Legislature(2007 - 2008)CAPITOL 124

02/12/2007 08:30 AM House FISHERIES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 74 BAN MIXING ZONES IN SPAWNING AREAS TELECONFERENCED
Heard & Held
+= HB 41 TRANSFER HABITAT DIV FROM DNR TO F&G TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 41-TRANSFER HABITAT DIV FROM DNR TO F&G                                                                                    
                                                                                                                                
9:27:31 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the final order of  business would be                                                              
HOUSE  BILL NO.  41, "An  Act returning  certain duties  regarding                                                              
habitat management  from  the Department  of Natural Resources  to                                                              
the Department  of Fish and Game;  and providing for  an effective                                                              
date."                                                                                                                          
                                                                                                                                
LANCE  TRASKY,   fisheries  biologist,  began  by   informing  the                                                              
committee  that   for  31  years  he  was  a   fisheries  research                                                              
biologist,  habitat biologist,  and  regional  supervisor for  the                                                              
former Division  of Habitat within  the Alaska Department  of Fish                                                              
&  Game  (ADF&G).   Mr.  Trasky  paraphrased  from  the  following                                                              
written remarks [original punctuation provided]:                                                                                
                                                                                                                                
     I am  testifying today  to voice  my strong support  for                                                                   
     House  Bill  41  which  would  reverse  former  Governor                                                                   
     Murkowski's   Executive  Order   107  and  returns   the                                                                   
     responsibility  to protect  salmon  streams and  prevent                                                                   
     blockages of  fish streams to  the Department of  Fish &                                                                   
     Game where it rightfully belongs.                                                                                          
                                                                                                                                
     Such an  action will accomplish  two things.   First, it                                                                   
     will help  to restore public  confidence in  the state's                                                                   
     regulatory  system  which was  badly  eroded during  the                                                                   
     Murkowski administration.   Secondly, it will  place the                                                                   
     authority    on   how   to    protect   our    socially,                                                                   
     economically,   and   culturally    valuable   fisheries                                                                   
     resources  back in  the hands  of Department  of Fish  &                                                                   
     Game fisheries  biologists with a statutory  mandate and                                                                   
     the expertise  to protect, preserve, maintain  and where                                                                   
     possible extend  the fish and wildlife resources  in the                                                                   
     interest  of the economy  and well  being of the  state,                                                                   
     as the founding fathers of this state intended.                                                                            
                                                                                                                                
     Alaska's  founders witnessed  decades  of fisheries  and                                                                   
     fisheries  habitat  mismanagement  when  other  interest                                                                   
     trumped conservation.   The founders also  witnessed the                                                                   
     final demise  of the once great salmon fisheries  of the                                                                   
     Pacific Northwest  in the 1950's and had  predicted that                                                                   
     the loss  of habitat  as a result  would be the  biggest                                                                   
     long-term  threat facing Alaska's  fisheries as  well as                                                                   
     the  subsistence,  commercial   and  sport  fishers  who                                                                   
     depend   upon  them.     As  the   framework  of   state                                                                   
     government  was taking  shape,  a heated  debate  ensued                                                                   
     between   Alaskan  fishermen   and  those  involved   in                                                                   
     mining,  logging, and  hydropower development  regarding                                                                   
     how state government  would be organized in  addition to                                                                   
     deciding  what functions  various  agencies would  have.                                                                   
     Miners and  loggers wanted  a traditional system  with a                                                                   
     Department  of Natural Resources  and a simple  fish and                                                                   
     game   management  division   having  no  authority   in                                                                   
     critical  habitat decisions.   Fish  interests wanted  a                                                                   
     separate Department  of Fish &  Game.  They  also wanted                                                                   
     this  department  to  have   an  equal  voice  in  state                                                                   
     resource   management   decisions,    a   constitutional                                                                   
     mandate   for  sustained   yield,   and  the   statutory                                                                   
     authority  to  prevent  the  destruction  of  anadromous                                                                   
     fish habitat  on public  and private  lands, as well  as                                                                   
     to  prevent  blockage  of fish  passage  from  dams  and                                                                   
     other  obstructions.   Fisheries  interest  won out  and                                                                   
     for 43 years this was the law of the land.                                                                                 
                                                                                                                                
