Legislature(2001 - 2002)

2001-05-01 House Journal

Full Journal pdf

2001-05-01                     House Journal                      Page 1451
HB 260                                                                                            
The following, which was on today's calendar and moved to the                                       
bottom of the daily order of business (page 1446), was read the second                              
time:                                                                                               
                                                                                                    
    HOUSE BILL NO. 260                                                                              
    "An Act requiring the owners or operators of certain passenger                                  
    vessels operating in the marine waters of the state to register the                             
    vessels; establishing information-gathering, record keeping, and                                
    reporting requirements relating to the vessels' graywater and                                   
    sewage; prohibiting the discharge of untreated sewage from the                                  
    vessels unless exempted; placing limits on discharges of treated                                
    sewage and graywater from the vessels unless exempted;                                          
    establishing a commercial passenger vessel coastal protection                                   
    fund; establishing a fee on commercial passenger vessels, that are                              
    not exempt from the fee, 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; 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 exemptions from some                                  
    laws relating to discharges from the vessels and from the fee                                   
    requirements related to the vessels; requiring a report from the                                
    Department of Environmental Conservation concerning matters                                     
    relating to the vessels; and providing for an effective date."                                  
                                                                                                    
with the:                                                   Journal Page                            
                                                                                                    
 FIN RPT CS(FIN) NT 5DP 2NR                                         1356                            
 FN1: (DEC)                                                         1358                            
                                                                                                    
Representative James moved and asked unanimous consent that the                                     
following committee substitute be adopted in lieu of the original bill:                             

2001-05-01                     House Journal                      Page 1452
    CS FOR HOUSE BILL NO. 260(FIN)                                                                  
    "An Act requiring the owners or operators of certain passenger                                  
    vessels operating in the marine waters of the state to register the                             
    vessels; establishing information-gathering, record keeping, and                                
    reporting requirements relating to the vessels' graywater,                                      
    hazardous substances, hazardous wastes, and sewage; prohibiting                                 
    the discharge of untreated sewage from the vessels unless                                       
    exempted; placing limits on discharges of treated sewage and                                    
    graywater from the vessels unless exempted; 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 commercial passenger vessel coastal protection                                   
    fund; establishing a fee on commercial passenger vessels, that are                              
    not exempt from the fee, 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; 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 exemptions from some                                  
    laws relating to discharges from the vessels and from the fee                                   
    requirements related to the 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; requiring a report from the                            
    Department of Environmental Conservation concerning matters                                     
    relating to the vessels; and providing for an effective date."                                  
                                                                                                    
                                                                                                    
There being no objection, it was so ordered.                                                        
                                                                                                    
                                                                                                    
Amendment No. 1 was offered  by Representatives Mulder and                                           
Kerttula:                                                                                           
                                                                                                    
Page 1, line 1, through page 2, line 10:                                                            
         Delete all material and insert:                                                            

2001-05-01                     House Journal                      Page 1453
""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                                        

2001-05-01                     House Journal                      Page 1454
Environmental Conservation concerning matters relating to the                                     
vessels; and providing for an effective date.""                                                   
                                                                                                    
                                                                                                    
Page 2, line 12, through page 17, line 6:                                                           
         Delete all material and insert:                                                            
"* Section 1.  The uncodified law of the State of Alaska is amended                               
by adding a new section to read:                                                                    
FINDINGS.  The legislature finds that                                                               
  (1)  federal and international laws pertaining to regulation of                                   
commercial passenger vessels have been deficient and inadequately                                   
enforced in the past;                                                                               
  (2)  although federal law regulating commercial passenger                                         
vessels was recently enhanced, it still does not require reporting to the                           
state or provide for direct enforcement by the state;                                               
  (3)  although the state should work collaboratively with the                                      
federal government and industry, it should not be dependent on the                                  
federal government for information regarding commercial passenger                                   
vessels operating in waters of this state or for enforcement for                                    
environmental violations by commercial passenger vessels;                                           
  (4)  in order to properly manage its resources and provide for                                    
sustainable use of the resources, the state must know the quantity,                                 
composition, location, and frequency of discharges of graywater and                                 
sewage from commercial passenger vessels into the state's water;                                    
  (5)  it is necessary to monitor the discharges of graywater and                                   
sewage from commercial passenger vessels traveling in state waters,                                 
and commercial passenger vessels should bear the requisite costs of                                 
the monitoring.                                                                                     
   * Sec. 2.  AS 46.03 is amended by adding new sections to read:                                 
Article 6A.  Alaska Commercial Passenger Vessel Coastal                                           
Protection Program.                                                                               
      Sec. 46.03.460.  Program established.  (a)  To protect                                      
    the coastal areas of this state, there is established the Alaska                                
    commercial passenger vessel coastal protection program providing                                
    for                                                                                             
             (1)  terms and conditions of permitting discharges;                                    
             (2)  independent verification of compliance; and                                       
             (3)  allowing the department to monitor and supervise                                  
    discharges from commercial passenger vessels through a                                          
    registration system.                                                                            

