Legislature(2019 - 2020)BARNES 124
01/29/2020 01:00 PM House RESOURCES
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| Start | |
| Presentation(s): Department of Natural Resources | |
| Presentation(s): Department of Environmental Conservation | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
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| + | TELECONFERENCED | ||
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| += | HB 27 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
January 29, 2020
1:09 p.m.
MEMBERS PRESENT
Representative John Lincoln, Co-Chair
Representative Geran Tarr, Co-Chair
Representative Grier Hopkins, Vice Chair
Representative Sara Hannan
Representative Chris Tuck
Representative Ivy Spohnholz
Representative Dave Talerico
MEMBERS ABSENT
Representative George Rauscher
Representative Sara Rasmussen
COMMITTEE CALENDAR
PRESENTATION(S): DEPARTMENT OF NATURAL RESOURCES
- HEARD
PRESENTATION(S): DEPARTMENT OF ENVIRONMENTAL CONSERVATION
- HEARD
HOUSE BILL NO. 27
"An Act relating to the manufacture, sale, distribution, and
labeling of child-related products containing certain flame
retardant chemicals; relating to an interstate chemicals
clearinghouse; adding unlawful acts to the Alaska Unfair Trade
Practices and Consumer Protection Act; and providing for an
effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CORRI FEIGE, Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation
entitled, "Department of Natural Resources Overview," dated
1/29/20, and answered questions.
JASON BRUNE, Commissioner
Department of Environmental Conservation
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation
entitled, "DEC in 2019: A year in review," dated [1/29/20], and
answered questions.
CHRISTINA CARPENTER, Director
Division of Environmental Health
Department of Environmental Conservation
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the presentation
by the Department of Environmental Conservation.
ACTION NARRATIVE
1:09:55 PM
CO-CHAIR JOHN LINCOLN called the House Resources Standing
Committee meeting to order at 1:09 p.m. Representatives Tuck,
Hannan, Talerico, Tarr, and Lincoln were present at the call to
order. Representatives Spohnholz and Hopkins arrived as the
meeting was in progress.
^PRESENTATION(S): DEPARTMENT OF NATURAL RESOURCES
PRESENTATION(S): DEPARTMENT OF NATURAL RESOURCES
1:10:50 PM
CO-CHAIR LINCOLN announced the first order of business would be
a presentation by the Department of Natural Resources.
1:11:03 PM
CORRI FEIGE, Commissioner, Department of Natural Resources
(DNR), presented a PowerPoint presentation entitled, "Department
of Natural Resources Overview," beginning with the Division of
Agriculture. Commissioner Feige reminded the committee [the
majority of the Division of Agriculture's budget was vetoed by
Governor Dunleavy on June 28, 2019, and subsequently restored by
a reversal of the veto]. Therefore, DNR sought in 2019 to
rebuild a more efficient DOA to better serve the agribusiness
community in Alaska, by providing services the government should
provide, and allowing agribusiness to move forward.
Accomplishments for DOA during 2019 included identifying and
responding to Elodea outbreaks in Big Lake and Mat-Su lakes.
After the outbreak occurred, permits to apply Elodea inoculant
were quickly issued by the Department of Environmental
Conservation (DEC), and DOA responded to the outbreak within 24
hours so that Elodea under the lake ice will die during the
winter.
REPRESENTATIVE HOPKINS asked how the Elodea inoculant is used.
1:14:03 PM
COMMISSIONER FEIGE recalled chemical application to eradicate
Elodea has been used by the state since 2016-2017; however,
Elodea spreads very rapidly, which requires a quick response,
and applications during the winter and in the spring will
increase efficacy of the chemical. In further response to
Representative Hopkins, she offered to provide specific
information on the location, efficacy, and use of various
chemicals used to eradicate Elodea. Commissioner Feige
cautioned Elodea erodes fish habitat thus DNR has worked with
the Alaska Department of Fish and Game (ADFG) to repopulate fish
populations that have been killed along with the Elodea.
REPRESENTATIVE HANNAN observed the pilot hemp crop was destroyed
[during the summer of 2019] and asked for the status of hemp
regulations and a future pilot hemp project.
COMMISSIONER FEIGE assured the committee hemp regulations and
the industrial hemp program were revived after the
aforementioned 2019 DOA [budget] veto was reversed. She stated
the timeline for the development of hemp regulations was set by
Senate Bill 6 [passed in the Thirtieth Alaska State
Legislature]; the regulations are now in final legal review and
the industrial hemp program will be underway within weeks. She
added national regulations related to industrial hemp have
undergone changes thus DNR seeks to ensure state regulations are
in alignment with federal law. Commissioner Feige continued,
noting the [Alaska Grown $5 Challenge campaign] awarded its
"Golden Carrot" award to the Fred Meyer store in Palmer for
selling more Alaska grown produce than any other major retailer
(slides 2 and 3).
COMMISSIONER FEIGE turned attention to the Division of Forestry
(DOF), noting Alaska had a record fire year, but in addition to
wildfire management, DOF is responsible for forest management
and development. The rejuvenation of the commercial timber
industry is a high priority for the administration; however, the
industry recently has been hampered by the lack of U.S. Forest
Service, U.S. Department of Agriculture, timber sales. In 2019,
there were 31 commercial timber sales that generated $2.3
million in state revenue; in addition, there was a Good Neighbor
Authority sale in Vallenar Bay for 16 million board feet of
timber. She pointed out the biggest challenge to the Alaska
timber industry is a 20 percent log tariff on spruce logs
exported to China. Currently, there is proposed legislation
that would modify [AS 38.05.118 Negotiated Sales.] in order to
expand an export market for timber sales. Returning to wildland
fire management, she said in 2019, there were 742 wildland fires
that consumed nearly 2.6 million acres statewide; however, 3,800
structures were protected, as were lands valued at nearly $1
billion. She urged Alaskans to "firewise" their property and
related DOF is seeking federal funds to establish more fire fuel
breaks that have stopped fires such as the [Shovel Creek fire
near Fairbanks ignited 6/21/19] (slide 4).