     Unfortunately  in 2003, Governor  Murkowski was  able to                                                                   
     do  what   our  founding  fathers   feared  most.     By                                                                   
     transferring the  Anadromous Fish Act and the  Fish Ways                                                                   
     Act  to  the  Alaska  Department  of  Natural  Resources                                                                   
     (ADNR)  and  implementing   a  Memorandum  of  Agreement                                                                   
     granting  ADNR   oversight  of  the  Federal   Fish  and                                                                   
     Wildlife  Coordination Act,  and radically changing  the                                                                   
     Alaska  Coastal Management  Program; Governor  Murkowski                                                                   
     was  able to  funnel  all of  the authority  to  approve                                                                   
     development projects  into the ADNR.  He  also appointed                                                                   
     manager who  shared his views  to implement  his vision.                                                                   
     He  set  Alaska  on  the same  dead-end  road  that  the                                                                   
     former salmon producing western states followed.                                                                           
                                                                                                                                
     The  transfer   of  these   statutory  authorities   and                                                                   
     programs  has directly affected  the consideration  that                                                                   
     fish  habitat  and subsistence,  commercial,  and  sport                                                                   
     fishermen  receive  in state  resource  development  and                                                                   
     permitting decision in several ways:                                                                                       
                                                                                                                                
     1. ADF&G and  ADNR have very different missions.   ADF&G                                                                   
     has the statutory  mandate to protect and  maintain fish                                                                   
     resources,  while ADNR  has the mandate  to develop  the                                                                   
     states'   renewable    and   non-renewable    resources.                                                                   
     Removing  the  responsibility  to protect  fish  habitat                                                                   
     from   ADF&G  makes   it  much   easier   for  ADNR   to                                                                   
     inappropriately  sacrifice  fish habitat  to  facilitate                                                                   
     non-renewable resource development.                                                                                        
                                                                                                                                
     2. The  balance that state  founders sought  in resource                                                                   
     development decisions  has been lost.  Some  people have                                                                   
     tried  to make the  argument that  ADNR employees  would                                                                   
     protect  fish  as  diligently  as  they  did  at  ADF&G.                                                                   
     These people  must not have heard of  corporate culture.                                                                   
     The  transfer  of  staff  and  authorities  is  akin  to                                                                   
     moving  the Mercedes  design  team to  Hyundai and  then                                                                   
     expecting that they will still be building Mercedes.                                                                       
                                                                                                                                
     3. Over  my career  I was involved  with many  different                                                                   
     development  projects  where the  Department  of Fish  &                                                                   
     Game  and ADNR  had  very  different positions  on  ADNR                                                                   
     projects  and activities  affecting  fish, wildlife  and                                                                   
     public use.  Examples include:                                                                                             
                                                                                                                                
        · One example was the issue of requiring logging                                                                        
          operations  on state  and private  lands to  follow                                                                   
          the  law  and  submit  plans  for  stream  crossing                                                                   
          structures   to   review    for   adequacy   before                                                                   
          construction.    Loggers  and  ADNR  did  not  want                                                                   
          ADF&G's  Habitat  Division  to require  loggers  to                                                                   
          obtain  permits from  ADF&G to  build roads  across                                                                   
          fish streams.   ADF&G asserted its  authority under                                                                   
          the  Anadromous Fish  Act  and Fish  Ways Acts  and                                                                   
          continued to require loggers to get permits.                                                                          
                                                                                                                                
        · A second example is mixing zones in spawning                                                                          
          areas.    The Alaska  Department  of  Environmental                                                                   
          Conservation   (ADEC)  proposed  to   change  their                                                                   
          regulation's  to  allow  mixing zones  for  harmful                                                                   
          substances in  fish spawning areas during  both the                                                                   
          Hickel   and  Knowles   Administration.     Habitat                                                                   
          Division led  the ADF&G's opposition to  the change                                                                   
          and  it  was  withdrawn  both  times.    After  the                                                                   
          Habitat   and   Restoration  (H&R)   Division   was                                                                   
          transferred to  ADNR and the change  [ADEC proposed                                                                   
          regulations  on  mixing  zones]  was  supported  by                                                                   
          ADNR; no one in ADF&G fought it.                                                                                      
                                                                                                                                
9:33:59 AM                                                                                                                    
                                                                                                                                
MR. TRASKY continued:                                                                                                           
                                                                                                                                
     4.  One  question  which  comes  up  often  is  how  has                                                                   
     permitting  changed  now  that  it  is  administered  by                                                                   
     ADNR?  Because there  is  no public  notice  requirement                                                                   
     for the  thousands of ADNR  fish habitat permits  issued                                                                   
     annually,  the only  people  who know  if these  permits                                                                   
     effectively  protect fish  habitat are  the ADNR  person                                                                   
     issuing  the permit  and  the applicant.    The same  is                                                                   
     true for  violations of  these permits.   I do  not have                                                                   
     access  to these permits  but asked  this question  of a                                                                   
     number  of state,  federal  and private  biologists  who                                                                   
     have  experience in  ADF&G fish  habitat permitting  and                                                                   
     are knowledgeable  about fish habitat  permitting before                                                                   
     and after  the transfer of  ADF&G's permit authority  to                                                                   
        ADNR.  I won't disclose their names or positions                                                                        
     because of concerns about retaliation.  However, here                                                                      
     is what I was told about the differences:                                                                                  
                                                                                                                                
