1999 ANNUAL REPORT
NORTHWEST

Washington Begins Development of Long-Term Risk Management Plan

A formal Memorandum of Understanding between the U.S. Department of Transportation and the State of Washington was signed this summer creating a Long Term Risk Management Panel. In September 1999, WSPA and other industry stakeholders along with the Department of Ecology and the Coast Guard began the development of a plan to address vessel oil spill risks. The goal is to develop an evaluation plan for the existing safety systems and to recommend ways to improve marine safety in the North Puget Sound region. This area is the primary transportation corridor for tankers bound for Washington's five refineries and for cargo and passenger ships headed for Major Puget Sound ports and the Port of Vancouver, British Columbia. Discussions on tanker escorts and dedicated response tugs will be central to the evaluation process.

WSPA currently holds two seats representing tanker operators and refiners on the 20-member committee, which is comprised of industry, environmental, regulatory and elected officials. Monthly meetings are planned through June 2000 when the panel will present the plan.

Business and Petroleum Products Become Targets for an Increased Burden of Revenue Sources for Washington State in 2000

Already burdened businesses and petroleum products became leading potential revenue sources for Washington State when voters approved a measure on November 2, 1999 to eliminate the Motor Vehicle Excise Tax (MVET). WSPA members contributed to the opposition campaign which argued that approval of the initiative would lead to massive cutbacks in essential services. The expected annual revenue loss to state and local government is $750 million. Transportation projects, transit and local government services will shoulder the loss. Uncertainty prevails as state leaders seek to deal with the initiative and likely court challenges to the initiative's constitutionality.

Pipeline Safety A Key Issue in 2000

The Pipeline Safety Task Force, appointed by Governor Locke following the Olympic Pipeline explosion, presented recommendations in December. WSPA closely monitored these deliberations, particularly those of the funding subcommittee. Creation of a Washington Office of Pipeline Safety was among the recommendations that also include training responders, ensuring equipment needs of local emergency responders and extension of state authority over interstate pipelines.

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