1:21:01 PM
REPRESENTATIVE SPOHNHOLZ acknowledged the work accomplished by
DOF and firefighters; she described the smoke in Anchorage that
caused stress for residents with health issues and asked whether
health issues have brought changes to wildfire management
response.
COMMISSIONER FEIGE related the [Swan Lake fire near Sterling
ignited 6/5/19] was managed in partnership with federal
agencies; the state holds "initial attack responsibilities," and
she advised first methods of containment are discussed with
federal partners and take into consideration weather forecasts,
loss of revenue to businesses, and health impacts. This is an
ongoing discussion between the state and federal partners.
REPRESENTATIVE SPOHNHOLZ questioned how the state would impress
a different approach upon the federal government.
COMMISSIONER FEIGE said DOF has suggested any lightening-strike
fires in standing black spruce that begin before the first of
June should be suppressed because they become dormant in the
duff above the soil and reignite.
REPRESENTATIVE SPOHNHOLZ supported DOF's efforts in this regard.
REPRESENTATIVE HOPKINS said the Shovel Creek fire was near his
house and the [existing] firebreak was critical to stopping the
fire. During the fire, he heard from constituents that
information on the fire was difficult for residents to access
and urged that, in the future, the department provide
information to local communications networks such as social
media.
1:26:52 PM
COMMISSIONER FEIGE agreed.
REPRESENTATIVE HOPKINS also cautioned, during the fire, local
municipalities and firefighting organizations did not know how
to identify locations to be evacuated in terms that were
recognized by residents.
REPRESENTATIVE HANNAN returned attention to slide 4 and asked
for the meaning of Good Neighbor Authority (GNA), and if the GNA
timber sale was included in the $2.3 million in revenue
generated by timber sales.
COMMISSIONER FEIGE explained GNA sales are state sales of lands
neighboring U.S. Forest Service lands and the Vallenar Bay sale
was included in the total revenue from commercial timber sales.
She continued to the Division of Geological and Geophysical
Surveys (DGGS), noting DGGS is involved in every aspect of
resource development, public safety, and geologic and community
hazards. For example, DGGS completed 1,900 square miles of
mapping to support mineral exploration related to sourcing
critical and strategic minerals in Alaska to reduce imports from
China. In support of energy resources, DGGS mapped Brookian
plays on the North Slope and hosted industry tours. The Alaska
Geospatial Council, DGGS, DNR, completed infrared [synthetic-
aperture] radar (IFSAR) and distributed data for use in the
construction of powerlines, road corridors, and other major
infrastructure (slide 5). In 2019 DGGS: continued assessing
sand and gravel in support of the Arctic Slope Transportation
and Resources (ASTAR) project and initiated a statewide snow
avalanche hazard assessment for public safety; provided 1.15
million data and publication files of geologic information to
interested parties of the mining and energy industries; upgraded
30 monitoring stations on eight volcanos and completed the
geologic hazard assessment at the Atka Island [Korovin] volcanic
complex; the Geologic Materials Center (GMC), DGGS, DNR, hosted
over 1,400 visits and core viewings and provided tours to
industry, government officials and international officials; the
replacement value of materials held at GMC is estimated at over
$37 billion (slide 6). Slide 7 listed DGGS activities planned
in 2020.
1:33:28 PM
COMMISSIONER FEIGE informed the committee the Division of
Mining, Land and Water (DMLW) manages over 160 million acres and
its responsibilities include land acquisition, land planning,
land conveyance, permitting, and stewardship (slide 8).
Highlights for DMLW in fiscal year 2019 (FY 19) are: generated
$26.5 million in revenues through authorizations for use of
state lands and waters by royalty payments and land sales;
conveyed nearly 3,000 acres of municipal entitlement land;
acquired more than 101,000 acres of new high-priority statehood
entitlement lands; issued preliminary and final decisions for
the Donlin Gold project; authorized 65 miles of ice roads, 144
miles of snow roads, and 62 acres of ice pads on the North Slope
(slide 9).
CO-CHAIR LINCOLN asked how the disposal of public land is
reported.
COMMISSIONER FEIGE said each calendar year DMLW issues a report
on the land sales program, how state lands are sold, and the
selection process; in fact, DMLW is focused on clearing land to
provide access so land can be made available for sale to
Alaskans. She continued to the Division of Oil and Gas (DOG),
noting DOG conducts lease sales, collects royalties, authorizes
oil and gas activities, and provides commercial analyses,
economic modeling financial risk assessments, and audits (slide
10). Slide 11 listed DOG activities in 2019.
1:37:17 PM
COMMISSIONER FEIGE provided an update on the BP and Hilcorp
Energy Co. transaction: in October 2019, the state began a
review of the transaction announced in August 2019; the
transaction is a transfer to Hilcorp of BP Alaska's upstream and
midstream assets valued at approximately $5.6 billion.
Activities since December 2019 are: Hilcorp/Harvest Midstream
[Hilcorp midstream company] restructure, completed in January
2020, in preparation for the transfer of BP's midstream pipeline
assets to Harvest; on 1/9/20, the organizational meeting of the
Governor's Oversight Committee (GOC) was held. The committee is
composed of the commissioners of DNR, DEC, ADFG, the Department
of Labor & Workforce Development, the Department of Commerce,
Community & Economic Development, the Department of Law, and the
Department of Revenue, and was formed to monitor the transaction
and share pertinent information in a public setting. The
oversight committee organized at its first meeting and is
expected to hold a public meeting in March [2020]; the committee
is working with Hilcorp and BP on financial stress testing
related to Hilcorp's financial capacity to manage the assets it
seeks to acquire. Further related to the transaction, DNR has
published a frequently asked questions (FAQ) website located on
the DOG homepage with the capacity to generate automatic
notification emails to interested parties. Lastly, she said the
Regulatory Commission of Alaska (RCA) will hold a public hearing
2/4/20 on the midstream transaction (slide 12).
