Legislature(2015 - 2016)CAPITOL 120

04/07/2015 05:00 PM House FISHERIES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change from 10:00 a.m. --
*+ HCR 10 MARITIME WORKFORCE DEVELOPMENT TELECONFERENCED
Moved CSHCR 10(FSH) Out of Committee
*+ HB 179 FOOD PROGRAM DONATIONS; FISH AND GAME TELECONFERENCED
Moved CSHB 179(FSH) Out of Committee
*+ HB 119 LEG. APPROVAL OF BRISTOL BAY SULFIDE MINE TELECONFERENCED
Moved HB 119 Out of Committee
*+ HB 110 PERSONAL USE FISHING PRIORITY TELECONFERENCED
Heard & Held
        HB 119-LEG. APPROVAL OF BRISTOL BAY SULFIDE MINE                                                                    
                                                                                                                                
5:26:52 PM                                                                                                                    
                                                                                                                                
CHAIR STUTES announced that the  next order of business would be,                                                               
HOUSE BILL NO. 119 "An Act  relating to the Bristol Bay Fisheries                                                               
Reserve; and providing for an effective date."                                                                                  
                                                                                                                                
5:27:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ANDY   JOSEPHSON,  Alaska   State   Legislature,                                                               
presented HB  119 as  prime sponsor,  and reminded  the committee                                                               
that  in November  2014, Alaskans  voted  overwhelmingly to  pass                                                               
Ballot  Measure 4,  requiring legislative  approval of  any large                                                               
scale  mine within  the Bristol  Bay Watershed.   Throughout  the                                                               
campaign,  this  issue  was  mining  versus  fish,  and  Alaskans                                                               
declared  that in  this location,  with this  mine, they  are not                                                               
willing  to jeopardize  the fishery.   He  explained that  HB 119                                                               
calls for  a comprehensive  review by  the Department  of Natural                                                               
Resources  (DNR),   Department  of  Fish  &   Game  (ADF&G),  and                                                               
Department  of  Environmental  Conservation (DEC),  and  requires                                                               
each commissioner  to find "beyond  a reasonable doubt"  that any                                                               
proposed metallic sulfide mining  not presently permitted, larger                                                               
than  640 acres  in size,  poses no  threat to  the fishery.   He                                                               
advised that  the concept is  based upon the Bristol  Bay Forever                                                               
Initiative, which  was based  upon the language  of the  1972 Jay                                                               
Hammond, Bristol  Bay Fisheries Reserve  law, and noted  that the                                                               
1972  law   included  a   requirement  that   any  oil   and  gas                                                               
developments  in  the  Bristol  Bay  region  receive  legislative                                                               
approval, and this legislation extends  this requirement to mines                                                               
in  the same  area.   The bill  also clarifies  what is  meant by                                                               
fisheries in  a far more  comprehensive manner than the  1972 law                                                               
or the  initiative, he explained.   He said that given  this bill                                                               
impacts   the   citizens'   initiative,   he   touched   on   the                                                               
constitutional  aspects  in that  the  case  law in  amending  an                                                               
initiative primarily  is the  Warren I,  and Warren  II decisions                                                               
concerning   potential   rollbacks    of   initiative   language.                                                               
Obviously  this  bill  does  not rollback  the  language  of  the                                                               
initiative, but gives it more teeth, he offered.                                                                                
                                                                                                                                
5:29:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOSEPHSON    provided   a    section   analysis,                                                               
paraphrasing  from a  prepared statement,  which read  as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
         Section 1: Requires development of regulations                                                                       
      concerning legislative approval. Defines the meaning                                                                      
     of "fisheries" and "permits and authorization".                                                                            
                                                                                                                                
     Section  2: New  subsection requires  the commissioners                                                                  
     of  the  Department of  Fish  and  Game, Department  of                                                                    
     Environmental Conservation,  and Department  of Natural                                                                    
     Resources to  make independent determinations  that any                                                                    
        large-scale metallic sulfide mining will pose no                                                                        
     danger to the fisheries.                                                                                                   
                                                                                                                                
