State of Alaska
Fiscal Note
Bill Version: CSHB 128(TRA)
2023 Legislative Session
Fiscal Note Number: 1
(H) Publish Date: 4/26/2023
Identifier: HB128-DEC-SPAR-04-24-23 Department: Department of Environmental Conservation
Title: OIL TERMINAL FACILITY Appropriation: Spill Prevention and Response
Sponsor: TRANSPORTATION Allocation: Spill Prevention and Response
Requester: HOUSE TRANSPORTATION OMB Component Number: 3094
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2024 Governor's
Appropriation FY2024 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2024 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Positions
Full-time
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2023) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2024) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? Yes
If yes, by what date are the regulations to be adopted, amended or repealed? FY25
Why this fiscal note differs from previous version/comments:
This fiscal note has been modified based on testimony provided during the committee process and reflects changes made in the House
Transportation Committee. See analysis section for additional details.
Prepared By: Crystal Koeneman, Legislative Liaison Phone: (907)465-5871
Division: Commissioner's Office Date: 04/24/2023
Approved By: Emma Pokon, Deputy Commissioner Date: 04/25/2023
Agency: Environmental Conservation
Printed 4/26/2023 Page 1 of 2 Control Code: QEqig
 CSHB 128(TRA) - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. CSHB 128(TRA)
2023 LEGISLATIVE SESSION
Analysis
The House Transportation Committee Substitute for House Bill 128 clarifies that vessels that currently have oil spill
contingency plans as required by current statute do not need to also comply with oil spill requirements for land‐based
terminals. This language reaffirms the practical application of the statute and longstanding interpretation of the
department.
In order to operate in Alaska, Alaska statutes require oil terminals and certain vessels, including tank vessels and oil
barges, to maintain compliance with a contingency plan and proof of financial ability to respond to damages approved by
the department.
Since these statutes were put in place in the 1980's, the department has held that a plain reading of the statute says that
tank vessels and oil barges operating as oil terminal facilities fulfill the contingency planning and financial responsibility
requirements with their approved tank vessel or oil barge contingency plan and proof of financial responsibility that
includes proposed operations. The statutes do not require vessels conducting ship‐to‐ship oil transfers to have both a
vessel plan and an oil terminal facility plan, or “double” financial responsibility coverage.
CSHB128 (TRA) reaffirms the practical application of the statute and longstanding interpretation of the department to
ensure industry is able to continue providing timely, affordable, and safe delivery of fuel to communities in rural Alaska.
(Revised 08/26/2022 OMB/LFD) Page 2 of 2
HB128-DEC-SPAR-04-24-23 Page 2 of 2 Control Code: QEqig


Statutes affected:
HB0128A, AM HB 128, introduced 03/22/2023: 46.04.900
HB0128B, AM CSHB 128(TRA), introduced 04/26/2023: 46.04.030, 46.04.040, 46.04.900
HB0128Z, AM Enrolled HB 128, introduced 05/13/2023: 46.04.030, 46.04.040, 46.04.900