1:40:44 PM
CO-CHAIR LINCOLN expressed his understanding the North Slope
fields that supply the pipeline are leased from the state to BP
Exploration (Alaska) Inc. (BPXA). He remarked:
I guess there's some confusion in terms of the lease
agreements [that are] being transferred from BP to
Hilcorp, or if Hilcorp is basically acquiring the
[limited liability company (LLC)] that is the lessee
with the state. I'm just wondering if ... there's
been any sort of new thinking or a different
understanding of, of that arrangement, and what role
the state plays in ... transferring the leases, or
not.
COMMISSIONER FEIGE said the aforementioned issue falls within
DNR's statutory responsibility; she agreed the transaction is an
asset sale and a stock transfer because BPXA will be transferred
and will become a subsidiary of Hilcorp. Regarding the state
leases, she said DNR must approve all of the lease transfers
prior to the approval of [the BP/Hilcorp transaction]. She
further explained:
... there is a fundamental change of control and it's
with that control that we monitor things like
financial assurance for [dismantlement, removal and
restoration (DR&R)], all of implications that come
with that, and there's ... the bulk of the protection
of the ... state's interest and Alaskans' interests
that are carried in that piece. ... That is part of
the due diligence that we're doing, we have the
latitude at DNR to adjust our basic lease transfer
form ... to account for the structure of whatever the
deal is that's before us .... There's a lot of land
and legal work in that that's part of the due
diligence to make sure that we capture everything ...
and nothing falls through and gets dropped.
CO-CHAIR LINCOLN observed a company sets up an LLC specifically
to limit its liability related to business activities; he
expressed his concern that if the state is leasing to a
subsidiary such as BPXA, the state may not be assured that if
the LLC becomes financially unviable, the owners of the LLC will
ultimately be responsible for the cleanup of the company's
activities on the North Slope.
1:44:34 PM
COMMISSIONER FEIGE was unsure whether BPXA is an LLC or an S
corporation; however, the interest of Alaska is protected by
financial assurance agreements that utilize joint and several
liability, which allow the state to hold the original
leaseholder liable. In the case of [the BP/Hilcorp]
transaction, the parent company, BP, has agreed to maintain
joint and several liability for all of the leases included in
said transaction.
CO-CHAIR TARR cautioned another catastrophe such as the [4/20/10
Deepwater Horizon oil spill in the Gulf of Mexico] may render
the parent company, BP, financially unsound.
COMMISSIONER FEIGE responded:
The way we cover that is the, the financial assurance
agreements that we're putting in place, those are
contracts, so they're different animals by law. And
they're not static documents, these are living
documents, and the way DNR handles our financial
assurance agreements for DR&R, or whatever else we
happen to be bonding for, those are revisited ... on a
three- to five-year basis, ... so we're checking in on
a regular basis with the financial health of that
entity and we're adjusting those bonds. So, it's a
combination of not only necessarily a parent guaranty
... but there's actual cash attached as well ....
CO-CHAIR TARR asked whether the meetings of the Governor's
Oversight Committee will be announced.
1:47:17 PM
COMMISSIONER FEIGE said GOC meetings will be publicly noticed,
posted online, and open to the public. She continued to the
Division of Parks and Outdoor Recreation (DPOR), noting 2020 is
the 50th anniversary year of Alaska state parks. Highlights in
2019 were: 61 percent of DPOR operations were self-funded
through fees such as reservations for public use cabins; DPOR
issued 695 commercial permits, 286 special permits, and over 80
active and pending grants; a new public use cabin was opened in
Chena River State Recreation Area; the Office of Boating Safety
held 410 classes, 106 pool sessions, and reached almost 16,000
youth to continue its commitment to improve boating safety for
kids and adults in Alaska (slide 13). The Office of Project
Management and Permitting (OPMP) represents the state's interest
with federal agencies during federal program reviews; in 2019,
OPMP coordinated the state's comments on 38 plan reviews; in
fact, the OPMP model to coordinate comments and permits on large
development projects functions as a coordinator between federal
and state agencies to prevent lags in project timelines. She
explained timelines for federal permits are not codified thus
the office is necessary to prevent lag and delay; in addition,
OPMP serves to de-risk regulation for industry (slide 14).
Slide 15 listed OPMP activities in 2019.
CO-CHAIR LINCOLN recalled previous testimony by oil and gas
consultants and the mining industry that the development
timeline for projects in Alaska is much longer than in other
jurisdictions; although some conditions are endemic to Alaska,
he asked about steps the state or the legislature could
immediately take to expedite permitting.
1:51:34 PM
COMMISSIONER FEIGE advised federal permits such as environmental
impact statements (EISs) take the longest, which has led the
federal government to propose reforms to the National
Environmental Policy Act of 1969 (NEPA). She gave an example of
an EIS required by NEPA that was 10,000 pages long, cost $15
million, and lengthened the permitting timeline by years.
Speaking from her previous experience, Commissioner Feige noted
the timeline to obtain an EIS is 36-48 months. She urged
members to contact the federal government during the NEPA reform
comment period and request streamlining of the NEPA process.
She related Governor Dunleavy requested Fixing America's Surface
Transportation Act (FAST Act) 41 status for the aforementioned
critical and strategic minerals exploration so there will be a
codified timeline. Finally, she encouraged the use of OPMP to
aid in permitting processes.
