Legislature(2013 - 2014)BUTROVICH 205

02/12/2013 09:00 AM Senate STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 1 ALASKA MINING DAY TELECONFERENCED
Moved SB 1 Out of Committee
*+ SB 2 INTERSTATE MINING COMPACT & COMMISSION TELECONFERENCED
Moved SB 2 Out of Committee
*+ SB 4 MILITARY TRAINING CREDIT TELECONFERENCED
Moved CSSB 4(STA) Out of Committee
          SB 2-INTERSTATE MINING COMPACT & COMMISSION                                                                       
                                                                                                                                
9:23:33 AM                                                                                                                    
SENATOR GIESSEL  introduced SB 2,  which authorizes the  state to                                                               
join   and  participate   in   the   Interstate  Mining   Compact                                                               
Commission. The purpose of the  Compact is to create and maintain                                                               
a  creative  and  productive mining  industry.  The  bill  allows                                                               
Alaska  to contribute  to  this knowledge.  The  dues for  Alaska                                                               
would be about  $35,000 per year for membership.  She shared dues                                                               
requirements.                                                                                                                   
                                                                                                                                
CHAIR DYSON asked for more information about the dues.                                                                          
                                                                                                                                
SENATOR GIESSEL explained  dues are based on how  much each state                                                               
produces. She  referred to a  chart of dues in  members' packets.                                                               
The highest paying  dues member is West Virginia.  She said there                                                               
is a cap on the amount of dues paid.                                                                                            
                                                                                                                                
CHAIR DYSON inferred that the  $35,000 amount Alaska would pay is                                                               
based on Alaska's present level of mining activity.                                                                             
                                                                                                                                
SENATOR GIESSEL said yes.                                                                                                       
                                                                                                                                
9:24:58 AM                                                                                                                    
GREG  CONRAD,  Executive   Director,  Interstate  Mining  Compact                                                               
Commission (IMCC), testified in support  of SB 2. Alaska has been                                                               
an associate member of IMCC since  2006 and is now moving forward                                                               
to become a full member.                                                                                                        
                                                                                                                                
MR. CONRAD  explained that in today's  legislative and regulatory                                                               
climate in  Washington, D.C. it  is more important than  ever for                                                               
state governments  to be heard.  He said that IMCC  is recognized                                                               
by many in Washington for  its experience and expertise on mining                                                               
issues. As an  example, IMCC has been asked to  testify on behalf                                                               
of the states at six  Congressional hearings over the past couple                                                               
years  on topics,  such as  Good Samaritan  Protections for  Hard                                                               
Rock  Abandoned Mine  Clean Ups,  stream protection  requirements                                                               
for  surface   coal  mining   operations,  hard   rock  financial                                                               
assurance  requirements  under  the  Comprehensive  Environmental                                                               
Response,  Compensation, and  Liability Act (CERCLA), legislation                                                               
to enhance funding for states  to reclaim abandoned coal and hard                                                               
rock mines, and the impacts of  the federal budget on state grant                                                               
programs.                                                                                                                       
                                                                                                                                
He   said  that   IMCC  has   been  consulted   by  the   General                                                               
Accountability Office and  the National Academy of  Sciences on a                                                               
range of  issues affecting  the states. Also,  IMCC is  active on                                                               
several advisory  bodies, steering committees,  and state/federal                                                               
teams on which  member states generally serve in  order to insure                                                               
their direct input.                                                                                                             
                                                                                                                                
MR. CONRAD  referred to IMCC's  annual report which  was included                                                               
in committee members' packets. He  related that IMCC is regularly                                                               
called  upon to  provide  its recommendations  on  a plethora  of                                                               
issues  on  Capitol  Hill  and   before  the  federal  regulatory                                                               
agencies.  The recommendations  are  developed by  the states  at                                                               
IMCC meetings  and are communicated  in the form  of resolutions,                                                               
testimonies, formal comments,  and Congressional staff briefings.                                                               
It is IMCC's  ability to speak with one voice  on common concerns                                                               
that draws  the states  together and gives  meaning to  what IMCC                                                               
does.                                                                                                                           
                                                                                                                                
