04/25/2023 01:00 PM House TRANSPORTATION

                  HB 128-OIL TERMINAL FACILITY                                                                              
                                                                                                                                
1:03:27 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE announced  that the only order of  business would be                                                               
HOUSE BILL  NO. 128, "An Act  relating to the definition  of 'oil                                                               
terminal facility.'"  [Before the  committee, adopted as the work                                                               
draft on 4/20/23, was the  proposed committee substitute (CS) for                                                               
HB 128,  Version 33-LS0634\U, Gunther/Radford,  4/20/23, "Version                                                               
U."]                                                                                                                            
                                                                                                                                
1:04:18 PM                                                                                                                    
                                                                                                                                
CRYSTAL    KOENEMAN,   Legislative    Liaison,   Department    of                                                               
Environmental  Conservation, addressed  the  revised zero  fiscal                                                               
note  from the  Department of  Environmental Conservation  (DEC),                                                               
noting that  it would remain in  draft form until the  bill moved                                                               
from committee.   She presented  the fiscal note  analysis, which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     The  House  Transportation   Committee  Substitute  for                                                                    
     House Bill  128 clarifies  that vessels  that currently                                                                    
     have  oil  spill  contingency   plans  as  required  by                                                                    
     current statute  do not  need to  also comply  with oil                                                                    
     spill  requirements   for  land-based  terminals.  This                                                                    
     language  reaffirms the  practical  application of  the                                                                    
     statute   and   longstanding  interpretation   of   the                                                                    
     department.                                                                                                                
                                                                                                                                
     In order to operate  in Alaska, Alaska statutes require                                                                    
     oil  terminals  and  certain  vessels,  including  tank                                                                    
     vessels and  oil barges, to maintain  compliance with a                                                                    
     contingency  plan and  proof  of  financial ability  to                                                                    
     respond to damages approved by the department.                                                                             
                                                                                                                                
     Since these statutes  were put in place  in the 1980's,                                                                    
     the department  has held  that a  plain reading  of the                                                                    
     statute  says   that  tank   vessels  and   oil  barges                                                                    
     operating  as  oil   terminal  facilities  fulfill  the                                                                    
     contingency   planning  and   financial  responsibility                                                                    
     requirements  with their  approved tank  vessel or  oil                                                                    
     barge   contingency  plan   and   proof  of   financial                                                                    
     responsibility that  includes proposed  operations. The                                                                    
     statutes do not require  vessels conducting ship-to-ship                                                                   
     oil transfers  to have  both a vessel  plan and  an oil                                                                    
     terminal   facility   plan,   or   "double"   financial                                                                    
     responsibility coverage.                                                                                                   
                                                                                                                                
     CSHB128  (TRA) reaffirms  the practical  application of                                                                    
     the  statute  and  longstanding interpretation  of  the                                                                    
     department  to  ensure  industry is  able  to  continue                                                                    
     providing  timely,  affordable,  and safe  delivery  of                                                                    
     fuel to communities in rural Alaska.                                                                                       
                                                                                                                                
CHAIR MCCABE invited questions from members of the committee.                                                                   
                                                                                                                                
1:08:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE asked Ms. Koeneman to clarify the                                                                          
department's position on barges, should Version U fail to pass                                                                  
this legislative session.                                                                                                       
                                                                                                                                
MS.   KOENEMAN  explained   that   the  department's   day-to-day                                                               
operations would not  change, adding that the  industry would not                                                               
be   required  to   obtain  double   coverage.     The  practical                                                               
application, she said, was understood by DEC.                                                                                   
                                                                                                                                
1:09:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE sought to confirm that the administration                                                                  
would not take action to prevent service from being provided.                                                                   
                                                                                                                                
MS. KOENEMAN confirmed that service would not be disrupted.                                                                     
                                                                                                                                
1:10:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE  moved  to  report CSHB  128,  Version  33-                                                               
LS0634\U,  Gunther/Radford,   4/20/23,  out  of   committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no  objection, CSHB 128(TRA) was reported  out of the                                                               
House Transportation Standing Committee.