2001-05-01                     House Journal                      Page 1455
         (b)  The department may adopt regulations to carry out the                                 
    purposes of AS 46.03.460 - 46.03.490.  The department shall use                                 
    negotiated regulation making under AS 44.62.710 - 44.62.800,                                    
    when appropriate, to develop those regulations.                                                 
      Sec. 46.03.461.  Registration requirements.  (a)  Except                                    
    as provided in AS 46.03.487, each calendar year in which the                                    
    owner or operator of a commercial passenger vessel intends to                                   
    operate, or cause or allow to be operated, the vessel in the marine                             
    waters of the state, the owner or operator of the vessel shall                                  
    register with the department.  The registration shall be completed                              
    before the time any commercial passenger vessel of the owner or                                 
    operator enters the marine waters of the state in that calendar year.                           
    The registration must include the following information:                                        
             (1)  the vessel owner's business name and, if different, the                           
    vessel operator's business name for each commercial passenger                                   
    vessel of the owner or operator that is scheduled to be in the                                  
    marine waters of the state during the calendar year;                                            
             (2)  the postal address, electronic mail address, telephone                            
    number, and facsimile number for the principal place of each                                    
    business identified under (1) of this subsection;                                               
             (3)  the name and address of an agent for service of                                   
    process for each business identified under (1) of this subsection;                              
    the owner and operator shall continuously maintain a designated                                 
    agent for service of process whenever a commercial passenger                                    
    vessel of the owner or operator is in the marine waters of the state,                           
    and the agent must be an individual resident of this state, a                                   
    domestic corporation, or a foreign corporation having a place of                                
    business in and authorized to do business in this state;                                        
             (4)  the name or call sign of and Port of Registry for each                            
    of the owner's or operator's vessels that is scheduled either to call                           
    upon a port in this state or otherwise to be in the marine waters of                            
    the state during the calendar year and after the date of registration;                          
    and                                                                                             
             (5)  an agreement to comply with the terms and                                         
    conditions of permitting discharges specified under AS 46.03.462.                               
         (b)  Registration under (a) of this section shall be executed                              
    under oath by the owner or operator.                                                            
         (c)  Upon request of the department, the registrant shall                                  
    submit registration information required under this section                                     
    electronically.                                                                                 

2001-05-01                     House Journal                      Page 1456
             Sec. 46.03.462.   Terms and Conditions of Permitting                                 
    Discharges.  (a)  An owner or operator required to register under                             
    AS 46.03.461 shall comply with either the standard terms and                                    
    conditions of permitting discharges specified in (b) of this section                            
    or the alternative terms and conditions of permitting discharges                                
    specified in (c) of this section.                                                               
         (b)  The standard terms and conditions of permitting                                       
    discharges are that the owner or operator                                                       
             (1)  may not discharge untreated sewage, treated sewage,                               
    or graywater except as permitted under AS 46.03.463;                                            
             (2)  shall maintain records and provide the reports                                    
    required under AS 46.03.465(a);                                                                 
             (3)  shall collect and test samples as required under                                  
    AS 46.03.465(b) and (d) and provide the reports with respect to                                 
    those samples required by AS 46.03.475(c);                                                      
             (4)  shall report discharges in accordance with                                        
    AS 46.03.475(a);                                                                                
             (5)  shall allow the department access to the vessel at the                            
    time samples are taken under AS 46.03.465 for purposes of taking                                
    the samples or for purposes of verifying the integrity of the                                   
    sampling process; and                                                                           
             (6)  shall submit records, notices, and reports to the                                 
      department in accordance with AS 46.03.475(b), (d), and (e).                                 
         (c)  The department may establish alternative terms and                                    
    conditions of permitting discharges applicable to an owner or                                   
    operator of a vessel who cannot practicably comply with the                                     
    standard terms and conditions of permitting discharges under (b)                                
    of this section, or who wishes to use or test alternative                                       
    environmental protection equipment or procedures.  Except as                                    
    specified in alternative terms and conditions set by the department                             
    under this subsection, the alternative terms and conditions of                                  
    permitting discharges must require compliance with the standard                                 
    terms and conditions of permitting discharges under (b) of this                                 
    section.  The department, on a case-by-case basis, may set                                      
    alternative terms and conditions of permitting discharges if                                    
             (1)  the vessel owner or operator demonstrates to the                                  
    department's reasonable satisfaction that equivalent environmental                              
    protection can be attained through other terms or conditions                                    
    appropriate for the specific configuration or operation of the                                  
    vessel;                                                                                         

