Legislature(1999 - 2000)
04/17/2000 04:15 PM Senate RES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 308-MARINE PASSENGER VESSELS
CHAIRMAN HALFORD informed committee members that SB 308 is very
similar to, if not identical to, HB 371, introduced by
Representative Kerttula. He asked Representative Kerttula and
Ms. Lucky present the bill.
REPRESENTATIVE BETH KERTTULA, District 3, said as a resident of a
community that is affected by the cruise ship industry she thanks
the committee for introducing the legislation. She sees SB 308 as
a small but very important step for the State. SB 308 is a
right- to-know bill.
REPRESENTATIVE KERTTULA said she introduced the House legislation
because last December she attended a meeting with the cruise ship
industry, community representatives, and DEC officials and
learned that there are very large gaps in the reporting
requirements on this industry. SB 308 does three things: it
requires companies to register in Alaska; it requires them to
gather information about air and water emissions; and it requires
them to report that information to the State. It does not
require any additional permitting. Penalties would be imposed
only if reports are lacking or false. Representative Kerttula
remarked that she cannot think of any other industry that has
such an impact on communities in the State and profits heavily
that is not required to provide information of this type. This
industry operates under foreign flags which causes some of the
problems that she tried to address in the registration system.
Industry members have been meeting with Department of
Environmental Conservation (DEC) officials in an effort to come
up with ways to go forward with reporting compliance and have
made headway, but the astonishing fact is that large gaps remain
in which DEC simply does not know what the cruise ship industry
is doing. SB 308 will fill that hole and provide information.
If the State finds from the information that no problems exist,
both parties will be on a level playing field.
REPRESENTATIVE KERTTULA pointed out that the General Accounting
Office (GAO) recently issued a report and the Environmental
Protection Agency (EPA) has announced that it is taking cruise
ship emission problems very seriously. Although it appears that
all agencies are moving in the same direction, this legislation
provides an Alaskan solution and can be enacted before federal
statutes are put in place that may preempt Alaska. She asked
committee members to consider a change to the legislation. SB
308 asks the industry to report a type of emission; it has been
suggested to her that the bill ask for information on the
composition of the waste stream instead.
Number 1197
SENATOR TAYLOR asked if any of the ports in Southeast Alaska have
pumping stations for the cruise ships.
REPRESENTATIVE KERTTULA said she does not believe so but that
possibility is being discussed. She added the bill exempts
vessels from the reporting requirements that are not off-loading
or emitting.
MR. MIKE CONWAY, DEC, verified that no pumping stations for
cruise ships exist in Southeast Alaska as most treatment plants
in Southeast are not designed for those volumes.
CHAIRMAN HALFORD commented that he has heard that most cruise
ships have better treatment systems than some of the communities
they would off-load to.
SENATOR TAYLOR asked, if that is so, how the cruise ships would
be violating the Clean Water Act by discharging emissions that
are cleaner.
REPRESENTATIVE KERTTULA said the lack of information about
exactly what is being discharged is part of the problem. She was
told that some of the ships' systems are better than the
communities' but the State does not have the baseline information
to determine whether that is true. She said once the information
is received, many arguments may simply come off of the table
because the communities will know the facts.
Number 1303
CHAIRMAN HALFORD asked if a large passenger vessel is defined as
over 300 tons.
REPRESENTATIVE KERTTULA indicated the definition is on page 6,
line 20. She noted the definition was recrafted a couple of
times. A large passenger vessel is defined as one of 300 gross
registered tons or greater, engaged in carrying passengers for
hire, excluding vessels without berths or overnight
accommodations and non-commercial vessels, warships, or vessels
operated by the State. This definition was tailored to include
truly large ships involved in passenger trade. She has since
received correspondence from some vessel owners who suggested
focussing on passengers rather than weight, but she based the
definition on Coast Guard regulations. State vessels, foreign
government vessels and warships are excluded.
CHAIRMAN HALFORD said he knows the intent of the bill is to
target the cruise ships, but he questioned why a lower weight was
not used so that 100 percent of the cruise ships are included.
Number 1416
MR. CONWAY responded that the working group's intent was to
exclude the day boats because they generate much less waste.
CHAIRMAN HALFORD said he was just wondering what the standard
below the Coast Guard's is because the Committee discussed
another bill and learned that 300 tons depends on design factors
such as accommodations, how decks are set up and other things.
