Legislature(2023 - 2024)BARNES 124

03/29/2023 01:00 PM House RESOURCES

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Audio Topic
01:02:35 PM Start
01:03:35 PM HB125
01:09:53 PM HB95
01:56:48 PM Presentation(s): Alaska Gasline Development Corporation Update
02:58:51 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 125 TRAPPING CABINS ON STATE LAND TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 95 NATL. RES. WATER NOMINATION/DESIGNATION TELECONFERENCED
Heard & Held
+ Presentation: Alaska Gasline Development TELECONFERENCED
Corporation Update by Frank Richards
+ Bills Previously Heard/Scheduled TELECONFERENCED
         HB  95-NATL. RES. WATER NOMINATION/DESIGNATION                                                                     
                                                                                                                                
1:09:53 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY  announced that the  next order of business  would be                                                               
HOUSE  BILL NO.  95, "An  Act  relating to  designation of  state                                                               
water as  outstanding national resource water;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
1:10:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER,  as the prime sponsor,  introduced HB 95                                                               
and provided  the history of  the Clean  Water Act.   He directed                                                               
attention  to   the  PowerPoint  presentation,  titled   "HB  95:                                                               
National  Resource   Water  Nomination/Designation"   [hard  copy                                                               
included  in  the committee  packet].    He explained  that  this                                                               
matter has  been presented  to the legislature  in the  past, and                                                               
the purpose of the bill is  to give the legislature the authority                                                               
to designate a  water body as Tier  III, as seen on slide  2.  He                                                               
stated that  Tier III  waters are also  known as  the Outstanding                                                               
National  Resource Waters  (ONWR).   He  showed  slide 3,  titled                                                               
"Clean Water  Act" and  said the  Act mandates  that by  1983 the                                                               
states  implement  water  quality  standards.    These  standards                                                               
include designation and  classifications, water quality criteria,                                                               
and anti-degradation policies.                                                                                                  
                                                                                                                                
REPRESENTATIVE RAUSCHER moved to slide  4, which showed a graphic                                                               
representation of  the three tiers.   He described Tier  I waters                                                               
as those which  are polluted and do not meet  state standards and                                                               
accept  additional pollution  discharges.   Tier  II waters  meet                                                               
water  quality  standards  but can  also  accept  some  pollution                                                               
discharges.   He described Tier  III waters  as "the best  of the                                                               
best," or ONWR.                                                                                                                 
                                                                                                                                
REPRESENTATIVE RAUSCHER continued to slide  5, titled "40 Code of                                                               
Federal   Regulations  131.12(A)(3),"   which  read   as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     "Where  high quality  waters constitute  an outstanding                                                                    
     national resource,  such as waters of  the national and                                                                    
     state  parks   and  wildlife  refuges  and   waters  of                                                                    
     exceptional  recreational  or ecological  significance,                                                                    
     that water quality shall be maintained and protected."                                                                     
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  RAUSCHER explained  that  the  U.S. Congress  has                                                               
empowered  every  state to  protect  its  most outstanding  water                                                               
bodies with  the highest  levels of protection.   He  argued that                                                               
the  water  quality must  be  maintained,  and no  new  pollution                                                               
discharges  should  be allowed.    He  reiterated that  the  U.S.                                                               
Congress has  said that some lakes  and rivers are so  unique and                                                               
so important  they should not  be dumping grounds for  mining and                                                               
other types of waste.                                                                                                           
                                                                                                                                
1:14:35 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
1:14:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER continued  the  presentation  on HB  95,                                                               
moving   to  slide   6,  which   addressed   the  Department   of                                                               
Environmental  Conservation  (DEC),  and the  nomination  process                                                               
steps  for Tier  III.   He stated  that nominations  are sent  to                                                               
legislators  who would  introduce  legislation.   He pointed  out                                                               
that  the nomination  would usually  go to  the legislator  whose                                                               
district contains the proposed Tier III  body of water.  Once the                                                               
bill is introduced, it would  go through the thorough legislative                                                               
bill process,  and if passed,  it would  be written into  law and                                                               
the body of water would be designated as Tier III.                                                                              
                                                                                                                                
