Legislature(1999 - 2000)

03/21/2000 01:10 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HB 371 - REPORTS FROM MARINE PASSENGER VESSELS                                                                                
                                                                                                                                
CHAIRMAN HALCRO announced the first  and only order of business as                                                              
House  Bill 371,  "An Act  relating to  certain passenger  vessels                                                              
transacting  business in  the  state or  operating  in the  marine                                                              
waters of the  state."  [Not yet adopted was  a proposed committee                                                              
substitute (CS), version 1-LS1327\H, Lauterbach, 3/17/00.]                                                                      
                                                                                                                                
Number 0049                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BETH  KERTTULA,  Alaska  State  Legislature,  came                                                              
before  the committee  to testify  as sponsor  of the  bill.   She                                                              
began by  extending her  thanks to  those who  have worked  on the                                                              
bill  and to  those  who are  here  to testify  today.   She  also                                                              
thanked her staff - Karen Greeney  and Gretchen Keiser - for their                                                              
work on the bill.                                                                                                               
                                                                                                                                
Number 0112                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA  explained that she'd drafted  the bill as                                                              
the result of  a meeting in Juneau last December  [1999], at which                                                              
time  the  cruise  ship  industry  indicated  there  weren't  many                                                              
problems with their waste management practices.  She said:                                                                      
                                                                                                                                
     The  thing  that  really  astonished  me  after  sitting                                                                   
     through the  meeting was the  lack of information.   The                                                                   
     lack  of actual  data about  what  was being  discharged                                                                   
     into the air and into the water.   There was also a true                                                                   
     disconnect  between what  I know from  living in  Juneau                                                                   
     and between  ... what I was  hearing at the meeting.   I                                                                   
     can  sit  in my  cousin's  backyard  on 6th  Street  [in                                                                   
     Juneau]  on a windless,  sunny day  and smell fumes  and                                                                   
     see the discharge.                                                                                                         
                                                                                                                                
Number 0192                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA continued.   This  is a  "right to  know"                                                              
bill.   It requires  cruise ship  companies to  register with  the                                                              
state, as most other businesses do  in the state.  And it requires                                                              
cruise ship  companies to monitor,  record and report  pollutants,                                                              
as many other industries  do in the state.  She  cited the seafood                                                              
processing  industries,   the  oil   industries  and   the  mining                                                              
industries as examples.                                                                                                         
                                                                                                                                
REPRESENTATIVE  KERTTULA  continued.    Why  have  this  piece  of                                                              
legislation?  In  1999, according to the  Environmental Protection                                                              
Agency, about  550 cruise  ships visited  the state which  brought                                                              
about 600,000  people.   She recognizes  that  the industry  is an                                                              
economic benefit,  for she grew up  in Juneau part time  and knows                                                              
the good  that the industry  has done for  the town.  At  the same                                                              
time, however,  the industry has brought  in a lot of waste.   She                                                              
cited Holland American and Royal  Caribbean as examples.  She also                                                              
noted that six cruise ship companies  have recently been cited for                                                              
violating air admission standards.                                                                                              
                                                                                                                                
REPRESENTATIVE  KERTTULA continued.   The  communities in  coastal                                                              
Alaska have a right to know what  is being discharged and how that                                                              
discharge  is being  handled.  This  legislation,  she said,  is a                                                              
true  reporting   bill;   it  doesn't  affect   a  ship's   actual                                                              
operations.  She said:                                                                                                          
                                                                                                                                
     Frankly, if they're doing most  of what they say they're                                                                   
     doing,  there really  shouldn't be  too much impact  all                                                                   
     the way around.  But until this  step is taken, with the                                                                   
     lack  of knowledge,  I  think,  we'll continue  to  have                                                                   
     problems between  the communities and the  cruise ships.                                                                   
     A lot  of the cruise  industries have  spoken to  me and                                                                   
     have shown  a lot  of good faith  in coming forward  and                                                                   
     trying  to work  with DEC  [Department of  Environmental                                                                   
     Conservation],  who's definitely trying.   But,  at this                                                                   
     point in  our communities, we've  just upped  the bottom                                                                   
     wanting to know what's happening to us.                                                                                    
                                                                                                                                
Number 0404                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOHN  COWDERY made a  motion to adopt  the proposed                                                              
CS for  HB 371,  version 1-LS1327\H,  Lauterbach, 3/17/00.   There                                                              
being no objection, Version H was before the committee.                                                                         
                                                                                                                                
CHAIRMAN  HALCRO  asked  Representative Kerttula  to  explain  the                                                              
changes in Version H.                                                                                                           
                                                                                                                                
REPRESENTATIVE KERTTULA  pointed out that the proposed  CS changes                                                              
the size of the vessels to "300 gross  registered tons or greater"                                                              
in order to be  consistent with federal law, and  because it tends                                                              
to be  the natural  breaking point  in federal  regulations.   She                                                              
further  noted  that  minor  changes   were  made  throughout  the                                                              
proposed  committee  substitute  in  response  to  a  recent  U.S.                                                              
Supreme Court  decision, the "Intertanko" decision,  which broadly                                                              
preempts state laws.  Changes were  made to the proposed committee                                                              
substitute  so that  the  industry doesn't  have  to retro-fit  or                                                              
change  the  design of  their  vessels.   The  proposed  committee                                                              
substitute also ties  in a penalty provision that  DEC already has                                                              
in statute for falsifying a report  or registration.  The proposed                                                              
CS also  changes the  language from  "shall" to  "may" on  page 2,                                                              
line 30,  to "steer clear"  of any preemption  problems.   It also                                                              
changes the  language on page  3, line 14,  to make it  easier for                                                              
the industry  to make a report.   Last, it clarifies  the language                                                              
on page  5, lines 16-19, to  clear up the $50-a-day  noncompliance                                                              
penalty.                                                                                                                        
                                                                                                                                
