Legislature(2023 - 2024)BUTROVICH 205

03/30/2023 01:30 PM Senate TRANSPORTATION

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01:30:13 PM Start
01:31:24 PM SJR11
02:01:14 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SJR 11 WESTERN AK/ARCTIC OIL SPILL RESPONSE TELECONFERENCED
Moved SJR 11 Out of Committee
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
-- Teleconference <Listen Only> --
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                         March 30, 2023                                                                                         
                           1:30 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator James Kaufman, Chair                                                                                                    
Senator David Wilson, Vice Chair                                                                                                
Senator Löki Tobin                                                                                                              
Senator Jesse Kiehl                                                                                                             
Senator Robert Myers                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE JOINT RESOLUTION NO. 11                                                                                                  
Recognizing the Don  Young Coast Guard Authorization  Act of 2022                                                               
and the importance of certain  provisions intended to enhance oil                                                               
spill  response capabilities  in  Western Alaska  and the  United                                                               
States Arctic  to promote improved  safety in  shipping commerce,                                                               
protection  of  communities  in  the state,  and  the  health  of                                                               
critical marine  resources; urging the United  States Coast Guard                                                               
to consider  the unique challenges  of the state  when developing                                                               
oil  spill  response  requirements  for Western  Alaska  and  the                                                               
United   States   Arctic;   and    urging   the   deployment   of                                                               
individualized oil  spill response  resources for the  state that                                                               
use modern technologies  to track the operation  of large vessels                                                               
in the region  and local service providers with  knowledge of the                                                               
region and local wildlife.                                                                                                      
                                                                                                                                
     - MOVED SJR 11 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SJR 11                                                                                                                  
SHORT TITLE: WESTERN AK/ARCTIC OIL SPILL RESPONSE                                                                               
SPONSOR(s): SENATOR(s) KIEHL                                                                                                    
                                                                                                                                
03/24/23       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/24/23       (S)       TRA                                                                                                    
03/30/23       (S)       TRA AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Senator Jesse Kiehl, District B                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SJR 11                                                                                         
                                                                                                                                
CALEB YABES, Intern                                                                                                             
Senator Jesse Kiehl                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the  sponsor statement for  SJR 11                                                             
on behalf of the sponsor.                                                                                                       
                                                                                                                                
BUDDY CUSTARD, President and Chief Executive Officer                                                                            
Alaska Chadux Network                                                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SJR 11                                                                            
                                                                                                                                
JIM BUTLER, Principal                                                                                                           
Incident Response Group                                                                                                         
Kenai, Alaska                                                                                                                   
POSITION STATEMENT: Testified in support of SJR 11                                                                            
                                                                                                                                
TODD PAXTON, representing self                                                                                                  
Nikiski, Alaska                                                                                                                 
POSITION STATEMENT: Testified in opposition to SJR 11                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:30:13 PM                                                                                                                    
CHAIR  JAMES KAUFMAN  called the  Senate Transportation  Standing                                                             
Committee meeting  to order at 1:30  p.m. Present at the  call to                                                               
order  were  Senators  Wilson,  Myers,  Tobin,  Kiehl  and  Chair                                                               
Kaufman.                                                                                                                        
                                                                                                                                
          SJR 11-WESTERN AK/ARCTIC OIL SPILL RESPONSE                                                                       
                                                                                                                                
1:31:24 PM 19                                                                                                                 
CHAIR  KAUFMAN  announced  the   consideration  of  SENATE  JOINT                                                               
RESOLUTION  NO.   11  Recognizing  the  Don   Young  Coast  Guard                                                               
Authorization  Act   of  2022  and  the   importance  of  certain                                                               
provisions intended  to enhance  oil spill  response capabilities                                                               
in  Western  Alaska  and  the United  States  Arctic  to  promote                                                               
improved safety  in shipping commerce, protection  of communities                                                               
in  the  state, and  the  health  of critical  marine  resources;                                                               
urging  the United  States  Coast Guard  to  consider the  unique                                                               
challenges  of  the  state when  developing  oil  spill  response                                                               
requirements  for Western  Alaska and  the United  States Arctic;                                                               
and urging  the deployment of  individualized oil  spill response                                                               
resources for  the state  that use  modern technologies  to track                                                               
the operation  of large vessels  in the region and  local service                                                               
providers with knowledge of the region and local wildlife.                                                                      
                                                                                                                                
1:31:52 PM                                                                                                                    
Senator  Jesse  Kiehl,  District  B,  Alaska  State  Legislature,                                                               
Juneau,  Alaska,  sponsor  of SJR  11,  paraphrased  the  sponsor                                                               
statement.                                                                                                                      
                                                                                                                                
