Legislature(2005 - 2006)BELTZ 211

03/16/2005 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Bills Previously Heard/Scheduled
= SB 102 COASTAL MANAGEMENT PROGRAMS
Moved CSSB 102(CRA) Out of Committee
= SB 112 TAX ON REAA RESIDENTS
Moved CSSB 112(CRA) Out of Committee
               SB 102-COASTAL MANAGEMENT PROGRAMS                                                                           
                                                                                                                                
CHAIR GARY STEVENS  announced SB 102 to be  up for consideration.                                                               
He noted the \F version  committee substitute (CS) was before the                                                               
committee and asked Mr. Letch to come forward.                                                                                  
                                                                                                                                
2:12:04 PM                                                                                                                    
                                                                                                                                
DOUG  LETCH, staff  to  Senator Gary  Stevens,  explained the  \F                                                               
version  CS  mirrors HB  189  and  would  base the  deadline  for                                                               
district coastal program revisions  and annulment of the existing                                                               
program on federal approval of  the state program. The concept is                                                               
to  give coastal  districts additional  time  to develop  revised                                                               
plans so  that the public has  time to understand and  comment on                                                               
the new program the state and federal government agree upon.                                                                    
                                                                                                                                
At  the end  of the  previous hearing  the Department  of Natural                                                               
Resources asked  to be  given the opportunity  to respond  to the                                                               
committee substitute (CS).                                                                                                      
                                                                                                                                
2:12:45 PM                                                                                                                    
                                                                                                                                
SENATOR STEDMAN  asked for a recap  of the status of  the various                                                               
coastal districts  and what  would happen  if the  extension were                                                               
granted.                                                                                                                        
                                                                                                                                
2:14:26 PM                                                                                                                    
                                                                                                                                
RANDY BATES, Deputy Director of  Project Planning And Permitting,                                                               
Department   of  Natural   Resources  (DNR),   recapped  previous                                                               
testimony.  There are  35 established  coastal  districts and  33                                                               
districts currently have approved  plans. House Bill 191 required                                                               
all  coastal  districts to  review  and  renew their  plans  then                                                               
resubmit them  according to the  implementing regulations  of the                                                               
bill. Of  the 33  coastal districts with  coastal plans,  27 have                                                               
plan  revision commitments.  Of  the 27  that  have committed  to                                                               
making  revised plans,  the department  knows  that 16  districts                                                               
will put  draft plans  out for  public review  by mid  April. The                                                               
remaining 11  districts are  expected to  have the  revised plans                                                               
out for public review by the end of April.                                                                                      
                                                                                                                                
The department  made about $900,000 available  to provide partial                                                               
help for this  effort and part of the grant  requirement was that                                                               
the plans be  complete by July 1, 2005. Having  the plans out for                                                               
public review by  the end of April would put  the 27 districts on                                                               
track to meet the deadline.                                                                                                     
                                                                                                                                
CHAIR GARY  STEVENS asked Mr.  Bates whether he had  any comments                                                               
on the CS.                                                                                                                      
                                                                                                                                
MR. BATES  replied he had no  additional comments on the  CS, but                                                               
the  department did  provide a  new  fiscal note  to reflect  two                                                               
years additional  staff costs. Federal  funding runs out  in 2006                                                               
so the fiscal note reflects costs for both 2007 and 2008.                                                                       
                                                                                                                                
CHAIR  GARY  STEVENS  noted that  the  department  believes  that                                                               
extending  the  deadline for  one  year  would result  in  nearly                                                               
$200,000 in additional costs for 2007 and for 2008.                                                                             
                                                                                                                                
MR. BATES clarified the CS  actually extends the deadline for one                                                               
year  beyond  Oceans  and   Coastal  Resource  Management  (OCRM)                                                               
approval, which moves it into the two year timeframe.                                                                           
                                                                                                                                
CHAIR GARY  STEVENS recalled that everyone  that testified during                                                               
the  previous   hearing  spoke  in  support   of  the  extension.                                                               
Districts  asking for  additional time  included: Aleutians  West                                                               
Coastal Resource Service Area (CRSA),  Cenaliulriit CRSA, City of                                                               
Craig,  City  and Borough  of  Juneau,  Kenai Peninsula  Borough,                                                               
Kodiak Island  Borough, Lake and  Peninsula Borough,  North Slope                                                               
Borough.  Although  the  districts   said  they  could  meet  the                                                               
deadline, everyone  agreed that  the plans wouldn't  be complete;                                                               
rather they would need additional and substantial revisions.                                                                    
                                                                                                                                
He questioned  the justification for  the new fiscal note  for an                                                               
additional $200,000  per year when the  department has recognized                                                               
that substantial  revisions would  be needed and  those revisions                                                               
would be funded out of normal staffing.                                                                                         
                                                                                                                                
MR. BATES replied the fiscal note  reflects the fact that the one                                                               
time  congressional allocation  of Coastal  Impact Program  money                                                               
expires  7/1/05.  The key  staff  that  will  be looking  at  the                                                               
mapping requirements  and enforcement policies included  with the                                                               
plan  revisions  are  funded  out  of  that  pot  of  money.  The                                                               
department doesn't have  the money to carry the  staff beyond the                                                               
deadline.                                                                                                                       
                                                                                                                                
CHAIR GARY  STEVENS asked if  the substantial revisions  would be                                                               
funded thru normal staffing.                                                                                                    
                                                                                                                                