1:54:19 PM
COMMISSIONER FEIGE continued to the Support Services Division
which successfully closed the recorder's offices in Juneau and
Palmer, without decreasing revenue (slide 16). Finally, the
Trust Land Office (TLO) generated $10.6 million to fund Alaska
Mental Health Trust Authority programs which support 85,000
beneficiaries across the state; for example, TLO sold 2.9
million board feet of timber in the Naukati timber sale to
Viking Lumber, and sold the three-acre Juneau Subport parcel for
$20 million (slide 17). Slide 18 listed TLO initiatives and
activities in 2020. Turning attention to activities in the
commissioner's office, Commissioner Feige noted in 2019, the
commissioner's office team adjudicated 52 administrative appeals
and established the Future Leadership Summit program to ensure
there is a future professional workforce within DNR (slide 19).
CO-CHAIR TARR said she is discouraged by the continued
elimination of positions within the Division of Agriculture; she
pointed out the state's agriculture industry has an opportunity
for economic growth from $100 million to $2 billion. She has
heard of the division's reorganization and adjusted fees;
however, the future of DOA programs, such as Alaska Grown, is
unclear. Alaska needs to diversify its economy and develop
other industries; she suggested if a fraction of what was spent
on the oil and gas industry were to be spent on another
industry, there could be great potential.
1:59:03 PM
COMMISSIONER FEIGE offered to update the committee because DNR
has fully reconstituted DOA; positions have been restored and
restructured to better support growth in the agriculture
industry. She stated the Alaska Grown program is "alive and
well," and DOA plans to support the program through fees in
order to reduce reliance upon unrestricted general funds (UGF).
She said she has met with the Board of Agriculture and
Conservation (board) to discuss new initiatives and programs to
grow the agricultural sector in Alaska and to connect the
industry with international markets. Further, the board
discussed how to protect Alaska growers from the importation of
products that are free from inspections. Commissioner Feige
acknowledged DOA was challenged by filling positions that were
lost prior to the reversal of the FY 20 veto of Division of
Agriculture funds.
CO-CHAIR TARR stressed the value of agriculture to rural
communities, tourism, and health.
2:02:45 PM
The committee took an at-ease from 2:02 p.m. to 2:06 p.m.
^PRESENTATION(S): DEPARTMENT OF ENVIRONMENTAL CONSERVATION
PRESENTATION(S): DEPARTMENT OF ENVIRONMENTAL CONSERVATION
2:06:39 PM
CO-CHAIR LINCOLN announced the final order of business would be
a presentation by the Department of Environmental Conservation.
2:06:54 PM
JASON BRUNE, Commissioner, Department of Environmental
Conservation (DEC), provided a PowerPoint presentation entitled,
"DEC in 2019: A year in review," dated [1/29/20]. Slide 2
stated DEC's mission: Conserving, improving, and protecting
Alaska's natural resources and environment to enhance the
health, safety, economic, and social well-being of Alaskans. He
said to protect human health and the environment, DEC oversees
air quality, water quality, environmental health, and spill
prevention and response (slide 3). Commissioner Brune informed
the committee the leadership team at DEC represents over 125
years of state service and is comprised of highly respected
experts in their fields (slide 4). He paraphrased from slide 5
which read:
DEC Employees Matter
Predictable, timely, science-based, legally defensible
permits require experienced and knowledgeable staff
• Improve retention rate: DEC currently has a 21 percent
annual turnover rate?Why?
• Exit Interviews
• Evaluations-bringing private sector experience to DEC
• 25 percent of employees weren't current (quickly became
current by end of January!)
• Evaluations are required to be done at different times of
the year based on hire date
• Create individual development plans
• Evaluate employees based on metrics, not seat time
• Develop departmental, division, program, and individual
goals on an annual basis (same time)
• Develop DEC's values
2:09:06 PM
COMMISSIONER BRUNE further explained, to address DEC's high
employee turnover rate, he implemented exit interviews, brought
employee evaluations current, and scheduled team evaluations.
In addition, during a strategic planning session, DEC developed
goals for programs and for individuals, decided to create
individual development plans and provide training and
advancement opportunities, emphasized improving the recruitment
and retention of employees, and developed DEC values. He opined
DEC's values of customer service, accountability, integrity,
collaboration, and objectivity are the core of a science-based
organization such as DEC (slide 6). Commissioner Brune said the
result of significant budget cuts in the last five to six years
is that the department must incorporate technology to improve
efficiency and reduce costs; for example, cell phones can be
used to complete remote inspections to save costs and further
partnerships with the regulated community, and DEC staff will
research using drones to gather information. Other methods to
incorporate technology include providing vital information to
the public on the DEC website and using software programs (slide
7). He turned to the topic of air quality, noting DEC has been
collecting ambient air data in certain communities for 25 years
to ensure compliance with national ambient air standards that
are established by the U.S. Environmental Protection Agency
(EPA). In Alaska, the primary pollutants are particulate matter
and carbon monoxide; he pointed out the graph on slide 8
indicates an upward trend of unhealthy days for sensitive
groups, which is explained by the installation in 2012 of a new
monitoring station in North Pole. Most of the unhealthy days
occur in Fairbanks from man-made pollution.
2:15:33 PM
REPRESENTATIVE HOPKINS returned attention to slide 7 and asked
from where most of the Freedom of Information Act (FOIA) records
requests to DEC originate.
COMMISSIONER BRUNE observed he receives FOIA records requests
related to his schedule, per- and polyfluoroalkyl substances
(PFAS), fine particulate matter (PM2.5) and residents who burn
on curtailment days, mining projects, and almost every other
issue. He restated the importance of posting public information
online.
REPRESENTATIVE SPOHNHOLZ questioned when 2019 air quality data
will be available.
COMMISSIONER BRUNE said he will provide 2019 data when it is
available.
REPRESENTATIVE HANNAN pointed out the graph on slide 8 indicates
there was no natural pollution in 2016.
COMMISSIONER BRUNE surmised because unhealthy days are based on
the proximity [of an event such as a fire] to the monitoring
station, unhealthy days in certain locations may not be reported
by monitoring stations. In further response to Representative
Hannan, he said other events that create natural air pollution
are volcanos and high winds that blow glacier silt.