     SJR  11 affirms  the  State of  Alaska's commitment  to                                                                    
     strong  oil spill  prevention and  response efforts  in                                                                    
     Western  Alaska and  the U.S.  Arctic.  It makes  clear                                                                    
     that Alaska  expects to be fully  consulted and engaged                                                                    
     when   the  U.S.   Coast  Guard   implements  standards                                                                    
     Congress  required  under  the Don  Young  Coast  Guard                                                                    
     Reauthorization Act  (Sec. 11309  of the  2022 National                                                                    
     Defense Authorization Act.)                                                                                                
                                                                                                                                
     The waters of  Western Alaskan and the  U.S. Arctic are                                                                    
     vast, and don't have  the same commercial, Coast Guard,                                                                    
     maritime  organization, or  volunteer vessel  resources                                                                    
     to respond to  emergencies as the Lower  48. But ocean-                                                                    
     going  vessels carrying  cargoes  of fuel  or oil  must                                                                    
     have plans  in place to  both prevent and clean  up oil                                                                    
     spills  consistently  and  effectively.  That's  doubly                                                                    
     critical when  the closest response may  be hundreds of                                                                    
     miles away.                                                                                                                
                                                                                                                                
     The Don  Young Coast  Guard Authorization  Act requires                                                                    
     the  Coast Guard  to develop  standards  for oil  spill                                                                    
     plans that  consider the  unique issues  and attributes                                                                    
     of  Western  Alaska  and  the   U.S.  Arctic.  The  Act                                                                    
     requires full  consultation with  the State  of Alaska,                                                                    
     local governments, Tribes, and  others. SJR 11 calls on                                                                    
     the  Coast Guard  to consult  in  advance, rather  than                                                                    
     just  consider  the  state's   comments  on  a  federal                                                                    
     register notice.                                                                                                           
                                                                                                                                
     This  resolution reaffirms  Alaska's strong  commitment                                                                    
     to  balancing  economic   activity  with  environmental                                                                    
     protection on the seas.                                                                                                    
                                                                                                                                
1:34:38 PM                                                                                                                    
CALEB   YABES,  Intern,   Senator  Jesse   Kiehl,  Alaska   State                                                               
Legislature,  Juneau,  Alaska  informed the  committee  that  the                                                               
Coast  Guard  Authorization  Act  requires  the  Coast  Guard  to                                                               
collaborate with Alaskans when  establishing oil spill standards.                                                               
He explained  that SJR  11 calls  on the  Coast Guard  to consult                                                               
with  the  state,  municipalities, tribes  and  organizations  on                                                               
standards related  to vessel monitoring.  He provided  an example                                                               
of the  Marine Exchange in  Juneau, an entity that  tracks marine                                                               
vessels for  anomalies or discrepancies. The  resolution calls on                                                               
the Coast  Guard to  include a wildlife  rescue component.  If an                                                               
oil spill  occurs, the  resolution calls for  the use  of Alaska-                                                               
based equipment.  He stressed  that time was  of the  essence. He                                                               
added  that   transporting  equipment  from  the   rail  belt  is                                                               
different from transporting it from the Lower 48.                                                                               
                                                                                                                                
1:36:07 PM                                                                                                                    
SENATOR TOBIN  requested definitions for the  terms "pelagic" and                                                               
"anadromous" on page 1, line 12.                                                                                                
                                                                                                                                
SENATOR  KIEHL  replied that  the  terms  pelagic and  anadromous                                                               
apply  to   categories  of  fish   species.  He   explained  that                                                               
anadromous fish  spawn in fresh  water and  run to the  ocean and                                                               
include  salmon  and  sea-run  cutthroat  trout.  He  added  that                                                               
pelagic  species live  in salt  water entirely.  He hesitated  to                                                               
provide  a  detailed  description  of  pelagic  species,  but  he                                                               
believes that they remain in one environment versus migrating.                                                                  
                                                                                                                                
1:37:22 PM                                                                                                                    
SENATOR MYERS  referenced the  comment about  importing equipment                                                               
from  the  Lower  48  to  address  oil  spills.  He  stated  that                                                               
equipment  is  stationed  in  certain   Alaskan  hubs  along  the                                                               
southern and western coasts.                                                                                                    
                                                                                                                                
SENATOR  KIEHL agreed  that response  equipment  is stationed  in                                                               
several  places in  Alaska.  He added  that  small quantities  of                                                               
equipment  can  be deployed  quickly,  and  larger quantities  of                                                               
equipment are  stationed in the  Railbelt. He stated that  a more                                                               
detailed  answer  might  come  from  an  invited  testifier,  Mr.                                                               
Custard.                                                                                                                        
                                                                                                                                
1:38:15 PM                                                                                                                    
SENATOR WILSON  further clarified the difference  between pelagic                                                               
and anadromous fish.                                                                                                            
                                                                                                                                