Number 0596                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COWDERY  asked  Representative   Kerttula  whether                                                              
cruise ships have to have a business license.                                                                                   
                                                                                                                                
REPRESENTATIVE  KERTTULA answered  that cruise  ships do  not have                                                              
the  same reporting  requirements,  which is  the  reason for  the                                                              
bill, but she's not sure about licensing.                                                                                       
                                                                                                                                
[Robert Reges  [Cruise Control Inc.]  indicated from  the audience                                                              
that  cruise ships  do  not have  to  be licensed  by  the City  &                                                              
Borough of Juneau  like other businesses.  Randy  Ray [U.S. Cruise                                                              
Ship Association]  indicated from  the audience that  cruise ships                                                              
carrying a U.S.  flag are licensed by the state.   He cannot speak                                                              
to cruise ships carrying a foreign flag, however.]                                                                              
                                                                                                                                
Number 0662                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY  asked Representative Kerttula  whether she                                                              
has a  list of  all the  regulations that  impact the cruise  ship                                                              
industry at the present time.                                                                                                   
                                                                                                                                
REPRESENTATIVE  KERTTULA  referred  to  a table  prepared  by  her                                                              
staff,   which   outlines   the   monitoring   requirements,   the                                                              
recordkeeping requirements,  and the reporting requirements  for a                                                              
number  of  different  pollutants.    The  table  illustrates  the                                                              
inconsistencies and  holes, which is why the bill  simply asks for                                                              
a report.                                                                                                                       
                                                                                                                                
Number 0759                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY  asked Representative Kerttula  whether she                                                              
is  saying  all the  pollutants  listed  in  the table  should  be                                                              
required.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  KERTTULA replied  that the  bill calls for  cruise                                                              
ships  to monitor  pollutants being  discharged.   She  reiterated                                                              
that  other  industries  monitor  and  report  discharges.    This                                                              
legislation would  bring the  cruise ship industry  on a  par with                                                              
other industries.                                                                                                               
                                                                                                                                
Number 0804                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COWDERY  asked  Representative   Kerttula  whether                                                              
everything is monitored  for those industries or  whether there is                                                              
spot-monitoring.                                                                                                                
                                                                                                                                
REPRESENTATIVE  KERTTULA replied  she's  not sure;  she would  get                                                              
back to him with  information.  In terms of  discharges, she said,                                                              
those industries have to monitor themselves quite heavily.                                                                      
                                                                                                                                
Number 0819                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COWDERY asked Representative  Kerttula for  a more                                                              
complete list of regulations.                                                                                                   
                                                                                                                                
REPRESENTATIVE KERTTULA  indicated that she would get  that to him                                                              
as soon  as she receives more  information from the  Department of                                                              
Environmental Conservation and the U.S. Coast Guard.                                                                            
                                                                                                                                
Number 0865                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY  asked Representative Kerttula  whether the                                                              
U.S.  Coast  Guard  has  regulations  pertaining  to  onshore  and                                                              
offshore limitations for the discharge of waste.                                                                                
                                                                                                                                
REPRESENTATIVE KERTTULA deferred  the question to a representative                                                              
of the  U.S. Coast  Guard.   She noted,  however, that there  have                                                              
been  problems  with the  "doughnut  holes" in  Southeast  Alaska,                                                              
which  are holes  within the  Inside  Passage that  are more  than                                                              
three miles  from the mainland  and any  island that have  to deal                                                              
with  both  state   and  federal  jurisdictions.     International                                                              
treaties play a part as well, which  is why this legislation tries                                                              
to avoid any preemption issues.                                                                                                 
                                                                                                                                
Number 0924                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY  asked Representative Kerttula  whether the                                                              
doughnut holes are addressed in the legislation.                                                                                
                                                                                                                                
REPRESENTATIVE KERTTULA  replied, "No."   She didn't want  to take                                                              
on that issue,  she said, but the cruise ship  industry has agreed                                                              
to comply with the law within the holes.                                                                                        
                                                                                                                                
Number 0960                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY  asked Representative Kerttula  whether the                                                              
boat  harbors in  Juneau have  facilities  for those  who live  on                                                              
their boats.  What does a person do with his/her waste?                                                                         
                                                                                                                                
REPRESENTATIVE KERTTULA deferred  the question to a representative                                                              
of the City  & Borough of Juneau.   She noted that there  are some                                                              
treatment requirements  for boats  that have  a toilet,  but there                                                              
are different requirements for boats that do not have a toilet.                                                                 
                                                                                                                                
Number 1010                                                                                                                     
                                                                                                                                
RON KREIZENBECK,  Director, Office of Enforcement  and Compliance,                                                              
Environmental Protection Agency,  Region 10, testified via off-net                                                              
from  Seattle.   He  told members  he has  been  working with  the                                                              
Department of  Environmental Conservation,  the U.S.  Coast Guard,                                                              
the cruise ship  industry and the communities  of Southeast Alaska                                                              
as a  member of a  steering committee  that is dealing  with these                                                              
issues.  He thinks that the proposed  committee substitute gets at                                                              
the crux of the issue, for information  about what is going on has                                                              
not been  forthcoming.   This legislation is  a step in  the right                                                              
direction.                                                                                                                      
                                                                                                                                