He addressed why  Alaska should become a full member  of IMCC. He                                                               
said that  membership would  allow Alaska to  have a  formal vote                                                               
and to  lead the Compact  in the  direction that is  favorable to                                                               
the  state. Alaska  would also  be  able to  chair IMCC  standing                                                               
committees  and  have  access to  all  communications,  meetings,                                                               
programs, and  initiatives. Membership  would also  allow federal                                                               
agencies and Congress to recognize  Alaska as an important player                                                               
in environmental  concerns and regulatory  issues. Since  IMCC is                                                               
focused  on mining  and related  environmental protection  issues                                                               
with  the federal  government,  it benefits  Alaska  to become  a                                                               
member.                                                                                                                         
                                                                                                                                
9:30:03 AM                                                                                                                    
SENATOR WIELECHOWSKI asked  about Article 3 of  the provision. He                                                               
inquired  if it  currently meets  Alaska's laws,  or if  it would                                                               
need to be revised.                                                                                                             
                                                                                                                                
MR.  CONRAD understood  that the  state has  robust policies  and                                                               
regulations in place  for the mining industry. He  said that IMCC                                                               
would not interfere with regulations, but rather provide advice.                                                                
                                                                                                                                
CHAIR  DYSON  inquired how  the  Compact  works regarding  mining                                                               
safety.                                                                                                                         
                                                                                                                                
MR.  CONRAD  said  that  subject is  not  reflected  in  specific                                                               
Compact language, but rather in  the general provisions of IMCC's                                                               
authority  to be  involved  in mining  issues  that impact  state                                                               
governments. He  offered to  provide that  information, as  it is                                                               
one of the key issues that IMCC pursues on behalf of states.                                                                    
                                                                                                                                
9:33:09 AM                                                                                                                    
SENATOR COGHILL pointed out that  information is found in Article                                                               
1, subsection (b)(4).                                                                                                           
                                                                                                                                
CHAIR DYSON agreed.                                                                                                             
                                                                                                                                
He noted  IMCC members have  very large mineral zones  that cross                                                               
into Canada.  He asked  if IMCC has  a working  relationship with                                                               
Canadian provinces.                                                                                                             
                                                                                                                                
MR. CONRAD said no.                                                                                                             
                                                                                                                                
9:34:33 AM                                                                                                                    
ED FOGELS,  Deputy Commissioner, Department of  Natural Resources                                                               
(DNR),  testified in  support of  SB 2.  He said  that DNR  has a                                                               
strong  mining regulatory  and permitting  program,  which is  in                                                               
line  with  IMCC's  enabling legislation  and  its  requirements.                                                               
Under  the  Governor's direction,  DNR  is  looking for  ways  to                                                               
improve   permitting   and   regulating   of   natural   resource                                                               
development  projects.  Part of  this  initiative  is to  improve                                                               
collaboration with  federal agencies  and to dialogue  with other                                                               
state regulatory and permitting agencies.  This is why IMCC is so                                                               
important to Alaska.                                                                                                            
                                                                                                                                
He  recalled his  work with  IMCC the  previous seven  years when                                                               
Alaska first  became an Associate  Member of IMCC. He  shared the                                                               
advantages of becoming a member of  IMCC, such as the full weight                                                               
it carries  from its  25 member  states during  interactions with                                                               
the federal  government. He  gave examples  of federal  issues of                                                               
importance to Alaska: the  U.S. Environmental Protection Agency's                                                               
initiative to  take over bonding  for hard rock  mining, numerous                                                               
Endangered Species  Act issues, federal budgets,  and Mine Safety                                                               
and Health Administration (MSHA)  regulations. There is a serious                                                               
concern  in Alaska  that  MSHA  is not  taking  into account  the                                                               
remoteness of some of the mine locations.                                                                                       
                                                                                                                                
