                                                                                                                                
SENATOR WILKEN:  I wish  in the last month, as I've tried to explain                                                            
to people why  I am here, I had that handout in front  of me.  Could                                                            
I have another copy of that please?                                                                                             
                                                                                                                                
MR. RAY:  I  don't have it with me  but I will get you one  of those                                                            
by tomorrow.                                                                                                                    
                                                                                                                                
SENATOR WILKEN:  I'd very much like to have that.                                                                               
                                                                                                                                
SENATOR ELTON:  You can stop by my office and get a copy.                                                                       
                                                                                                                                
MR. RAY:  Thank you.                                                                                                            
                                                                                                                                
CHAIRMAN COWDERY:  And  the last person that I've got here scheduled                                                            
is John Palmes.   If he would come forward and identify  himself and                                                            
his affiliation and background.                                                                                                 
                                                                                                                                
MR. JOHN PALMES:  I have no affiliation right now.                                                                              
                                                                                                                                
CHAIRMAN COWDERY:   And if we could keep this to five  minutes we've                                                            
got other things.                                                                                                               
                                                                                                                                
MR. PALMES:  I'll  do my best.  I'm a retired habitat  biologist.  I                                                            
began my  career with the  Department of Fish  and Game in 1971.   I                                                            
also have worked with the  Governor's Division of Policy Development                                                            
and   Planning,   coordinating   state   reviews  of   permits   and                                                            
environmental impact statements,  oil and gas leasing documents, and                                                            
a lot of people  who think that they're  my friends aren't  going to                                                            
want to  hear what I have  to say.  As a  habitat biologist,  I soon                                                            
learned that  conservationists  don't support  you if you allow  any                                                            
trees to be cut.   The loggers don't like you if you  won't let them                                                            
cut all the trees,  and when the legislature routinely  threatens to                                                            
cut your budget  to zero, everyone  you work with just wants  you to                                                            
keep  your mouth  shut.   They're afraid  your opinion  is going  to                                                            
cause  the loss  of their  job,  so as  a result  of budget-cutting                                                             
paranoia, I decided to become a retired biologist.                                                                              
                                                                                                                                
I'm here because as a citizen  I'm concerned that we're avoiding our                                                            
biggest  problems like  subsistence  and alcohol  related crime  and                                                            
violence  while   we  focus  on  trivial   issues  and  politically                                                             
vulnerable  targets.  I'm also a boater  and a commercial  fisherman                                                            
and I'm concerned  that most boaters and Alaskan communities  cannot                                                            
meet the standards  proposed for the  tour industry.  In  fact, most                                                            
of us have  been outlaws  for years as a  result of the Clean  Water                                                            
Act passage.   I'm concerned that we create and perpetuate  a system                                                            
of laws  that can't be  applied uniformly  or rationally.   I'm even                                                            
more  concerned that  we will  then decide  to enforce  against  one                                                            
group or another,  based on how politically  correct or how  easy it                                                            
is to  cite and convict  them.   As a biologist  I'm most  concerned                                                            
that everybody's  talking buzz words  rather than using their  heads                                                            
to estimate  the potential  impacts of tour  boat sewage.   The tour                                                            
boats don't  dump pollution.  It is  very important to realize  that                                                            
sewage is  just food that's  been digested  and that fecal  coliform                                                            
bacteria,  with a few  rare exceptions,  are harmless.   Sewage  and                                                            
graywater  are not pollution  and the materials  discharged  are not                                                            
pollutants unless they cause some kind of damage or nuisance.                                                                   
                                                                                                                                
For three  decades  or more,  sewage has  been discharged  into  the                                                            
donut holes and no effects  have been noted or even suggested.  When                                                            
the tour boats  flushed out their holding tanks in  the donut holes,                                                            
it  was perfectly  legal  to  do it.    In fact,  it's  likely  that                                                            
lobbyists  for  the tour  companies  worked  hard  to see  that  the                                                            
federal Clean  Water Act had some little loopholes  in it - or donut                                                            
holes in it  - some convenient place  to get rid of their  sewage. I                                                            
think a  lot of people have  known about these  donut holes  and the                                                            
fact that you could discharge in them for a long time.                                                                          
                                                                                                                                
