On Friday, Governor Parnell released a statement after the announcement by Carnival Corporation that it had reached an agreement with the Environmental Protection Agency to spend $180 million to add exhaust cleaning technology to 32 of its ships to reduce air pollution and conform with EPA Emission Control Area standards.

Under the agreement, Carnival’s ships will be exempt from ECA until they are converted but will have to burn low-sulfur fuel while in port.

In the governor’s released statement, it stated that Alaska filed suit against the federal government citing that it had not obtained the consent of Congress to support the international amendment that created the emission control areas. The statement also contends that the EPA did not use sound scientific or environmental evidence when including the state of Alaska in the ECA.

“I am heartened that the EPA is responding by allowing other options to be used to reduce emissions, rather than mandating the use of cost-prohibitive, low-sulfur fuel,” Governor Parnell said. “Alaska must remain a competitive cruise destination, so Alaska’s small and mid-sized businesses can flourish. After reducing the cruise passenger tax in 2010, passenger traffic to Alaska is on track to top one million this year, the first time in many years. The ECA fuel requirement represented a real setback because it increased the cost of travel and freight to Alaska. It is, in essence, an unfair financial penalty to Alaskans who, because of our geography, already have a high cost of living.”

“I remain concerned about cost increases for food and other ocean freight to Alaska, increases that will inevitably be passed on to Alaskans,” Governor Parnell added. “Whether cost increases result from the EPA forcing shippers to use much more expensive fuel or because companies are forced to purchase new equipment and facilities, Alaska’s families and businesses bear the brunt of this ill-conceived regulation. The state will keep the pressure on the EPA to be reasonable.”

The ECA is a joint effort by Canada and the United States. Emmission Control areas are estimated to prevent tens of thousands of deaths annually and relieve the respiratory symptoms of nearly 5 million people. The program is expected to reduce Nitrogen Oxide emissions by 1/3 of a million tons, and sulfur oxide emissions by almost a million tons.

Alaska’s Senator Mark Begich welcomed the news of the agreement between Carnival and the EPA. In a press release, Begich stated, “When the industry and the regulators work together, we can find common sense solutions,” said Sen. Begich. “I’ve been working with all parties involved to try and find a way forward and I’m glad they have come to this agreement.”

Speaking of Carnival’s proposed use of exhaust cleaning technology, Begich said, “Carnival has found an innovative technology that will exceed air emission standards while allowing them to keep down costs for visitors to Alaska,” said Sen. Begich. “This will help ensure both the health and economy of our coastal communities that rely on tourism.”