REPRESENTATIVE HOPKINS asked whether stations monitor for dust
in rural Alaska.
COMMISSIONER BRUNE said no; at times monitoring stations are
installed during construction or projects, but he expressed his
belief there are no permanent stations located in rural Alaska.
REPRESENTATIVE TUCK asked whether there are monitoring stations
[to detect] nuclear threats.
COMMISSIONER BRUNE informed the committee DEC monitors
[Fukushima Daiichi Nuclear Power Plant] radiation levels in fish
from an environmental health perspective, but not air quality.
REPRESENTATIVE TUCK expressed his concern about the long-term
effects of plastics into the food supply of fish and
subsequently into human food supply; he asked whether there is
data in this regard.
2:20:53 PM
COMMISSIONER BRUNE said the quality of Alaska fish has not been
impacted by Fukushima radiation; however, the state does not
test for plastics [in fish]. He continued to the issue of
Fairbanks air quality and recalled in 2018, [the Home Heating
Reclamation Act was passed by Fairbanks North Star Borough
(FNSB) voters prohibiting FNSB from regulating home heating],
thus the responsibility was transferred to DEC. On very cold
days, Fairbanks and North Pole have the worst air quality in the
U.S. due to home heating by use of woodburning appliances; in
fact, area residents must choose between breathing clean air and
keeping warm. However, the state has a responsibility to
protect human health or lose federal highway funding.
Commissioner Brune stated he met with officials and held public
hearings in Fairbanks; in December 2019, DEC submitted a Serious
Statewide Implementation Plan and recently received a
completeness notice from EPA. He said, "And we are on a pathway
to having clean air once again in Fairbanks within the next
decade, things will be, this issue will be addressed." He said
DEC staff, residents, and policymakers have worked to bring all
parties together to find a local solution to the problem.
Further, he urged for research into electrostatic precipitator
(ESP) technology, which could allow residents to burn [wood] on
curtailment days (slide 9).
2:25:03 PM
REPRESENTATIVE HOPKINS acknowledged DEC's efforts of outreach
and to ensure that large scale point sources are not
economically limited by DEC proposals. He remarked:
EPA has said we won't be losing federal highway funds,
... [that EPA] will be able to protect the economics
of the state is, is really good to hear because that
has been a concern for ... a little over ten years
now. ... I was very disappointed to hear that we are
relying on a 5 percent improvement - year by year by
year - with a destination of ten years out to reach
attainment. Many people in my community ... and
people across the city of Fairbanks don't agree with
the people that it sounds like you worked closely
with, whether it was former Representative [Tammie]
Wilson or Mr. Mike Prax, who are two advocates for
continuing to burn whatever you need to stay warm and
while that is key, there are ... financial ways, there
are incentives to keep people off of using many of the
very old solid fuel heating systems which is the
woodstoves and coal burn apparatuses that we have. ...
I don't know where your communications were with Clean
Air Fairbanks or ... with people who didn't share the
same view on the problem ... There has been some
desire to have more legal teeth for [DEC] ... to come
down with stronger civil and potentially criminal
actions against people if they continue to neglect the
fact that their waste from their house flows onto
their neighbor's house and impacts their health. ...
We have very stringent rules for septic systems that
[keep] pollution on your property, and this is
something that is very similar, in my view, to that
issue. So, I'd like to hear who else you worked with
in Fairbanks and what collaboration points you had
with them outside of just Ms. Wilson and Mr. Prax on
this issue.
2:27:27 PM
COMMISSIONER BRUNE said he met with all the "point source folks,
... the clean air folks, the wood-burners, the, the FEDCO - the
Fairbanks Economic Development Corporation - the [Greater
Fairbanks Chamber of Commerce]," and others to hear all
perspectives. He remarked:
The big impact was obviously from wood-burners, but we
are required when you're putting a statewide
implementation plan, a serious step forward, to
address the point source folks ... We have decreased
the sulfur content of the coal that is going to be
burned from 0.4 percent to .25 percent; there are
other requirements that certain entities are going to
have for using diesel one versus diesel two ...
especially on curtailment days. The curtailment
levels went down so there will likely be more
curtailment days ....
COMMISSIONER BRUNE continued to explain DEC provides No Other
Adequate Source of Heat (NOASH) waivers and has limits on
burning [wet] wood and on those who sell [wet] wood. Regarding
enforcement, he stressed the importance of educating new
military personnel. After a violation, DEC's first contact is a
letter and homes and businesses are visited by local residents.
However, DEC is authorized to address a third violation with
civil action if warranted.
REPRESENTATIVE HOPKINS pointed out Fairbanks will have waited 20
years for healthy air during the period from 2009-2029; he urged
for stronger efforts such as woodstove changeouts.
2:32:08 PM
COMMISSIONER BRUNE agreed with the importance of woodstove
changeouts. He turned attention to slide 10 and reminded the
committee that past efforts of the regulated industry to
transfer primacy on permitting projects in Alaska from federal
to state agencies were successful, so the Alaska Pollutant
Discharge Elimination Systems (APDES) program holds primacy over
the National Pollutant Discharge Elimination System (NDPES) to
permit major industry in Alaska. In 2019, DEC did not pass
EPA's five year review [that is required because of DEC's
oversight of NDPES water compliance and enforcement] due to
staff deficiencies and insufficient travel funds, threatening
Alaska's primacy over NPDES; in response, DEC reassigned three
positions and obtained federal authority to fund four new
positions and travel funds. Although EPA recommended eleven
additional positions, DEC has seven new inspectors in place.
Further, he informed EPA inspectors they are not to announce
enforcement actions on industries for which DEC is responsible.
REPRESENTATIVE HANNAN asked for the source of the additional
funds to increase staffing and travel funds.
2:36:03 PM
COMMISSIONER BRUNE explained DEC had approximately $600,000 in
unused federal authority which was released through the
Legislative Budget and Audit Committee process; the same amount
of increased federal authority is now in the [FY 21] budget.