Randy Bates,  Director, Division  of Water, Alaska  Department of                                                               
Environmental Conservation,  explained that providing for  a Tier                                                               
III designation  would bring certainty  to the process  and would                                                               
codify in statute  a consistent practice on how  lands and waters                                                               
across the state are designated  for conservation.  This would be                                                               
by legislative approval rather than  by a director, commissioner,                                                               
or  judicial  action; therefore,  it  would  not be  a  political                                                               
process.     He  emphasized  that   each  body  of   water  under                                                               
consideration would go through  the complete legislative process.                                                               
Nominations  for  Tier  III  waters   would  be  brought  to  the                                                               
district's legislator and travel  through the legislative process                                                               
just like  any other  bill.   When the bill  passes, the  body of                                                               
water is designated as Tier III.                                                                                                
                                                                                                                                
REPRESENTATIVE RAUSCHER moved  to slide 7, which showed  a map of                                                               
Alaska  with the  names and  locations  of five  bodies of  water                                                               
nominated for Tier III status.   He explained that these have not                                                               
yet received  Tier III  designation; however,  they are  in line.                                                               
He suggested that if the system  being considered in this bill is                                                               
incorporated, it would speed up the process.                                                                                    
                                                                                                                                
1:18:07 PM                                                                                                                    
                                                                                                                                
RYAN MCKEE,  Staff, Representative George Rauscher,  Alaska State                                                               
Legislature,   on  behalf   of  Representative   Rauscher,  prime                                                               
sponsor, presented slide 8,  titled "Alaska Constitution, Article                                                               
8,  Section  2"  which  read  as  follows  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     "The  Legislature shall  provide  for the  utilization,                                                                    
     development, and conservation  of all-natural resources                                                                    
     belonging to the state, including  land and waters, for                                                                    
     the maximum benefit of its people."                                                                                        
                                                                                                                                
MR. MCKEE moved to slide  9, titled "Alaska Constitution, Article                                                               
8,  Section  13," which  read  as  follows [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     "All  surface and  subsurface  waters  reserved to  the                                                                    
     people  for common  use, except  mineral and  medicinal                                                                    
     waters,  are  subject  to  appropriation.  Priority  of                                                                    
     appropriation  shall  give   prior  right.  Except  for                                                                    
     public water  supply, an  appropriation of  water shall                                                                    
     be   limited  to   stated  purposes   and  subject   to                                                                    
     preferences  among   beneficial  uses,   concurrent  or                                                                    
     otherwise,  as prescribed  by law,  and to  the general                                                                    
     reservation of fish and wildlife."                                                                                         
                                                                                                                                
MR. MCKEE  concluded the presentation  by pointing  out that                                                                    
the proposed legislation would  codify DEC's concurrent Tier                                                                    
III policy,  expediting the nomination of  current bodies of                                                                    
water.                                                                                                                          
                                                                                                                                
1:19:22 PM                                                                                                                    
                                                                                                                                
MR. MCKEE  presented the sectional  analysis [hard  copy included                                                               
in  the  committee  packet],  which  read  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
       Section 1: Amends AS 46.03 by adding a new section                                                                       
     that:                                                                                                                      
                                                                                                                                
       Establishes AS 46.03.085(a). Through statute, the                                                                        
       legislature may designate water of the state as an                                                                       
     outstanding national resource water.                                                                                       
                                                                                                                                
     Establishes AS 46.03.085(b). Unless the body of water                                                                      
         has been designated as an outstanding national                                                                         
     resource water can it be managed like so.                                                                                  
                                                                                                                                
     Section 2: Applies for an immediate effective date.                                                                        
                                                                                                                                
MR. MCKEE called attention to the zero fiscal note.                                                                             
                                                                                                                                
