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HB 377: "An Act requiring oil discharge prevention and contingency plans and proof of financial responsibility for non-tank vessels and railroad tank cars; authorizing inspection under AS 46.04 of non-tank vessels and trains; and providing for an effective date."

00HOUSE BILL NO. 377 01 "An Act requiring oil discharge prevention and contingency plans and proof of 02 financial responsibility for non-tank vessels and railroad tank cars; authorizing 03 inspection under AS 46.04 of non-tank vessels and trains; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 46.04 is amended by adding a new section to read: 07  Sec. 46.04.055. Non-tank vessels and railroad tank cars. (a) A person may 08 not cause or permit the operation of a non-tank vessel within the waters of the state, 09 or cause or permit the transfer of oil to or from a non-tank vessel, unless 10  (1) effective June 1, 2001, an oil discharge prevention and contingency 11 plan has been approved by the department and the person is in compliance with the 12 plan; a plan under this paragraph is subject to the requirements of AS 46.04.030; and 13  (2) the person has furnished to the department, and the department has 14 approved, proof of financial ability to respond to damages meeting the requirements

01 of AS 46.04.040; proof of financial responsibility required under this paragraph is 02 subject to adjustment of dollar amounts under AS 46.04.045 and is established 03  (A) for a non-tank vessel that carries persistent product as fuel 04 or in bulk, at $300 per incident for each barrel of persistent product storage 05 capacity or $5,000,000, whichever is greater; and 06  (B) for a non-tank vessel that carries non-persistent product, at 07 $100 per incident for each barrel of non-persistent product storage capacity or 08 $1,000,000, whichever is greater. 09  (b) A person may not transport oil by railroad tank car, or cause or permit the 10 transfer of oil to or from a railroad tank car, unless 11  (1) effective June 1, 2001, an oil discharge prevention and contingency 12 plan has been approved by the department and the person is in compliance with the 13 plan; a plan under this paragraph is subject to the requirements of AS 46.04.030; and 14  (2) the person has furnished to the department, and the department has 15 approved, proof of financial ability to respond to damages meeting the requirements 16 of AS 46.04.040; proof of financial responsibility required under this paragraph is 17 subject to adjustment of dollar amounts under AS 46.04.045 and is established at 18  (A) $300 per incident for each barrel of persistent product based 19 upon the maximum amount of persistent product storage capacity of any train 20 on the railroad; and 21  (B) $100 per incident for each barrel of non-persistent product 22 based upon the maximum amount of non-persistent product storage capacity of 23 any train on the railroad or $1,000,000, whichever is greater. 24  (c) Effective June 1, 2001, and for purposes of AS 46.04.030(k), response 25 planning standards apply to non-tank vessels and railroad tank cars as follows: 26  (1) for a non-tank vessel contingency plan required by (a)(1) of this 27 section: 28  (A) containment and control of 15 percent of the maximum oil 29 capacity of the non-tank vessel within 48 hours; and 30  (B) cleanup of the discharge within the shortest possible time 31 consistent with minimizing damage to the environment;

01  (2) for a railroad tank car contingency plan required by (b)(1) of this 02 section: 03  (A) containment and control of 15 percent of the maximum oil 04 capacity of any train on the railroad within 48 hours; and 05  (B) cleanup of the discharge within the shortest possible time 06 consistent with minimizing damage to the environment. 07  (d) In place of the requirements of (a)(1) and (b)(1) of this section, the 08 department may adopt regulations by negotiated regulation making under 09 AS 44.62.710 - 44.62.800 to provide for alternative means to obtain equivalent levels 10 of spill prevention and response. 11 * Sec. 2. AS 46.04.060 is amended to read: 12  Sec. 46.04.060. Inspections. (a) In addition to other rights of access or 13 inspection conferred upon the department by law or otherwise, the department may at 14 reasonable times and in a safe manner enter and inspect oil terminal facilities, 15 pipelines, exploration and production facilities, tank vessels, non-tank vessels, trains, 16 and oil barges in order to 17  (1) ensure compliance with the provisions of this chapter; or 18  (2) participate in an examination of the structural integrity and the 19 operating and mechanical systems of those vessels, barges, trains, pipelines, and 20 facilities by federal and state agencies with jurisdiction. 21  (b) When the department determines that no federal or state agencies with 22 jurisdiction are performing timely and adequate inspections of an oil terminal facility, 23 pipeline, exploration or production facility, tank vessel, non-tank vessel, train, or oil 24 barge, it may perform its own inspection of the structural integrity and operating and 25 mechanical systems of a facility, pipeline, tank vessel, non-tank vessel, train, or oil 26 barge by using personnel with qualifications in the areas being inspected. 27 * Sec. 3. AS 46.04.060 is amended by adding a new subsection to read: 28  (c) For purposes of this section, "train" includes tracks, associated facilities, 29 and operations. 30 * Sec. 4. AS 46.04.900(12) is amended to read: 31  (12) "oil terminal facility" means an onshore or offshore facility of any

01 kind, and related appurtenances, including but not limited to a deepwater port, bulk 02 storage facility or marina, located in, on, or under the surface of the land or waters of 03 the state, including tide and submerged land, which is used for the purpose of 04 transferring, processing, refining, or storing oil; a vessel , other than a non-tank 05 vessel, is considered an oil terminal facility only when it is used to make a ship-to-ship 06 transfer of oil, and when it is traveling between the place of the ship-to-ship transfer 07 of oil and an oil terminal facility; 08 * Sec. 5. AS 46.04.900(21) is amended to read: 09  (21) "vessel" includes tank vessels , [AND] oil barges , and non-tank 10 vessels ; 11 * Sec. 6. AS 46.04.900 is amended to add new paragraphs to read: 12  (24) "non-persistent product" means oil that is not a persistent product; 13  (25) "non-tank vessel" means any watercraft, other than a tank vessel, 14 oil barge, or public vessel, of 300 gross registered tons or greater that has a oil storage 15 capacity of greater than 6,000 gallons of oil; "non-tank vessel" includes commercial 16 fish processor vessels, passenger vessels, and cargo vessels; 17  (26) "persistent product" means 18  (A) crude oil; 19  (B) a refined oil product with a common name such as bunker 20 C, number 6, Chevron residual, or lube oil; or 21  (C) other oil with similar viscosity, degradability, and 22 dispersability; 23  (27) "public vessel" means a vessel that is operated by, and is either 24 owned or bareboat-chartered by, the United States, a state or a political subdivision of 25 that state, or a foreign nation, except when the vessel is engaged in commerce; 26  (28) "railroad tank car" means rolling stock used to transport oil in bulk 27 as cargo by rail; 28  (29) "train" means connected rolling stock operated as a single moving 29 vehicle on rails; for purposes of this paragraph, "connected rolling stock" includes 30 railroad tank cars. 31 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section

01 to read: 02 TRANSITIONAL PROVISIONS: REGULATIONS. Notwithstanding sec. 9 of this 03 Act, the Department of Environmental Conservation may proceed to adopt regulations 04 necessary to implement the changes made by this Act. The regulations take effect under 05 AS 44.62 (Administrative Procedure Act), but not before the effective date of secs. 1 - 6 of 06 this Act. 07 * Sec. 8. Section 7 of this Act takes effect immediately under AS 01.10.070(c). 08 * Sec. 9. Except as provided in sec. 8 of this Act, this Act takes effect September 1, 2000.