Some  people have  said  that if  you wait  until  sewage becomes  a                                                            
problem before you do something  about it, then you lose the war but                                                            
vigilance has  its price.  A little  application of what  we already                                                            
know about  sewage and the  ecosystem leads  to the conclusion  that                                                            
all  this  concern  about sewage  in  the  donut  holes is  just  an                                                            
exercise in  political correctness.   We'd all like to believe  that                                                            
Alaskan waters are pristine  but most of us discharge our own sewage                                                            
into it.  Tour  boat sewage could be a problem if  it caused so much                                                            
growth  that  oxygen   became  depleted  in  the  affected   waters.                                                            
However,  given   the  amount  of  sewage  that  tour   boats  could                                                            
discharge,  and  the high  mixing  rate and  oxygen  content of  the                                                            
receiving waters,  this affect is  unlikely.  However, we  know that                                                            
sewage has  to have some  effect and I guess  that the effects  were                                                            
trivial and  unmeasurable, but let's  assume that enough  sewage was                                                            
discharged to  cause some significant environmental  change.  Sewage                                                            
isn't toxic,  it's just  digested  food.  It's  a great fertilizer.                                                             
Sewage is rich  in amino nitrogen  compounds and Alaskan  ecosystems                                                            
are relatively  poor in these nutrients.   Depletion of nitrogen  in                                                            
mid-summer  in  ocean   ecosystems  can  temporarily   reduce  their                                                            
productivity.    If  the  discharges  were  large  enough  to  cause                                                            
significant  environmental change,  and no undesirable changes  were                                                            
noted,   the  nutrients   in  the  sewage   must  have  contributed                                                             
significantly to the productivity  and biomass as a system.  Instead                                                            
of damaging  the  ecosystem,  it's more  likely that  sewage in  the                                                            
donut holes provided a  valuable input of nitrogen at a time when it                                                            
was most  scarce,  thus allowing  the system  to  support a  greater                                                            
biomass  and  increasing  the  productivity  and  fecundity  of  the                                                            
endangered humpback whale.                                                                                                      
                                                                                                                                
When  the U.S.  Park  Service  began  to study  humpback  whales  in                                                            
Glacier Bay, their  first problem was to find the  whales.  It seems                                                            
that they spend more time  about Point Adolphus feeding than they do                                                            
in the Bay.  It's  possible that the tour boat sewage  and the large                                                            
donut hole  just a couple  of miles east of  Point Adolphus  is what                                                            
makes  the  area   so  productive  and  so  attractive   to  whales.                                                            
Frederick Sound  also has a large  donut hole and it's another  area                                                            
that   supports   large   concentrations   of   endangered   whales.                                                            
Therefore, if  you're worried about the effects of  what you believe                                                            
might have  been tremendous  quantities of  sewage, then you  should                                                            
move quickly to  resume discharge of sewage into the  donut holes so                                                            
the ecosystem, which supports  the endangered humpback whale, is not                                                            
deprived of a valuable  source of nutrients.  Maybe it's best not to                                                            
wait for  something to become  a problem before  you act to  head it                                                            
off but it's  not prudent to ignore  real problems while  you try to                                                            
watch out for  everything that might  be one, particularly  when the                                                            
Coast Guard and EPA are  already doing the job.  Furthermore, if you                                                            
can't  tell  the  difference  between   a  potential  hazard  and  a                                                            
potential  benefit, you  really do have  a problem.   You better  be                                                            
able  to prove  or disprove  the hypothesis  that this  is really  a                                                            
great thing that's been going on.                                                                                               
                                                                                                                                
In the  case of  sewage, we  have problems  but they're  not in  the                                                            
donut holes.  They're in  villages and small towns where sewage runs                                                            
in  the street.   I'm  concerned  that we  have real  problems  with                                                            
alcohol  and with subsistence  management  of fish  and game  but we                                                            
won't deal  with them.  The state's  interest in clean water  is not                                                            
the same as  the federal government's.   Alaskans, fishermen,  small                                                            
towns, canneries,  logging camps break the existing  federal laws on                                                            
sewage and  garbage every day.  It's  a crime to piss in  the ocean.                                                            
I suggest that  the state would make better and more  perfect use of                                                            
its resources  if it let the Coast  Guard and EPA do the  work while                                                            
we  monitor  the  thoroughness  and  effectiveness  of  the  federal                                                            
agencies. We're only 600,000  people and our revenues are declining.                                                            
We need  to be vigilant  but we don't  have to  take on the  work if                                                            
someone else  is already  doing it, and especially  if the  risks of                                                            
doing nothing are trivial.                                                                                                      
                                                                                                                                
Look at the affect  of the federal legislation anyway.   Notice that                                                            
the donut holes  are three miles offshore  and that tour  boats will                                                            
still be allowed  to discharge at  three miles from our coast,  just                                                            
not in  a donut  hole.   That means  that places  like Cross  Sound,                                                            
Dixon Entrance  and Salisbury  Sound will  become the new  discharge                                                            
locations.   Why don't we have the  same concerns for those  places?                                                            
Finally, we should  note that treatment with chlorine  is one of the                                                            
ways  that coliform  counts  are reduced  in sewage  and  graywater.                                                            
Chlorine is deadly poisonous  and it poses a great risk on a ship if                                                            
it's stored as  a gas because if it gets lose it can  kill somebody.                                                            
Chlorine also combines  with organic compounds to produce substances                                                            
that tend  to cause  cancer.   Although I'm  personally not  worried                                                            
about it,  those that are  concerned with  the release of  potential                                                            
carcinogens need to understand  that it might be better to discharge                                                            
more bacteria and treat the sewage less.                                                                                        
                                                                                                                                