MR. CONWAY said, as a retired Coast Guard Marine Safety Officer,
he is familiar with that issue but regarding this bill the
working group was concerned with passengers and their routines.
CHAIRMAN HALFORD remarked that the 300 ton weight limit was
increased to 400 tons in another bill but, in this case, there is
nothing in the cruise traffic that low because a 1,000 ton ship
is still a fairly small cruise ship.
REPRESENTATIVE KERTTULA agreed and pointed out the tonnage of the
big cruise ships is in the range of 30,000 tons.
Number 1527
SENATOR TAYLOR asked whether a pump station is used by the State
ferries.
CAPTAIN GEORGE CAPACCI, General Manager of the Alaska Marine
Highway System, informed committee members that the vessels of
the Alaska Marine Highway System have treatment systems on board,
therefore the ferries do not pump offshore. Those systems are
inspected regularly.
CHAIRMAN HALFORD noted that because the Marine Highway is a State
entity, the information is readily available.
SENATOR MACKIE asked how the emission standards for a
municipality compare to those of a cruise ship.
CAPTAIN CAPACCI said from what he understands the effluent that
is pumped out around the neighborhoods is not treated at all.
The effluent from the Marine Highway system is treated and meets
all federal standards.
SENATOR LINCOLN noted the penalty in the bill is $50 per day for
each day of non-compliance, which does not provide an incentive
to comply.
REPRESENTATIVE KERTTULA agreed the penalty is minimal but said
because it is an administrative one, it can be put in place
easily. Another section of the bill places in the DEC statutes a
provision regarding civil liability. Those penalties could be
much higher and include compensation for environmental damage.
The fine could be $10,000 per day with a civil penalty of $500 to
$100,000.
SENATOR LINCOLN asked if $50 is the standard amount for an
administrative penalty and whether the other penalties are a
significant amount.
REPRESENTATIVE KERTTULA replied it is more than the State has
now. The companies have been fined amounts in the millions; in
1994, the total amount in Alaska was $6.5 million. She noted
that although the penalty is not huge it is better than what the
State has now.
Number 1718
SENATOR LINCOLN asked if the main purpose of the bill is to
provide baseline information from which the State can determine
whether to assess penalties.
REPRESENTATIVE KERTTULA said that is correct but added she does
not believe the penalties are the most important part of the bill
to her or the communities. They are more concerned that the
cruise industry is paying attention and the bill is an effort to
continue the industry's cooperation with DEC and to point out
that the Legislature takes this seriously. When necessary, the
State would seek penalties but that is not the focus of the bill.
MR. CONWAY asked to qualify a statement made earlier. He pointed
out that communities in Southeast Alaska must have primary
treatment so they are not discharging directly. The facilities
are permitted, so DEC has data on the quality of the primary
treatment. He stated that some Southeast Alaska communities have
waivers for secondary treatment because of the expense. DEC
knows the quality of the discharge in those communities. Black
water, or sewage, is treated with marine sanitation devices
(MSD). MSDs use 1970's technology so when the Coast Guard
inspects them, it is not looking at the quality. The working
group is seeking information to determine the quality from MSDs
and whether a problem exists. Through the working group process,
the industry has begun to cooperate.
SENATOR MACKIE asked if industry officials have provided all of
the requested information.
MR. CONWAY said the group is working on that and by mid-May it
should have agreements made on what information will be gathered
and provided. This will be a cooperative effort with the Coast
Guard so, being the lead agency for the ships, it has taken the
lead on water discharge. The cruise ship industry claims it is
in compliance with all requirements and that it is willing to
provide information so the Coast Guard should have its report
completed in the next month.
CHAIRMAN HALFORD commented that the number of people on any of
the bigger ships equals the size of the fifth or sixth largest
community in Southeast.
MR. ROBERT REGES, an environmental attorney, said he was
testifying in favor of SB 308 on his own behalf. He informed
committee members he is a member of a non-profit corporation of
citizens named Cruise Control that advocates responsible tourism.
SB 308 does two things: it levels the playing field with Alaska
based businesses and other foreign businesses that come to Alaska
to do work and it contains "show me" provisions.