2001-05-01                     House Journal                      Page 1457
             (2)  the vessel owner or operator agrees to make                                       
    necessary changes to the vessel to allow it to comply with the                                  
    standard terms and conditions of permitting discharges under (b)                                
    of this section but demonstrates to the department's reasonable                                 
    satisfaction that additional time is needed to make the necessary                               
    changes; or                                                                                     
             (3)  an experimental technology or method for pollution                                
    control of a discharge is being used or is proposed as one of the                               
    alternative terms and conditions of permitting discharges and the                               
    department determines that the experimental technology or                                       
    method has a reasonable likelihood of success in providing                                      
    increased protection for the environment.                                                       
         (d)  Alternative terms and conditions of permitting discharges                             
    approved by the department under (c) of this section may, if                                    
    determined appropriate by the department, include a waiver by the                               
    department of portions of the requirements of AS 46.03.463 and                                  
    46.03.465, for the time period that the department determines to                                
    be appropriate.                                                                                 
             Sec. 46.03.463.  Prohibited discharges; limitations on                               
    discharges.  (a)  Except as provided in (g) of this section, a person                         
    may not discharge untreated sewage from a commercial passenger                                  
    vessel into the marine waters of the state.                                                     
         (b)  Except as provided in (g) of this section or under                                    
    AS 46.03.462(c) - (d), a person may not discharge treated sewage                                
    from a commercial passenger vessel into the marine waters of the                                
    state that has a fecal coliform bacterial count greater than 200                                
    colonies per 100 milliliters or suspended solids greater than 150                               
    milligrams per liter.                                                                           
         (c)  Except as provided in (g) of this section or under                                    
    AS 46.03.462(c) - (d), a person may not discharge graywater from                                
    a commercial passenger vessel into the marine waters of the state                               
    that has a fecal coliform bacterial count greater than 200 colonies                             
    per 100 milliliters or suspended solids greater than 150 milligrams                             
    per liter.  Upon submission by a vessel owner or operator of a plan                             
    for interim protective measures, the department shall extend the                                
    time for compliance with this subsection for a period of time that                              
    ends not later than January 1, 2003.                                                            
         (d)  The department may by regulation establish numeric or                                 
    narrative standards for other parameters for treated sewage and                                 
    graywater.  In developing regulations under this subsection, the                                

2001-05-01                     House Journal                      Page 1458
    department shall consider the best available scientific information                             
    on the environmental effects of the regulated discharges, vessel                                
    movement effects, and the availability of new technologies for                                  
    wastewater.                                                                                     
         (e)  Except as provided in (f) and (g) of this section or under                            
    AS 46.03.462(c) - (d), a person may not discharge any treated                                   
    sewage or graywater from a commercial passenger vessel into the                                 
    marine waters of the state unless                                                               
             (1)  the vessel is underway and proceeding at a speed of                               
    not less than six knots;                                                                        
             (2)  the vessel is at least one nautical mile from the                                 
    nearest shore, except in areas designated by the department;                                    
             (3)  the discharge complies with all applicable vessel                                 
    effluent standards established under the federal cruise ship                                    
    legislation and any other applicable law; the standards under the                               
    federal cruise ship legislation and other applicable law may be                                 
    adopted by regulation by the department; and                                                    
             (4)  the vessel is not in an area where the discharge of                               
    treated sewage or graywater is prohibited.                                                      
         (f)  The provisions of (e)(1) and (e)(2) of this section do not                            
    apply to a discharge permitted under sec. 1404(b) or (c) of the                                 
    federal cruise ship legislation.                                                                
         (g)  The provisions of (a) - (e) of this section do not apply to                           
    discharges made for the purpose of securing the safety of the                                   
    commercial passenger vessel or saving life at sea if all reasonable                             
    precautions have been taken for the purpose of preventing or                                    
    minimizing the discharge.                                                                       
             Sec. 46.03.465.  Information-gathering requirements.                                 
    (a)  Except as provided under AS 46.03.462(c) - (d), the owner or                               
    operator of a commercial passenger vessel shall maintain records                                
    and, upon request of the department, provide to the department a                                
    report, with copies of the records related to the period of operation                           
    in the marine waters of the state, detailing the dates, times, and                              
    locations, and the volumes or flow-rates of any discharge of                                    
    sewage or graywater into the marine waters of the state.                                        
         (b)  Except as provided under AS 46.03.462(c) - (d), while a                               
    commercial passenger vessel is present in the marine waters of the                              
    state, the owner or operator of the vessel shall collect routine                                
    samples of the vessel's treated sewage and graywater that is being                              
    discharged into the marine waters of the state                                                  

2001-05-01                     House Journal                      Page 1459
             (1)  with a sampling technique approved by the                                         
    department before the sample is collected; the number of routine                                
    samples for each vessel to be collected under this subsection shall                             
    be the greater of two per calendar year or the number of samples                                
    required to be collected under federal statutes and regulations for                             
    treated sewage or graywater discharge;                                                          
             (2)  no less frequently than samples are required to be                                
    collected under federal statutes and regulations for treated sewage                             
    or graywater discharges.                                                                        
         (c)  Except as provided under AS 46.03.462(c) - (d), while a                               
    commercial passenger vessel is present in the marine waters of the                              
    state, the department, or an independent contractor retained by the                             
    department, may collect additional samples of the vessel's treated                              
    sewage and graywater that is being discharged into the marine                                   
    waters of the state.                                                                            
         (d)  Except as provided under AS 46.03.462(c) - (d), the                                   
    owner or operator of a vessel required to collect samples under (b)                             
    of this section shall have the samples tested to measure fecal                                  
    coliform, ammonia, residual chlorine, pH (degree of acidity or                                  
    alkalinity), chemical oxygen demand (COD), biochemical oxygen                                   
    demand (BOD), total suspended solids, and other pollutants as                                   
    required by the department in the samples with an analytical                                    
    testing method that was approved by the department before the                                   
    testing is conducted.  A laboratory used for testing under this                                 
    subsection shall agree not to disclose the testing results to any                               
    person other than to the department, the United States Coast                                    
    Guard, or the owner or operator of the vessel.                                                  
         (e)  The owner or operator of a commercial passenger vessel                                
    shall pay for all routine sampling under (b) of this section and the                            
    testing of routine samples.  The department shall pay for all                                   
    additional sampling under (c) of this section and the testing of the                            
    additional samples.                                                                             
         (f) If the owner or operator of a commercial passenger vessel                              
    has, when complying with another state or federal law that                                      
    requires substantially equivalent information gathering, gathered                               
    the type of information required under (b) or (d) of this section,                              
    the owner or operator shall be considered to be in compliance with                              
    that subsection so long as the information is also provided to the                              
    department.                                                                                     
                                                                                                    