REPRESENTATIVE HANNAN recalled legislators anticipated that the
prior 50 percent across-the-board reductions in program
recommendations for travel would affect the state's ability [to
conduct inspections]; she asked whether DEC has requested the
restoration of travel funds specifically for monitoring and
inspections in FY 21.
COMMISSIONER BRUNE acknowledged because travel authority was
decreased, DEC seeks to use technology for efficiencies with its
reduced budget. However, DEC is authorized to make transfers
within divisions to accommodate for additional travel and will
do so when necessary.
CO-CHAIR TARR asked for additional information related to the
aforementioned reassignments, for example, who is doing
[reassigned staff's] previous work.
COMMISSIONER BRUNE surmised staff were reassigned from duties
related to data collection for the Southeast "baseline water
studies" and offered to provide more information in this regard.
REPRESENTATIVE SPOHNHOLZ questioned why only seven positions
were filled if EPA recommended eleven new positions.
COMMISSIONER BRUNE said DEC will assess its needs for additional
staff next year. Slide 11 listed three projects of interest:
• Palmer is a [mine exploration] project near Haines
related to a pending U.S. Supreme Court [groundwater
hydrologic connection] case on whether the
connectivity of ground water to surface water would
require NPDES permits; DEC is awaiting the results of
a dye test to determine if there is connectivity
• Pebble is an example of the Dunleavy Administration's
focus to create a fair and predictable permitting
process for all projects and DEC and the Trump
Administration worked to withdraw the EPA 404(c)
determination
• Ambler project has had EPA 404(q) determination
withdrawn
2:41:05 PM
REPRESENTATIVE HANNAN asked when the [Palmer] dye test was
conducted.
COMMISSIONER BRUNE said the dye test was conducted "within the
last couple of months" and DEC is awaiting the results.
REPRESENTATIVE HANNAN pointed out her constituents in Haines
want to ensure that the water test was conducted during a normal
fall rainy season rather than during a colder period; she asked
for the level of hydrology at the time of the test.
COMMISSIONER BRUNE said:
My understanding is that the test was done before the
snow fell. I don't know, I didn't get into the
minutiae of all that detail but I do know that that
was obviously a consideration and if there was no
connectivity, sometimes it takes months to show
connectivity, so they'll obviously continue to look to
see if that dye shows up, if it didn't.
2:42:22 PM
CO-CHAIR TARR, on behalf of her constituents, expressed concern
about the governor using [Pebble Project] documents to develop
[the Dunleavy Administration's] position and advocate for the
company, as evidenced by DEC's participation in the withdrawal
[of the EPA 404(c) determination]. She remarked:
And certainly, it's been highly politiciced, but this
is an issue that came up in your confirmation because
people have concerns about your connection and
previous employment history .... ... I hope we're
not, as a regulatory agency, ... getting the talking
points from the company because there needs to be some
distance between those two groups.
COMMISSIONER BRUNE responded:
I can assure you that this effort originated in the
governor's office, not through DEC, but I can also
assure you that that predictability of a fair
permitting process matters to the investment community
and as we have been submitting comments from DEC to
OPMP, who coordinates the state's permitting process
on Pebble, I have done everything in my power to
ensure that my team is not, I'm not editing anything
that they send. ... Companies that want to develop
projects in Alaska need to meet our high standards, no
one is better than Alaska at protecting the
environment ....
COMMISSIONER BRUNE directed attention to slide 12 and restated
Alaska's high environmental standards need to apply to all.
Cruise ships are allowed to discharge up to 40 fecal coliform
bacteria in 100 milliliters of water and some communities are
allowed to discharge up to 1.5 million fecal coliform bacteria
in 100 milliliters of water; for example, beach closures in
Ketchikan are due to a [Clean Water Act] Section 301(h) waiver
which allows the discharge of up to 1.5 million fecal coliform
bacteria. He urged that communities should also be held to the
higher standard.
2:45:39 PM
REPRESENTATIVE HANNAN asked whether DEC has taken action to
assist communities so they can comply with the higher standard
of water quality.
COMMISSIONER BRUNE pointed out many communities have [Clean
Water Act Section 301(h)] waivers that are issued by EPA, not
DEC. However, DEC proposes to use money from the [Commercial
Passenger Vessel Environmental Compliance Program], known as the
Ocean Ranger program, to upgrade community wastewater treatment
plants. The program will be similar to the Village Safe Water
program, Division of Water, DEC, in which communities can apply
for low interest loans, grants, and loan forgiveness. He
restated DEC will regulate the cruise ship industry like other
industry by moving the monitoring of cruise ship air pollution
to the Division of Air Quality. Over 12 years, the Ocean Ranger
program has reported one violation per year; a "revamp" of the
Ocean Ranger program will consist of early season inspections
for every ship, incorporating technology into monitoring,
upgrading shore-based [wastewater] treatment, and more
inspections by DEC staff in port and as ships are underway
(slide 13).
2:48:31 PM
REPRESENTATIVE TUCK opined cruise ships have higher standards
because the location and contents of discharges from cruise
ships are unknown; this differs with discharges from stationary
treatment plants, which can be monitored. He agreed standards
for water quality from water treatment plants should be higher,
and existing oversight and standards should not be reduced.
COMMISSIONER BRUNE stressed DEC is not reducing standards;
inspections and enforcement and compliance on the cruise ship
industry will continue, but not by Ocean Rangers. He noted
nefarious activities may not be witnessed by an onboard Ocean
Ranger and cruise ships have a corporate social responsibility
to protect Alaska and its environment. In fact, most violations
by the cruise ship industry are self-reported.
REPRESENTATIVE TUCK pointed out DEC is reducing oversight and
expressed regret at the loss of the presence of the Ocean
Rangers.
