ECA will impact all Alaskans statewide

By Marleanna Hall

The Emission Control Areas (ECA) covering offshore in North America out to 200 miles are creating problems for cruise ships and transportation vessels operating in Southeast and Southcentral Alaska. The new EPA rule calls for vessels operating in the ECA to use expensive low-sulfur fuel. There was no scientific evaluation done by the EPA before implementing this rule.

While the ECA extends only to the west of Cook Inlet, the impact will be felt statewide. Approximately 85% of all Alaskans receive 90% of their goods through the Port of Anchorage. Businesses of all types and sizes will see an increase in costs. From retail and grocery stores to industry supply companies, nearly every Alaskan business will see costs rise, with no demonstrated benefit to the environment.

In rural Alaska, where costs are some of the highest in the nation, and transportation is high due to all goods being flown into the communities, costs will go up yet again.

Cruise lines have indicated the one percent sulfur rule that became effective August 1, 2012 has raised their fuel costs by 40 percent. The cost of fuel will increase again in 2015 when a 0.1 percent sulfur emission restriction will be effective, raising costs an estimated 70 percent, based on current crude prices.

ECA was implemented without study of impacts – environmental or economic – to Alaskans. Additionally, stakeholders, specifically Alaskans, were denied opportunity to comment on the ECA.

In mid-September, the State of Alaska filed an amended complaint to its July 2012 suit to stop ECA. The State followed with a motion for injunctive relief in late September. The State’s motion is an attempt to block the new rules from being enforced.

“The EPA’s ‘one-size-fits-all’ approach is unsupported by proper science and modeling in Alaska, and fails to consider and balance impacts on Alaskans,” said Governor Sean Parnell. “We will ask the court to intervene to try to stop this federal drag on Alaskans and our economy.”

Alaska saw a severe reduction in cruise ships to Alaska after the passing of the 2006 head-tax, which resulted in a loss of approximately 5,000 jobs. Based upon today’s fuel prices, it is expected the ECA will result in costs that are three times higher than the head-tax. This is extremely bad news for an industry that just started to turn around in Alaska and gain some of the 5,000 jobs back.

RDC and its members have a substantial stake in supporting the State’s injunction motion. The ECA will adversely impact all industries in Alaska. Increased shipping costs will be passed along to businesses as well as consumers. Supplies and equipment used to develop Alaska’s resources will increase, making operating a business in the state more expensive. Food and other household items will also be more expensive, increasing the cost of living.

The Center for Biological Diversity, the Environmental Defense Fund, Friends of the Earth, and the Natural Resources Defense Council have asked to intervene in support of the federal government.

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