2001-05-01                     House Journal                      Page 1460
             Sec. 46.03.470.  Record keeping requirements.  An                                    
    owner or operator subject to AS 46.03.465 shall record the                                      
    information required to be gathered under that section and shall                                
    maintain the records for three years after the date the information                             
    was gathered.                                                                                   
             Sec. 46.03.475.  Reporting requirements.  (a)  An                                    
    owner or operator of a commercial passenger vessel who becomes                                  
    aware of a discharge in violation of AS 46.03.463 shall                                         
    immediately report that discharge to the department.  There is no                               
     audit report privilege under AS 09.25.450 for this information.                               
         (b)  If  the owner or operator of a commercial passenger                                   
    vessel operating in the marine waters of the state is required by the                           
    Administrator of the Environmental Protection Agency or the                                     
    secretary of the federal department in which the United States                                  
    Coast Guard is operating to collect samples and test sewage or                                  
    graywater and keep records of the sampling and testing, the owner                               
    or operator shall, within 21 days after the sewage or graywater is                              
    tested, submit to the department a copy of the records.                                         
         (c)  Within 21 days after the testing required under                                       
    AS 46.03.465(d), the owner or operator shall submit a written                                   
    report to the department that contains the measurements required                                
    under AS 46.03.465(d) and describes the sampling technique and                                  
    analytical testing methods used.  The information in the report                                 
    required under this subsection may be provided by referring to,                                 
    and including copies of, other reports that are required by                                     
    substantially equivalent state or federal reporting requirements.                              
         (d)  If the owner or operator of a commercial passenger vessel                             
    operating in the marine waters of the state is required by the laws                             
    of  the United States or by the laws of Canada or of a province or                              
    territory of Canada to file a report or provide notice of a discharge                           
    or offloading of a hazardous waste, as defined in AS 46.03.900, or                              
    of a hazardous substance, as defined in AS 46.03.826, that was                                  
    generated, discharged, or offloaded while the vessel was operating                              
    in the marine waters of the state, the owner or operator shall                                  
    submit to the department a copy of the report or notice within 21                               
    days after having provided the report or notice to an agency of the                             
    government of the United States or to an agency of the                                          
      government of Canada or of a province or territory of Canada.                                
         (e)  Before the operation of a commercial passenger vessel in                              
    the marine waters of the state, the owner or operator of the vessel                             

2001-05-01                     House Journal                      Page 1461
    shall provide to the department a plan that describes the vessel's                              
    policies and procedures for                                                                     
             (1)  offloading in this state of nonhazardous solid waste;                             
    and                                                                                             
             (2)  disposal or offloading of hazardous waste or a                                    
    hazardous substance from the vessel while it is operating in the                                
    marine waters of the state to the extent that the disposal or                                   
    offloading is not covered by (d) of this section.                                               
         (f)  Upon request of the department, the information required                              
    under this section shall be submitted electronically.                                           
         (g)  This section does not relieve the owner or operator of a                              
    commercial passenger vessel from other applicable reporting                                     
    requirements of state or federal law.                                                           
     Sec. 46.03.480.  Fees.  (a)  There is imposed a coastal                                      
    protection fee on each commercial passenger vessel operating in                                 
    the marine waters of the state.                                                                 
         (b)  The fee imposed by (a) of this section for all commercial                             
    passenger vessels, other than vessels operated by the state, is a                               
    separate fee for each voyage during which the commercial                                        
    passenger vessel operates in the marine waters of the state.  The                               
    fee shall range from $.70 to $1.75 per berth, based on the                                      
    overnight accommodation capacity of the vessel, determined with                                 
    reference to the number of lower berths, according to the                                       
    following categories:                                                                           
             (1)  $75 for a commercial passenger vessel with overnight                              
    accommodations for at least 50 but not more than 99 passengers                                  
    for hire;                                                                                       
             (2)  $175 for a commercial passenger vessel with                                       
    overnight accommodations for at least 100 but not more than 249                                 
    passengers for hire;                                                                            
             (3)  $375 for a commercial passenger vessel with                                       
    overnight accommodations for at least 250 but not more than 499                                 
    passengers for hire;                                                                            
             (4)  $750 for a commercial passenger vessel with                                       
    overnight accommodations for at least 500 but not more than 999                                 
    passengers for hire;                                                                            
             (5)  $1,250 for a commercial passenger vessel with                                     
    overnight accommodations for at least 1,000 but not more than                                   
    1,499 passengers for hire;                                                                      
                                                                                                    

