1998 ANNUAL REPORT
Northwest

Demand For Tanker Escorts Unabated in Northwest

The Washington State Legislature provided WSPA with some notable successes in 1998, while controversy continued over the demand that industry provide tanker tug escorts or a dedicated tug stationed at the farthest reaches of the Straits of Juan de Fuca.

In the legislative session, the Washington Petroleum Resource Group (WPRG) successfully sponsored a bill to allow refineries to conduct on-site fire training after receiving a permit from their local air pollution control agency. With the help of WSPA’s Excise Tax Committee, the WPRG also worked closely with officials to develop legislation to reduce the possibility of fuel tax evasion while providing some remuneration to WSPA members to defray costs. The legislation also moves the point of collection for gasoline and diesel taxes from the retail level to the supply rack.

Washington Elections Bring Mixed Results
A transportation infrastructure funding referendum, placed on the ballot by the Republic legislature and supported by WSPA, passed easily in the November elections. The measure, an alternative to a proposed 11-cents-per gallon tax increase, approved the
switch of Motor Vehicle Excise Tax revenues to help pay for a $24 billion transportation infrastructure package. The voters of Snohomish County also defeated a local option gas tax increase proposal by a 75% margin.

The election, however, threw into question Republican control of both houses of the legislature. Depending on absentee ballots, the current GOP majority in the Senate could revert to a majority in favor of the Democrats. In the House, the 57 to 41 majority in favor of the Republicans has been reduced to 51, with winners in four seats yet to be determined.

Long-Term Oil Spill Plan Sought
On the dedicated tug issue, the Washington Department of Ecology and U. S. Coast Guard are expected to convene stakeholders from government, industry and environmental groups late this fall to develop a long term plan to ensure the safety of Puget Sound from oil spills. The effort follows a contentious year as officials and environmental groups pushed the petroleum transportation industry to voluntarily extend the use of tug escorts to the very entrance of the Straits of Juan de Fuca or to station a large rescue tug in that area this winter. Currently, laden oil tankers are escorted to their refinery ports from Port Angeles, 70 nautical miles inside the Straits.

The WSPA Marine Committee vigorously opposed extending the range of escort tugs and stated that if such additional measures are required in the short term, all users of the waterway, not just the petroleum industry, should cover the costs. WSPA has also offered a number of alternative plans endorsed by marine experts that would reduce the risk of spills in Puget Sound more efficiently.

The U. S. Department of Transportation will soon decide what interim measures will be required for the 1998-99 winter season and then begin the process of searching for a long-term oil spill protection policy. WSPA will be involved in these deliberations.