     Section 3: Adds immediate effective date.                                                                                
                                                                                                                                
5:29:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON stated that  Section 1 broadly defines a                                                               
variety  fisheries,   and  the  Bristol  Bay   Fisheries  Reserve                                                               
includes subsistence, commercial, personal  use, and a great deal                                                               
of sport fishing, and it  also creates the definition for permits                                                               
and authorizations.   He then referred to Section  2, and advised                                                               
this section reads "prior to  legislative authorization, which is                                                               
a  current  requirement  for a  large-scale  metallic  mine,  and                                                               
commissioners  must make  an independent  finding  that beyond  a                                                               
reasonable doubt any  proposed mine constitutes no  danger to the                                                               
fisheries."   Following that [finding],  is a judicial  review of                                                               
the  permits and  authorizations  and, he  explained, the  matter                                                               
would  then  move  to  the  legislature  as  called  for  in  the                                                               
initiative.    He   pointed  out  that  the  bill   calls  for  a                                                               
reconsideration  of the  legislative approval  if there  has been                                                               
significant,  but   not  minor,   changes  to  the   permits  and                                                               
authorizations previously granted which  would entail each of the                                                               
three commissioners  making a revised,  independent determination                                                               
that an  applicant has  proven beyond a  reasonable doubt  that a                                                               
large-scale mine will  not constitute a danger  to the fisheries.                                                               
He noted  the burden remains on  the mining operation and  not on                                                               
the State  of Alaska.  He  remarked that this section  also calls                                                               
for an  inter-agency process wherein  each department  engages in                                                               
information  sharing  while  conducting their  own  separate  and                                                               
independent  analysis of  the efficacy  of the  mine relative  to                                                               
impacts  on fisheries.    Additionally, he  said,  a peer  review                                                               
process  will be  conducted in  order that  the findings  of each                                                               
department  can   be  scientifically   proven  as   reliable  and                                                               
verifiable.                                                                                                                     
                                                                                                                                
5:31:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON continued by  discussing the standard of                                                               
review suggested by the legislation,  in that currently in Alaska                                                               
law, the beyond  a reasonable doubt standard can be  seen in many                                                               
civil context, as  it is not just a  criminal standard, including                                                               
Child in Need  of Aid cases, Indian Child Welfare  Act cases, and                                                               
many cases involving hospitalization  commitment.  He referred to                                                               
two personal injury  actions where the beyond  a reasonable doubt                                                               
standard was  used: one involving  DNA testing  wherein involving                                                               
sexual  abuse by  members of  the clergy;  and an  Alaska Supreme                                                               
Court  case involving  wage and  hour employment  classification.                                                               
He explained it  fits into the natural  resources context because                                                               
beyond a reasonable  doubt standard was used in  forestry laws in                                                               
Washington  State,  and  there   is  a  Pennsylvania  mining  law                                                               
implementing beyond a  reasonable doubt.  In  Pennsylvania law, §                                                               
86.102. "Areas where  mining is prohibited or  limited," there is                                                               
a prohibition  on surface  mining operations  within 100  feet of                                                               
the bank of a perineal or intermittent stream, which read:                                                                      
                                                                                                                                
          (12) ... The Department may grant a variance from                                                                     
     this distance requirement  if the operator demonstrates                                                                    
     beyond  a  reasonable  doubt  that  there  will  be  no                                                                    
     adverse  hydrologic impacts,  water quality  impacts or                                                                    
     other environmental  resources impacts  as a  result of                                                                    
     the variance...                                                                                                            
                                                                                                                                