1:39:07 PM                                                                                                                    
CHAIR KAUFMAN moved to invited testimony.                                                                                       
                                                                                                                                
1:39:20 PM                                                                                                                    
BUDDY  CUSTARD, President  and  Chief  Executive Officer,  Alaska                                                               
Chadux  Network, Juneau,  Alaska, provided  invited testimony  in                                                               
favor of SJR  11. He explained that the Alaska  Chadux Network is                                                               
a  Coast  Guard-classified  oil  spill  removal  organization,  a                                                               
primary Alaska response action contractor,  and an Alaskan clean-                                                               
up  contractor  for  both non-tank  vessels  and  non-crude  tank                                                               
vessels  and  barges.  He  remarked  that  the  organization  had                                                               
operated  in Alaska  for 30  years providing  oil spill  response                                                               
services  to vessels,  petroleum  storage, transport  facilities,                                                               
and  exploration   drilling  operations  in   northern,  western,                                                               
central, and interior Alaska on land and at sea.                                                                                
                                                                                                                                
MR. CUSTARD provided his professional  background. He stated that                                                               
he worked as a Coast Guard  officer for 30 years. Upon retirement                                                               
from  the  Coast  Guard,  he  served  as  an  emergency  response                                                               
superintendent  and  operations  manager   for  three  years.  He                                                               
reported  serving in  his current  position for  eight years.  He                                                               
stated that  SJR 11 allows  the state legislator to  voice strong                                                               
expectations to the  Coast Guard in favor of the  Don Young Coast                                                               
Guard Authorization  Act of 2022.  He explained that  federal oil                                                               
spill regulations for  post-response plans cannot be  met in most                                                               
regions of northern, western, and  central Alaska. The challenges                                                               
are due to the distance,  lack of infrastructure, remoteness, and                                                               
harsh operational conditions  in Alaska. He noted  a provision in                                                               
the  regulations  to  submit  an  Alternative  Planning  Criteria                                                               
(APC).                                                                                                                          
                                                                                                                                
1:42:24 PM                                                                                                                    
MR. CUSTARD explained  that Alaska is also  an APC administrator.                                                               
He stated that his team  developed the first Coast Guard-accepted                                                               
APC  for  tank  and  non-tank vessels  operating  in  Alaska.  He                                                               
highlighted the  lack of planning  standards for  developing APC,                                                               
which  led  to inconsistencies  and  disparities  with oil  spill                                                               
response   administration.   Large   vessel   incidents   require                                                               
standards to  protect Alaska's coastal  and marine  resources. He                                                               
furthered that  Don Young wisely  legislated Coast  Guard vessels                                                               
to  develop  oil  spill  regulations  that  consider  the  unique                                                               
planning and operational challenges in Alaska.                                                                                  
                                                                                                                                
MR.  CUSTARD stated  that Congressman  Don  Young understood  the                                                               
devastating impact  a large  oil spill could  have on  Alaska. He                                                               
mentioned Coast  Guard requirements to develop  planning criteria                                                               
with the state. He expressed  concerns that the Coast Guard might                                                               
not  engage  with  the  state  as demonstrated  by  the  lack  of                                                               
engagement  during  the  APC  acceptance  process.  He  expressed                                                               
concern that the  Coast Guard might utilize  an indirect approach                                                               
to  solicit  comments through  the  federal  register process  on                                                               
draft regulations.  He stressed the  need for the Coast  Guard to                                                               
consult  with the  state  throughout  the regulation  development                                                               
phases.  The  resolution  affirms  the  states   expectations  to                                                               
participate in  and share  its expertise  as the  new regulations                                                               
are drafted.                                                                                                                    
                                                                                                                                
MR.  CUSTARD mentioned  that the  Act requires  the tracking  and                                                               
monitoring  of  vessels over  200  nautical  miles of  Alaska  to                                                               
detect situations  that may lead  to an incident. He  provided an                                                               
example  where the  Marine Exchange  of Alaska  detected a  large                                                               
772-foot container  ship that  lost power  near Unimak  Pass. The                                                               
notification  led to  a  rapid response  for  tug assistance  and                                                               
prevented approximately two million  gallons of oil from spilling                                                               
on Alaska's coastal environment.  He advocated for resources that                                                               
can  be quickly  mobilized  and deployed  on  small aircraft  and                                                               
vessels to  reach remote Alaskan regions.  The resolution ensures                                                               
the  availability  of   wildlife  protection  and  rehabilitation                                                               
resources.  He encouraged  the committee  to  affirm the  states                                                                
commitment to the important consultation process.                                                                               
                                                                                                                                
1:46:28 PM                                                                                                                    
SENATOR MYERS  asked where oil response  equipment was positioned                                                               
in Alaska.                                                                                                                      
                                                                                                                                