1:20:17 PM                                                                                                                    
                                                                                                                                
MR. MCKEE,  in response  to a question  from Chair  McKay, stated                                                               
that there are currently no Tier III waters in the state.                                                                       
                                                                                                                                
CHAIR  MCKAY  noted  the  five rivers  which  are  the  potential                                                               
candidates  for Tier  III status.   He  expressed the  assumption                                                               
that these rivers  are on state land; however,  he questioned the                                                               
effects if  any of the rivers  flowed on Native or  federal lands                                                               
also.                                                                                                                           
                                                                                                                                
REPRESENTATIVE RAUSCHER deferred the question to DEC.                                                                           
                                                                                                                                
1:21:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DIBERT,  referring  to slide  7,  questioned  the                                                               
application process.                                                                                                            
                                                                                                                                
REPRESENTATIVE RAUSCHER  responded that  any group or  person can                                                               
nominate a  body of water and  begin the process by  contacting a                                                               
local  state   legislator.    Significant  information   must  be                                                               
provided to  answer any  questions the legislator  may have.   He                                                               
expressed  the belief  that  it is  a duty  for  a legislator  to                                                               
follow through with such legislation.                                                                                           
                                                                                                                                
1:24:14 PM                                                                                                                    
                                                                                                                                
MR. BATES  stated that DEC  supports HB  95 in its  current form.                                                               
He  explained that  ONWR are  commonly  referred to  as Tier  III                                                               
waters.    They  are  defined   as  exceptional  recreational  or                                                               
ecologically  significant waters  which shall  be maintained  and                                                               
protected from degradation.   A Tier III  designation bestows the                                                               
highest  level  of water  quality  protection  under the  federal                                                               
Clean  Water  Act and  restricts  activities  on the  waters  and                                                               
adjacent land.  The restricted  activities include road building,                                                               
seafood processing, recreational  activities that require certain                                                               
types of  permits, wastewater  and stormwater  discharge systems,                                                               
landfills, quarries,  and other  types of activities  which would                                                               
result in  degradation of  the waters.   He  stated that  in 2018                                                               
Alaska  created  a  process  to designate  Tier  III  waters,  as                                                               
required by  the Clean Water  Act, and,  since this time,  no new                                                               
discharges have been  allowed to Tier III waters.   He added that                                                               
this has  long-term implications  for both adjacent  and upstream                                                               
areas.                                                                                                                          
                                                                                                                                
1:28:27 PM                                                                                                                    
                                                                                                                                
MR. BATES  stated that  DEC supports  this bill  which formalizes                                                               
the designation of Tier III  waterways by statute.  Outlining the                                                               
three  reasons  for  DEC's  support,  he  read  from  a  prepared                                                               
statement, which read as follows:                                                                                               
                                                                                                                                
     1.  The legislative process  provides a full and public                                                                    
     process,  engaging  all  the  interested  and  affected                                                                    
     parties that might have an  interest in this particular                                                                    
     designation including communities,  residents, users of                                                                    
     the  area, developers  and  conservationists.   And  as                                                                    
     well, those agencies that  may share responsibility for                                                                    
     managing those areas and waters.                                                                                           
                                                                                                                                
     2.     The  legislative  process  allows   for  a  full                                                                    
     discussion  of  the   consequences,  restrictions,  and                                                                    
     impacts  other of  activities and  potential activities                                                                    
     by  the  designation  for the  future  and  foreseeable                                                                    
     activities.                                                                                                                
                                                                                                                                
     3.   He commented  that this was  critically important.                                                                    
     The  legislative  body in  the  process  is the  proper                                                                    
     forum  to establish  land and  water use  designations.                                                                    
     DEC is pleased to return  that power to the legislature                                                                    
     in this instance.                                                                                                          
                                                                                                                                