5:32:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON offered  that within  Title 5  AAC, the                                                               
Board of Fisheries has created  a series of regulations using the                                                               
"precautionary  approach" for  management  of Alaska's  fisheries                                                               
which is  part of a  comprehensive policy for the  regulation and                                                               
management of  sustainable salmon fisheries.   He quoted,  "It is                                                               
the goal of the policy ... in  Title 5, ... under this section to                                                               
ensure conservation  of salmon and  salmon's required  marine and                                                               
aquatic   habitats  protection   of  customary   and  traditional                                                               
subsistence uses and  other uses."  The Chairman of  the Board of                                                               
Fisheries, he said,  took an express position in a  letter to the                                                               
legislature  on January  10, 2010,  which read,  "The legislature                                                               
should  enact any  additional safe  guards  which are  considered                                                               
prudent  to  provide strict  protections  to  the fish  and  game                                                               
habitat of  the drainages  ... again, this  is about  Bristol Bay                                                               
drainages  ... to  prevent any  chance of  environmental damage."                                                               
He referred  to the  $10,000 fiscal note  and explained  that the                                                               
others get  more substantial, but  not extremely  substantial and                                                               
offered  that the  $10,000 is  currently in  DNR, and  the others                                                               
refer  to the  out years  of  2019 having  a fiscal  impact.   He                                                               
submitted  that if  the mines  are  postponed there  would be  no                                                               
impact until further down the road.                                                                                             
                                                                                                                                
5:34:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON opined  that some  have said  this bill                                                               
will  help insulate  and protect  the state  from litigation  and                                                               
liability  in the  event  a mine,  of the  size  in question,  is                                                               
permitted  and  developed  and  problems  arise  from  that  mine                                                               
impacting  any fishery.   The  argument  there is,  "We had  this                                                               
incredibly strict standard,  don't pick on us if  it goes badly."                                                               
In summary, he related, without  this bill commissioners would be                                                               
free to  use a  much lower  standard as  they review  permits and                                                               
commissioners  would  more easily  define  the  fishery as  being                                                               
commercial  fishery, and  not other  fisheries.   He pointed  out                                                               
that  the  1972  law  does  not  define  subsistence  fishery  as                                                               
something  the legislature  should  consider.   He remarked  that                                                               
without  the  bill:  only  DNR  would prepare  a  report  to  the                                                               
legislature as called for under  the initiative whereas this bill                                                               
requires  that   DEC  and   ADF&G  commissioners   are  involved;                                                               
regulations  could be  adopted  allowing the  state  to take  the                                                               
burden on its  shoulders rather than keeping the  burden with the                                                               
producers; the legislature  would get one bite at  the apple even                                                               
though a mine  could expand, evolve, and change as  they so often                                                               
do; and  the express  right to judicial  review would  be absent.                                                               
He opined  that the  permitting process is  intended to  strike a                                                               
balance between  common values, such as  economic development and                                                               
conservation,  but  the  process   sometimes  favors  the  better                                                               
financed interests  of industry  as evidenced  by the  very small                                                               
number of  permits denied  to projects over  the last  ten years.                                                               
For example, he said, within  a research report spanning the last                                                               
ten years  prepared by the  Division of Mining, Land,  and Water,                                                               
108 out of 7,971 permits  were denied, but acknowledged that some                                                               
are  denied  due  to  withdrawal, but  that  actual  denials  are                                                               
"extremely" uncommon.  He noted  that these measures are intended                                                               
to reduce the risk of  development to a tolerable level; however,                                                               
in this  case the bill  reads that the  risk must be  even lower.                                                               
He stated that,  "For this particular fishery  in this particular                                                               
place we must exercise an  overabundance of caution," and offered                                                               
that members  may disagree  with this measure,  but it  is within                                                               
the scope  of this  committee as it  relates to  the preservation                                                               
and  protection of  one of  Alaska's most  prized resources.   He                                                               
stressed that HB 119 is not  an anti-mining bill but rather about                                                               
protecting these fish in this  particularly sensitive and special                                                               
area.  The  legislature needs the best  scientific product before                                                               
it comes up  on the legislature's floors for final  approval of a                                                               
large-scale mine in Bristol Bay, he opined.                                                                                     
                                                                                                                                
