00 HOUSE CS FOR CS FOR SENATE BILL NO. 273(RES)                                                                          
01 "An Act regarding oil discharge prevention, and relating to contingency plans and                                       
02 proof of financial responsibility for all self-propelled nontank vessels exceeding 400                                  
03 gross registered tonnage and for railroad tank cars; authorizing inspection of                                          
04 nontank vessels and trains; and providing for an effective date."                                                       
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
06    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new                                 
07 section to read:                                                                                                        
08  LEGISLATIVE INTENT FOR ACT.  The provisions of this Act do not alter the                                               
09 liability requirements of AS 46 with respect to contingency plan holders, parties responsible                           
10 for the discharge of oil, or oil spill response action contractors under AS 46.03 and AS 46.04.                         
11    * Sec. 2.  AS 46.04.030(e) is amended to read:                                                                     
12  (e)  The department may attach reasonable terms and conditions to its approval                                        
13 or modification of a contingency plan that the department determines are necessary to                                   
14 ensure that the applicant for a contingency plan has access to sufficient resources to                                  
01 protect environmentally sensitive areas and to contain, clean up, and mitigate potential                                
02 oil discharges from the facility or vessel as provided in (k) of this section, and to                                   
03 ensure that the applicant complies with the contingency plan.  If a contingency plan                                    
04 submitted to the department for approval relies on the services of an oil spill primary                                 
05 response action contractor, the department may not approve the contingency plan                                         
06 unless the primary response action contractor is registered and approved under                                          
07 AS 46.04.035 ; however, for purposes of this chapter, unless a primary response                                        
08 action contractor that is organized as a nonprofit corporation is specifically                                          
09 identified in the contingency plan as the contingency plan holder having the                                            
10 obligation to carry out procedures identified in the plan that are the responsibility                                   
11 of the holder of the plan, the primary response action contractor that performs                                         
12 the obligations that are described in the contingency plan is not considered a                                          
13 contingency plan holder for purposes of this section .  The contingency plan must                                      
14 provide for the use by the applicant of the best technology that was available at the                                   
15 time the contingency plan was submitted or renewed.  The department may require an                                      
16 applicant or holder of an approved contingency plan to take steps necessary to                                          
17 demonstrate its ability to carry out the contingency plan, including                                                    
18   (1)  periodic training;                                                                                              
19   (2)  response team exercises; and                                                                                    
20   (3)  verifying access to inventories of equipment, supplies, and                                                     
21 personnel identified as available in the approved contingency plan.                                                     
22    * Sec. 3.  AS 46.04 is amended by adding a new section to read:                                                    
23  Sec. 46.04.055.  Nontank vessels and railroad tank cars.  (a)  A person may                                         
24 not cause or permit the operation of a nontank vessel within the waters of the state or                                 
25 cause or permit the transfer of oil to or from a nontank vessel unless                                                  
26   (1)  effective April 1, 2002, an oil discharge prevention and contingency                                            
27 plan has been approved by the department and the person is in compliance with the                                       
28 plan; a plan under this paragraph is subject to the requirements of AS 46.04.030; and                                   
29   (2)  the person has furnished to the department and the department has                                               
30 approved proof of financial ability to respond to damages meeting the requirements of                                   
31 AS 46.04.040; proof of financial responsibility required under this paragraph is subject                                
01 to adjustment of dollar amounts under AS 46.04.045 and is established, for a nontank                                    
02 vessel that carries                                                                                                     
03   (A)  only persistent product as fuel or in bulk, at $300 per                                                        
04 incident for each barrel of persistent product storage capacity or $5,000,000,                                          
05 whichever is greater;                                                                                                   
06   (B)  only nonpersistent product, at $100 per incident for each                                                      
07 barrel of nonpersistent product storage capacity or $1,000,000, whichever is                                            
08 greater; and                                                                                                            
09   (C)  both persistent product, as fuel or in bulk, and nonpersistent                                                 
10 product, at the applicable financial responsibility rate established in (A) or (B)                                      
11 of this paragraph for the storage capacity of the vessel for persistent product                                         
12 or nonpersistent product that predominates on the vessel.                                                               
13  (b)  A person may not transport oil by railroad tank car or cause or permit the                                       
14 transfer of oil to or from a railroad tank car unless                                                                   
15   (1)  effective April 1, 2002, an oil discharge prevention and contingency                                            
16 plan has been approved by the department and the person is in compliance with the                                       
17 plan; a plan under this paragraph is subject to the requirements of AS 46.04.030; and                                   
18   (2)  the person has furnished to the department and the department has                                               
19 approved proof of financial ability to respond to damages meeting the requirements of                                   
20 AS 46.04.040; proof of financial responsibility required under this paragraph is subject                                
21 to adjustment of dollar amounts under AS 46.04.045 and is established at                                                
22   (A)  $300 per incident for each barrel of persistent product based                                                  
23 on the maximum amount of persistent product storage capacity of any train on                                            
24 the railroad; and                                                                                                       
25   (B)  $100 per incident for each barrel of nonpersistent product                                                     
26 based upon the maximum amount of nonpersistent product storage capacity of                                              
27 any train on the railroad or $1,000,000, whichever is greater.                                                          
28  (c)  Effective April 1, 2002, for purposes of AS 46.04.030(k), response                                               
29 planning standards apply to nontank vessels and railroad tank cars as follows:                                          
30   (1)  for a nontank vessel contingency plan required by (a)(1) of this                                                
31 section,                                                                                                                
01   (A)  containment and control of 15 percent of the maximum oil                                                       
02 capacity of the nontank vessel within 48 hours; and                                                                     
03   (B)  cleanup of the discharge within the shortest possible time                                                     
04 consistent with minimizing damage to the environment;                                                                   
05   (2)  for a railroad tank car contingency plan required by (b)(1) of this                                             
06 section,                                                                                                                
07   (A)  containment and control of 15 percent of the maximum oil                                                       
08 capacity of a train on the railroad within 48 hours; and                                                                
09   (B)  cleanup of the discharge within the shortest possible time                                                     
10 consistent with minimizing damage to the environment.                                                                   
11  (d)  Notwithstanding the requirements of AS 46.04.040(l) and AS 46.04.047,                                            
12 for purposes of (a)(2) and (b)(2) of this section, an applicant may provide evidence of                                 
13 financial responsibility provided by an insurer or other person who does not agree to                                   
14 be subject to direct action in state courts or to appoint an agent for service of process.                              
