Schantz Observer Column

From the executive director: Maintaining Alaska’s High Standards in Spill Prevention and Response

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Donna Schantz

Prince William Sound is home to one of the best and most effective oil spill prevention and response systems in the world.

This system was developed over the past 30 years through a partnership between the oil industry, federal and state regulators, legislators, and citizen stakeholders. This system is possible because Alaskans were dedicated to working together to ensure a spill like the Exxon Valdez never happens again.

Unfortunately, we have also seen a steady, on-going, and alarming deterioration of federal and state oil spill prevention, response, oversight, and enforcement capabilities in Prince William Sound.

A variety of factors contributed to this situation: state and federal regulation and enforcement rollbacks, budget and staff reductions at oversight agencies, COVID-19, the low price of oil, reduced oil consumption, and lower throughput in the Trans Alaska Pipeline System (TAPS).

Collectively, these issues could substantially increase the risk of an oil spill in Alaska.

“Burdensome” state regulations

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From the executive director: EPA’s temporary policy limits inspections and enforcement actions

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Donna Schantz

By Donna Schantz
Executive Director

In March, the U.S. Environmental Protection Agency issued a temporary policy on how to handle enforcement and compliance during the COVID-19 pandemic. An April letter clarified that the policy was not intended to absolve companies of responsibility, but to allow flexibility for regulators to adapt to the unique situations presented by the pandemic.

The EPA published remarks from public officials and stakeholders in support of the temporary policy, including remarks from Jason Brune, the commissioner of the Alaska Department of Environmental Conservation, or ADEC. The commissioner’s remarks are concerning, especially the reference to regulatory bodies, including ADEC and other state and federal agencies, seeking out “gotcha” moments in the course of their duty to enforce safety requirements.

In an April 24 letter to ADEC, the Council requested a commitment that all reasonable actions to prevent accidents from occurring would be taken. The Council also requested that any temporary policies such as this one be lifted as soon as the emergency declaration has ended.

Inspections are not ‘gotcha’ moments

The Council does not believe that regulatory oversight, including monitoring, inspecting, and reporting on industry operations, are punitive ‘gotcha’ moments. We also do not think that regulatory bodies seek to unnecessarily penalize industry during normal circumstances, let alone during an emergency such as the COVID-19 pandemic.

Quote from Jason Brune: “The regulated community needs certainty that it will not fall prey to punitive ‘gotcha’ moments during this pandemic. Limiting inspections at this time is prudent as we do not want staff to be unintentional vectors for the virus to rural parts of our state that are ill-prepared to treat sick patients.”
Source: What They Are Saying: Public Officials and Stakeholders Voice Support for EPA’s Discretion Policy for COVID-19 Pandemic

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Transparency is the foundation of public trust

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By Donna Schantz
Executive Director

Public trust in our oil spill prevention and response system took many years to rebuild after the 1989 Exxon Valdez oil spill. It took a commitment to transparency, listening, and engaging stakeholders in developing and maintaining the system of safeguards for the Valdez Marine Terminal and associated tankers that we have today.

Photo of Donna Schantz
Donna Schantz

This system is now widely regarded as one of the best in the world. Strong State of Alaska statutes and regulations have supported this robust system. The lack of significant spills in Prince William Sound over the last 30 years indicates the effectiveness of industry meeting or exceeding regulatory requirements.

Trust in the system is at risk

Over the past few years, the Council has been seeing a steady erosion in regulatory oversight, staffing, funding, and coordination among many of the federal and state agencies responsible for enforcing strong laws and regulations. This alarming erosion has already started to reduce public trust in our prevention and response system.

In enacting the Oil Pollution Act of 1990, Congress determined that only when local citizens are involved in oil transport will the trust develop that is necessary to change the system from confrontation to consensus, and so the Act called for creation of citizen councils. Our Council is a unique partner for industry and regulators, giving them a platform to provide information, answer questions, listen to stakeholders, and cultivate the long-term relationships that are necessary to establish public trust.

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Strong regulations are a result of hard lessons

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Donna Schantz

By Donna Schantz
Executive Director

The oil spill prevention and response system created for the Valdez Marine Terminal and associated tankers after the 1989 Exxon Valdez oil spill is one of the best in the world. Alyeska Pipeline Service Company and the Trans Alaska Pipeline System tanker operators have worked with regulators and citizens to continuously improve the system over the years. Industry safety records, coupled with the lack of significant spills in the past 30 years, point to the success of industry working within the current system. Credit is also due to the foresight of Congress for enacting the Oil Pollution Act of 1990, which included the creation of the citizen councils, and to the State of Alaska for implementing strong statutes and regulations. The Joint Pipeline Office was created in 1990 to coordinate efforts of the 13 different state and federal regulatory agencies with oversight responsibilities at the Valdez Marine Terminal.

One only needs to compare the prevention and response capabilities prior to 1989 to what is in place today to recognize the vast improvements that have been made. While the Council has had disagreements with industry over the years, there have been numerous examples of industry, regulators, and citizens working cooperatively and collaboratively to find solutions.

“The notion that safety can be ensured in the shipping industry  through self-regulation has proved false and should be abandoned as a premise for policy. Alert regulatory agencies, subject to continuous public oversight, are needed to enforce laws governing the safe shipment of oil.”

– Alaska Oil Spill Commission Report (1990) The Wreck of the Exxon Valdez: Implications for Safe Transportation of Oil.

Over the past few years the Council has been seeing a steady erosion in regulatory oversight, staffing, funding, and coordination among many of the federal and state agencies responsible for enforcing the strong laws and regulations. Agency budgets have been reduced, and personnel are being tasked with doing more with fewer resources. The Council wants to do everything possible to make sure the safeguards put in place over the past 30 years are not weakened.

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