Legislature(2017 - 2018)HOUSE FINANCE 519
04/14/2017 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Spring Revenue Forecast: Powerpoint | |
| HB103 | |
| HB76 | |
| HB128 | |
| SB3 | |
| HB167 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HB 76 | TELECONFERENCED | |
| + | HB 128 | TELECONFERENCED | |
| *+ | HB 167 | TELECONFERENCED | |
| + | SB 3 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 103 | TELECONFERENCED | |
SENATE BILL NO. 3
"An Act relating to the regulation of wastewater
discharge from small commercial passenger vessels in
state waters; relating to art requirements for certain
public facilities; and providing for an effective
date."
5:02:01 PM
Co-Chair Foster invited Senator Stedman and his staff to
the table.
SENATOR BERT STEDMAN, SPONSOR, thanked the committee for
the opportunity to present his bill. He read the sponsor
statement:
HCS SB 3(TRA) addresses marine vessels operating in
Alaska waters. This legislation reinstates the
statutory exemption from large cruise ship discharge
requirements for small commercial passenger vessels.
Small commercial passenger vessels and ferries with
capacity to accommodate between 50 and 249 overnight
passengers have been covered by a statutory exemption
from the treatment system and discharge requirements
for large cruise ships in Alaska. Instead they have
operated under Best Management Practices (BMP) plans
that are submitted to and approved by DEC. Operation
under these plans has dramatically improved the
quality of wastewater discharged from these vessels
since the program was established.
The exemption became law in 2004 and had a sunset date
of January 1, 2016. Support for the exemption was
provided by a 2004 DEC report on small cruise ships
and Alaskan ferries that found meeting the terms for
large cruise ships would be financially and feasibly
prohibitive.
SB 3 is necessary to reinstate the exemption, which
was automatically repealed on January 1, 2016. Without
the exemption, small cruise ships and ferries would be
required to install and operate Advanced Wastewater
Treatment Systems, which would be cost and space
prohibitive. Department of Transportation and Public
Facilities estimates the cost to retrofit ferries is
over $5 million.
Senator Stedman remarked that the bill was an extension of
policy put in place by the legislature. He noted that it
would be very difficult for the smaller ship if they did
not get the proposed exemption. He wanted to see the
industry encouraged to grow, as it was good for commerce in
coastal Alaska. He opined that forcing smaller ships out of
the market place was not good for anyone. In terms of the
Alaska Marine Highway system, there was a budget struggle.
The state was trying to operate a transportation system in
the rail belt and on the coast. The state had an old fleet
it was attempting to modernize. There were a couple of new
vessels under construction presently. He believed that
trying to make the older smaller vessels to comply rather
than obtain extensions would not work. He was available for
questions.
Co-Chair Foster reviewed the available testifiers.
Representative Kawasaki asked how many boats the
legislation would apply to in the state.
5:07:27 PM
AT EASE
5:07:52 PM
RECONVENED
Senator Stedman responded that there were about ten of the
smaller ships. There was a list in the packets provided to
members.
Representative Kawasaki asked about any sunset provisions.
Senator Stedman thought it was the first sunset. He
recalled that there had been considerable debate regarding
cruise ship discharge. In the process, a sunset date was
included. He thought it should be dealt with right away.
Representative Kawasaki asked if there was a current sunset
in the bill. Senator Stedman responded in the negative.
Representative Kawasaki asked if a new boat would
automatically comply with requirements and, therefore, not
need an exemption. Senator Stedman deferred to a
representative from the Division of the Alaska Marine
Highway System respond.
5:10:28 PM
MICHAEL A. NEUSSL, DEPUTY COMMISSIONER, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, responded that it did
not apply to the two Alaska class ferries for the marine
highway. The vessels had a Type 3 marine sanitation devise
that held all discharge waters onboard discharging ashore.
The legislation would apply to the proposed MV Tustumena
replacement vessel, which met the standards for a small
passenger vessel. The vessel was designed under the
provisions of the best management practices statute. It had
a MSD type 2 system to put an advanced wastewater treatment
system onboard to comply with large cruise ship discharge
standards. It would not fit in the marine sanitation devise
room. It was three times the size and three times the
weight of the system. The ship would need a redesign to
accommodate it, which would be costly.
Representative Kawasaki asked about the original exemption
in 2004 and why there was a sunset in 2016. Mr. Neussl
suggested the question be directed to Michelle Hale,
Division of Water, Department of Environmental Conservation
(DEC).