Regarding the registration requirement of the first section of
the bill, MR. REGES said it is balanced by the penalty of not
being able to use Alaska's courts. The Legislature has similarly
required other businesses, such as banks, insurance companies and
other companies that come to Alaska to do business to register
and get bonded and insured. If a company is not registered
first, it cannot avail itself of Alaska's courts. As a former
employee of the Department of Law, he recounted one of several
bad experiences with cruise vessels. DEC's one standard for air
emissions from cruise vessels was regularly violated. One of the
violators owed the State a substantial amount in penalties and
did not comply with provisions in a memorandum of agreement that
it signed. When the Department of Law tried to bring the company
to court, it could not get a hold of them. The company's Miami
office had closed and it had no other American-based office.
Essentially, the Department of Law was trying to bring a
Panamanian corporation with a Monrovian flag to Alaska's courts.
The Department of Law would not have succeeded except for the
fact that the company filed for bankruptcy so the Department was
able to serve its bankruptcy lawyer in New York. Similarly, when
the State went to sue Royal Caribbean, it had to go to Florida.
The leveling of the playing field provision simply asks that if a
company is coming to Alaska to do business, it give Alaska the
name of an agent for service of process. That practice is
required of many other businesses.
MR. REGES explained that the "show me" provisions will require
the cruise ship companies to show compliance. Those companies
have been saying for the past six months that they are complying
but they have not brought forth anything to the DEC working group
that shows compliance. The Alaska-based entities must file a
monthly report. SB 308 asks the cruise ships to do the same.
The "show me" provisions are broken down into two parts: off-
loading and releases. When waste is taken off of a vessel and
put into a controlled treatment storage or disposal facility, it
has been off-loaded. Vessels do not typically off-load their
aqueous wastes but they do off-load their food waste. Much of
the food waste is incinerated in Juneau. Coast Guard regulations
prohibit food waste from boats that have been in international
waters from being land filled. The section of the bill that
pertains to off-loading requires companies to report where and
when waste was off-loaded so that it can be tracked. The
released wastes do not go into a controlled facility. They get
discharged into the air or on to the shore.
In response to an earlier question by Senator Mackie, MR. REGES
said the industry has not given DEC all of the information it
requested. The industry would like to come forward with
information but government agencies can penalize them. For
instance, a vessel cannot go into Glacier Bay unless it has a
device called a continuous opacity monitor which reads the smoke
that goes up the stack. From that record, a trained technician
can tell whether the ship is in compliance with the State's air
quality standards. DEC and the working group want that data for
the past few years, not for the purpose of penalizing any
company, but to help develop best available control technology.
Those records may show what type of fuel burns the cleanest or
what nozzles work best. The companies said they would provide
that information if they are not penalized but EPA would not
agree to the enforcement shield, so no information has been
provided.
MR. REGES said the key point of SB 308 is that it does not impose
any performance standards, it simply requires cruise ship
companies to tell the State what it is doing.
CHAIRMAN HALFORD took teleconference testimony.
MR. JOHN HANSEN, President of the Northwest Cruise Ship
Association (NCA), an association of nine cruise ship lines that
operate in the Pacific Northwest, made the following comments.
SB 308 contains a lengthy list of records and reports to be filed
by cruise ships. The bill does not state why the collection of
certain data is necessary and how it will be analyzed. Although
it is not stated in the bill, the real objective of SB 308 is to
protect Alaska's environment. NCA agrees with that objective and
is committed to protecting the high quality of the environment in
Alaska. In most cases, this means that current management
practices aboard ships will exceed United States regulatory
requirements. The cruise lines, through the International
Council of Cruise Lines (ICCL), have agreed to a voluntary set of
guidelines published last December. In addition, the lines also
agreed to additional practices and investments specific to Alaska
operations. NCA members spent $1.3 million this year to purchase
18 oil spill response barges to be located in Southeast Alaska.
NCA members are within days of signing an agreement with the
existing oil spill response organization to pool resources,
including the barges.
MR. HANSEN clarified that NCA is interested in a voluntary
compliance program which would be highly consistent with the
sphere of Senator Pearce's bill, SB 273. He noted that the fleet
of cruise ships operating in Alaska is young. Twelve of the 22
ships are less than five years old and four are brand new this
year. The ships contain MSDs for secondary treatment. NCA
understands the public's need to be assured that the cruise ships
are exercising responsible environmental management and it also
understands that enforcement agencies have the power to enforce
under current law.