Number 1037                                                                                                                     
                                                                                                                                
GERSHON  COHEN  testified  via  teleconference   from  an  off-net                                                              
location.  He read the following into the record:                                                                               
                                                                                                                                
     My name is Gershon Cohen, and  I have lived in Southeast                                                                   
     Alaska for  nearly 20 years.   I have a Master's  Degree                                                                   
     in  molecular  biology,  and a  Ph.D.  in  environmental                                                                   
     policy.    I'm  a national  project  director  on  water                                                                   
     quality issues for the Earth Island Institute.                                                                             
                                                                                                                                
     Today's  cruise ships are  floating cities  transporting                                                                   
     more than  5,000 passengers  and crew.   A typical  ship                                                                   
     generates, on every one-week voyage, approximately:                                                                        
                                                                                                                                
          -    210,000 gallons of raw and treated sewage;                                                                       
          -    1,000,000 gallons of graywater containing                                                                        
               solvents, detergents, and pesticides;                                                                            
          -    25,000 gallons of oily bilge water;                                                                              
          -    110 gallons of photo chemicals;                                                                                  
          -    5 gallons of dry-cleaning waste;                                                                                 
          -    10 gallons of used paints; and                                                                                   
          -    5 gallons of expired chemicals.                                                                                  
                                                                                                                                
     That's a one-week voyage for  a ship that's traveling to                                                                   
     Southeast Alaska.  Despite the  industry's environmental                                                                   
     record,   which unfortunately  at this point  would have                                                                   
     to  be considered  abysmal,  no one  will be  monitoring                                                                   
     discharges  from the ships  this summer.   HB 371  is an                                                                   
     effort   to   close   this    information   gap.      As                                                                   
     Representative  Kerttula  said a  few  minutes ago,  the                                                                   
     bill   will   accomplish   three    desperately   needed                                                                   
     objectives:                                                                                                                
                                                                                                                                
          1)  Establish a "responsible  party" for each  ship                                                                   
          at the beginning of every calendar year;                                                                              
                                                                                                                                
          2) Require that one a month  ships will voluntarily                                                                   
          determine  and  report the  quantity,  composition,                                                                   
          and discharge location  for their waste streams and                                                                   
          record visible air emissions while in port; and                                                                       
                                                                                                                                
          3)  Require  an  accounting of  all  hazardous  and                                                                   
          solid  wastes   off  loaded  for  transport   to  a                                                                   
          licensed treatment facility.                                                                                          
                                                                                                                                
     I think there are two fundamental  issues here that must                                                                   
     be recognized:                                                                                                             
                                                                                                                                
          1) The  pubic has a right  and a need to  know what                                                                   
          is being released from  the ships.  We have no idea                                                                   
          if the  legal wastes being  released are  a problem                                                                   
          or not - or whether some  ships perform better than                                                                   
          others; and                                                                                                           
                                                                                                                                
          2)  The bill  would really just  level the  playing                                                                   
          field with  other discharging industry.   Again, as                                                                   
          Kerttula   mentioned  earlier,  the   oil,  timber,                                                                   
          mining  and   seafood  processing  industries   all                                                                   
          submit monthly monitoring  reports that cover their                                                                   
          waste stream discharges.                                                                                              
                                                                                                                                
     This  bill is not  intended  to, nor will  it chase  the                                                                   
     cruise ships  away.  It simply recognizes  that both the                                                                   
     industry and the public have  needs.  The industry needs                                                                   
     Alaska  as a destination,  and Alaskans  need clean  air                                                                   
     and  clean   water,  as  well  as  an   active  economy.                                                                   
     Fortunately,   these   needs   are   not   incompatible.                                                                   
     However,  the people  of  this state  need,  and have  a                                                                   
     right,  to  know what  is  in the  multi-million  gallon                                                                   
     waste streams  being released within short  distances of                                                                   
     our towns and fishing grounds.                                                                                             
                                                                                                                                
     And,  with all  due  respect, I  hope  the committee  is                                                                   
     aware of how  many Alaskans from all over  the state are                                                                   
     in favor of gaining some control  over these discharges.                                                                   
      So, I hope you will find in favor of this legislation                                                                     
      today.  And I thank you very much for the opportunity                                                                     
     to comment.                                                                                                                
                                                                                                                                
Number 1240                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY asked Mr.  Cohen how he has determined that                                                              
the  cruise  ship   industry  would  not  be   impacted  by  these                                                              
regulations.                                                                                                                    
                                                                                                                                
MR. COHEN  replied, given their level  of profits, they  would not                                                              
be impacted by  these regulations.  He cited that  Royal Caribbean                                                              
made about a million dollars a day in profits last year.                                                                        
                                                                                                                                
Number 1292                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY asked Mr.  Cohen whether he doesn't believe                                                              
that any industry should make a profit of a million dollars.                                                                    
                                                                                                                                
MR.  COHEN  replied no,  he  doesn't  have  a problem  with  Royal                                                              
Caribbean's profit  margin; he just  doesn't feel that  the impact                                                              
of  this  legislation  would  be significant  to  its  ability  to                                                              
conduct business in the state.                                                                                                  
                                                                                                                                
Number 1329                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY asked Mr.  Cohen:  How far does a ship have                                                              
to be offshore to dump sewage waste?                                                                                            
                                                                                                                                