     A. Comments from Federal Biologists:                                                                                       
                                                                                                                                
        1. I review federal projects affecting fish and                                                                         
          wildlife  and do  not see ADF&G  or ADNR-Office  of                                                                   
          Habitat  Management  and  Permitting  (OHMP)  as  a                                                                   
          player  in projects any  more.   Often no one  from                                                                   
          ADF&G or OHMP even attends project meetings.                                                                          
                                                                                                                                
        2. My agency has no relationship with ADF&G or ADNR-                                                                    
          OHMP any  more.  Staff at one OHMP  office does not                                                                   
          even return calls.                                                                                                    
                                                                                                                                
        3. The policy at OHMP seems to be to narrowly                                                                           
          interpret  their  responsibilities   to  permitting                                                                   
          within the  banks of anadromous streams  and stream                                                                   
          blockages.      Overshadowing    issues   such   as                                                                   
          activities  which may  impact a  watershed seem  to                                                                   
          be ignored.   There is little interest  in wildlife                                                                   
          issues.                                                                                                               
                                                                                                                                
        4. The few former ADF&G H&R staff that remains at                                                                       
          OHMP  seems to be  trying to  do a  good job.   The                                                                   
          new  hires  that  attend  project  meetings  rarely                                                                   
          open  their mouths.   Most of them  do not  seem to                                                                   
          know much  about the issues  that they  are dealing                                                                   
          with.                                                                                                                 
                                                                                                                                
        5. Consultants have asked me why ADF&G and OHMP no                                                                      
          longer   asks  any  tough   questions  related   to                                                                   
          environmental  documents  for  the  road,  oil  and                                                                   
         gas, and mining projects they are working on.                                                                          
                                                                                                                                
        6. Some of the best biologists have left OHMP when                                                                      
          they  had  an opportunity  to  return to  ADF&G  or                                                                   
          retire.                                                                                                               
                                                                                                                                
9:36:12 AM                                                                                                                    
                                                                                                                                
MR. TRASKY continued:                                                                                                           
                                                                                                                                
     B. Comments from State Biologists:                                                                                         
                                                                                                                                
        1. OHMP  staff    has   lost   the    close   working                                                                   
          relationship  with ADF&G staff and  the information                                                                   
          that  they  provided  on  projects.   There  is  no                                                                   
          priority  in   OHMP  to  solicit  ADF&G   input  on                                                                   
          projects,  particularly  projects  that  ADF&G  may                                                                   
          not like.                                                                                                             
                                                                                                                                
        2. Regional OHMP staff does not receive any support                                                                     
          on enforcement actions.                                                                                               
                                                                                                                                
        3. The permits that the OHMP leadership wants us to                                                                     
          write  do not contain  project specific  conditions                                                                   
          and  are largely  unenforceable.   The emphasis  is                                                                   
          on  reducing  review  time  and  increasing  permit                                                                   
          numbers,   not  a  high   level  of  fish   habitat                                                                   
          protection.                                                                                                           
                                                                                                                                
        4. For a fisheries or wildlife biologist, working at                                                                    
          ADNR is  a dead end.   For career advancement  they                                                                   
          will need to go elsewhere.                                                                                            
                                                                                                                                
        5. A number of experience habitat biologists left                                                                       
          ADNR  when  the  opportunity   arose.    They  were                                                                   
          replaced   with   people    with   little   or   no                                                                   
          experience.                                                                                                           
                                                                                                                                
        6. ADNR-OHMP   biologists   are   discouraged    from                                                                   
          participating   in  multi-agency   working   groups                                                                   
          which  are working  on  means to  avoid impacts  on                                                                   
          fish  and  wildlife  and   from  attending  project                                                                   
          meetings.   Biologists  don't  do coastal  reviews,                                                                   
          or  review  subdivision   plats  that  the  Borough                                                                   
          sends  over  even  though   the  development  would                                                                   
          affect a salmon stream.                                                                                               
                                                                                                                                
9:37:38 AM                                                                                                                    
                                                                                                                                
MR. TRASKY summarized as follows:                                                                                               
                                                                                                                                