5:38:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  pointed out that  Representative Josephson                                                               
clearly  articulated  that  this legislation  is  needed  because                                                               
there could  be a DNR  commissioner and a legislature  not paying                                                               
attention, and there  could be vote of  legislative approval, and                                                               
asked whether that would be by simple majority.                                                                                 
                                                                                                                                
REPRESENTATIVE JOSEPHSON  answered that it is  by simple majority                                                               
under the initiative.                                                                                                           
                                                                                                                                
REPRESENTATIVE HERRON  noted that Representative  Josephson could                                                               
have the bill require two-thirds.                                                                                               
                                                                                                                                
REPRESENTATIVE  JOSEPHSON responded,  tongue  in  cheek, that  he                                                               
views  that suggestion  as a  friendly amendment.   He  described                                                               
this  is a  good,  necessary,  and ambitious  bill,  and such  an                                                               
amendment would make  it even more ambitious.  He  opined that if                                                               
there is  a meritorious project,  these three  commissioners will                                                               
make  that determination  in  peer  review.   He  noted that  the                                                               
potential mines at issue are  any within the Jay Hammond Reserve,                                                               
and  the mine  that  "everyone  has heard  about"  has said  fish                                                               
first, which he agrees with.                                                                                                    
                                                                                                                                
5:39:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON referred  to Section 2, noting  it does not                                                               
explain whether  a minority of  those commissioners  can [negate]                                                               
it.                                                                                                                             
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  explained  that should  DNR  and  DEC,                                                               
subsequent  to  a  peer  review,  determine  there  is  beyond  a                                                               
reasonable doubt  no chance of damage  to a fishery of  any sort,                                                               
and ADF&G  determines it  is a  threat, that  determination would                                                               
deny the  project and;  therefore, it would  not come  before the                                                               
legislature.                                                                                                                    
                                                                                                                                
5:40:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT asked  whether Representative Josephson is                                                               
uncomfortable  with  Alaska's   current  permitting  process  for                                                               
large-scale mines, or has there been  a problem with DNR, DEC, or                                                               
ADF&G in their recent findings with permitting mines.                                                                           
                                                                                                                                
REPRESENTATIVE  JOSEPHSON agreed  he  is  uncomfortable with  the                                                               
current process, and  advised that in 2013  Legislative Legal and                                                               
Research  Services prepared  a document  offering an  overview of                                                               
changes  in the  last 13  years in  the regulatory  process.   He                                                               
cited  a number  of projects  and  how they  were handled,  which                                                               
included: the  Coastal Zone Management  Repeal, new  mixing zones                                                               
allowing  for toxins  in  an anadromous  streams  which were  not                                                               
allowed prior  to House Bill  160 (2003) making changes  to Title                                                               
18  AAC, and  House Bill  129 which  read, "We're  only going  to                                                               
review oil and  gas leases at the outset for  10 years, no public                                                               
comment  during that  period."    He advised  there  have been  a                                                               
series of decisions from the  Supreme Court, and legislation that                                                               
has gone in the opposite direction, and he has concerns.                                                                        
                                                                                                                                
5:42:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLETT asked  Representative Josephson  to point                                                               
to a permitted large-scale mine in  the last ten years wherein he                                                               
believes fish required protection.                                                                                              
                                                                                                                                
REPRESENTATIVE JOSEPHSON listed concerns  with the Illinois Creek                                                               
Mine [located in the Kaiyuh  Mountains, west-central Alaska], and                                                               
the  Rock Creek  Mine located  on the  Seward Peninsula,  as both                                                               
mines never came to fruition yet  dirt was turned and $20 million                                                               
of  remediation  is  necessary  on  the  Seward  Peninsula.    He                                                               
questioned  whether Alaska  has  enough boots  on  the ground  to                                                               
monitor, and  referred to the  Pebble Mine that  self-reported 44                                                               
water violations and expressed concern  because Pebble Mine self-                                                               
reported  the  violations  and  Alaska   was  not  aware  of  the                                                               
problems.    The  trans-boundary  issue is  a  real  concern  for                                                               
Southeast  Alaska,  and  he opined  that  the  administration  is                                                               
concerned.                                                                                                                      
                                                                                                                                