MR. COHEN  deferred the question  to a representative of  the U.S.                                                              
Coast Guard.   It's his understanding  that treated sewage  can be                                                              
discharged  anywhere,  he said,  and  that raw  sewage  has to  be                                                              
discharged  at a  point  more than  three miles  from  shore.   He                                                              
pointed out that  graywater is a great concern to  those living in                                                              
Southeast  Alaska  because  it can  be  discharged  anywhere,  and                                                              
graywater contains  many solvents and detergents.   It's a problem                                                              
in Haines  because  the ships  dock in  front of  the town and  in                                                              
front of the beach  where the children swim; at this  point, it is                                                              
not know what exactly is being discharged.                                                                                      
                                                                                                                                
Number 1442                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COWDERY asked Mr.  Cohen how he  came up  with the                                                              
list of pollutants mentioned in his  testimony, if it is not known                                                              
what is being discharged.                                                                                                       
                                                                                                                                
MR.  COHEN  replied that  the  categories  of pollutants  that  he                                                              
mentioned came from the Royal Caribbean web site.                                                                               
                                                                                                                                
Number 1490                                                                                                                     
                                                                                                                                
ROBERT REGES,  Citizen  Member, Cruise Control  Inc., came  before                                                              
the committee to testify.  He has  been a resident of Alaska since                                                              
1977.   He  has lived  in both  Juneau and  Fairbanks.   He is  an                                                              
attorney who  specializes in  environmental and natural  resources                                                              
law.   His firm  primarily represents  the industry.   He  is here                                                              
today to speak  in favor of the  bill.  It will level  the playing                                                              
field  with  the  shore-based  industries  that  incur  costs  for                                                              
recording,  monitoring and  reporting waste.   There  is no  doubt                                                              
that shore-based  industries are  subject to the  jurisdictions of                                                              
the various  environmental laws,  yet there is  doubt as  to which                                                              
laws apply to transient vessels that carry a foreign flag.                                                                      
                                                                                                                                
Number 1543                                                                                                                     
                                                                                                                                
MR. REGES continued.  When he worked  for the Department of Law as                                                              
the attorney  who handled enforcement  actions for  the Department                                                              
of  Environmental Conservation,  he was  amazed to  find out  that                                                              
Regency  Cruise Lines,  which is  no longer in  business, did  not                                                              
have  an agent for  service  of process  in the state.   Had  they                                                              
never declared bankruptcy  in the state of New York,  he said, the                                                              
state  of Alaska  may not have  found  them to serve  them with  a                                                              
lawsuit.                                                                                                                        
                                                                                                                                
Number 1597                                                                                                                     
                                                                                                                                
MR. REGES  continued.  This  legislation addresses the  concept of                                                              
registering and licensing in order  for a business to avail itself                                                              
to  services provided  by the  state, specifically  access to  the                                                              
courts.  He said,                                                                                                               
                                                                                                                                
     If you are  a builder, let's say, a developer  or a bank                                                                   
     or  another  business  licensed  in  the  Lower  48,  an                                                                   
     insurance company, you can't  do business here in Alaska                                                                   
     unless you register.  And if  you don't register, you're                                                                   
     not allowed  to bring a  claim or counterclaim.   You're                                                                   
     not  allowed  to defend  yourself  and use  our  courts.                                                                   
     That's the penalty, if you will,  for not coming forward                                                                   
     ahead of  time and telling us  who you are,  what you're                                                                   
     gonna do  here and ...  what impacts you're  gonna have.                                                                   
     So, those are  some of the provisions in  the bill, sort                                                                   
     of  the threshold  provisions, if you  will, before  you                                                                   
     even  get  to the  monitoring,  and record  keeping  and                                                                   
     recording, which  to me are very basic matters  that all                                                                   
     of  my clients, my  shore-based clients  have to  comply                                                                   
     with.  And I don't know why  we'd would give an economic                                                                   
     advantage to the foreign flagged vessels.                                                                                  
                                                                                                                                
Number 1659                                                                                                                     
                                                                                                                                
MR. REGES  continued.  With regard  to the bill itself,  there has                                                              
been a concerted effort to review  existing regulatory programs to                                                              
avoid  redundancy.    There  may  be some,  he  said,  but  he  is                                                              
confident that as the bill moves  through the process they will be                                                              
eliminated.   He  asserted  that  the reporting  requirements  hit                                                              
close to home, for he sat on a committee  that looked at the issue                                                              
of the  cruise ships overloading  Juneau's incinerator  during the                                                              
summer.   The  committee  couldn't get  any  information from  the                                                              
cruise ships to  help them solve the problem.  He  also noted that                                                              
Juneau  residents   participate   in  household  hazardous   waste                                                              
collection days for  batteries and the such, yet  the cruise ships                                                              
don't  participate  even  though  they  are  essentially  floating                                                              
households.   These  issues are  a matter  of local  concern.   He                                                              
further noted  that the cruise  lines themselves have  policies in                                                              
place that meet  or exceed the stringent  environmental standards,                                                              
yet those  same companies have indicated  that there is  a problem                                                              
due to a lack of credibility.  He said,                                                                                         
                                                                                                                                
     Well, if you want credibility,  I know from representing                                                                   
     industry, bring forth the evidence  that you're doing it                                                                   
     right.   You tell me  you have policies  in place.   You                                                                   
     tell  me  you're  doing  it  right.   You  ought  to  be                                                                   
     supporting something like this.                                                                                            
                                                                                                                                