     In  summary  I  believe that  the  changes  that  former                                                                   
     Governor  Murkowski   made  during  his   administration                                                                   
     substantially reduced  the protection that  fish habitat                                                                   
     receives both  at the policy  level and the  issuance of                                                                   
     permits  for individual  projects.    It also  increases                                                                   
     the  risk   that  large   projects  will  be   approved.                                                                   
     Projects  that  will  have very  significant  short  and                                                                   
     long-term  impacts  on fish  and wildlife  resources  as                                                                   
     well  as  commercial, subsistence  and  sport  fishermen                                                                   
     who depend  on these resources.   I urge you  to restore                                                                   
     the  balance in  state resource  decisions  and pass  HB
     41.                                                                                                                        
                                                                                                                                
9:38:25 AM                                                                                                                    
                                                                                                                                
KERRY  HOWARD, Executive  Director, Office  of Habitat  Management                                                              
and  Permitting (OHMP),  Department  of Natural  Resources  (DNR),                                                              
mentioned   that  committee   members  should   have  a   book  of                                                              
background  information on  OHMP.  She  related her  understanding                                                              
that the  committee has a copy  of the letter Governor  Palin sent                                                              
to the Board  of Fisheries indicating  her intent not to  move the                                                              
habitat office back  to DNR.  Therefore, Ms. Howard  said that she                                                              
would provide  some background about  OHMP in hopes that  it would                                                              
help explain some  of the things Governor Palin  considered in her                                                              
decision.                                                                                                                       
                                                                                                                                
9:39:39 AM                                                                                                                    
                                                                                                                                
MS. HOWARD turned  the committee's attention to the  first page of                                                              
the book  provided by OHMP,  which specifies the  agency's mission                                                              
statement  as follows:   "The  mission  of the  Office of  Habitat                                                              
Management  and Permitting  is to protect  Alaska's valuable  fish                                                              
and wildlife resources  and their habitats as  Alaska's population                                                              
and  economy  continue  to  expand."   She  highlighted  that  the                                                              
agency's mission  is derived from  the Alaska State  Constitution.                                                              
Article   VIII   specifically  addresses   the   state's   natural                                                              
resources, Section  1 specifies:   "It's the  policy of  the state                                                              
to  encourage the  development  of its  resources  by making  them                                                              
available for  maximum use consistent  with the public  interest."                                                              
Section  4   specifies:    "Fish   and  all  other   replenishable                                                              
resources  belonging to the  state shall  be utilized,  developed,                                                              
and  maintained on  the sustained  yield  principle."   Therefore,                                                              
OHMP's  mission  is  intended to  acknowledge  and  implement  the                                                              
aforementioned constitutional  responsibilities.   Some interested                                                              
parties  have asserted  that  DNR and  ADF&G  have very  different                                                              
mission  statements and  that having  the habitat  office at  DNR,                                                              
habitat won't be  protected as well.  However,  both agencies must                                                              
abide by  the constitution  and both have  statutes that  refer to                                                              
"conservation and  development".   Ms. Howard highlighted  that AS                                                              
44.37.020(a)  says,   in  part:     "The  Department   of  Natural                                                              
Resources   shall   administer   the   state   program   for   the                                                              
conservation  and  development  of  natural  resources"  while  AS                                                              
44.39.020 specifies,  in part:   "The Department of Fish  and Game                                                              
shall  administer  the  state program  for  the  conservation  and                                                              
development  of  the state's  commercial  fisheries,  sport  fish,                                                              
birds,  game,   and  fur-bearing   animals."    Additionally,   AS                                                              
16.05.020(2)  requires  the  commissioner  of  ADF&G  "to  manage,                                                              
protect,  maintain,  improve,  and   extend  the  fish,  game  and                                                              
aquatic  plant resources  of  the  state in  the  interest of  the                                                              
economy  and  general  well-being  of  the  state."    Ms.  Howard                                                              
pointed  out that  the  statutes of  the  former habitat  division                                                              
were  unchanged  when  it  was  moved  to  DNR.    Therefore,  the                                                              
biologists  at OHMP  implement the  exact same  statutes that  are                                                              
implemented  at  ADF&G.    Furthermore,  biologists  at  DNR  work                                                              
closely  with  biologists  at ADF&G  in  implementing  duties  and                                                              
routinely consult  with them on  matters for which they  have data                                                              
and  expertise and  incorporate that  information into  permitting                                                              
decisions.   The aforementioned  is specified  in a memorandum  of                                                              
understanding (MOU)  between the two  agencies.  She  then pointed                                                              
out  that the  second  page of  the  book reviews  the  division's                                                              
statutory  responsibilities   and  priorities.     The  division's                                                              
priorities  are  the  issuance of  fish  habitat  permits,  active                                                              
participation   in  the  Forest   Resources  and  Practices   Act,                                                              
participation   in   the  Alaska   Coastal   Management   Program,                                                              
participation  as a  team member  with  multi-agency reviews  that                                                              
involve  large project,  and maintain  and  update the  anadromous                                                              
waters catalog.                                                                                                                 
                                                                                                                                