TAPE 00-27, SIDE B
MR. HANSEN said with that in mind, NCA entered into the
environmental initiative under the leadership of Commissioner
Michelle Brown of DEC. The purpose of the initiative is to gain
an understanding of the waste management practices used by ships
in Alaska waters and to address any environmental problems that
may be identified. Working groups have been established to work
on waste water and solid waste, air emissions, environmental
leadership and oil spill response. A progress report is
scheduled to be completed in early May. NCA supports this
program as it provides a foundation for problem solving and
policy making. It sees this process as an effective way to
address the public question about environmental stewardship.
This program is designed to be cooperative with a common
objective of continuously implementing operational improvements.
NCA believes that neither SB 308 nor HB 371 are entirely in step
with the initiative process underway. DEC will determine whether
substantial problems exist and find possible solutions. The
current process is working and should be allowed to continue to
its conclusion. At that point it will be possible to assess what
ongoing data and reporting requirements are needed.
Number 2279
MR. GERSHON COHEN, a 20 year resident of Southeast Alaska and the
National Project Director on water pollution issues with the
Earth Island Institute, gave the following testimony. SB 308 is
one of several bills sponsored in response to the wake up call
Southeast residents received last summer when they heard that
cruise ships were dumping toxic waste into Alaskan waters. For
the past nine months, cruise ship representatives have proclaimed
their intention to adhere to all applicable pollution laws,
however the key word is "applicable." The cruise ship industry
is well aware that it remains exempt from key U.S. laws and
regulations that otherwise govern the discharge of human waste
streams. Because of these exemptions, the coastal states must
take on the responsibility of monitoring illegal ship wastes into
public waters. Similar measures are being considered by the
California Legislature. Despite the industry's record of
violations, huge gaps in the regulatory process will permit
discharges to go unmonitored again this season. SB 308 will play
a critical role in closing the information gap.
MR. COHEN stated the average cruise ship in today's fleet is a
floating city, transporting more than 5,000 passengers and crew.
A typical ship generates approximately 1 million gallons of gray
water during each voyage, 210,000 gallons of raw, untreated
sewage, 25,000 gallons of oily bilge water, 110 gallons of
photochemicals, 5 gallons of dry cleaning waste, 10 gallons of
paint, and 5 gallons of expired chemicals. Under international
law, cruise ships can discharge gray water tanks and untreated
sewage anywhere as long as they are not tied to a dock. The
State needs to identify what is being discharged and which
systems in ships are better at controlling pollution. This
information will help establish a baseline for future planning
decisions.
MR. COHEN maintained that one of the industry's goals in
continuing the initiative process is to develop a self monitoring
plan that it hopes will preempt a change in Alaska law or
regulation. Last week the industry finally submitted its
proposal. Despite repeated, clear and specific requests from the
working group, the industry's proposal missed the boat. It
offered to evaluate the waste streams twice per ship during the
entire summer for only sewage parameters, ignoring concerns
expressed about the toxics pumped into the gray water. At the end
of the last meeting, the industry's representative verbally
agreed to a limited amount of gray water testing for toxics. At
this rate, the State will be lucky to have a monitoring protocol
in place for the 2001 season.
MR. COHEN thought SB 308 and HB 371 clearly and fairly initiate a
process to get the cruise ship industry to play by the same rules
as everyone else who does business in Alaska. The oil, mining,
seafood processing and timber industries are all required to
monitor and report the quantity and composition of their
wastewater discharges to either a state or federal oversight
agency every month. These bills simply demonstrate that both the
industry and the public have needs. The industry needs Alaska as
a destination. We hope they recognize that without clean air and
water, Alaska will no longer be the place it sells to clients.
Alaskans need clean air and clean water too, as well as an active
economy. Fortunately, these needs are not incompatible. No
legitimate reason remains to allow the industry to continue to
circumvent the monitoring and reporting requirements performed by
all other industries in Alaska. He urged committee members to
pass the bill out of committee today.
CHAIRMAN HALFORD thanked all participants for their testimony.
He noted the committee will revisit the legislation, possibly at
the next meeting. He then adjourned the meeting.
| Document Name | Date/Time | Subjects |
|---|