SB 3-SMALL VESSEL WASTEWATER EXEMPTION; 1% ART  [Contains mention of HB 117.] 1:33:32 PM CO-CHAIR STUTES announced that the first order of business would be SENATE BILL NO. 3, "An Act relating to the regulation of wastewater discharge from small commercial passenger vessels in state waters; relating to art requirements for certain public facilities; and providing for an effective date." 1:34:08 PM DAVID SCOTT, Staff, Senator Bert Stedman, Alaska State Legislature, on behalf of Senator Stedman, prime sponsor of SB 3, explained that the proposed legislation would permanently reinstate the Department of Environmental Conservation (DEC) current best practices permit program for wastewater for state ferries and small cruise ships. He noted that there would be no reduction in current standards or requirements in addition to no change in DEC authority to restrict when and where discharges can occur. He said that water quality would continue to improve as DEC applied its best practices requirements. He added that DEC would continually review its best practices requirements. He shared that the Department of Transportation & Public Facilities (DOT&PF) estimates that without the passage of SB 3, it would cost millions to install advanced wastewater treatment systems (AWTS) on state ferries. He explained that the United States Coast Guard (USCG) closely monitors weight and balance changes which could make the installation of an AWTS not even possible or economically viable on small cruise passenger vessels. MR. SCOTT continued on to discuss Sections 8 and 9 of SB 3. He explained that those sections would exempt the two new Alaska Class Ferries (ACFs) and the replacement vessel for the motor vessel (M/V) Tustemena from the "one percent for art" requirement. He elaborated that the current estimated cost for the "one percent for art" would be $3.5 million. He said that DOT&PF would instead like to use those funds for safety and navigational equipment. He noted that the Alaska State Council on the Arts does not oppose the specific waiver that would be included in SB 3. 1:36:40 PM The committee took an at-ease from 1:36 p.m. to 1:37 p.m. 1:37:41 PM CO-CHAIR STUTES shared that her constituents have raised concerns about the "one percent for art" included in SB 3. She reported that she asked DOT&PF to conduct an inventory of the art currently on the M/V Tustemena and that she would like to await the results from the department before acting on the "one percent for art" portion of SB 3. She stated that she does not want to impede the progress of the small vessel wastewater exemption. She opined that the two issues would probably best be addressed separately. She declared that she had a committee substitute already drafted that would address only the wastewater exemption and then the committee could address the "one percent for art" at a later date with HB 117. 1:39:00 PM CO-CHAIR WOOL moved to adopt the proposed House committee substitute (CS) for SB 3, Version 30-LS0046\O, Nauman, 2/27/17, as a working document. There being no objection, Version O was before the committee. 1:39:27 PM MATT GRUENING, Staff, Representative Louise Stutes, Alaska State Legislature, said that the committee had previously heard the issues but in two separate bills. He explained that the committee substitute, included in the committee packet, would remove the "one percent for art" component and leave SB 3 as a standalone small vessel wastewater exemption bill. He elaborated that the entirety of the changes under Version O would remove Sections 8, 9 and 10 to separate the two issues. CO-CHAIR WOOL moved to report SB 3, Version 30-LS0046\O, Nauman, 2/27/17, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HCS SB 3(TRA) was moved out of the House Transportation Standing Committee. 1:40:48 PM The committee took an at-ease from 1:40 p.m. to 1:43 p.m. 1:43:42 PM