Dear Neighbors:

This year the 21st Alaska Legislature passed two important pieces of legislation which deserve careful consideration today. I sponsored one of these bills, SB 273, which was intended to repair a significant gap in our state's oil spill response laws. The second was a land entitlement bill intended to increase the University of Alaska's financial well being at a time of diminishing state revenues.

SB 273 requires that all non-tanker vessels over 400 gross tons, as well as the Alaska Railroad, provide containment and cleanup plans in the event of an oil spill. Most of Alaska's oil spills come from carriers that are not currently required to prepare for spill response.

The need for this legislation was emphasized over the months of session when the Alaska Railroad suffered two large oil spills totaling 139,000 gallons of jet fuel. Between the time this bill was introduced until the time it passed, two groundings occurred in Alaska waters. And in 1997, the M/V Kuroshima spilled 39,000 gallons of oil on the beaches near Dutch Harbor.

After the Exxon Valdez oil spill the Alaska Legislature adopted one of the world's best oil spill prevention and response programs. Our program was limited to oil tankers and on-shore oil facilities such as oil wells, pipelines, refineries, and tank farms. SB 273 and Senate Concurrent Resolution 1 created a task force that will bring to the 22nd Legislature strict rules providing for containment plans for oil spill response by non-tanker carriers.

This July, the task force began the first of many meetings designed to implement a containment plan that would comply with standards already set under state law. The task force's job will be challenging but its task is essential to strengthen Alaska's oil spill response laws to protect our state land and waters.

The second piece of legislation I want to address is the University land entitlement bill, SB 7, which allows the University of Alaska to select 250,000 acres of state land. This legislation is intended to strengthen the economic base of the university and is similar to a successful land grant system used in Texas.

SB 7 became law over the Governor's veto by a two-thirds override vote by the Legislature. Early in June the Administration decided to circumvent the veto override by characterizing this legislation as an appropriations bill. Appropriation bills require a three-quarter vote of the legislature to override a veto.

This act raises two serious considerations for Alaska. First, by calling this legislation an appropriation, the governor seeks to nullify a valid veto override. This violates the principles of separation of powers by invading the legislature's province as the law making body of state government.

The second consideration involves the legal effect of extending the definition of the term "appropriation" to legislation disposing of non-monetary items such as land. There is a significant legislative history for dispersing state land through homestead grants and municipal land grant programs. The governor's action calls the legal status of these grants into question and extends too much power into the executive branch to control the disposition of our state resources.

Attorneys working for the legislature contest the legality of the governor's action. The Legislative Council unanimously voted to take legal action to resolve this matter.

Thank you for the opportunity to address your membership. Please keep your legislators informed of your thoughts and concerns.

Attachments for SB 273:

• Sponsor Statement for SB 273



• What to you think about the issue? Should Alaska require the Alaska Railroad, fishing boats, cargo vessels, and cruise ships over 400 gross tons to provide oil spill response and contingency plans?

• Letter from Rep. Barnes to Sen. Pearce
• Letter from Sen. Pearce to Rep. Barnes
• Senator Pearce Press Release:
  Industry Groups Poised to Kill Oil Spill Response Bill., 04-17-00
• Representative Barnes Press Release:
  Legislators Offer Solution to Capitol Deadlock - Resolution Provides Analysis of Impacts on Businesses and Consumers., 04-19-00
• Representative Barnes Press Release:
  House Passes Proposed Solution to Spill Controversy - Resolution Provides Analysis of Impacts on Businesses and Consumers ., 04-20-00
• Senator Pearce Press Release:
  Oil Spill Response Bill Sponsor Offers Compromise., 04-20-00
• Senator Pearce Press Release:
  House Passes Oil Spill Financial Responsibility Bill., 04-29-00

Attachments for SB 7:

• Majority Press Release:
  Administration Impermissibly Disregarded Veto Override - Legislature Compelled to take Legal Action Over University Land Entitlement Bill., 06-28-00
• Majority Press Release:
  University Land Bill Becomes Law - Legislature Overrides Governor's Veto., 04-21-00
• Governor's Press Release:
  Knowles Vetoes Land and Shoot, University Lands Bills., 04-17-00
• Majority Press Release:
  University Lands Measure, Senate Bill 7, Passes House., 03-29-00
• Majority Press Release:
  University to Get Land under Senate Proposal., 05-03-99
• Full Text of SB 7 and Legislative History
• Congressional Enabling Legislation: S 744 & HR 2958