5:43:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLETT  inquired  why  Representative  Josephson                                                               
would  not put  a bill  forward changing  the permitting  process                                                               
rather than  presenting HB  119 with  a large  fiscal note.   She                                                               
opined  that  if  there  was  another large  mine  that  went  to                                                               
permitting  it would  raise  the state's  cost  incredibly.   She                                                               
stressed that the legislature is  cutting education, yet he wants                                                               
to add mine permitting to the  pile of money Alaska does not have                                                               
just  in  case someone  comes  forward  to  permit a  large  mine                                                               
because  he  is  uncomfortable  with the  manner  Alaska  permits                                                               
mines.   She  suggested moving  toward permitting  changes rather                                                               
than  another  study and  layer  of  government that  is  scaring                                                               
industry away from the State of Alaska.                                                                                         
                                                                                                                                
REPRESENTATIVE JOSEPHSON  responded that  new permits  would also                                                               
be another layer of regulations with  costs, and he does not know                                                               
whether that remedy would change  much of the result.  Statistics                                                               
show  permits   are  generally   granted,  although   with  tough                                                               
conditions, he acquiesced.   He reiterated that  given Alaska has                                                               
the best wild salmon fishery on  the planet, it is smart thinking                                                               
when  three  commissioners  review preliminary  permits  and  the                                                               
"whole thing"  in total, and  make an independent finding  with a                                                               
peer-reviewable inter-agency review.                                                                                            
                                                                                                                                
5:45:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT asked  what amount of time  this would add                                                               
to a large  mine project in realistic terms.   Bristol Bay Pebble                                                               
Mine had  multiple studies which was  not enough so where  do the                                                               
studies stop  - until there  is a piece of  data that can  stop a                                                               
complete mine, she questioned.                                                                                                  
                                                                                                                                
REPRESENTATIVE JOSEPHSON  responded the answer  to Representative                                                               
Millett's  second question  would be  after HB  119 is  passed is                                                               
where to  stop.   With respect  to her  first question,  he could                                                               
only  surmise that  is could  be  six months,  but stressed  that                                                               
people  and  legislators  are  entitled   to  confidence  in  the                                                               
process.                                                                                                                        
                                                                                                                                
CHAIR STUTES opened public testimony.                                                                                           
                                                                                                                                
5:46:30 PM                                                                                                                    
                                                                                                                                
DAVID   HARSILA,   President,  Alaska   Independent   Fisherman's                                                               
Marketing Association  (AIFMA), testified  in support of  HB 119,                                                               
and   said   the   Alaska   Independent   Fisherman's   Marketing                                                               
Association  (AIFMA)  board  met  with mining  officials  from  a                                                               
prominent  company approximately  10  years ago  and advised  its                                                               
permitting  process research  in  Alaska indicated  the State  of                                                               
Alaska would  never deny permits,  which referred  to large-scale                                                               
open-pit mines that would be  developed in Bristol Bay Watershed.                                                               
Its explanation  and confidence about  Pebble Mine  convinced the                                                               
AIFMA board,  at that  time, that  this was  a significant  and a                                                               
real  issue,  he  conveyed.    Since that  time  AIFMA  has  been                                                               
searching  to provide  a higher  standard  when applications  for                                                               
large-scale open-pit mines are considered  and the opportunity to                                                               
address  this  issue  is  now, before  a  permit  application  is                                                               
received, and before a mine is  developed as opposed to after the                                                               
fact.   He pointed out  that the  largest natural run  of Sockeye                                                               
Salmon  in   the  entire  world   resides  in  the   Bristol  Bay                                                               
Watersheds,  and it  is  at stake.   He  urged  the committee  to                                                               
protect  the  Bristol  Bay Watershed  from  large-scale  open-pit                                                               
mining and the damages it could incur.                                                                                          
                                                                                                                                
