SJR 40 - URGE CONGRESS TO AMEND OIL POLLUTION LAW CHAIRMAN WILLIAMS told committee members they had passed HJR 49 several weeks ago, which urged the federal Minerals Management Service (MMS) to interpret definitions in the Oil Pollution Act of 1990 (OPA `90) as narrowly as possible in promulgating their regulations under the financial responsibility sections of OPA '90. CHAIRMAN WILLIAMS said SJR 40 addresses the same concerns, but covers another angle of the problem by addressing the concerns to Congress. He encouraged members to use the hearing to refresh their memories about the issues involved with the OPA `90 regulations, because the committee would be meeting with the MMS officials the next day to discuss concerns. Number 028 SENATOR DRUE PEARCE, PRIME SPONSOR, SJR 40, stated SJR 40 takes a different tack than HJR 49 did. In December, the Energy Council passed a resolution in favor of changes to the OPA `90 financial responsibility section. As a part of that, and after meetings with people from the MMS, the Executive Committee had a draft resolution drawn up and SJR 40 follows the lines of that resolution. She said even though MMS would like to interpret the OPA `90 restrictions and regulations innovatively, the law says there is a $150 million financial responsibility for every facility. Those facilities are offshore facilities but include anything that is in, under or on any U.S. navigable or territorial water. Therein, lies the problem. Number 045 SENATOR PEARCE pointed out that MMS cannot change the definition because it will then filter down onto some of their other regulations. It is believed that Congress will ultimately need to change that section of the bill. SJR 40 requests that Congress act now before the financial responsibility section has negative effects on Alaska businesses. She noted the Energy Council has it's spring meeting in Washington, D.C., every year and the first weekend in March she will be attending that meeting. She added there will be a meeting with the Alaska Congressional delegation. She hoped to present both resolutions to the delegation and have a discussion directly with them, along with a meeting at the Department of Interior and the Department of Energy. Senator Pearce stated she planned to present both resolutions into public record on Wednesday. Number 070 REPRESENTATIVE DAVID FINKELSTEIN asked Senator Pearce to explain why the two resolutions are not redundant. SENATOR PEARCE replied that Representative Green's and her staff chose different language. The Administration feels the two resolutions are very complimentary and feels comfortable with having both resolutions taking a different tack. She noted that the MMS people have been asking for a way to interpret the definition in some manner in which they can make the regulations more palatable for states like Alaska. REPRESENTATIVE FINKELSTEIN thought that if there are two measures on the same subject, the first one passes and the other one disappears. SENATOR PEARCE stated the two resolutions are on the same subject, but take different tacks. Number 091 REPRESENTATIVE JOE GREEN explained the final cure has to be through Congress which can sometimes be a slow, methodical process. If the state can suppress MMS to not implement the rigid regulations, (interpreting the definition in the broadest possible sense) through HJR 49 and then allow SJR 40 to get to Congress, the state will prevent a period of time when the regulations might be enacted before the law is changed. REPRESENTATIVE BILL HUDSON felt both resolutions are complimentary. He asked Senator Pearce if she had asked the Congressional delegation of the probability of having Congress act on changes of OPA `90. SENATOR PEARCE replied she had discussed the issue primarily with Senator Steven's office. She said all Congressional delegations are reticent to go back into OPA `90, but they understand that it is not just an Alaska problem or a wetlands problem, it is a problem in every state. She pointed out that the broad way MMS is interpreting the definition, it will include many airports throughout the country, gas stations, etc. She did not think that is what Congress intended and added that Congress has admitted that is not what they intended. SENATOR PEARCE remarked that MMS believes they need to go to Congress with clear definitions of the actual economic problems which the strict interpretation will cause. She said the final response from the state will be delivered to MMS in testimony on Wednesday. Number 131 REPRESENTATIVE HUDSON made a motion to MOVE CSSJR 40(RES) with a fiscal note out of committee with INDIVIDUAL RECOMMENDATIONS. CHAIRMAN WILLIAMS asked if there were any objections to the motion. Hearing none, the MOTION PASSED. (CHAIRMAN WILLIAMS noted for the record that REPRESENTATIVE GREEN joined the committee at 8:25 a.m.)