2:51:02 PM
COMMISSIONER BRUNE advised most regulated facilities in Alaska
are inspected once per year, in fact, the foundation of the
Clean Water Act is self-monitoring and self-reporting. Further,
Ocean Rangers lacked authority and DEC staff will be making
early season inspections of each boat.
REPRESENTATIVE HANNAN stated her constituency demands adequate
monitoring. She asked what the commissioner has proposed to
make inspections more effective and that will make timely
changes to the existing statute that requires inspections by
Ocean Rangers.
COMMISSIONER BRUNE offered to provide a draft [of forthcoming
legislation].
CO-CHAIR TARR recalled Carnival Cruise Line was recently fined
$20 million for dumping in Alaska waters. She cautioned not
having a replacement program in place is poor planning, and
further remarked:
I just want to express some frustration with this
administration that continually pounds its fist about
following the statute and listening to the people.
And I find that highly offensive, that this is
something that was voted on by the people, and
supported by the people, and without any consistency
in that position you're just taking away the voice of
the people. ... You're a representative of this
administration and those two things are in conflict
with each other.
CO-CHAIR TARR estimated the funding supporting the Ocean Ranger
program is approximately $4 million [per year]. From her
research, improving water quality in local communities would
require spending billions of dollars to upgrade infrastructure,
thus $4 million would "do nothing." She surmised the funding
suggested by Commissioner Brune for upgrades is unavailable and
would not be spent for the purpose that voters intended. Co-
Chair Tarr said, "And then the actual purpose that the voters of
Alaska said they wanted, which was to have oversight on these
boats, is being eliminated without them having the opportunity
to weigh-in, unlike other items where the governor has proposed
we should put it back on the ballot for Alaskans to weigh-in
...."
2:56:38 PM
The committee took a brief at-ease.
COMMISSIONER BRUNE explained [Ballot Measure 2, the Commercial
Passenger Vessel Excise Tax, approved by voters on 8/22/06] is
an existing law that should be reviewed by the legislature and
the administration to ensure it is current and that it protects
the environment, and that the money assessed [per passenger] is
used in an appropriate way; the revamped program will improve
the environment and regulate the cruise ship industry as other
industries are regulated. He acknowledged upgrading the
Anchorage Water and Wastewater Utility (AWWU) plants from
primary to tertiary treatment will cost in the billions of
dollars; however, he has been told some communities in Southeast
can be upgraded for estimates ranging from $5 million up to $30
million, and he said his proposal is not meant to pay for
everything, but will lead to solutions.
2:59:05 PM
COMMISSIONER BRUNE turned attention to proposed legislation
addressing Tier 3 water bodies. Previous DEC policy established
that any Tier 3 nomination requires the passage of legislation
to designate a Tier 3 water body; he advised proposed SB 51 and
HB 138 codify the aforementioned DEC nomination process and vest
the power of designation with the legislature. He cautioned
DEC's policy can be changed by a future commissioner and opined
the executive branch should not oversee the designation of Tier
3 water bodies, but DEC should provide guidance to the
legislature. He said DEC supports HB 138; however, should HB
138 not pass, DEC will follow the existing process (slide 14).
Turning to the Division of Environmental Health (DEH), he
observed quick action by the division to issue pesticide permits
is required to successfully respond to invasive species
outbreaks such as Elodea (slide 15). In addition, on a
statewide basis - with the exception of Anchorage - DEH provides
food safety inspections; complaints about restaurants can be
submitted by calling 907/764-YUCK (slide 16).
REPRESENTATIVE HANNAN asked for the number of food safety
inspector positions.
COMMISSIONER BRUNE said due to limited travel budgets, DEC seeks
in the future to combine inspections in rural Alaska; for
example, utilizing "rainbow people" to inspect water and
restaurants. There are fewer than 20 inspector positions.
REPRESENTATIVE TUCK asked whether there are fees charged for
inspections.
COMMISSIONER BRUNE said inspection fees are included in annual
permit fees.
REPRESENTATIVE TUCK questioned whether fees cover the cost of
required tests.
3:04:22 PM
CHRISTINA CARPENTER, Director, Division of Environmental Health
(DEH), DEC, informed the committee since FY 16, as a result of
UGF budget reductions, the Food Safety and Sanitation Program
has eliminated positions and prioritized its workload according
to funding sources; for example, a federal contract from the
U.S. Food and Drug Administration (FDA) pays to complete
manufactured food inspections, many of which take place in
coastal communities, or communities with fish processing
facilities. Thus, while the division is conducting the federal
inspections, it seeks to leverage federal funds by also
completing retail food inspections of school kitchens or other
facilities under DEH jurisdiction. Further, the division has
raised its fees; the remaining funding available for the Food
Safety and Sanitation Program consists of federal funds, fees,
and a small amount of UGF.
REPRESENTATIVE TUCK surmised the fees are collected from
businesses and questioned how often routine inspections are
scheduled.
3:06:47 PM
MS. CARPENTER offered to provide a schedule of inspections. She
clarified fish testing is under the purview of the Office of the
State Veterinarian (OSV), DEH, DEC; samples for testing by OSV
are collected by food safety inspectors and are also provided by
stakeholders. The testing is currently funded by the Ocean
Ranger program, Division of Water, DEC; DEH tests fish tissue
for mercury, and other metals, and samples are sent out for
further analysis.
CO-CHAIR LINCOLN inquired as to whether DEC determines which
stocks will be tested and for what contaminants.
MS. CARPENTER explained DEH has a sampling process in place and
much of its testing is based upon opportunistic sampling; for
example, OSV has a great relationship with the stakeholders and
other state agencies that provide samples. Twenty years ago,
most testing focused on mercury and other metals; currently,
however, additional contaminants of concern are analyzed. In
addition, the division maintains a library of samples for
comparison.
REPRESENTATIVE TUCK asked whether fees are charged [to test] the
water quality of communities' or individuals' wells.