In summary,  if the discharge  of sewage into  the donut holes  were                                                            
significant,  and  it's  more  likely  that   such  discharges  were                                                            
beneficial  and they should be resumed  in order to ensure  the well                                                            
being  of the endangered  humpback  whale.   Federal pollution  laws                                                            
also make most  rural Alaskans outlaws.  The state's  role should be                                                            
to oversee  the pollution  control efforts  of the federal  agencies                                                            
and to intercede for the public ... .[END OF TAPE]                                                                              
                                                                                                                                
TAPE 01-20, SIDE A                                                                                                            
                                                                                                                                
MR. PALMES:  ... more  money if  we deal  with the  head end of  the                                                            
regulatory  animal  rather  than the  sewage  producing  end of  the                                                            
critter.    Thanks  for  the  opportunity  to  provide  a  different                                                            
perspective on this not very critical environmental issue.                                                                      
                                                                                                                                
CHAIRMAN COWDERY:   Could we have  a copy of your statement  for the                                                            
record?                                                                                                                         
                                                                                                                                
MR. PALMES:  Yes.                                                                                                               
                                                                                                                                
CHAIRMAN  COWDERY:   I appreciate  that and  you can  give it  to my                                                            
staff.  What's the will of the committee?                                                                                       
                                                                                                                                
SENATOR WARD:   Mr. Chairman, I move  SCS CSHB 260(TRA),  Version R,                                                            
with  the  accompanying  notes  out  of  committee  with  individual                                                            
recommendations.                                                                                                                
                                                                                                                                
SENATOR ELTON:  I object.                                                                                                       
                                                                                                                                
SENATOR WARD:  Question.                                                                                                        
                                                                                                                                
SENATOR TAYLOR:  There was objection, I think.                                                                                  
                                                                                                                                
SENATOR ELTON:   I object.  I object for the purpose  of a couple of                                                            
amendments, Mr. Chair.                                                                                                          
                                                                                                                                
SENATOR WARD:  I have a motion before us.                                                                                       
                                                                                                                                
CHAIRMAN COWDERY:  Let's vote on the motion and then ....                                                                       
                                                                                                                                
SENATOR  TAYLOR:   That's  the only  question  I  had, too.   I  had                                                            
brought that  one amendment and wondered  if you wanted to  do that.                                                            
                                                                                                                                
CHAIRMAN COWDERY:   Oh yes.  That's right.  Staff  will put that in.                                                            
What's the procedure?                                                                                                           
                                                                                                                                
SENATOR WARD:   Mr. Chairman, I withdraw my motion  and I would move                                                            
Amendment 1 as identified  by me to the committee substitute and ask                                                            
unanimous consent.                                                                                                              
                                                                                                                                
[AMENDMENT 1 reads as follows:                                                                                                  
     Page 17, line 9, after "d" insert "and 46.03.480"]                                                                         
                                                                                                                                
CHAIRMAN COWDERY:  Is there any objection?  Hearing none ....                                                                   
                                                                                                                                
SENATOR WARD:   Mr. Chairman I would  move SCS CSHB 260(TRA)  out of                                                            
committee   with  individual   recommendations,   Version  R,   with                                                            
accompanying notes.                                                                                                             
                                                                                                                                
SENATOR ELTON:   Mr. Chairman, we  can do this in a way that  may be                                                            
appropriate ....                                                                                                                
                                                                                                                                
CHAIRMAN COWDERY:  Is there objection?                                                                                          
                                                                                                                                
SENATOR ELTON:   ... and we can do it in a way that  allows only one                                                            
person to make  an amendment to this  bill.  I mean it's  up to you,                                                            
the Chair.                                                                                                                      
                                                                                                                                
SENATOR WARD:  Is there no objection?                                                                                           
                                                                                                                                
CHAIRMAN COWDERY:  We have a motion on the floor.  Is there                                                                     
objection?                                                                                                                      
                                                                                                                                
SENATOR ELTON:  I object.                                                                                                       
                                                                                                                                
CHAIRMAN COWDERY:  Roll call vote please.                                                                                       
                                                                                                                                
[A roll call vote was taken.  Senators Ward, Taylor, Wilken and                                                                 
Cowdery voted in favor, Senator Elton voted against.]                                                                           
                                                                                                                                
CHAIRMAN COWDERY:  So the bill moves to the next committee of                                                                   
referral.  Anyway, if there's nothing more to come, I'm glad to get                                                             
rid of this one.  We're adjourned.                                                                                              

Document Name Date/Time Subjects