15  (e)  The requirements of (a) - (d) of this section do not apply to a nontank                                          
16 vessel operating in the waters of the state if the nontank vessel                                                       
17   (1)  is engaged in innocent passage; for purposes of this paragraph, a                                               
18 nontank vessel is engaged in innocent passage if its operation in state waters would                                    
19 constitute innocent passage under the Convention on the Territorial Sea and the                                         
20 Contiguous Zone, April 29, 1958, 15 U.S.T. 1606, or the United Nations Convention                                       
21 on the Law of the Sea 1982, December 10, 1982, U.N. Publication No. E 83.V.5, 21                                        
22 I.L.M. 1261 (1982);                                                                                                     
23   (2)  enters state waters because of imminent danger to the crew, or in                                               
24 an effort to prevent an oil spill or other harm to public safety or the environment, and                                
25 are inapplicable only until the vessel is able to leave state waters as soon as it may do                               
26 so without imminent risk of harm to the crew, public safety, or the environment; or                                     
27   (3)  enters state waters after the United States Coast Guard has                                                     
28 determined that the vessel is in distress, and are inapplicable only until the vessel is                                
29 able to leave state waters as soon as it may do so without imminent risk of harm to                                     
30 the crew, public safety, or the environment.                                                                            
31  (f)  In place of the requirements of (a)(1), (b)(1), and (c)(1) of this section, the                                  
01 department may adopt regulations by negotiated regulation making under AS 44.62.710                                     
02 - 44.62.800 to provide for alternative means to obtain equivalent levels of spill                                       
03 prevention and response, including fleet plans, use of vessel agents, generic                                           
04 contingency plan contents established by regulation, and streamlined contingency plans                                  
05 with membership in a nonprofit corporation that is a primary response action                                            
06 contractor.                                                                                                             
07  (g)  A nontank vessel that is conducting, or is available only for conducting,                                        
08 oil discharge response operations is exempt from the requirements of (a) of this section                                
09 if the nontank vessel has received prior approval of the department.  The department                                    
10 may approve exemptions under this subsection upon application and presentation of                                       
11 information required by the department.                                                                                 
12  (h)  When considering whether to approve or modify an oil discharge                                                   
13 prevention and contingency plan, the department, consistent with the requirements of                                    
14 regulations adopted to implement this section, may modify the requirements of the                                       
15 standards set out in (c)(1) and (c)(2) of this section or of the general standards adopted                              
16 under (f) of this section to provide for alternative means to obtain equivalent levels of                               
17 spill prevention and response to reflect the reduced risk of oil discharges based on                                    
18 evidence of implementation of systems or staffing levels that reduce the potential size                                 
19 or risk of a discharge.                                                                                                 
20    * Sec. 4.  AS 46.04.060 is amended to read:                                                                        
21  Sec. 46.04.060.  Inspections.  (a)  In addition to other rights of access or                                        
22 inspection conferred upon the department by law or otherwise, the department may at                                     
23 reasonable times and in a safe manner enter and inspect oil terminal facilities,                                        
24 pipelines, exploration and production facilities, tank vessels,  nontank vessels, trains,                             
25 and oil barges in order to                                                                                              
26   (1)  ensure compliance with the provisions of this chapter; or                                                       
27   (2)  participate in an examination of the structural integrity and the                                               
28 operating and mechanical systems of those vessels, barges,  trains,  pipelines, and                                   
29 facilities by federal and state agencies with jurisdiction.                                                             
30  (b)  When the department determines that no federal or state agencies with                                            
31 jurisdiction are performing timely and adequate inspections of an oil terminal facility,                                
01 pipeline, exploration or production facility, tank vessel,  nontank vessel, train,  or oil                            
02 barge, it may perform its own inspection of the structural integrity and operating and                                  
03 mechanical systems of a facility, pipeline, tank vessel,  nontank vessel, train,  or oil                              
04 barge by using personnel with qualifications in the areas being inspected.                                              
05    * Sec. 5.  AS 46.04.060 is amended by adding a new subsection to read:                                             
06  (c)  For purposes of this section, "train" includes tracks, associated facilities,                                    
07 and operations.                                                                                                         
08    * Sec. 6.  AS 46.04.900(12) is amended to read:                                                                    