9:42:41 AM                                                                                                                    
                                                                                                                                
MS. HOWARD  then directed attention  to the organizational  chart,                                                              
which  illustrates  that  OHMP  is  a  small  organization.    The                                                              
division  has   37  full-time   positions  statewide,   which  are                                                              
delineated  into 7  area offices.   There  is also  an OHMP  staff                                                              
position in  the Joint Pipeline  Office.  Ms. Howard  acknowledged                                                              
that there was a  great amount of turnover when OHMP  was moved to                                                              
DNR.  However, 42  percent of OHMP's staff are  former habitat and                                                              
restoration employees  and since vacancies have been  filled, over                                                              
79 percent  of OHMP's  staff are  from ADF&G.   Additionally,  the                                                              
qualifications  for a  habitat biologists  are the  same as  those                                                              
for being  a habitat biologist in  ADF&G.  Ms.  Howard highlighted                                                              
that  in addition  to OHMP  there is  a habitat  office in  ADF&G,                                                              
which  is called  Region  V Habitat.    Essentially  the Region  V                                                              
office in  ADF&G has the  same number of  staff as OHMP.   The two                                                              
divisions,   she   said,   work    together   professionally   and                                                              
collegially in  order to ensure  there's no duplication  of duties                                                              
and share information and knowledge.                                                                                            
                                                                                                                                
9:44:18 AM                                                                                                                    
                                                                                                                                
MS.  HOWARD highlighted  that  the book  she  provided includes  a                                                              
PowerPoint  presentation  that   provides  additional  information                                                              
regarding  what  OHMP does  as  well  as additional  missions  and                                                              
measures.    The book  also  includes  a  short white  paper  that                                                              
provides  additional information  regarding  Executive Order  (EO)                                                              
107  and  the  changes  that accompanied  it.    Ms.  Howard  then                                                              
directed  attention to  the MOU  between ADF&G  and DNR  regarding                                                              
reviews  of  land   and  water  use  activities.     The  MOU  was                                                              
originally  signed  in October  2003  and  has been  amended  four                                                              
times to  provide additional  clarity and  specificity as  well as                                                              
delineate   how   coordination   between   OHMP   and   ADF&G   is                                                              
accomplished.  She  explained that OHMP, in addition  to its Title                                                              
41 permit responsibilities,  has the lead role  reviewing resource                                                              
development  projects  unless  they are  within  or  significantly                                                              
impacting  a  legislatively  designated  special  area  for  which                                                              
ADF&G  has  the  lead.    However,  she  acknowledged  that  other                                                              
divisions at  ADF&G have information  and expertise that  would be                                                              
useful in  making permit decisions on  large projects.   Page 6 of                                                              
the  MOU specifies  that  OHMP  either directly  coordinates  with                                                              
ADF&G  staff,  Category  2,  or  Region  V  Habitat  is  asked  to                                                              
consolidate  ADF&G  comments, Category  3,  and provide  to  OHMP.                                                              
The categorization  of the project is dependent  upon the activity                                                              
itself   and   the   potential    significant   adverse   impacts.                                                              
Significant adverse  impacts always result in the  project being a                                                              
Category 3.   The following are  examples of Category  3 projects:                                                              
South  National  Petroleum  Reserve-Alaska  (NPR-A),  Abbott  Loop                                                              
Extension, Beluga  Coal, Juneau Access,  Knik Arm Crossing,  and a                                                              
general  placer  permit.    The Pebble  Project  was  initially  a                                                              
Category  3 project,  but  last  fall it  was  decided that  ADF&G                                                              
should  have a  full seat  at the  table,  entirely separate  from                                                              
OHMP  and the MOU  was amended  to do  so.   Ms. Howard  confirmed                                                              
that  OHMP isn't  reviewing  subdivision  plans,  but pointed  out                                                              
that  it's   because  the   MOU  gives   that  responsibility   to                                                              
biologists at ADF&G.                                                                                                            
                                                                                                                                
