HOUSE RESOURCES STANDING COMMITTEE February 15, 1993 8:00 a.m. MEMBERS PRESENT Representative Bill Williams, Chairman Representative Bill Hudson, Vice-Chairman Representative Con Bunde Representative Pat Carney Representative Joe Green Representative Eldon Mulder MEMBERS ABSENT Representative John Davies Representative David Finkelstein Representative Jeannette James COMMITTEE CALENDAR HB 99 "An Act repealing the 65-day time limit for approval or disapproval of a proposed oil discharge contingency plan by the Department of Environmental Conservation; and providing for an effective date." MOVED OUT OF COMMITTEE WITH A DO PASS RECOMMENDATION WITNESS REGISTER Representative Joe Green State Capitol, Room 114 Juneau, Alaska 99811-1182 Phone: 465-4931 Position Statement: Gave an overview of HB 99 Janice Adair, Assistant Commissioner Department of Environmental Conservation 410 Willoughby Ave., Suite 105 Juneau, Alaska 99801-1795 Phone: 465-5010 Position Statement: Supports HB 99 Michael Conway, Director Division of Spill Prevention and Response Department of Environmental Conservation 410 Willoughby Ave., Suite 105 Juneau, Alaska 99801-1795 Phone: 465-5250 Position Statement: Commented on contingency plans Steve Porter ARCO Alaska 700 G Street Anchorage, Alaska 99501 Phone: 265-6269 Position Statement: Supports HB 99 Russell Heath Alaska Environmental Lobby P.O. Box 22151 Juneau, Alaska 99802 Phone: 586-1841 Position Statement: Supports HB 99 Beth Kerttula, Assistant Attorney General Department of Law P.O. Box 110300 Juneau, Alaska 99811-0300 Phone: 465-3600 Position Statement: Testified on legal aspects HB 99 PREVIOUS ACTION BILL: HB 99 SHORT TITLE: REPEAL 65-DAY DEADLINE: OIL SPILL PLANS BILL VERSION: SPONSOR(S): SPECIAL COMMITTEE ON OIL AND GAS TITLE: "An Act repealing the 65-day time limit for approval or disapproval of proposed oil discharge contingency plan by the Department of Environmental Conservation; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/29/93 178 (H) READ THE FIRST TIME/REFERRAL(S) 01/29/93 178 (H) OIL & GAS, RESOURCES, JUDICIARY 02/04/93 (H) O&G AT 10:00 AM CAPITOL 124 02/04/93 (H) MINUTE(O&G) 02/05/93 233 (H) O&G RPT 7DP 02/05/93 233 (H) DP: KOTT, OLBERG, MACKIE, SITTON 02/05/93 233 (H) DP: G.DAVIS, SANDERS, GREEN 02/05/93 233 (H) -ZERO FISCAL NOTE (DEC) 2/5/93 02/15/93 (H) RES AT 08:00 AM CAPITOL 124 02/15/93 343 (H) RES RPT 6DP 02/15/93 343 (H) DP:HUDSON,CARNEY,GREEN,MULDER, BUNDE 02/15/93 343 (H) DP: WILLIAMS 02/15/93 343 (H) -PREVIOUS ZERO FN (DEC) 2/5/93 ACTION NARRATIVE TAPE 93-18, SIDE A Number 000 The House Resources Committee was called to order by Chairman Bill Williams at 8:10 a.m. Members present at the call to order were Representatives Williams, Hudson, Carney, Green, and Mulder. Members absent were Representatives Bunde, Davies, Finkelstein and James. HB 99: REPEAL 65-DAY DEADLINE: OIL SPILL PLANS CHAIRMAN BILL WILLIAMS announced the meeting was not being held by regular teleconference, but one witness, Steve Porter, was linked by the teleconference network to a speaker phone in his Anchorage office. Committee members and witnesses were asked to use their microphones when speaking. He announced further that the purpose of the meeting was to consider HB 99, sponsored by the House Special Committee on Oil and Gas. He said the bill had been heard and passed in that committee. REPRESENTATIVE JOE GREEN, chair of the House Special Committee on Oil and Gas, advised that the sole purpose of HB 99 was to clean up language in the statute which presented conflicting time lines for the Department of Environmental Conservation (DEC) when reviewing oil spill response plans. He said the problem resulted when legislation was passed regarding response times for plans submitted that related to the Coastal Zone Management Plan (CZMP). REPRESENTATIVE GREEN referred members to 19 letters of support for the plan, contained in their bill files. He said the support came from a wide range of interests, all of whom agreed to the necessity of the legislation. He said HB 99 repealed the section