09   (12)  "oil terminal facility" means an onshore or offshore facility of any                                           
10 kind, and related appurtenances, including but not limited to a deepwater port, bulk                                    
11 storage facility ,  or marina, located in, on, or under the surface of the land or waters                             
12 of the state, including tide and submerged land,  that  [WHICH] is used for the purpose                               
13 of transferring, processing, refining, or storing oil; a vessel , other than a nontank                                 
14 vessel,  is considered an oil terminal facility only when it is used to make a ship-to-ship                            
15 transfer of oil, and when it is traveling between the place of the ship-to-ship transfer                                
16 of oil and an oil terminal facility;                                                                                    
17    * Sec. 7.  AS 46.04.900(21) is amended to read:                                                                    
18   (21)  "vessel" includes tank vessels ,  [AND] oil barges , and nontank                                            
19 vessels ;                                                                                                              
20    * Sec. 8.  AS 46.04.900 is amended to add new paragraphs to read:                                                  
21   (24)  "nonpersistent product" has the meaning given to "non-persistent                                               
22 or Group I oil" in 33 C.F.R. 155.1020;                                                                                  
23   (25)  "nontank vessel" means a self-propelled watercraft of 400 gross                                                
24 registered tons or greater; in this paragraph, "watercraft" includes commercial fishing                                 
25 vessels, commercial fish processor vessels, passenger vessels, and cargo vessels, but                                   
26 does not include a tank vessel, oil barge, or public vessel;                                                            
27   (26)  "persistent product" has the meaning given to "persistent oil" in                                              
28 33 C.F.R. 155.1020;                                                                                                     
29   (27)  "public vessel" means a vessel that is operated by and is either                                               
30 owned or bareboat chartered by the United States, a state or a political subdivision of                                 
31 that state, or a foreign nation, except when the vessel is engaged in commerce;                                         
01   (28)  "railroad tank car" means rolling stock used to transport oil in bulk                                          
02 as cargo by rail;                                                                                                       
03   (29)  "train" means connected rolling stock operated as a single moving                                              
04 vehicle on rails; for purposes of this paragraph, "connected rolling stock" includes                                    
05 railroad tank cars.                                                                                                     
06    * Sec. 9.  The uncodified law of the State of Alaska is amended by adding a new section                            
07 to read:                                                                                                                
08  TRANSITIONAL PROVISIONS: REGULATIONS.  (a)  The Department of                                                          
09 Environmental Conservation shall proceed to adopt regulations necessary to implement the                                
10 changes made by this Act.  No later than March 1, 2001, the commissioner of environmental                               
11 conservation shall propose the regulations in a form that, with public notice, provides                                 
12 opportunity for public comment.  The regulations take effect under AS 44.62 (Administrative                             
13 Procedure Act), but not before the effective date of secs. 1 - 8 of this Act.                                           
14  (b)  If, under AS 46.04.055(f), added by sec. 3 of this Act, and under (a) of this                                     
15 section, the Department of Environmental Conservation engages in the adoption of regulations                            
16 by negotiated regulation making under AS 44.62.710 - 44.62.800, the commissioner of                                     
17 environmental conservation may adopt regulations to obtain equivalent levels of spill                                   
18 prevention and response to reflect the reduced risk of oil discharges based on evidence of                              
19 implementation of systems or staffing levels that reduce the potential size or risk of a                                
20 discharge.                                                                                                              
21  (c)  If, under AS 46.04.055(f), added by sec. 3 of this Act, and under (a) of this                                     
22 section, the Department of Environmental Conservation adopts regulations by negotiated                                  
23 regulation making under AS 44.62.710 - 44.62.800, or if, notwithstanding the authority                                  
24 provided in AS 46.04.055(f), the Department of Environmental Conservation, using negotiated                             
25 regulation making under AS 44.62.710 - 44.62.800, adopts regulations to implement or make                               
26 specific the requirements of the provisions added or amended by this Act, the Department of                             
27 Environmental Conservation shall provide to the members of the legislature, if in session, or                           
28 to the legislative council if the legislature is not in session, a comprehensive report                                 
29 summarizing the activities undertaken to adopt the regulations using the negotiated regulation                          
30 making process authorized by AS 44.62.710 - 44.62.800.                                                                  
31    * Sec. 10.  Section 9 of this Act takes effect immediately under AS 01.10.070(c).                                  
01    * Sec. 11.  Except as provided in sec. 10 of this Act, this Act takes effect September 1,                          
02 2000.