9:46:49 AM                                                                                                                    
                                                                                                                                
MS.  HOWARD  highlighted  that   Governor  Palin's  letter  [dated                                                              
February 8,  2007] says  that she will  have the commissioners  of                                                              
ADF&G and DNR review  the MOU in order to ensure  that interagency                                                              
cooperation,  responsibilities,  and exchange  of information  are                                                              
working well.   In fact, the first meeting for  the aforementioned                                                              
is  the coming  Thursday.    In  conclusion, Ms.  Howard  recalled                                                              
Representative Gara's  opening remarks on HB 41 when  he said that                                                              
the state  has an important  duty to protect  the fisheries.   The                                                              
aforementioned  duty,  she  said,  was taken  seriously  when  the                                                              
habitat  division was  housed  in  ADF&G and  it  continues to  be                                                              
taken seriously by biologists at DNR.                                                                                           
                                                                                                                                
9:47:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN related  his understanding  that OHMP  is                                                              
an awful place to  work and staff are afraid to  speak their mind.                                                              
He asked  Ms. Howard to  comment on that.   He then asked  if most                                                              
of OHMP's  employees are classified  employees and members  of the                                                              
state employee's association.                                                                                                   
                                                                                                                                
MS. HOWARD  commented that  reasonable people  can disagree.   She                                                              
guaranteed   the  committee   that   there   are  no   sideboards,                                                              
constraints,  or threats to  her staff.   She explained  that only                                                              
two employees  of OHMP,  herself and  the operations manager,  are                                                              
partially  exempt  and  the remainder  are  classified  employees.                                                              
Ms.  Howard opined,  "When  people disagree,  it's  often easy  to                                                              
resort  to  second  hand  information   to  try  to  construct  an                                                              
argument  about how  bad you  think that  they are.   But I  would                                                              
welcome  anyone to  bring forward  a specific  project where  they                                                              
think   my   staff  has   not   done   their  job,   they're   not                                                              
participating,  they're  shirking  their  duties, and  let's  talk                                                              
about  specifics.     Let's  not   talk  about  generalities   and                                                              
innuendos  because just  last week  ...  I had  a two-day  meeting                                                              
with  my area  managers  and they  were,  quite frankly,  offended                                                              
that some  parties were  saying that they  felt like  they weren't                                                              
doing their job."                                                                                                               
                                                                                                                                
9:49:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  asked  if  OHMP's  classified  employees                                                              
have a grievance process if they feel they are being kept quiet.                                                                
                                                                                                                                
MS. HOWARD  confirmed  that there  is a process,  but deferred  to                                                              
union  representatives.   She informed  the  committee that  there                                                              
hasn't  been  a  single  grievance  filed.   She  said  she  would                                                              
welcome the  committee to invite  any of  her staff to  testify in                                                              
regard to how they feel about their jobs.                                                                                       
                                                                                                                                
9:50:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  related his understanding that  anyone who                                                              
came  forward  with  a grievance  would  be  protected  under  the                                                              
state's whistleblower's statute.                                                                                                
                                                                                                                                
MS.  HOWARD noted  her  agreement.   She  reiterated  that she  is                                                              
offended to hear  that she and her operation's  manager threatened                                                              
retribution,  which she said  was unfounded  and ungrounded.   She                                                              
also  said  that  she  would  happily  speak  with  members  about                                                              
specifics.                                                                                                                      
                                                                                                                                
9:50:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  cautioned the  committee  with regard  to                                                              
unnamed sources.   If someone has a grievance,  then he/she should                                                              
come forward and state it.                                                                                                      
                                                                                                                                
9:51:11 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  reminded  members   that  when  someone  testifies,                                                              
members should  consider the source  and its reliability  and work                                                              
through what it means.                                                                                                          
                                                                                                                                
9:52:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN  related that  the concern with  regard to                                                              
the working environment  at OHMP came from the  opening remarks of                                                              
the sponsor as well as from public testimony.                                                                                   
                                                                                                                                
9:52:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES recalled testimony  regarding the  level of                                                              
transparency  of the discussion,  depending  upon the location  of                                                              
the habitat  division.  She further  recalled that the  notion was                                                              
that  when  the  division  was  under  ADF&G,  there  would  be  a                                                              
commissioner-level discussion  between the division  through ADF&G                                                              
and  the commissioner  of DNR  with  regard to  permits and  other                                                              
decisions  in  question.    With the  division  within  DNR,  that                                                              
debate will  now occur  within a single  department and  ADF&G may                                                              
not be involved  at all.  Representative Holmes  requested comment                                                              
on the aforementioned transparency issue.                                                                                       
                                                                                                                                