2001-05-01                     House Journal                      Page 1462
             (6)  $1,750 for a commercial passenger vessel with                                     
    overnight accommodations for at least 1,500 but not more than                                   
    1,999 passengers for hire;                                                                      
             (7)  $2,250 for a commercial passenger vessel with                                     
    overnight accommodations for at least 2,000 but not more than                                   
    2,499 passengers for hire;                                                                      
             (8)  $2,750 for a commercial passenger vessel with                                     
    overnight accommodations for at least 2,500 but not more than                                   
    2,999 passengers for hire;                                                                      
             (9)  $3,250 for a commercial passenger vessel with                                     
    overnight accommodations for at least 3,000 but not more than                                   
    3,499 passengers for hire;                                                                      
             (10)  $3,750 for each commercial passenger vessel with                                 
    overnight accommodations for 3,500 or more passengers for hire.                                 
         (c)  The fee imposed by (a) of this section for a commercial                               
    passenger vessel that is operated by this state shall be determined                             
    by agreement between the commissioner of environmental                                          
    conservation and the commissioner of transportation and public                                  
    facilities.                                                                                     
         (d)  A commercial passenger vessel operating in the marine                                 
    waters of the state is liable for the fee imposed by this section.                              
    The fee is due and payable to the department in the manner and at                               
    the times required by the department by regulation.                                             
     Sec. 46.03.482.  Alaska commercial passenger vessel                                          
    coastal protection fund.  (a)  The Alaska commercial passenger                                
    vessel coastal protection fund is created in the general fund.                                  
         (b)  The fund consists of the following, all of which shall be                             
    deposited in the fund upon receipt:                                                             
             (1)  money received by the department in payment of fees                               
    under AS 46.03.480;                                                                             
             (2)  money received under AS 46.03.760(e) as a result of                               
    a violation related to as 46.03.460 - 46.03.490 unless the money                                
    would otherwise be deposited in the oil and hazardous substance                                 
    release prevention and response fund established by                                             
    AS 46.08.010;                                                                                   
             (3)  money appropriated to the fund by the legislature;                                
             (4)  earnings on the fund.                                                             
         (c)  The legislature may make appropriations from the fund to                              
    the department to pay for the department's operational and                                      
    administrative costs necessary to prepare a report that assesses the                            

2001-05-01                     House Journal                      Page 1463
    information received by the department for the cruise ship seasons                              
    of 2001, 2002, and 2003 and the information received by the                                     
    department for the cruise ship season of 2000 and for the                                       
    department's operational and administrative costs necessary to                                  
    carry out activities under AS 46.03.460 - 46.03.490 relating to                                 
    commercial passenger vessels.                                                                   
         (d)  The unexpended and unobligated balance of an                                          
    appropriation made from the fund to the department for the                                      
    purposes described in (c) of this section does not lapse at the end                             
    of the fiscal year for which the appropriation was made and                                     
    remains available for expenditure in successive fiscal years.                                   
         (e)  Nothing in this section creates a dedicated fund.                                    
             Sec. 46.03.485.  Recognition program.  The department                                
    may engage in efforts to encourage and recognize superior                                       
    environmental protection efforts made by the owners or operators                                
    of commercial passenger vessels that exceed the requirements                                    
    established by law.                                                                             
             Sec. 46.03.487.  Exemption for vessels in innocent                                   
    passage.  AS 46.03.460 - 46.03.490 do not apply to a commercial                               
    passenger vessel that operates in the marine waters of the state                                
    solely in innocent passage.  For purposes of this section, a vessel                             
    is engaged in innocent passage if its operation in marine waters of                             
    the state, regardless of whether the vessel is a United States or                               
    foreign-flag vessel, would constitute innocent passage under the                               
             (1)  Convention on the Territorial Sea and the Contiguous                              
    Zone, April 29, 1958, 15 U.S.T. 1606; or                                                        
             (2)  United Nations Convention on the Law of the Sea                                   
    1982, December 10, 1982, United Nations Publication No.                                         
    E.83.V.5., 21 I.L.M. 1261 (1982), were the vessel a foreign-flag                                
    vessel.                                                                                         
             Sec. 46.03.488.  Activities of the department.  The                                  
    department may engage in the following activities relating to                                   
    commercial passenger vessels operating in the marine waters of                                  
    the state:                                                                                      
             (1)  direct in-water monitoring of discharges or releases                              
    of sewage and graywater and direct monitoring of the opacity of                                 
    air emissions from those vessels;                                                               
             (2)  monitoring and studying of direct or indirect                                     
    environmental effects of those vessels; and                                                     
                                                                                                    

