The Observer, May 2008

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Legislative session wraps up with a solution on fishing vessel tax issue

One day before adjourning in mid-April, the Alaska Legislature passed a measure that had been a high priority for the citizens’ council and the commercial fisherman who make up an important part of the oil-spill response system for Prince William Sound and nearby waters.

That measure was House Bill 289, which passed the House without opposition on March 13 and cleared the Senate on a 20-0 vote on Apr. 12. The Legislature adjourned its regular session on April 13.

The bill eliminates a problem that arose last year when the state Department of Labor moved to require fishing vessel captains to pay unemployment taxes on crewmembers who worked during oil spill response drills and training exercises. That raised the specter of vessel owners dropping out of theprogram, which is run by Alyeska Pipeline, because of the inconvenience of figuring and paying unemployment taxes on their crews for just a few days of work per year. During actual fishing operations, crew members are exempt from unemployment insurance requirements because their pay consists of a share of the value of the catch.

In a somewhat rare case of unanimity, the bill was supported by the oil industry, the citizens’ council, and the fishing industry.

“This shows how much we can get done when we join forces,” said John Devens, executive director of the council. “We’re grateful to the industry, the fishermen, and the area legislators who pitched in on this one.”

The bill becomes effective immediately upon its signing by Gov. Sarah Palin.

Another measure of council interest was House Bill 149, intended to enable the state of Alaska to take over water-quality permits from the federal Environmental Protection agency under the National Pollutant Discharge Elimination System. This program, usually referred to as NPDES, is of great interest to the council because Alyeska has one of the EPA permits for the Ballast Water Treatment Facility at its tanker terminal in Valdez.

The issue was a carryover from legislation passed under Gov. Frank Murkowski. The state sought to take over NPDES permitting under that legislation, but was turned down by EPA because of a number of deficiencies in the proposed state program, including a lack of statutory authority paralleling what EPA has under the Federal Clean Water Act and other federal statutes.

The council did not support or oppose this year’s bill, but did write Palin after it passed, urging her to ensure the state Department of Environmental Conservation will be adequately funded if the state takeover application succeeds. Otherwise, the council warned, the application will likely face strenuous opposition when EPA puts it out for public comment.

The governor has called a special legislative session for early June, but the agenda is limited to a proposed natural gas pipeline from the North Slope and the council does not expect any of its issues to arise.