Legislature(2003 - 2004)
04/21/2004 01:53 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 546
An Act relating to regulation of the discharge of
pollutants from timber-related activities under the
National Pollutant Discharge Elimination System;
relating to waste treatment and disposal permits;
making conforming amendments; and providing for an
effective date.
ERNESTA BALLARD, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION (DEC), explained that Governor Murkowski has
discussed permit streamlining. The Governor envisions
efficient and effective resource development while
maintaining the State's environmental goals. This bill would
help to ensure achievement of those goals.
Commissioner Ballard informed the Committee that the
National Permit Discharge Elimination System (NPDES) program
is designed in the Clean Water Act for delegation to the
states. Forty-five states have delegation, but Alaska is one
of the five states without it. The Clean Water Act intends
that permitting be done at the state level where a state
regulatory agency can be in contact with industry and
municipal dischargers to make the important risk-based
decisions effective in protecting a state's waters.
Commissioner Ballard pointed out that the key parts of the
Clean Water Act fall under Sections 402 and 401. Section
402 allows the permit to be written and issued, while 401 is
the "heart" of the program that requires the state to
certify that the permit will protect the state's waters. The
DEC issues the 401 certification and currently the
Environmental Protection Agency (EPA) issues the 402 permit,
which requires a state applicant to get two permits. In the
45 states with delegation, only one permitting action is
necessary because the state issues the 402 permit and the
401 certification. Both of these water protection actions
are based on a state's water quality standards.
Commissioner Ballard explained that the DEC is seeking
primacy for only a portion of the industries that receive
permits in the State because the Department is not ready for
the other industry segments to submit a full primacy
package. The timber industry requested partial primacy to
give them the services it needs from the DEC. She noted that
this would allow other industries to observe how a
regulatory package comes together. The Department intends to
use this as a pilot project and to seek full primacy in the
future.
Commissioner Ballard referred to the fiscal note, and
pointed out that it is "frontloaded" with the first two
years requiring a more concentrated effort by the DEC to
write regulations and negotiate with the EPA. The bill has
a relatively small fiscal impact in future years because the
timber industry is currently small.
Representative Chenault referred to the fiscal note
reflecting in the Analysis Continuation one full-time
position from FY 2005 to FY 2010 and one permanent position.
He questioned the two long-term non-permanent positions
under Contractual, noting the change from $300 thousand to
$56 thousand for those two positions.
Commissioner Ballard explained that during the first two
years, FY 05 and FY 06, the contractual positions would
write regulations and would not remain part of the staff.
The permanent position would work with the regulation
writers and stay on with the Department.
DAN EASTON, DIRECTOR, DIVISION OF FACILITY CONSTRUCTION AND
OPERATION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, thought
that the Committee might not have an accurate fiscal note.
Representative Chenault said that the fiscal note in his
packet was dated 3-9-04, and Commissioner Ballard clarified
that it was the fiscal note she was discussing.
Commissioner Ballard continued explaining that the
frontloading expense would allow contractors to complete the
regulatory package under the Department's supervision. The
remaining staff position is a permanent state employee. In
response to a question by Representative Chenault,
Commissioner Ballard explained that $56 thousand is in the
Department's budget as an RSA to the Department of Law for
on-going legal expenses.
RON WOLFE, CORPORATE FORESTER, SEALASKA CORPORATION, spoke
in support of HB 546 that would allow timber primacy for the
NPDES program. The Corporation believes that the action
would help a struggling industry whose survival is important
to Alaska's healthy economy. He pointed out that the timber
industry is also important to the Native communities who
receive revenues under ANCSA in the form of dividends. State
primacy would give local access to the regulators on permit
issues rather than the EPA in Seattle. Mr. Wolfe said that
the Sealaska Corporation's NPDES permits for log transfer
facilities were completed three years ago and amended last
year.
Co-Chair Harris asked if it would be possible to change the
$177 thousand in General Funds for this year's budget to
Receipt Supported Services on the fiscal note. Commissioner
Ballard explained that it would be difficult to charge for
the services of writing regulations. In future years, the
Department would propose a fee structure as it has done for
other permit programs.
Co-Chair Harris pointed out on the fiscal note that only $30
thousand is indicated in later years. Commissioner Ballard
said that the DEC would propose to the Legislature a
modified fee structure similar to its other permitting
programs that have a "slightly stronger contribution" made
by the permit holder.
Representative Croft asked if there would continue to be a
significant General Fund component and the DEC would not be
fee-based. Commissioner Ballard commented on balancing the
General Fund subsidy of a permit program having the public
effect of protecting the state's resources but also the
direct effect of benefiting a municipal or industrial
discharger. She pointed out that the DEC has General Fund
support of all its permit programs, and said that the
Legislature's intent would be some continuing level of
General Fund support for the Department's permitting
programs. Future administrations would discuss the issue,
she said.
Representative Foster MOVED to report CSHB 546(JUD) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 546(JUD) was REPORTED out of Committee with individual
recommendations and one previously published fiscal impact
note.
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