2001-05-01                     House Journal                      Page 1464
             (3)  researching ways to reduce effects of the vessels on                              
    marine waters and other coastal resources.                                                      
             Sec. 46.03.490.  Definitions.  In AS 46.03.460 -                                     
    46.03.490,                                                                                      
             (1)  "agent for service of process" means an agent upon                                
    whom process, notice, or demand required or permitted by law to                                 
    be served upon the owner or operator may be served;                                             
             (2)  "commercial passenger vessel" means a vessel that                                 
    carries passengers for hire except that "commercial passenger                                   
    vessel" does not include a vessel                                                               
                  (A)  authorized to carry fewer than 50 passengers;                                
                  (B)  that does not provide overnight accommodations                               
         for at least 50 passengers for hire, determined with reference                             
         to the number of lower berths; or                                                          
                  (C)  operated by the United States or a foreign                                   
         government;                                                                                
             (3)  "discharge" means any release, however caused, from                               
    a commercial passenger vessel, and includes any escape, disposal,                               
    spilling, leaking, pumping, emitting, or emptying;                                              
             (4)  "federal cruise ship legislation" means secs. 1401 -                              
    1414 of H.R. 5666, as incorporated by reference into P.L. 106 -                                 
    554;                                                                                            
             (5)  "fund" means the Alaska commercial passenger                                      
     vessel coastal protection fund established under AS 46.03.482;                                
             (6)  "graywater" means galley, dishwasher, bath, and                                   
    laundry waste water;                                                                            
             (7)  "marine waters of the state" means all waters within                              
    the boundaries of the state together with all of the waters of the                              
    Alexander Archipelago even if not within the boundaries of the                                  
    state;                                                                                          
             (8)  "offloading" means the removal of a hazardous                                     
    substance, hazardous waste, or nonhazardous solid waste from a                                  
    commercial passenger vessel onto or into a controlled storage,                                  
    processing, or disposal facility or treatment works;                                            
             (9)  "passengers for hire" means vessel passengers for                                 
    whom consideration is contributed as a condition of carriage on                                 
    the vessel, whether directly or indirectly flowing to the owner,                                
    charterer, operator, agent, or any other person having an interest in                           
    the vessel;                                                                                     
                                                                                                    

2001-05-01                     House Journal                      Page 1465
             (10)  "sewage" means human body wastes and the wastes                                  
    from toilets and other receptacles intended to receive or retain                                
    human body waste;                                                                               
             (11)  "treated sewage" means sewage that meets all                                     
    applicable effluent limitation standards and processing                                         
    requirements of 33 U. S. C. 1251 - 1376 (Federal Water Pollution                                
    Control Act), as amended, the federal cruise ship legislation, and                              
    regulations adopted under 33 U.S.C. 1251 - 1376 or under the                                    
    federal cruise ship legislation;                                                                
             (12)  "untreated sewage" means sewage that is not treated                              
    sewage;                                                                                         
             (13)  "vessel" means any form or manner of watercraft,                                 
    other than a seaplane on the water, whether or not capable of self-                             
    propulsion;                                                                                     
             (14)  "voyage" means a vessel trip to or from one or more                              
    ports of call in the state with the majority of the passengers for                              
    hire completing the entire vessel trip; a vessel trip involving stops                           
    at more than one port of call is considered a single voyage so long                             
    as the majority of passengers for hire complete the entire trip;                               
             (15)  "waters of the Alexander Archipelago" means all                                  
    waters under the sovereignty of the United States within or near                                
    Southeast Alaska, beginning at a point 58 degrees 11 minutes 41                                 
    seconds North, 136 degrees 39 minutes 25 seconds West (near                                     
    Cape Spencer Light), thence southeasterly along a line three                                    
    nautical miles seaward of the baseline from which the breadth of                                
    the territorial sea is measured in the Pacific Ocean and the Dixon                              
    Entrance, except where this line intersects geodesics connecting                                
    the following five pairs of points:  (A) 58 degrees 05 minutes 17                               
    seconds North, 136 degrees 33 minutes 49 seconds West and 58                                    
    degrees 11 minutes 41 seconds North, 136 degrees 39 minutes 25                                  
    seconds West (Cross Sound); (B) 56 degrees 09 minutes 40                                        
    seconds North, 134 degrees 40 minutes 00 seconds West and 55                                    
    degrees 49 minutes 15 seconds North, 134 degrees 17 minutes 40                                  
    seconds West (Chatham Strait); (C) 55 degrees 49 minutes 15                                     
    seconds North, 134 degrees 17 minutes 40 seconds West and 55                                    
    degrees 50 minutes 30 seconds North, 133 degrees 54 minutes 15                                  
    seconds West (Sumner Strait); (D) 54 degrees 41 minutes 30                                      
    seconds North, 132 degrees 01 minutes 00 seconds West and 54                                    
    degrees 51 minutes 30 seconds North, 131 degrees 20 minutes 45                                  
    seconds West (Clarence Strait); (E) 54 degrees 51 minutes 30                                    