MS. CARPENTER advised DEC regulates public water systems that
supply more than 25 people or have more than 15 service
connections; testing of public water systems is funded by the
federal Safe Drinking Water Act administered by EPA. Private
wells are not regulated, and testing is not required by DEC.
3:10:38 PM
REPRESENTATIVE TUCK questioned whether private water systems are
regulated by EPA.
MS. CARPENTER was unaware of [federal regulations].
COMMISSIONER BRUNE continued to slide 17: FDA requires DEC to
test milk, in order to receive Grade A status, and to test for
toxins in shellfish. However, in FY 21, DEC seeks to eliminate
the dairy [testing] program due to the "current fiscal climate."
Testing of shellfish is currently paid by the cruise ship
industry; also in FY 21, DEC proposes that one-half of the cost
of testing will be paid by UGF and one-half by fees to the
shellfish industry. In order to prevent another oil spill
disaster, the Division of Spill Prevention and Response (SPAR),
regularly inspects drilling entities (slide 18). Further, DEC
is undertaking a contingency plan (C-Plan) scoping project to
garner opinions about the C-Plan process from the regulated
industry, environmental organizations, and regional citizens'
advisory councils. All comments on the project will be posted
to the DEC website through the comment period ending 3/16/20
(slide 19). In response to Representative Tuck, he said C-Plans
fall under of purview of SPAR.
COMMISSIONER BRUNE informed the committee SPAR is funded by the
Oil and Hazardous Substance Release Prevention and Response Fund
that collects five cents per barrel of oil produced - four cents
for the prevention account and one cent for the response account
- and a 0.9 cent per gallon refined fuel tax. As the growth of
the fund is insufficient to sustain SPAR into the future, the
division has reduced staff by seven positions and seeks other
means of funding (slide 20). Also in 2019, DEC and the Cook
Inlet Regional Citizens Advisory Council (CIRCAC) worked to
assess the aging Cook Inlet pipeline infrastructure; a final
report will be issued in spring, 2020 (slide 21). In an effort
to reduce public exposure to contaminants, in 2019 DEC cleaned
up 106 contaminated sites. He noted a previous contaminated
site in Ward Cove has been approved for use as a cruise ship
dock (slide 22).
3:16:37 PM
COMMISSIONER BRUNE said in response to PFAS (contamination) in
Alaska, DEC is working with the Department of Transportation and
Public Facilities and the Department of Health and Social
Services to research sites, especially at state airports where
aqueous film-forming foam (AFFF) concentrates have been used.
The Federal Aviation Administration (FAA), U.S. Department of
Transportation, requires AFFF to be stationed at airports - and
tested annually - which has led to the contamination of
residents' nearby water wells. The prior state administration
tested for six PFAS chemicals, however, DEC is currently testing
for eighteen PFAS chemicals; testing data is posted to the DEC
website (slide 23). He pointed out DEC has issued the first air
permit in the U.S. to test the efficacy of incinerating PFAS
contaminated soils; in fact, the preliminary results show 99.99
percent of PFAS chemicals are destroyed in the process, and
additional studies are forthcoming (slide 23). Finally, he
described efforts to increase DEC's public outreach (slide 25).
3:20:03 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 3:20 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DNR Overview 1.29.20.pdf |
HRES 1/29/2020 1:00:00 PM |
DNR Overview |
| DEC Overview 1.29.20.pdf |
HRES 1/29/2020 1:00:00 PM |
DEC Overview |
| HB 27 Sponsor Statement.pdf |
HL&C 3/6/2020 3:15:00 PM HRES 4/3/2019 1:00:00 PM HRES 4/5/2019 1:00:00 PM HRES 1/24/2020 1:00:00 PM HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB27 Bill Version U 1.11.19.PDF |
HL&C 3/6/2020 3:15:00 PM HRES 4/3/2019 1:00:00 PM HRES 4/5/2019 1:00:00 PM HRES 1/24/2020 1:00:00 PM HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB27 Bill Version U 1.11.19Sectional Analysis.pdf |
HL&C 3/6/2020 3:15:00 PM HRES 4/3/2019 1:00:00 PM HRES 4/5/2019 1:00:00 PM HRES 1/24/2020 1:00:00 PM HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB 27 CS Version S 1.21.20.pdf |
HRES 1/24/2020 1:00:00 PM HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB27 DEC Fiscal Note 01.17.20.pdf |
HRES 1/24/2020 1:00:00 PM HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB27 DOL Fiscal Note 01.17.20.pdf |
HRES 1/24/2020 1:00:00 PM HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB27 Supporting Document - Combined Letters and Emails in Support 1.21.20.pdf |
HL&C 3/6/2020 3:15:00 PM HRES 1/24/2020 1:00:00 PM HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB27 Supporting Document - Letters of Support from Firefighters 4.2.19.pdf |
HRES 4/3/2019 1:00:00 PM HRES 4/5/2019 1:00:00 PM HRES 1/24/2020 1:00:00 PM HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB27 Explanation of Changes Ver U to Ver S 01.21.20.pdf |
HL&C 3/6/2020 3:15:00 PM HRES 1/24/2020 1:00:00 PM HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB27 Opposing Document - Letters of Opposition Combined 01.23.20.pdf |
HRES 1/24/2020 1:00:00 PM HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB 27 v. S Amendment HRES 1.29.2020 #1.pdf |
HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB 27 v. S Amendment HRES 1.29.2020 #2.pdf |
HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB 27 v. S Amendment HRES 1.29.2020 #3.pdf |
HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB 27 v. S Amendment HRES 1.29.2020 #4.pdf |
HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |
| HB 27 Staff Response to Member Questions 1.29.20.pdf |
HRES 1/27/2020 1:00:00 PM HRES 1/29/2020 1:00:00 PM HRES 1/31/2020 1:00:00 PM HRES 2/3/2020 1:00:00 PM HRES 2/5/2020 1:00:00 PM |
HB 27 |