MR.  BATES  said  he  wanted  to be  clear  that  submitting  the                                                               
district  plan  revisions  doesn't   end  the  planning  process.                                                               
Districts  can continue  to refine  their coastal  plans and  the                                                               
current staff  is set  up to complete  the requirements  of House                                                               
Bill 191  through June  30, 2006.  At that  point some  monies to                                                               
keep  all  the  current  staff   on  will  expire.  However,  the                                                               
department does expect to assist  two to three districts per year                                                               
with basic planning requirements and  the staffing is adequate to                                                               
handle those.                                                                                                                   
                                                                                                                                
2:23:23 PM                                                                                                                    
                                                                                                                                
SENATOR  ELLIS  said he  recently  heard  that the  Governor  was                                                               
threatening to do  away with the entire coastal zone  plan in the                                                               
state if the federal government  didn't capitulate on a number of                                                               
points that  he deemed  important. He suggested  there must  be a                                                               
better   way  to   resolve   differences   than  a   head-to-head                                                               
confrontation.                                                                                                                  
                                                                                                                                
MR. BATES replied the state  has engaged in negotiations with the                                                               
granting and  approving agency  (OCRM) for  two years,  but "they                                                               
didn't come to table  the way we expected or asked  them to so we                                                               
are in  the situation we're  in." There is a  basic philosophical                                                               
difference between what  Washington D.C. wants in  a coastal plan                                                               
and  what the  legislation  passed in  2001  and the  regulations                                                               
promulgated  in   implementing  the  bill.  The   state  wants  a                                                               
streamlined  non-redundant  program and  OCRM  is  pushing for  a                                                               
program that  duplicates existing state  and federal law.  One of                                                               
the reasons the  Murkowski Administration opposes SB  102 is that                                                               
if the timeframe  is extended, the state is  playing into federal                                                               
hands in terms  of federal management of state  resources. "If we                                                               
don't keep  OCRM working  hard, they're going  to find  that they                                                               
can continue to push the state  to a program that we simply don't                                                               
agree with - that is not going to work for Alaska."                                                                             
                                                                                                                                
2:26:13 PM                                                                                                                    
                                                                                                                                
SENATOR  ELLIS remarked  that's a  bad  sign for  the bill  being                                                               
signed into law.                                                                                                                
                                                                                                                                
CHAIR GARY STEVENS agreed.                                                                                                      
                                                                                                                                
CHAIR GARY  STEVENS announced a  brief recess from 2:26:21  PM to                                                             
2:27:49 PM                                                                                                                    
                                                                                                                                
CHAIR  GARY STEVENS  reconvened the  meeting and  noted that  the                                                               
bill   had  both   Resource  Committee   and  Finance   Committee                                                               
referrals.                                                                                                                      
                                                                                                                                
2:28:03 PM                                                                                                                    
                                                                                                                                
SANDRA HARBANUK,  Juneau resident, said she  didn't come prepared                                                               
to testify,  but felt compelled to  do so after listening  to the                                                               
previous  testimony. She  is a  former  coastal project  reviewer                                                               
with  the  Division of  Governmental  Coordination,  DNR, and  is                                                               
currently  employed  as a  consultant  working  on seven  of  the                                                               
district coastal plans.                                                                                                         
                                                                                                                                
The coastal districts that testified  previously didn't point out                                                               
some of the  very major and significant  problems associated with                                                               
rewriting some of the plans.  The disagreements with OCRM are not                                                               
simple  and perhaps  that's  why the  districts  shied away  from                                                               
pointing them out.                                                                                                              
                                                                                                                                
House Bill 191 has it's own  set of problems, but the regulations                                                               
that DNR  promulgated are stultifying  and don't comply  with the                                                               
standards  that  are  set  out  in  federal  law.  Districts  are                                                               
constrained with  regard to  what they  can write  policies about                                                               
and   the  regulations   serve  as   a  straitjacket   for  local                                                               
participation in the state and federal processes.                                                                               
                                                                                                                                
She asked the  committee to carefully consider  the issue because                                                               
the  testimony   just  given  misrepresented  what   is  actually                                                               
happening.                                                                                                                      
                                                                                                                                
2:30:43 PM                                                                                                                    
                                                                                                                                
CHAIR  GARY STEVENS  summarized her  position is  that the  local                                                               
coastal zone management  districts are trying to  figure out what                                                               
to do and  how to write plans when there  is no agreement between                                                               
federal and state agencies.                                                                                                     
                                                                                                                                
MS.  HARBANUK  said the  guidance  coming  out  of DNR  has  been                                                               
continually changing;  the language is confusing  for determining                                                               
whether an  issue has been legitimately  and adequately addressed                                                               
before a policy can be written.  In addition there is the problem                                                               
associated with  having to designate  areas without  knowing what                                                               
an  area might  be used  for.  Overall, the  regulations place  a                                                               
stranglehold on what districts can do.                                                                                          
                                                                                                                                
CHAIR GARY  STEVENS questioned what communities  might accomplish                                                               
with the additional year.                                                                                                       
                                                                                                                                
MS. HARBANOK responded  she expects that districts  would work on                                                               
plan parts such  as resource inventory and analysis  and wait for                                                               
state and federal agreement. This  would allow them time to write                                                               
good policies  that would work  for the individual  districts. It                                                               
would also allow  time for the public  participation process that                                                               
the districts spoke to during the previous hearing.                                                                             
                                                                                                                                
There were no further questions or comments.                                                                                    
                                                                                                                                
CHAIR GARY STEVENS asked for a motion.                                                                                          
                                                                                                                                
2:33:22 PM                                                                                                                    
                                                                                                                                
SENATOR STEDMAN motioned to report CSSB 102(CRA) and attached                                                                   
fiscal notes from committee with individual recommendations.                                                                    
There being no objection, it was so ordered.                                                                                    

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