2001-05-01                     House Journal                      Page 1466
    seconds North, 131 degrees 20 minutes 45 seconds West and 54                                    
    degrees 46 minutes 15 seconds North, 130 degrees 52 minutes 00                                  
    seconds West (Revillagigedo Channel); the portion of each such                                  
    geodesic situated beyond three nautical miles from the baseline                                 
    from which the breadth of the territorial sea is measured forms the                             
    outer limit of the waters of the Alexander Archipelago in those                                 
    five locations.                                                                                 
   * Sec. 3.   AS 37.05.146(b)(4) is amended by adding a new                                      
subparagraph to read:                                                                               
                  (XX)  receipts described in AS 46.03.482(b)(1) and                                
         (2) received under the Alaska commercial passenger vessel                                  
         coastal protection program;                                                                
   * Sec. 4.  AS 46.03.760(e) is amended to read:                                                 
         (e)  A person who violates or causes or permits to be violated                             
    a provision of AS 46.03.250 - 46.03.313, 46.03.460 - 46.03.475                              
    [AS 46.03.250 - 46.03.314], AS 46.14, or a regulation, a lawful                                 
    order of the department, or a permit, approval, or acceptance, or                               
    term or condition of a permit, approval, or acceptance issued                                   
    under AS 46.03.250 - 46.03.313, 46.03.460 - 46.03.475,                                      
    [AS 46.03.250 - 46.03.314] or AS 46.14 is liable, in a civil action,                            
    to the state for a sum to be assessed by the court of not less than                             
    $500 nor more than $100,000 for the initial violation, nor more                                 
    than $10,000 for each day after that on which the violation                                     
    continues, and that shall reflect, when applicable,                                             
             (1)  reasonable compensation in the nature of liquidated                               
    damages for any adverse environmental effects caused by the                                     
    violation, that shall be determined by the court according to the                               
    toxicity, degradability and dispersal characteristics of the                                    
    substance discharged, the sensitivity of the receiving environment,                             
    and the degree to which the discharge degrades existing                                         
    environmental quality; for a violation relating to AS 46.14, the                                
    court, in making its determination under this paragraph, shall also                             
    consider the degree to which the discharge causes harm to persons                               
    or property; for a violation of AS 46.03.463, the court, in                                 
    making its determination under this paragraph, shall also                                   
    consider the volume of the graywater or sewage discharged;                                  
    this paragraph may not be construed to limit the right of parties                               
    other than the state to recover for personal injuries or damage to                              
    their property;                                                                                 
                                                                                                    

2001-05-01                     House Journal                      Page 1467
             (2)  reasonable costs incurred by the state in detection,                              
    investigation, and attempted correction of the violation;                                       
             (3)  the economic savings realized by the person in not                                
    complying with the requirement for which a violation is charged;                                
    and                                                                                             
             (4)  the need for an enhanced civil penalty to deter future                            
    noncompliance.                                                                                  
   * Sec. 5.  AS 46.03.790(a) is amended to read:                                                 
         (a)  Except as provided in (d) of this section, a person is guilty                         
     of a class A misdemeanor if the person with criminal negligence                               
             (1)  violates a provision of this chapter, AS 46.04,                                   
    AS 46.09, or AS 46.14, a regulation or order of the department, or                              
    a permit, approval, or acceptance, or a term or condition of a                                  
    permit, approval, or acceptance issued under this chapter,                                      
    AS 46.04, AS 46.09, or AS 46.14;                                                                
             (2)  fails to provide information or provides false                                    
    information required by AS 46.03.465, 46.03.475, 46.03.755,                                 
    AS 46.04, or AS 46.09, or by a regulation adopted by the                                        
    department under AS 46.03.460, 46.03.755 [AS 46.03.755],                                    
    AS 46.04, or AS 46.09;                                                                          
             (3)  makes a false statement or representation in an                                   
    application, label, manifest, record, report, permit, or other                                  
    document filed, maintained, or used for purposes of compliance                                  
    with AS 46.03.250 - 46.03.313 [AS 46.03.250 - 46.03.314]                                    
    applicable to hazardous wastes or a regulation adopted by the                                   
    department under AS 46.03.250 - 46.03.313 [AS 46.03.250 -                                   
    46.03.314];                                                                                     
             (4)  makes a false statement, representation, or                                       
    certification in an application, notice, record, report, permit, or                             
    other document filed, maintained, or used for purposes of                                       
    compliance with AS 46.03.460 - 46.03.475, AS 46.14, or a                                
    regulation adopted under AS 46.03.460 or AS 46.14; or                                       
             (5)  renders inaccurate a monitoring device or method                                  
    required to be maintained under AS 46.14, a regulation adopted                                  
    under AS 46.14, or a permit issued by the department or a local air                             
    quality control program under AS 46.14.                                                         
   * Sec. 6.  The uncodified law of the State of Alaska is amended by                             
adding a new section to read:                                                                       
 APPLICABILITY OF REPORTING REQUIREMENTS.  (a)                                                      
Notwithstanding AS 46.03.461(a), enacted by sec. 2 of this Act, the                                 

2001-05-01                     House Journal                      Page 1468
first registration required under AS 46.03.461(a) for the owner or                                  
operator of a commercial passenger vessel that is in the marine waters                              
of the state on July 1, 2001, is 11:59 p.m., Alaska Daylight Time, on                               
July 3, 2001, regardless of whether the vessel has called upon or will                              
call upon a port in the state on or after July 1, 2001.                                             
    (b)  The information-gathering and record keeping requirements                                  
of AS 46.03.465 and 46.03.470, enacted by sec. 2 of this Act, apply on                              
and after July 1, 2001.  The first report that is due under                                         
AS 46.03.475(b) - (f), enacted by sec. 2 of this Act, is due August 21,                             
2001.                                                                                               
   * Sec. 7.  The uncodified law of the State of Alaska is amended by                             
adding a new section to read:                                                                       
 TRANSITION:  INITIAL IMPLEMENTATION OF FEES.  (a)                                                  
For a commercial passenger vessel voyage occurring on or after                                      
July 1, 2001, and before the effective date of regulations adopted by                               
the department under AS 46.03.480, enacted by sec. 2 of this Act,                                   
providing for payment of the coastal protection fee, the coastal                                    
protection fee required by AS 46.03.480, enacted by sec. 2 of this Act,                             
for each voyage during which the commercial passenger vessel is                                     
scheduled to operate in waters of this state, is due and payable to the                             
department on or before July 31 of the calendar year in which the                                   
voyage is scheduled to occur.  An additional amount owed under this                                 
subsection because of an unscheduled voyage, or a refund request                                    
under this subsection because of a cancelled voyage, shall be                                       
submitted to the department within 30 days after the vessel's last                                  
voyage in waters of the state in that calendar year.                                                
    (b)  In this section, "commercial passenger vessel," "department,"                              
"voyage," and "waters" have the meaning given in AS 46.03.490,                                      
enacted by sec. 2 of this Act.                                                                      
   * Sec. 8.  The uncodified law of the State of Alaska is amended by                             
adding a new section to read:                                                                       
 DELAYED APPLICABILITY TO SMALLER VESSELS.  (a)                                                     
Notwithstanding sec. 12 of this Act, AS 46.03.461 - 46.03.490,                                      
enacted by sec. 2 of this Act, do not apply until January 1, 2004, in the                           
case of commercial passenger vessels with an overnight                                              
accommodation capacity of 249 or fewer, determined by the number                                    
of lower berths available for passengers for hire.                                                  
    (b)  In this section, "commercial passenger vessel" and                                         
"passengers for hire" have the meanings given in AS 46.03.490,                                      
enacted by sec. 2 of this Act.                                                                      