MR. CUSTARD responded that his  organization has 17 response hubs                                                               
spread through  various communities.  He stated that  another APC                                                               
provider  has four  response hubs.  He added  that the  state and                                                               
Coast Guard each have caches of equipment.                                                                                      
                                                                                                                                
1:48:13 PM                                                                                                                    
SENATOR  WILSON  wondered  about the  spill-responsive  equipment                                                               
stationed in  a conex box in  King Cove. He asked  Mr. Custard if                                                               
his company was in partnership with the state.                                                                                  
                                                                                                                                
MR. CUSTARD clarified that he  owned and maintained the equipment                                                               
in  the Conex  box  located  in King  Cove.  He  stated that  his                                                               
organization was not in partnership with the state.                                                                             
                                                                                                                                
1:49:17 PM                                                                                                                    
JIM BUTLER,  Principal, Incident  Response Group,  Kenai, Alaska,                                                               
testified by  invitation in support  of SJR 11. He  commended the                                                               
committee  and sponsor  for recognizing  the important  role that                                                               
the  state plays  in oil  spill response  planning. He  mentioned                                                               
that  established Coast  Guard regulations  are  not relevant  to                                                               
Alaska. He explained  that the industry attempts to  fill the gap                                                               
created by  ineffective regulations.  He stated that  the process                                                               
is  more  cumbersome  now  as  federal  regulations  expanded  to                                                               
capture  more vessels  in the  program. He  noted that  Don Young                                                               
understood the issues and the need  for Alaska to be prepared for                                                               
an oil  spill. He stated  that Don  Young believed that  the best                                                               
way to  ensure long-term predictability for  Alaskans was through                                                               
clear  and concise  regulations. He  expressed concern  about the                                                               
federal and  state understanding of  the term consult.  He stated                                                               
that  Representative Young  clarified  that he  wanted an  active                                                               
consultation role for Alaska. He  recognized that oil spills land                                                               
on Alaska's  beaches. He stated that  Representative Young wanted                                                               
Alaskans  to remain  actively  engaged and  he  wished for  state                                                               
agency expertise and collaboration.                                                                                             
                                                                                                                                
1:54:05 PM                                                                                                                    
CHAIR KAUFMAN opened public testimony on SJR 11.                                                                                
                                                                                                                                
1:54:35 PM                                                                                                                    
TODD PAXTON,  representing self,  Nikiski, Alaska,  disclosed his                                                               
position  as  the  general  manager   of  Cook  Inlet  Oil  Spill                                                               
Prevention and Response,  Inc. He testified in  opposition to SJR
11.  He  opined that  the  resolution  resulted from  a  lobbying                                                               
effort to  strengthen the  position of one  of the  two southwest                                                               
Alaska  alternative planning  criteria administrators.  He opined                                                               
that the lobbying  effort sought to reduce the  capability of one                                                               
of  the   APC  administrators  to   the  benefit  of   the  other                                                               
administrator. He  opined that the competition  for the southwest                                                               
Alaska APC market is advantageous  as it reduces compliance costs                                                               
as a function of market competition.                                                                                            
                                                                                                                                
1:56:48 PM                                                                                                                    
CHAIR KAUFMAN closed public testimony on SJR 11.                                                                                
                                                                                                                                
1:57:12 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:58:01 PM                                                                                                                    
CHAIR KAUFMAN reconvened the meeting.                                                                                           
                                                                                                                                
1:58:15 PM                                                                                                                    
SENATOR WILSON SENATOR Wilson moved  to report SJR 11, work order                                                               
33-LS0526\B, from  committee with individual  recommendations and                                                               
attached zero fiscal note.                                                                                                      
                                                                                                                                
CHAIR KAUFMAN  found no  objection and SJR  11 was  reported from                                                               
the Senate Transportation Standing Committee.                                                                                   
                                                                                                                                
1:58:47 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:00:36 PM                                                                                                                    
CHAIR KAUFMAN reconvened the meeting.                                                                                           
                                                                                                                                
2:01:14 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Kaufman adjourned the Senate Transportation Standing                                                                      
Committee meeting at 2:01 p.m.                                                                                                  

Document Name Date/Time Subjects
SJR 11 Sponsor Statement Version B 3.27.23.pdf STRA 3/30/2023 1:30:00 PM
SJR 11
SJR 11 Version B.PDF STRA 3/30/2023 1:30:00 PM
SJR 11
SJR 11 Fiscal Note Version B 3.27.23.pdf STRA 3/30/2023 1:30:00 PM
SJR 11
SJR 11 Support Document Research H.R. 7776 NDAA 2022 3.27.23.pdf STRA 3/30/2023 1:30:00 PM
SJR 11