Alaska DEC details spill prevention, response capacity and fund status to Senate subcommittee

Theresa Melville, division director for the Department of Environmental Conservation’s Division of Spill Prevention and Response, told the Senate Finance Subcommittee on March 11, 2025, that SPAR works to prevent spills, pre-positions response equipment across Alaska and coordinates responses with federal and local partners.

"The division of spill prevention and response prevents spills of oil and hazardous substances, prepares for when a spill occurs, and responds rapidly to protect human health and the environment," Melville said on the record to the committee.

SPAR maintains 52 pre‑staged CONEXes (shipping-container supply caches) around the state and 10 emergency towing systems in eight key locations, Melville said. The division also uses primary response contractors that can be activated statewide; she said a contractor positioned to serve North Slope operations is on call 24/7 and must meet contract response-time requirements. Melville said staff conduct more than 100 community visits annually and inspect the CONEXes and equipment, and that the division ships replacement supplies as they are used.

Melville described SPAR’s role in preparedness and response: reviewing contingency plans, participating in drills, pre‑positioning equipment, coordinating incident command, documenting contamination and seeking cost recovery from responsible parties.

On response thresholds, Melville said the department treats any release seriously but that it considers about 50 gallons to be a "major response," and she noted she was not certain of the exact numeric threshold. She added that many small releases are handled by local responders and then reported to DEC and entered into the division’s spill database.

DEC staff told the committee the division’s contaminated‑sites database contains 8,220 sites, of which 5,773 are closed and 2,447 remain open. The division performs about 1,500 scoping actions each year for construction projects that may contact contaminated sites, and it regulates 842 underground storage tanks under a third‑party inspection program.

Melville said SPAR has a specialized team working Alaska Native Claims Settlement Act (ANCSA) sites; she said there are 1,284 ANCSA properties and that the department expects roughly 700 of those still need verification and follow‑up work.

The division described the response fund structure and revenue sources. Melville said the prevention account receives a surcharge the department described as 4¢ per barrel of taxable oil produced, plus fines, settlements and interest; a refined fuel surcharge was cited in the presentation as 0.0095¢ per gallon (as reported by the division). The response account receives a 1¢‑per‑barrel surcharge on taxable production and cost‑recovery receipts. The division reported the combined response fund balance is a little over $40,000,000 and said the 1¢ surcharge would be paused if the balance reaches $50,000,000.

Senators pressed DEC on northern coverage and contractor arrangements. Senator Algizo asked about CONEX condition and training; Melville replied the division inspects CONEXes and works with local custodians to ensure equipment is serviceable and that communities know how to use it. Senator Giesel and others raised concerns about limited Coast Guard presence in northern waters; Melville said jurisdiction beyond three miles is federal and that DEC coordinates closely with the U.S. Coast Guard and can contract primary response contractors to respond where needed.

Senator Clayman asked whether DEC operates vessels; Melville said DEC has no ships and relies on contracted vessels and primary response contractors for on‑water operations. Committee members asked for follow‑up details; the chair said DEC will provide a schedule of community visits and confirm the name of the North Slope contractor and staffing/response times.

The subcommittee did not take formal action on SPAR items during the hearing.

The committee recessed after the presentation and later returned for a separate briefing on Clean Water Act section 404 primacy.