MS. HOWARD  acknowledged that business  was done  differently when                                                              
two different  departments were  involved in the  decision-making.                                                              
However, all of  the decisions remain public documents  and public                                                              
information.     She  recalled  that  [prior  to   the  division's                                                              
transfer  to DNR], on  large projects,  particularly coastal  zone                                                              
projects, ADF&G,  DNR, and DEC would  all forward comments  to the                                                              
governor's office  in the Alaska Coastal Management  Program to be                                                              
put forward  as a state position.   There were  informal elevation                                                              
procedures  should the  finding  be objectionable  to  any of  the                                                              
commenters.   The  same process  still happens,  it merely  occurs                                                              
within  DNR.   Ms.  Howard  said that  she  and her  staff  submit                                                              
comments to the  Office Project Management and  Permitting (OPMP),                                                              
which consolidates  comments  from the various  divisions  of DNR.                                                              
She emphasized that  any project larger than a bed  box results in                                                              
the  staff of  OHMP communicating  with biologists  at ADF&G,  and                                                              
therefore the  comments forwarded  [by OHMP] incorporate  comments                                                              
from ADF&G.   Again, the [comments are submitted  to OPMP, there's                                                              
an elevation process,  and informal discussions.   Ms. Howard said                                                              
she  didn't believe  there have  been many  elevations, which  she                                                              
interpreted  to  mean  that  staff  are  coming  to  agreement  on                                                              
projects  between discussions  among themselves.   She noted  that                                                              
she  routinely  discusses projects  with  her  staff and  if  it's                                                              
important enough,  it's brought  to the commissioner's  attention.                                                              
Almost 2,500  permits a  year are reviewed  and although  she said                                                              
she doesn't  know about  every project and  permit, she  does know                                                              
about the ones  with potential for controversy.   She related that                                                              
most recently she  briefed the commissioner on a  project in which                                                              
ADF&G proposed to  use explosives within Trinity  and Shell Creek,                                                              
anadromous fish streams,  to remove beaver dams.   This permit was                                                              
denied because  OHMP staff  didn't believe  the use of  explosives                                                              
in an  anadromous fish stream  was protective  of the fish  or the                                                              
habitat.   Ms.  Howard then  related that  she has  worked in  the                                                              
habitat  division  under both  departments,  and  opined that  the                                                              
staffs  of both  offices have  done  a good  job representing  the                                                              
state's interests on fish and fish habitat.                                                                                     
                                                                                                                                
9:57:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES   inquired  as  to  how  often   there  are                                                              
commissioner-level  discussions between  DNR and  ADF&G with  OHMP                                                              
in DNR versus when the division was located in ADF&G.                                                                           
                                                                                                                                
MS. HOWARD  said that she doesn't  have exact numbers,  but opined                                                              
that  it's less  [with OHMP  under  DNR] which  she attributed  to                                                              
changes  in  the  coastal  management  program.    Under  the  old                                                              
coastal  program,   the  habitat   standard  specified   that  the                                                              
division "shall maintain  or enhance" and if that  couldn't occur,                                                              
then there  was a three-part  test to  reach a different  outcome.                                                              
The  changes  to  the  coastal   management  program  included  an                                                              
attempt to streamline  the standards by eliminating  any standards                                                              
that  already duplicated  what other  state  and federal  agencies                                                              
did.     Therefore,   changing  the   threshold  and   eliminating                                                              
duplication, OHMP has  less on which to comment  under the habitat                                                              
standard.                                                                                                                       
                                                                                                                                
9:59:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON commented  that  with budget  cuts and  the                                                              
need  to  move  development  projects   forward  while  protecting                                                              
fisheries, the  two departments  should be merged.   He  said that                                                              
although he  is saying it facetiously,  he recalls being  a former                                                              
employee  of  an  agency  and  that   departments  have  different                                                              
missions and cultures.   Furthermore, there isn't  a regulation or                                                              
statute that  doesn't carry a  certain amount of  discretion while                                                              
upholding the process.   Representative Edgmon opined,  "I find it                                                              
hard  to  believe that  ...  the  habitat  division has  the  same                                                              
makeup  or  the   same  outlook  in  the  Department   of  Natural                                                              
Resources  as  it  would  in  the  Department  of  Fish  &  Game."                                                              
Furthermore,  the division  is physically  located in a  different                                                              
place  and  thus  doesn't  interact  with  the  directors  of  the                                                              
divisions  within   ADF&G  as  before.     The  division   is  now                                                              
interfacing  with   department  employees,   many  of   which  are                                                              
political  employees  whose  background  is in  the  industry  and                                                              
whose  mission it  is to  make natural  resource development  take                                                              
place.   He reiterated  that there  have to  be some  differences.                                                              
With  regard  to  earlier  statements   regarding  the  governor's                                                              
position,  Representative Edgmon  related  his understanding  that                                                              
Governor Palin  will revisit  the decision  to house the  division                                                              
within DNR after a year has elapsed.                                                                                            
                                                                                                                                
