HB 366 Summary (Alaska, 34th Legislature, 2nd Session)
Purpose and intent
- HB 366 would restrict the use of heavy petroleum fuel oil (HFO) as a marine fuel by large commercial passenger vessels operating in Alaska’s applicable coastal waters. It also adjusts departmental authority and sets up transition procedures, reporting, and rulemaking related to this environmental regulation.
Key provisions
- Prohibition (Sec. 30.35.010): Prohibits the use of heavy petroleum fuel oil in the main or auxiliary engines of large commercial passenger vessels within applicable waters of Alaska (defined area includes Alaska’s coastal waters, Alexander Archipelago, and related estuarine areas).
- Exemptions (Sec. 30.35.020):
- General voyage exemption: A large commercial passenger vessel on an ocean-going voyage that involves continuous and expeditious navigation through applicable waters without entering internal/estuarine Alaska waters or calling at an Alaskan port is exempt.
- Emergency exemption: Exemption also applies if HFO is necessary to respond to an emergency or to render assistance in danger or distress.
- Definitions tied to exemptions specify that “continuous and expeditious navigation” may include required stops only as directed by the Coast Guard or for forced majeure/distress reasons.
- Penalties (Sec. 30.35.030): The Department of Environmental Conservation (DEC) would have regulatory authority to establish fines for violations (operating HFO on a large commercial passenger vessel in violation of the chapter).
- Definitions (Sec. 30.35.050):
- “Applicable waters” aligns with Alaska’s coastal and navigable federal waters as defined in regulation.
- “Heavy petroleum fuel oil” means fuels with viscosity > 380 centistokes or sulfur content > 0.1% by weight.
- “Large commercial passenger vessel” defined by the vessel’s capacity for overnight accommodations (250+ passengers) per existing Alaska statute.
Department of Environmental Conservation powers (Sec. 46.03.020 amendments)
- The DEC’s broad regulatory authority is preserved and expanded to regulate and oversee: contracts, compliance, interagency coordination, hearings, inspections, data collection, environmental guidelines, and potential federal alignment (e.g., NPDES, dredge-and-fill) as it relates to marine fuel regulation and vessel monitoring.
Reporting and transition provisions (uncodified law)
- DEC must report to the Legislature by January 1, 2034 detailing implementation of AS 30.35 (Sec. 3).
- Transition: DEC may exempt certain vessels operating before January 1, 2030 if conversion to alternative fuels is not feasible (Sec. 4).
- Regulations: DEC may adopt implementing regulations; regulatory effectiveness would follow the Administrative Procedure Act timelines (Sec. 5).
Effective date and timeline
- Base effective date: January 1, 2027 ( Sec. 7 ).
- Immediate effects on regulatory authority (via Sec. 5) and potential early exemptions (Sec. 4) as transitional provisions allow.
Impact and who is affected
- Directly affects large commercial passenger vessels (e.g., cruise ships) operating in Alaska’s applicable coastal waters.
- Appeals to environmental health and marine ecosystems by reducing reliance on HFO.
- DEC gains enhanced authority to regulate, monitor, and enforce compliance, including possible penalties for violations.
- Industry may face cost considerations for switching to cleaner fuels (e.g., Marine Gas Oil), with an estimated cost impact cited in sponsor materials (~$3.50 per day per passenger under some analyses).
Overall
HB 366 moves Alaska toward prohibiting HFO use by large passenger vessels in state waters, with exemptions for certain voyages and emergencies, while strengthening state regulatory and enforcement capabilities and requiring a future legislative report on implementation.