Number 1891                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COWDERY asked Mr.  Reges whether anybody  monitors                                                              
him to make sure that he disposes of his batteries properly.                                                                    
                                                                                                                                
MR. REGES  replied that  the Environmental  Protection Agency  and                                                              
the Department of Environmental Conservation  periodically monitor                                                              
landfills  to  ensure  that  they   are  not  accepting  household                                                              
hazardous wastes.                                                                                                               
                                                                                                                                
REPRESENTATIVE  COWDERY  said,  however,  that  nobody  comes  and                                                              
monitors him personally or the public, for that matter.                                                                         
                                                                                                                                
MR.  REGES  explained  that  he   is  asked  before  entering  the                                                              
landfill; otherwise, the collection agency is responsible.                                                                      
                                                                                                                                
REPRESENTATIVE COWDERY  said, if somebody  dumps a battery  into a                                                              
garbage can, chances are it won't be found.                                                                                     
                                                                                                                                
MR. REGES replied that seems like a rational conclusion.                                                                        
                                                                                                                                
REPRESENTATIVE  COWDERY  said  the  private  sector  really  isn't                                                              
monitored; it's more of an honor system.                                                                                        
                                                                                                                                
MR. REGES pointed  out that monitoring, as indicated  in the bill,                                                              
is directed at the industry, not the consumer.                                                                                  
                                                                                                                                
Number 1982                                                                                                                     
                                                                                                                                
CHAIRMAN HALCRO  asked Mr. Reges  whether he primarily  represents                                                              
the cruise ship industry.                                                                                                       
                                                                                                                                
MR.  REGES replied  no, he  is not  here  today on  behalf of  the                                                              
cruise ship  industry; he  is here  today as  a citizen  member of                                                              
Cruise  Control  Inc.,  a  nonprofit  corporation  advocating  for                                                              
responsible tourism.                                                                                                            
                                                                                                                                
Number 2012                                                                                                                     
                                                                                                                                
MICHAEL CONWAY,  Director, Division  of Statewide Public  Service,                                                              
Department   of  Environmental  Conservation,   came  before   the                                                              
committee to testify.   He told the committee  that the department                                                              
shares  Representative   Kerttula's  goals  and   appreciates  her                                                              
efforts.   The department agrees  that more information  is needed                                                              
about cruise ship  discharges and admissions.  Right  or wrong, he                                                              
said,   the  department   doesn't   have  the   facts,  which   is                                                              
unacceptable.   The department  has established  four work  groups                                                              
and has given  them wide latitude to verify the  problems and make                                                              
advisory  recommendations to  a steering  committee consisting  of                                                              
the  cruise ship  industry,  the  Coast Guard,  the  Environmental                                                              
Protection  Agency,  and  various  communities.    The  oil  spill                                                              
response group,  he noted, is looking  at how to  improve response                                                              
capabilities  for oil spills.   The air  quality group,  the water                                                              
quality  group and the  environmental leadership  group are  being                                                              
co-chaired by a combination of federal  and state representatives.                                                              
                                                                                                                                
Number 2110                                                                                                                     
                                                                                                                                
MR. CONWAY  continued.   The results  of these  work groups  could                                                              
include  monitoring   and  reporting   requirements,  changes   to                                                              
operating   procedures,   new  equipment,   potential   permitting                                                              
activities, et  cetera.  The  department is looking  at short-term                                                              
recommendations  by early  May  [2000], but  it  may take  several                                                              
years to implement the more complex solutions.  He said,                                                                        
                                                                                                                                
     If  the  legislature  and  the   public  would  like  to                                                                   
     institutionalize  an  ongoing reporting  system,  that's                                                                   
     okay with  us.   We also support  the people's right  to                                                                   
     know.    One  note  of  caution.     We  may  find  this                                                                   
     particular reporting system  is not exactly what we need                                                                   
     in  the   future  after  a   further  analysis   of  the                                                                   
     information  and issues  and discussions  with the  work                                                                   
     groups members and the steering  committee.  If the bill                                                                   
     passes this year, we would like  to have the opportunity                                                                   
     to suggest  changes to these requirements down  the line                                                                   
     based upon our analysis of the information we gather.                                                                      
                                                                                                                                
Number 2153                                                                                                                     
                                                                                                                                
CHAIRMAN  HALCRO asked  Mr.  Conway whether  Commissioner  Michele                                                              
Brown [Department  of Environmental  Conservation] has  a position                                                              
on the bill.                                                                                                                    
                                                                                                                                
MR. CONWAY replied  that the department's energy  is going towards                                                              
the  steering  committee and  work  groups,  which is  a  parallel                                                              
effort to the legislation.                                                                                                      
                                                                                                                                
Number 2172                                                                                                                     
                                                                                                                                
CHAIRMAN HALCRO  indicated that the industry is  concerned because                                                              
that parallel effort  may be putting the "cart  before the horse."                                                              
In other words, legislation is being  put forth, while at the same                                                              
time,  work  groups  are  still trying  to  "hammer  out"  certain                                                              
issues.  He asked  Mr. Conway whether the department  is concerned                                                              
that the  legislation is  getting ahead of  the process  that they                                                              
have already started to undertake.                                                                                              
                                                                                                                                
MR. CONWAY replied  that the department isn't  concerned about the                                                              
legislation.   The  department  is focusing  their  energy on  the                                                              
other processes.                                                                                                                
                                                                                                                                