MS. HOWARD  noted that in  the past there  has been the  notion to                                                              
merge all  three resource  agencies, on  which point she  deferred                                                              
to the legislature.   She then pointed  out that over  half of the                                                              
area offices [of OHMP] are located within ADF&G buildings.                                                                      
                                                                                                                                
10:03:06 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked if,  either  when the  division  was                                                              
under  ADF&G or  DNR,  the public  was  able  to receive  internal                                                              
memorandums  in  regard  to  particular  projects.   She  posed  a                                                              
scenario in  which the  commissioners of  ADF&G and DNR  disagreed                                                              
with each other, and asked if that would be open to the public.                                                                 
                                                                                                                                
MS.  HOWARD answered  that everything  OHMP does  is available  to                                                              
the  public.   Although all  state  agencies have  the ability  to                                                              
have  certain  things that  are  deliberative  confidential,  that                                                              
doesn't enter  the realm of  the permitting  world, she said.   In                                                              
fact, [OHMP]  routinely copies whoever  wants to be copied  on any                                                              
permit comments  or decisions.   The ADF&G always receives  a copy                                                              
of everything OHMP writes.                                                                                                      
                                                                                                                                
10:04:29 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOHNSON recalled  prior  testimony that  indicated                                                              
permits  were issued  and  only the  permitter  and the  permittee                                                              
knew about  it and that there  wasn't public testimony  or notice.                                                              
He asked if the aforementioned actually happens.                                                                                
                                                                                                                                
MS.  HOWARD  said  that  Title  41,  under  which  OHMP  operates,                                                              
doesn't  have  a public  notice  requirement  which was  the  case                                                              
under  the  former habitat  division,  Title  16.   However,  that                                                              
doesn't  mean that  the public  can't obtain  documents or  aren't                                                              
made aware of them.                                                                                                             
                                                                                                                                
10:05:43 AM                                                                                                                   
                                                                                                                                
JOHN BITNEY,  Legislative Liaison, Governor's  Legislative Office,                                                              
Office  of the  Governor, returned  attention to  the letter  from                                                              
Governor  Palin to  the chair  of  the Board  of Fisheries,  dated                                                              
February 8, 2007.   To clarify the letter, he  stated that despite                                                              
this letter, the  governor is concerned about  habitat protection.                                                              
When   Governor   Palin   took   office,  some   of   the   acting                                                              
commissioners  were  charged  with reviewing  options  and  making                                                              
recommendations  regarding  the  best  course  of  options.    The                                                              
following  three  options  were  presented  to  the  governor  for                                                              
consideration:  the  status quo, evaluate the MOU and  place it in                                                              
review between  DNR and  [ADF&G], or  return the habitat  division                                                              
back to ADF&G.   The governor  chose to keep the  habitat division                                                              
at DNR, but  asked the departments  to review the MOU  in order to                                                              
evaluate  what  changes  are  necessary   to  improve  interagency                                                              
cooperation.   The aforementioned  could be  done over  the course                                                              
of  a  few weeks  or  months  and  include  some outreach  to  the                                                              
stakeholders  and interested  parties.   Mr.  Bitney related  that                                                              
although  the governor is  sympathetic to  the concerns  regarding                                                              
the move  to DNR, she also  recognizes that simply  moving offices                                                              
back and forth  is disruptive.  The governor,  he further related,                                                              
is  willing  to  review  the  protection   issues  and  reconsider                                                              
anything necessary following a full review of the MOU.                                                                          
                                                                                                                                
10:10:51 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON asked  if, regardless of the fate of  HB 41, there is                                                              
a timeframe  that limits  the governor's  authority to  change the                                                              
departments by EO.                                                                                                              
                                                                                                                                
MR. BITNEY said that's his understanding.                                                                                       
                                                                                                                                
10:11:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HOLMES asked  if the governor's  office is  making                                                              
any particular request as to how the committee treats HB 41.                                                                    
                                                                                                                                
MR. BITNEY  reiterated that  if more  information comes  to light,                                                              
the governor's  office will  remain open.   He further  reiterated                                                              
that the governor doesn't want to be disruptive.                                                                                
                                                                                                                                
10:13:06 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON announced that HB 41 would be held for further                                                                     
testimony and committee discussion.                                                                                             

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