CHAIR STUTES  closed public testimony  after ascertaining  no one                                                               
further wished to testify.                                                                                                      
                                                                                                                                
5:49:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS moved  to report  HB 119,  labeled                                                               
29-LS0424\H out of committee  with individual recommendations and                                                               
the accompanying fiscal note.                                                                                                   
                                                                                                                                
REPRESENTATIVE MILLETT objected.                                                                                                
                                                                                                                                
5:49:54 PM                                                                                                                    
                                                                                                                                
A  roll call  vote  was taken.    Representatives Foster,  Ortiz,                                                               
Kreiss-Tomkins,   and  Stutes   voted   in  favor   of  HB   119.                                                               
Representatives   Johnson   and   Millett   voted   against   it.                                                               
Therefore,  HB 119  passed  and  was reported  out  of the  House                                                               
Special Committee on Fisheries by a vote of 4-2.                                                                                
                                                                                                                                
5:50:30 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 5:50 p.m. to 5:52 p.m.                                                                       
                                                                                                                                

Document Name Date/Time Subjects
HB 119 Supporting Document - BBFR Map.pdf HFSH 4/7/2015 5:00:00 PM
HB 119
HB 119 Supporting Document - Pebble 2.pdf HFSH 4/7/2015 5:00:00 PM
HB 119
HB 119 Supporting Document - Pebble 1.pdf HFSH 4/7/2015 5:00:00 PM
HB 119
HB 119 Supporting Document - Pebble 3.pdf HFSH 4/7/2015 5:00:00 PM
HB 119
HB 119 Supporting Document - Talking Points.pdf HFSH 4/7/2015 5:00:00 PM
HB 119
HB 119 Supporting Document - Pebble 3.pdf HFSH 4/7/2015 5:00:00 PM
HB 119
HB 119 Supporting Document - BBFR Map.pdf HFSH 4/7/2015 5:00:00 PM
HB 119
HB 119 Supporting Document - Talking Points.pdf HFSH 4/7/2015 5:00:00 PM
HB 119
HB 119 Supporting Document - Pebble 1.pdf HFSH 4/7/2015 5:00:00 PM
HB 119
HB 119 Supporting Document - Pebble 2.pdf HFSH 4/7/2015 5:00:00 PM
HB 119
HB 110 Oppose CDFU.pdf HFSH 4/7/2015 5:00:00 PM
HB 110
HB 110 Oppose UFA.pdf HFSH 4/7/2015 5:00:00 PM
HB 110
HB 110 Oppose Martin.pdf HFSH 4/7/2015 5:00:00 PM
HB 110
HB 110 Oppose SEAFA.pdf HFSH 4/7/2015 5:00:00 PM
HB 110
HB 110 Oppose AK Salmon Alliance.pdf HFSH 4/7/2015 5:00:00 PM
HB 110
HB 110 Oppose UCIDA.pdf HFSH 4/7/2015 5:00:00 PM
HB 110
HCR 10 Support DOL.pdf HFSH 4/7/2015 5:00:00 PM
HCR 10
HB179 Explanation of Changes ver A to ver E.pdf HFSH 4/7/2015 5:00:00 PM
HB 179
HB179 ver E.pdf HFSH 4/7/2015 5:00:00 PM
HB 179
HB179 Sectional ver E.pdf HFSH 4/7/2015 5:00:00 PM
HB 179
HB 179 Support Tlingit and Haida.pdf HFSH 4/7/2015 5:00:00 PM
HB 179
HCR 10 Support BBB Chamber of Commerce.pdf HFSH 4/7/2015 5:00:00 PM
HCR 10
HB 110 Oppose SEAS.pdf HFSH 4/7/2015 5:00:00 PM
HB 110
HB 110 Oppose ASA.pdf HFSH 4/7/2015 5:00:00 PM
HB 110
HB 110 Oppose Lee.pdf HFSH 4/7/2015 5:00:00 PM
HB 110
HB 110 Oppose Evans.pdf HFSH 4/7/2015 5:00:00 PM
HB 110