Number 2212                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY asked Mr.  Conway whether bioremediation is                                                              
being considered as an acceptable way to clean up discharge.                                                                    
                                                                                                                                
MR. CONWAY  replied that  those sorts  of response techniques  are                                                              
approved on a  case-by-case basis by the  Environmental Protection                                                              
Agency and the U.S. Coast Guard.                                                                                                
                                                                                                                                
Number 2262                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY indicated  he'd asked because ballast water                                                              
from the  oil tankers in Valdez  is treated, then returned  to the                                                              
water cleaner than what it was before.                                                                                          
                                                                                                                                
MR. CONWAY commented that the Valdez  Marine Terminal has a state-                                                              
of-the-art treatment system for ballast  water.  But ballast water                                                              
is  not  of a  concern,  primarily  because  it is  handled  where                                                              
vessels receive their fuel; in this  case, that's either Vancouver                                                              
or Seattle.   Furthermore,  water  that has come  in contact  with                                                              
residual  fuel   and  pumped  to   a  treatment  facility   is  an                                                              
operational  requirement.   This  bill deals  only with  reporting                                                              
requirements.  He said:                                                                                                         
                                                                                                                                
     I  just wanted  to  make the  point  that  if there  are                                                                   
     operational   kinds   of  requirements   for   treatment                                                                   
     facilities and  there is state-of-the-art  technology to                                                                   
     be able to  do that it costs money.  So,  ... that's not                                                                   
     what  we have  been looking  at because  we ...  believe                                                                   
     there's a lot  of operational controls that  can be done                                                                   
     to minimize the impacts and  still allow the industry to                                                                   
     operate vigorously.                                                                                                        
                                                                                                                                
Number 2331                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY  indicated that  he is questioning  why the                                                              
cruise ships  couldn't do  the same  for ballast  water, but  on a                                                              
smaller scale.                                                                                                                  
                                                                                                                                
MR.  CONWAY  commented  that  the water  quality  work  group  has                                                              
indicated  that   the  cruise  ship  industry  is   exploring  new                                                              
developments and treatments.                                                                                                    
                                                                                                                                
Number 2396                                                                                                                     
                                                                                                                                
RANDY RAY, Representative,  U.S. Cruise Ship  Association [USCSA],                                                              
came  before  the committee  to  testify.    The  USCSA is  a  new                                                              
organization consisting  of U.S. flagged cruise ship  lines.  They                                                              
came together because  of the governmental concerns  of the cruise                                                              
ship industry, for U.S. flagged vessels  also discharge graywater,                                                              
black water,  and the  occasional unplanned  discharge.   But U.S.                                                              
flagged  vessels  are  different  in  terms  of  load,  risk,  and                                                              
oversight.  The most obvious difference  is size.  The association                                                              
represents  boats that hold  12 to  138 passengers.   In  terms of                                                              
load, graywater comes from the galleys,  bars, sinks, and showers.                                                              
Black water comes from the toilet  systems.  The average discharge                                                              
for gray and black water is between  1,000 to 6,000 gallons a day,                                                              
which equates to about a city of 100 people.                                                                                    
                                                                                                                                
TAPE 00-22, SIDE B                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
MR.  RAY continued.    In  terms of  risk,  the vessels  that  the                                                              
association  represents  do  not   have  dry-cleaning  facilities,                                                              
laundry  facilities, print  shops, photo  processing labs  or hair                                                              
salons.  They use local vendors for those services.                                                                             
                                                                                                                                
MR.  RAY  continued.   In  terms  of oversight,  the  Coast  Guard                                                              
inspects all  foreign and  domestic flagged  cruise vessels.   But                                                              
foreign  vessels are  built  and repaired  in  foreign ship  yards                                                              
without Coast Guard supervision,  while domestic vessels are built                                                              
and repaired  in domestic  ship yards  with Coast Guard  oversight                                                              
and U.S.  licensed crews.   In terms  of environmental  oversight,                                                              
some infractions are  turned over to the home port  of the vessel,                                                              
which  means that  some  are never  resolved.   A  violation of  a                                                              
domestic vessel is adjudicated in the U.S.                                                                                      
                                                                                                                                
MR. RAY  continued.   U.S. flagged  cruise vessels  focus on  eco-                                                              
tourism.   They  do not  fall under  this  legislation because  of                                                              
their size,  but they are committed  to meet the spirit  of it and                                                              
the intent  of the work  groups established  by the Department  of                                                              
Environmental Conservation.  This  summer they will be contracting                                                              
with a lab in Juneau to sample and  test the content of their gray                                                              
and black  water, which  will be provided  to the legislature  and                                                              
the  Department of  Environmental Conservation.   The  association                                                              
hopes to show Alaskans that they  need not be concerned about U.S.                                                              
flagged vessels.                                                                                                                
                                                                                                                                
Number 0121                                                                                                                     
                                                                                                                                
CHAIRMAN  HALCRO  asked  Mr.  Ray  whether  the  vessels  that  he                                                              
represents would not fall under this legislation.                                                                               
                                                                                                                                
MR. RAY  replied correct.   They  are under  300 gross  registered                                                              
tons.                                                                                                                           
                                                                                                                                
CHAIRMAN HALCRO  asked whether the  USCSA has taken a  position on                                                              
the bill.                                                                                                                       
                                                                                                                                