of AS 46 that required a 65-day response from the DEC. As the statute was written, he explained, applicants submitting plans to the DEC was guaranteed a response in 65-days. Some comprehensive plans required more time for thorough review and modification. He concluded the bill served to streamline the process by removing a confusing obstacle. Number 175 JANICE ADAIR, ASSISTANT COMMISSIONER, DEC, reported the department supported HB 99. She said there has been difficulty in meeting the time lines under the CZMP and the statutory requirements. Number 191 VICE CHAIRMAN BILL HUDSON referred to the time when the statute was created, and recalled that the 65-day time line had been arbitrarily chosen to give a sense of finality to those preparing plans. He asked Ms. Adair to give the committee an idea of the status of contingency plans. MS. ADAIR responded that Mr. Conway of the Division of Spill Response could best answer that. Number 215 VICE CHAIR HUDSON then asked Ms. Adair what the DEC felt would be a more appropriate time frame. Number 229 MS. ADAIR answered that outside of the CZMP, 65 days was sufficient, but that plans submitted under the CZMP were more complicated and response time varied. Number 238 MICHAEL CONWAY, DIRECTOR, DIVISION OF SPILL PREVENTION AND RESPONSE, DEC, referred to Representative Hudson's previous question on the status of contingency plan approvals. He said all regulated facilities have contingency plans submitted. Nearly all non-crude carriers have complied with deadlines. The two or so who have not complied have had compliance orders by consent entered into. Some non-crude carriers have reduced the capacity of their facilities below the 10,000 barrel requirement, and smaller carriers were not required to have the contingency plans. Number 266 REPRESENTATIVE GREEN noted for the record that members' bill packets included a response from the Division of Legal Services regarding the types of plans filed, which showed who might be affected by the statutory change resulting from HB 99. He also pointed out the zero fiscal note associated with the bill. Number 282 STEVE PORTER of ARCO ALASKA testified by teleconference direct dial-up and said he was one of the participants working on this issue for the past two years. He said a number of people with different viewpoints worked together to resolve the difficulties of working with two conflicting processes. By reviewing the regulations and the Coastal Zone Management program, and working together with the DEC, he said the parties reached a reasonable formula for review. He recommended passage of HB 99. Number 327 CHAIRMAN WILLIAMS noted for the record that Representative Bunde had joined the meeting. Number 328 RUSSELL HEATH, representing the ALASKA ENVIRONMENTAL LOBBY, voiced his concern that oil spill contingency plans be thoroughly reviewed by the DEC. He said HB 99 would allow such review, and he supported its passage. BETH KERTTULA, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW, saw no legal problems with HB 99, and said the legislation would help clarify regulatory questions. Number 345 CHAIRMAN WILLIAMS asked if there were any others present wishing to testify. There were none, and he asked how the committee wished to proceed. Number 350 VICE CHAIR HUDSON made a MOTION to PASS HB 99 from the committee with individual recommendations. He added that the zero fiscal note should also be adopted. Number 352 CHAIRMAN WILLIAMS asked if there were any objections to the motion. Hearing none, the MOTION PASSED and HB 99 was passed with individual recommendations. ANNOUNCEMENTS CHAIRMAN WILLIAMS announced the committee's next meeting would be held on Wednesday, February 17 at 8:00 a.m., in a joint meeting with the Special Committee on Fisheries to hear an overview of the CDQ (community development quota) issue. At 9:00 a.m., he said, the Resources Committee would reconvene to take up EO 86. ADJOURNMENT There being no further business to come before the House Resources Committee, Chairman Williams adjourned the meeting at 8:30 a.m.