Vice-Chair Gara suggested having the Senator's staff review
the changes in the bill. Senator Stedman indicated he would
be returning to the Senate Resources Committee. His staff
could answer member's questions.
Vice-Chair Gara asked about the differences of the current
version of the bill and the version of the bill the
committee previously heard.
DAVE SCOTT, STAFF, SENATOR BERT STEDMAN, responded that the
changes were minor. House Bill 151 had a retroactivity
effective date, whereas, the Senate version did not. He
reported that when he spoke with DEC, the department did
not have a problem with the bill not having a retroactivity
clause.
Representative Pruitt mentioned that the bill previously
had a different title and contained an additional piece.
He inquired as to why the piece was removed. He noted there
had been a discussion about 1 percent of monies for art on
the ferries and another discussion relating to the cost of
the new ferries.
Mr. Scott spoke to the 1 percent for art. He indicated the
amount was removed by the House Transportation Committee.
There were three sections removed that all dealt with the 1
percent for art. He reported that the MV Taku was for sale
and the FVF Chenega was tied up. The art in both vessels
would be removed and placed on the new Alaska class
ferries.
Co-Chair Foster OPENED Public Testimony.
5:15:18 PM
JAMEY CAGLE, ALASKAN DREAM CRUISES, SITKA (via
teleconference), spoke in support of the bill as amended.
He thought it was an integral part to the operation of his
vessels.
5:15:58 PM
PETER BUTZ, ALASKAN DREAM CRUISES, SITKA (via
teleconference), spoke in support of the bill with the
amendment being passed. The legislation was necessary for
the continuation of his company's small fleet to operate
out of Sitka.
5:16:38 PM
Co-Chair Foster CLOSED Public Testimony.
Representative Wilson asked if the bill was going to be
moved.
Co-Chair Foster was open to moving the bill if the
committee members did not have amendments.
Vice-Chair Gara agreed with Representative Wilson.
Representative Wilson relayed that there were two zero
impact fiscal notes [OMB Component Number 2062 from the
Department of Environmental Conservation and OMB Component
Number 2604 from the Department of Transportation and
Public Facilities].
5:18:10 PM
AT EASE
5:18:36 PM
RECONVENED
Co-Chair Foster invited Mr. Neussl to review the new fiscal
note for OMB Component Number 2604.
Mr. Neussel explained that the new fiscal note was an
update of the previous fiscal note. The previous fiscal
note covered the bill when it had both the 1 percent for
art and the wastewater discharge provisions in it. The
department striped out the 1 percent for art language from
the fiscal note. The note remained a zero fiscal impact
note and contained the same language regarding the
wastewater discharge bill.
Representative Pruitt asked if there was enough artwork for
the vessels. Mr. Neussel responded that the artwork
salvaged from the MV Taku and the FVF Chenega would be
sufficient for the new Alaska class ferry.
Representative Pruitt relayed that the original fiscal note
stated that there was approximately $2.37 million for the
future MV Tustumena replacement vessel. He asked if the
money was still necessary. Mr. Neussl responded that
regarding the 1 percent for art portion, the MV Tustumena
replacement vehicle was not currently under contract,
therefore, did not apply. He detailed that $2.37 million
was the estimated cost of 1 percent for art. He did not
think the department could spend that much on art for the
vessel. It was a large amount for artwork on a vessel. The
department planned to salvage the art off of the existing
MV Tustumena to reuse on its replacement and supplemented
as necessary with a small increase.
Representative Pruitt thought that using the art from the
MV Tustumena was the right thing to do. He wondered if
there was a statutory requirement concerning the amount
spent on art. Mr. Neussel relayed that there were some
concerns about the 1 percent for art account being a
dedicated fund and unconstitutional. Therefore, it was
removed from the bill.
Representative Pruitt asked if there was an expectation
that the state spent an additional amount on art. He
wondered if additional language was necessary. Mr. Neussel
did not believe additional language to deal with the issue
of the 1 percent for art. The new vessel would have reused
art. Any additional monies for art would come from funding
from within the construction project. He did not believe it
would be 1 percent.
Representative Wilson MOVED to report HCSSB 3 (TRA) out of
Committee with individual recommendations and the
accompanying fiscal notes.
HCSSB 3 (TRA) was REPORTED out of committee with a "do
pass" recommendation and with a new zero fiscal note by the
Department of Transportation and Public Facilities and with
a previously published zero fiscal note: FN1 (DEC).
5:23:05 PM
AT EASE
5:27:01 PM
RECONVENED