1:29:22 PM                                                                                                                    
                                                                                                                                
MR. BATES maintained  that providing for a  Tier III designation,                                                               
as structured in HB 95, would  bring certainty to the process and                                                               
codify a consistent  practice on how lands and  waters across the                                                               
state  would  be  designated   for  conservation  by  legislative                                                               
approval, rather than by a  director, a commissioner, or judicial                                                               
action.  To  answer a previous question, he  explained that there                                                               
are no Tier  III designated waters in Alaska, but  there are five                                                               
pending applications, with the first  in 2012 and the most recent                                                               
in 2017.  He stated that  DEC had responded to these proposals by                                                               
suggesting  the  proponents  contact their  legislators  to  seek                                                               
support.  He  offered to share copies of the  five proposals with                                                               
the  committee.   He described  the proposals  as ranging  from a                                                               
single-page  letter to  a 50-page  document,  which included  the                                                               
nominating group's research and water quality measurements.                                                                     
                                                                                                                                
1:31:23 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY  asked why the  2012 application for  the designation                                                               
of  a Tier  III body  of water  has not  been addressed  11 years                                                               
later.    He  questioned  whether   DEC  had  not  processed  the                                                               
designation.                                                                                                                    
                                                                                                                                
MR. BATES explained  that the 2012 nomination is  for the Koktuli                                                               
River,  which is  one  of the  headwaters for  Bristol  Bay.   He                                                               
stated  that the  list of  petitioners is  extensive.   He stated                                                               
that DEC had most recently  responded to the application in 2019,                                                               
reaffirming  the  policy  that  Tier  III  designations  are  the                                                               
purview of the legislature.   He reiterated to the committee that                                                               
it is not appropriate for a  commissioner or a department to make                                                               
these designations.   He stated that the  department supports the                                                               
proposed legislation because it moves  the power and authority to                                                               
the legislature.   He expressed the opinion  that the legislature                                                               
is the proper body for dealing with this matter.                                                                                
                                                                                                                                
1:33:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  mentioned that  HB 95 had  previously been                                                               
heard  in  the House  Special  Committee  on Fisheries  where  an                                                               
amendment  was offered  to give  authority  to both  DEC and  the                                                               
legislature.   Opposing  the amendment,  he expressed  the belief                                                               
that  this would  politicize  the process.    He requested  DEC's                                                               
position on  the designations  and asked  whether this  should be                                                               
the responsibility of the legislature.                                                                                          
                                                                                                                                
1:34:46 PM                                                                                                                    
                                                                                                                                
MR.  BATES expressed  agreement with  Representative McCabe.   He                                                               
explained  DEC's   position,  which  is   this  is  a   land  use                                                               
designation,  which exceeds  the authority  of DEC  because state                                                               
appropriations  should exist  in the  legislature.   Referring to                                                               
the previous hearing, he said  that there had been suggestions to                                                               
include DEC  in addition  to the legislature.   He  described the                                                               
challenges  and  how  this  would   counter  DEC's  policies  for                                                               
consistency and  predictability.   He expressed the  opinion that                                                               
this  could also  politicize  the process  by  creating a  system                                                               
where  advocates  for Tier  III  water  bodies  could go  to  the                                                               
department's commissioner  or director  if they  could not  get a                                                               
bill through  the legislature.  He  argued that, if it  is in the                                                               
hands  of  a commissioner  or  a  director,  it may  violate  the                                                               
separation of  powers.   In addition, this  would more  likely be                                                               
subject to  judicial review,  leaving the  courts with  the final                                                               
Tier  III designation.    This could  potentially  leave out  the                                                               
perspective of the legislature, the client, or the department.                                                                  
                                                                                                                                
1:36:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE  speculated  that  if  the  bill  were  to                                                               
include  DEC as  an  alternate path  to  these designations,  the                                                               
legislature and  DEC may  be at odds.   If this  is the  case, it                                                               
would  become necessary  to bring  in  the judicial  branch.   He                                                               
reiterated  his   belief  that  the  process   belongs  with  the                                                               
legislature, and  the process needs to  be in place so  these old                                                               
applications can be addressed.                                                                                                  
                                                                                                                                