MR. RAY  replied that the association  hasn't taken a  position on                                                              
the bill because  they aren't covered by it.  He  is present today                                                              
to express that  they plan to meet the intent  of the legislation,                                                              
and that  they plan  to provide  gray and  black water  monitoring                                                              
results to the state.                                                                                                           
                                                                                                                                
CHAIRMAN HALCRO  asked Mr.  Ray whether  the USCSA recognizes  the                                                              
fact that  local communities  should have a  right to  know what's                                                              
happening in their waters.                                                                                                      
                                                                                                                                
MR. RAY  replied, "Yes."   The vessels  that he represents  employ                                                              
many Alaskans as naturalists, geologists and marine biologists.                                                                 
                                                                                                                                
Number 0162                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA asked  Mr.  Ray to  explain to  committee                                                              
members why it's  important that vessels do not  have dry-cleaning                                                              
facilities, hair salons, et cetera.                                                                                             
                                                                                                                                
MR. RAY  explained that  it's important  because silver  sometimes                                                              
gets through  the systems, which is  a heavy metal and  very toxic                                                              
in a marine environment.                                                                                                        
                                                                                                                                
Number 0222                                                                                                                     
                                                                                                                                
ED  PAGE,  Captain;   and  Chief  of  Staff,   Marine  Safety  and                                                              
Environmental  Protection, 17th Coast  Guard District,  U.S. Coast                                                              
Guard,  came before  the committee  to  testify.   The U.S.  Coast                                                              
Guard  has  been very  active  in  the work  groups  and  steering                                                              
committee,  for they  share in  the concerns  and are  one of  the                                                              
primary  regulatory agencies  to  ensure compliance  with  various                                                              
environmental  regulations.  He  noted that  the genesis  of these                                                              
concerns is  the direct result of  findings from U.S.  Coast Guard                                                              
overflights  and inspections  of a  few cruise  line vessels.   He                                                              
further noted  that there  are a sweep  of regulations  that cover                                                              
these concerns and that the U.S.  Coast Guard has been raising the                                                              
bar voluntarily to improve them.                                                                                                
                                                                                                                                
CAPTAIN PAGE continued.   The issues that  Representative Kerttula                                                              
brought up  are not fully addressed  at this point in  time, which                                                              
is why  there are work  groups; in that  way, they  can accelerate                                                              
the process.                                                                                                                    
                                                                                                                                
CAPTAIN PAGE continued.   The U.S. Coast Guard  looks at emissions                                                              
and discharges  differently.  For  example, treated  graywater can                                                              
be  discharged anywhere  offshore.   Treated  black  water can  be                                                              
discharged in  internal waters, and  untreated black water  can be                                                              
discharged   at  sea   or  three   miles  offshore.     MARPOL   1                                                              
[International Convention for the  Prevention of Marine Pollution]                                                              
allows for  the discharge of ballast  water, if it's less  than 15                                                              
parts per  million near  shore or offshore.   MARPOL 5  allows for                                                              
the  discharge  of  treated  garbage   three  miles  offshore  and                                                              
floating garbage twelve miles offshore.                                                                                         
                                                                                                                                
CAPTAIN PAGE continued.  The U.S.  Coast Guard boards vessels four                                                              
times  a  year  and  conducts  inspections   on  both  safety  and                                                              
environmental  regulations.   They  look at  the  type of  garbage                                                              
generated, how it is incinerated,  and where it is discharged.  In                                                              
most  cases,  it  is  recycled  and   returned  to  Vancouver  for                                                              
discharge.  They  also look at the sewage treatment  system and if                                                              
there are any  questions samples are taken.  The  Coast Guard also                                                              
conducts overflights  with fixed-wing aircraft and  helicopters to                                                              
inspect  the   waters  to  ensure   that  cruise  ships   are  not                                                              
discharging  oil.  The  Coast Guard  appreciates the concerns  and                                                              
efforts  of those  involved, and  because of  those efforts,  they                                                              
think  that this  year will  be better  than last  year, and  that                                                              
there will be better systems in place in the future.                                                                            
                                                                                                                                
Number 0517                                                                                                                     
                                                                                                                                
CHAIRMAN HALCRO stated that it seems  the work groups are focusing                                                              
on policy.  He asked Captain Page  whether there is any work being                                                              
done on reporting.                                                                                                              
                                                                                                                                
CAPTAIN  PAGE  replied,  not  that  he can  recall.    Right  now,                                                              
reporting  is handled  by recordkeeping.   For  example, a  log is                                                              
kept  for garbage,  but  there is  no reporting  requirements  for                                                              
graywater or black water.                                                                                                       
                                                                                                                                
Number 0647                                                                                                                     
                                                                                                                                
CHAIRMAN HALCRO asked  Captain Page whether the  argument could be                                                              
made that this bill is a nice support  piece for the policies that                                                              
are being put in place.                                                                                                         
                                                                                                                                
CAPTAIN PAGE  replied, "Yes."   The bill  complements some  of the                                                              
efforts,  and  in  some  cases  it  offers  a  different  spin  or                                                              
approach.   For example, MARPOL  5 requires a  log to be  kept and                                                              
available for inspection, while the  bill requires a report to the                                                              
state.  Similarly,  the U.S. Coast Guard doesn't  require any type                                                              
of  reporting for  graywater because  it's legal  to discharge  it                                                              
anywhere.  It's  an automatic process.  When the  tank is full, it                                                              
is discharged.  There is  no equipment that  indicates when  it is                                                              
being discharged.                                                                                                               
                                                                                                                                