2001-05-01                     House Journal                      Page 1469
   * Sec. 9.  The uncodified law of the State of Alaska is amended by                             
adding a new section to read:                                                                       
 ASSESSMENT REPORT.  (a)  By January 15, 2004, the                                                  
Department of Environmental Conservation shall submit to the                                        
governor a report that assesses the information received by the                                     
department for the cruise ship seasons of 2001, 2002, and 2003 and                                  
information received by the department for the cruise ship season of                                
2000.  The report must include                                                                      
         (1)  a characterization, to the extent possible, of the risks to                           
the marine and human environments posed by the discharge of sewage                                  
and graywater from commercial passenger vessels;                                                    
         (2)  evaluation of the sewage and graywater treatment systems                              
and technologies on the vessels; and                                                                
         (3)  recommendations for future action by the state in relation                            
to the matters discussed in the report.                                                             
    (b)  While producing the assessment required under this section,                                
the department shall consult appropriate federal agencies, owners and                               
operators of passenger vessels, and other interested parties.                                       
    (c)  The department shall notify the legislature when the report                                
required under this section has been submitted to the governor.                                     
    (d)  In this section, "department" means the Department of                                      
Environmental Conservation.                                                                         
   * Sec. 10.  The uncodified law of the state of Alaska is amended by                            
adding a new section to read:                                                                       
         TRANSITION:  REGULATIONS.  Notwithstanding sec. 12                                         
of this Act, the Department of Environmental Conservation may                                       
immediately proceed to adopt regulations necessary to implement this                                
Act.  The regulations take effect under AS 44.62 (Administrative                                    
Procedure Act) but not before the effective date of the statutory                                   
provision.                                                                                          
   * Sec. 11.  Section 10 of this Act takes effect immediately under                              
AS 01.10.070(c).                                                                                    
   * Sec. 12.  Except as provided in sec. 11 of this Act, this Act takes                          
effect July 1, 2001."                                                                               
                                                                                                    
                                                                                                    
Representative Mulder moved and asked unanimous consent that                                        
Amendment No. 1 be adopted.  There being no objection, it was so                                    
ordered and the new title appears below:                                                            
                                                                                                    

2001-05-01                     House Journal                      Page 1470
    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                                      

2001-05-01                     House Journal                      Page 1471
    Environmental Conservation concerning matters relating to the                                   
    vessels; and providing for an effective date.                                                   
                                                                                                    
Representative James moved and asked unanimous consent that CSHB
260(FIN) am be considered engrossed, advanced to third reading, and                                 
placed on final passage.  There being no objection, it was so ordered.                              
                                                                                                    
CSHB 260(FIN) am was read the third time.                                                           
                                                                                                    
The question being:  "Shall CSHB 260(FIN) am pass the House?"  The                                  
roll was taken with the following result:                                                           
                                                                                                    
CSHB 260(FIN) am                                                                                    
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  35   NAYS:  3   EXCUSED:  2   ABSENT:  0                                                   
                                                                                                    
Yeas:  Berkowitz, Bunde, Chenault, Cissna, Coghill, Crawford, Croft,                                
Davies, Dyson, Fate, Green, Guess, Halcro, Harris, Hayes, Hudson,                                   
James, Joule, Kapsner, Kerttula, Kookesh, Kott, Lancaster, McGuire,                                 
Meyer, Morgan, Moses, Mulder, Murkowski, Porter, Rokeberg,                                          
Scalzi, Stevens, Whitaker, Williams                                                                 
                                                                                                    
Nays:  Foster, Kohring, Wilson                                                                      
                                                                                                    
Excused:  Masek, Ogan                                                                               
                                                                                                    
And so, CSHB 260(FIN) am passed the House.                                                          
                                                                                                    
Representative James moved and asked unanimous consent that the                                     
roll call on the passage of the bill be considered the roll call on the                             
effective date clause.  There being no objection, it was so ordered.                                
                                                                                                    
CSHB 260(FIN) am was referred to the Chief Clerk for engrossment.