1:37:05 PM                                                                                                                    
                                                                                                                                
CHAIR  MCKAY asked  for the  explanation concerning  water bodies                                                               
which  cross jurisdictions,  such as  Native, federal,  and state                                                               
boundaries.  He  questioned whether the river  would maintain its                                                               
Tier  III  status if,  for  example,  it  crossed from  state  to                                                               
federal lands.                                                                                                                  
                                                                                                                                
1:37:52 PM                                                                                                                    
                                                                                                                                
MR.  BATES   responded  that   there  are   questions  concerning                                                               
ownership  of  bodies of  water.    He  surmised that  the  state                                                               
clearly asserts  that rivers and  navigable waters are  under the                                                               
state's authority and  purview; therefore, this would  be a legal                                                               
issue.   He explained that  if a portion  or entirety of  a water                                                               
body  is designated  as  Tier  III, it  is  going  to be  managed                                                               
according to the federal and the  state rules as a Tier III water                                                               
body.    He  explained  that  if there  is  a  state  or  federal                                                               
wastewater  discharge  permit  or  water  quality  permit,  these                                                               
permits  would be  implicated in  the Tier  III water  body.   He                                                               
continued  that proposed  activities in  or close  to a  Tier III                                                               
water body would not be allowed  to change, degrade, or lower the                                                               
quality of water, regardless of land ownership.                                                                                 
                                                                                                                                
1:39:54 PM                                                                                                                    
                                                                                                                                
CHAIR  MCKAY,  using the  Yakutat  Forelands  as an  example,  he                                                               
suggested that  most Alaska legislators  have not been  there, so                                                               
the  legislators from  this district  would need  to provide  the                                                               
thorough  justification  for  the   Tier  III  designation.    He                                                               
questioned  whether this  is  part of  the  rationale behind  the                                                               
bill.                                                                                                                           
                                                                                                                                
MR. BATES  expressed agreement  with Chair McKay.   He  said that                                                               
the  Tier  III designation  needs  information,  relying on  good                                                               
science  and  compelling arguments,  regarding  why  the body  of                                                               
water  is special.   He  reminded  the committee  that they  were                                                               
talking about water bodies which are  the "best of the best."  He                                                               
added  that,   nationally,  Alaska's  Tier  II   waters  and  the                                                               
protections  offered are  second to  none, as  Alaska has  a very                                                               
comprehensive and rigorous regulatory  program which includes all                                                               
DEC sister agencies in the management of Tier II waters.                                                                        
                                                                                                                                
1:41:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DIBERT, concerning  the Chandler  River Tier  III                                                               
nomination,  pointed out  the 50-page  report from  the nominees.                                                               
She  questioned  whether  legislators  could  ask  DEC  or  other                                                               
agencies to help understand the science in the reports.                                                                         
                                                                                                                                
CHAIR MCKAY responded  that most of the legislators  are not wild                                                               
land  or river  experts, so  expert background  is important  for                                                               
learning about these water bodies.   He questioned whether a Tier                                                               
III designation  could be taken  away by future legislation.   He                                                               
offered a  scenario in which  the Chandlar River is  designated a                                                               
Tier III  waterway, then what  if the largest deposit  of lithium                                                               
ever found  was on the banks  of this river.   He questioned what                                                               
would happen then.                                                                                                              
                                                                                                                                
MR. BATES  stated that  the Chandlar River  was nominated  by the                                                               
Venetie Village  Council in 2016  and responded that when  a Tier                                                               
III  designation goes  into effect,  DEC would  need to  know the                                                               
specifics to manage it appropriately.   If it is geothermal water                                                               
or  has exceptional  clarity, appropriate  management would  have                                                               
different  costs.   He  referred  to  a letter  concerning  costs                                                               
written  in April  2022, when  this was  being considered  by the                                                               
legislature.  Addressing the issue  of de-designating an area, he                                                               
explained  that  currently  the Environmental  Protection  Agency                                                               
(EPA) has confirmed there is no rule prohibiting such an action.                                                                
                                                                                                                                