CHAIRMAN HALCRO closed the meeting to public testimony.                                                                         
                                                                                                                                
CHAIRMAN  HALCRO indicated  he'd  originally planned  to hold  the                                                              
bill in committee,  but in listening to the testimony  and looking                                                              
around  the room  and seeing  a lack  of  representation from  the                                                              
larger cruise ships, he would assume  that they are not opposed to                                                              
the bill.   He said he would  entertain a motion to move  the bill                                                              
out of committee.                                                                                                               
                                                                                                                                
Number 0698                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ALLEN KEMPLEN  made  a motion  to  move CSHB  371,                                                              
version  1-LS1327\H, Lauterbach,  3/17/00, out  of committee  with                                                              
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
REPRESENTATIVE  BEVERLY  MASEK  objected.    She  referred  to  an                                                              
article  written  by Commissioner  Michele  Brown  and Mr.  Thomas                                                              
Barrett, dated March  17, 2000, in the Anchorage  Daily News.  The                                                            
article refers  to the work  groups and steering  committee, which                                                              
appear to  have an  aggressive schedule  and are working  together                                                              
with those  involved, she said.   The bill isn't necessary.   It's                                                              
reinventing the wheel.   For those reasons, she  objects to moving                                                              
the bill forward.                                                                                                               
                                                                                                                                
Number 0853                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COWDERY objected  as well.   He  is not  convinced                                                              
that the system  needs to be fixed,  he explained.  He  would like                                                              
to hold the bill  in committee until more information  is provided                                                              
on the existing regulations.                                                                                                    
                                                                                                                                
Number 0876                                                                                                                     
                                                                                                                                
CHAIRMAN HALCRO stated  that the testimony has  indicated that the                                                              
work groups  are busy  focusing on  policies and regulations,  and                                                              
that  there  are several  holes  with  regard  to reporting.    As                                                              
Captain Page  indicated, there are  several areas where  this bill                                                              
would compliment the existing efforts  under way.  Moreover, given                                                              
the unfortunate  dumping incident  last year in Southeast  Alaska,                                                              
too much  information  is not  a bad thing.   This  bill also  has                                                              
three additional committees of referral;  any new information that                                                              
comes to life  could be presented in any one  of those committees.                                                              
He  would tend  to believe  the well-educated  testimony from  the                                                              
individuals  involved  in  the process  rather  than  a  newspaper                                                              
article taken out of context.                                                                                                   
                                                                                                                                
REPRESENTATIVE  MASEK  stated that  she  does not  appreciate  the                                                              
words  Chairman Halcro  is  using in  reference  to the  newspaper                                                              
article.  It was written by the commissioner  of the Department of                                                              
Natural Resources, who is actively involved in the effort.                                                                      
                                                                                                                                
CHAIRMAN HALCRO replied that he has  read the article as well, but                                                              
given  the  testimony  from  those  who  are  well-versed  in  the                                                              
procedures, processes  and work groups,  he would take  their word                                                              
in addition  to that  of Commissioner  Brown's.  Furthermore,  Mr.                                                              
Conway of DEC  has indicated that the commissioner  is pretty much                                                              
in support of the legislation.                                                                                                  
                                                                                                                                
Number 0969                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ALBERT KOOKESH  stated  that he  tends to  believe                                                              
those who testify, because they strongly  believe in what they say                                                              
and  put a  lot of  time and  effort  into their  theories.   They                                                              
deserve credit for coming forward.   He also appreciates newspaper                                                              
articles.    He  can't  believe   that  Commissioner  Brown  would                                                              
disagree  with  this legislation;  otherwise,  the  representative                                                              
from  the department  would have  indicated  so.   In response  to                                                              
Representative Cowdery's comment,  he said there isn't a system in                                                              
place to break.  Moreover, since  he lives in Southeast Alaska, he                                                              
is concerned about its waters; there  will be a time when there is                                                              
a problem in  another area of the  state, and he will  also listen                                                              
to those  from that area.   He thinks  people ought to  give those                                                              
who represent  Southeast Alaska  and the  waters thereof  some due                                                              
respect.  He will vote to move the bill forward.                                                                                
                                                                                                                                
Number 1055                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COWDERY stated  that  he thinks  the bill  doesn't                                                              
recognize the  degree of regulations  already in place.   He asked                                                              
whether the ferry system would fall under the same regulations.                                                                 
                                                                                                                                
REPRESENTATIVE  KERTTULA  answered that  a  ferry  over 300  gross                                                              
registered  tons would fall  under the  bill; she wasn't  certain,                                                              
however, of  the weight of  any of the  ferries.  She  pointed out                                                              
that the  ferry system  does not have  services onboard  like hair                                                              
salons and photo-processing labs.                                                                                               
                                                                                                                                
Number 1099                                                                                                                     
                                                                                                                                
CHAIRMAN HALCRO  pointed out  that SB 273,  which also  deals with                                                              
tonnage  and  reporting  requirements,  is  now  working  its  way                                                              
through the Senate.                                                                                                             
                                                                                                                                
A roll call vote  was taken.  Representatives  Halcro, Kookesh and                                                              
Kemplen voted  to move CSHB  371, version 1-LS1327\H,  Lauterbach,                                                              
3/17/00,  out of  committee.   Representatives  Masek and  Cowdery                                                              
voted against  it.   Therefore, CSHB  371(TRA)  so moved from  the                                                              
House Transportation Standing Committee by a vote of 3-2.                                                                       

Document Name Date/Time Subjects