1:47:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DIBERT  questioned  the number  of  other  states                                                               
which use their legislatures to designate waters.                                                                               
                                                                                                                                
MR. BATES, responding,  expressed uncertainty.  He  added that he                                                               
would follow up with this information to the committee.                                                                         
                                                                                                                                
REPRESENTATIVE RAUSCHER  went into detail about  why he sponsored                                                               
the  proposed legislation.   He  reminded the  committee that  it                                                               
deals with very  complex matters, such as  fiscal situations, gas                                                               
and oil  leases and taxes, and  future fiscal policy.   He argued                                                               
that  waterway issues  are  not beyond  the  capabilities of  the                                                               
legislators.    He  explained  the  process he  would  use  if  a                                                               
proponent  for  a  Tier  III   waterway  approached  him  with  a                                                               
nomination.   He  said he  would  take time  during the  interim,                                                               
reading and  studying the documentation to  better understand the                                                               
reasoning  and science.   He  would communicate  this with  other                                                               
legislators.  The issue may  seem daunting; however, he expressed                                                               
the opinion  that the  legislature has  worked on  many important                                                               
things, and  if the  legislature is tasked  with an  issue, there                                                               
will be due diligence.  He  argued that the five nominations have                                                               
not been dealt  with for many years, and he  expressed the desire                                                               
to see this changed.                                                                                                            
                                                                                                                                
1:51:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   MEARS   expressed   her   concerns   about   the                                                               
legislature's ability to deal with  such matters without a formal                                                               
background.    She  stated  that   the  standards,  science,  and                                                               
timelines  were not  conducive to  the  legislative process,  and                                                               
there  should  be  a  recommendation process  by  experts.    She                                                               
pointed to the financial burden  on the applicants who gather the                                                               
information.   She expressed  concern that  the process  would be                                                               
deliberate.                                                                                                                     
                                                                                                                                
1:54:38 PM                                                                                                                    
                                                                                                                                
MR. BATES voiced DEC's objective  to avoid court involvement with                                                               
Tier  III designations.    He expressed  the  opinion that  DEC's                                                               
involvement should  be part  of the process  which has  the least                                                               
potential  for  ending up  in  a  courtroom.   He  expressed  the                                                               
opinion  that  if one  of  these  designations is  challenged  in                                                               
court, not only  will it delay the designation for  years, but it                                                               
will also put  the decision in the hands of  the court which does                                                               
not have the background to make such decisions.                                                                                 
                                                                                                                                
1:56:23 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY announced that HB 95 was held over.                                                                                 

Document Name Date/Time Subjects
AGDC 3.29.23 HRes Presentation.pdf HRES 3/29/2023 1:00:00 PM
HB 95 - Sectional Analysis.pdf HFSH 3/23/2023 10:00:00 AM
HRES 3/29/2023 1:00:00 PM
HB 95
HB 95 - Sponsor Statement.pdf HFSH 3/23/2023 10:00:00 AM
HRES 3/29/2023 1:00:00 PM
HB 95
HB 95 Supporting Document Presentation .pdf HRES 3/29/2023 1:00:00 PM
HB 95
HB 125 Public Testimony (through 3.28.23).pdf HRES 3/29/2023 1:00:00 PM
HB 125
Alaska-LNG_ESG-2023.pdf HRES 3/29/2023 1:00:00 PM
HB 95 Draanjik River ONRW Nomination.pdf HRES 3/29/2023 1:00:00 PM
HB 95
HB 95 Chilkat ONRW.pdf HRES 3/29/2023 1:00:00 PM
HB 95
HB 95 Chandlar River Tier 3 nomination.pdf HRES 3/29/2023 1:00:00 PM
HB 95
HB 95 Yakutat Forelands_Nomination.pdf HRES 3/29/2023 1:00:00 PM
HB 95
HB 95 Koktuli ONRW Nomination.pdf HRES 3/29/2023 1:00:00 PM
HB 95