He mentioned  that some  issues transcend  the mining  sector. He                                                               
said he was  the Governor's designee to represent  Alaska at IMCC                                                               
meetings.  He stressed  that full  membership  would give  Alaska                                                               
more power.  He noted  that IMCC is  growing; Nevada  is pursuing                                                               
full membership,  Montana is contemplating membership,  and there                                                               
is a  movement to get more  Western States to join.  He concluded                                                               
that IMCC is a valuable tool for Alaska.                                                                                        
                                                                                                                                
9:39:05 AM                                                                                                                    
SENATOR COGHILL asked what the current makeup of IMCC is.                                                                       
                                                                                                                                
MR. FOGELS  replied that IMCC  consists of  predominantly Eastern                                                               
states, but there  are some Midwestern states.  There are several                                                               
Western  Associate Members,  Wyoming,  Nevada, Alaska,  Colorado,                                                               
and Utah. Idaho and Montana are considering membership.                                                                         
                                                                                                                                
SENATOR COGHILL asked if water  quality and small placer mines is                                                               
an issue for other Compact states.                                                                                              
                                                                                                                                
MR.  FOGELS noted  that  Alaska  is unique  in  that respect.  He                                                               
opined that  there were some  smaller operators in  other states.                                                               
Also, other states have gravel and sand mines.                                                                                  
                                                                                                                                
SENATOR  WIELECHOWSKI pointed  out  that currently  there are  no                                                               
full-member Western states. He wondered  if decisions are made on                                                               
a consensus basis.                                                                                                              
                                                                                                                                
MR. FOGELS deferred  to Mr. Conrad to discuss  voting methods. He                                                               
agreed that Alaska would be the first Western state to join.                                                                    
                                                                                                                                
SENATOR COGHILL said Article 5,  subsection (b), refers to voting                                                               
rights. The  commissioner is entitled  to a vote. Most  voting is                                                               
by majority.                                                                                                                    
                                                                                                                                
9:42:57 AM                                                                                                                    
MICHAEL SATRE,  Executive Director, Council of  Alaska Producers,                                                               
testified in  support of  SB 2. He  referred to  written comments                                                               
the  Council  submitted  to  the committee.  He  noted  that  the                                                               
Council has always supported a  permitting and regulatory process                                                               
that is  rigorous, science  based, transparent,  and predictable.                                                               
He  opined  that  Alaska  is  a leader  in  mine  permitting  and                                                               
regulation, but  must continue  to improve  on that  process. One                                                               
way to  do that  is to  collaborate with  other mining  states by                                                               
joining IMCC.                                                                                                                   
                                                                                                                                
9:44:32 AM                                                                                                                    
DEANTHA CROCKETT, Executive  Director, Alaska Miners Association,                                                               
testified  in  support of  SB  2.  She  highlighted a  letter  of                                                               
support. She  testified that federal  regulation has  become more                                                               
problematic and  IMCC can be  helpful in that area.  She reported                                                               
on the status of the  Western States Mining Coalition. She stated                                                               
it would be very beneficial for Alaska to join IMCC.                                                                            
                                                                                                                                
9:46:01 AM                                                                                                                    
SENATOR COGHILL  moved to report  SB 2, labeled  28-LS0005\A, out                                                               
of  committee with  individual recommendations  and the  attached                                                               
fiscal notes. There  being no objections, SB 2  was reported from                                                               
the Senate State Affairs Standing Committee.                                                                                    

Document Name Date/Time Subjects
SB 1 - Sponsor Statement.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 1 - 001 Version U.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 1 - Overview of Mining in AK LR13-156.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 1- Letter of Support AMA.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 1 - Letter of Supporty CAP.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 1 - Support - 2011 Gov Parnell Mining Day Proclamation 041411.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 2 - Sponsor Statement.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Bill version 0005A.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Sectional.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Interstate Mining Compact Commission Website.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - IMCC Dues Assessments 2014 and 2015.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Letter of Support AMA.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Letter of Support CAP.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - IMCC 2011 Annual Report.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Letter of Support Resource Devlp Cncl.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 4 - Sponsor Statement.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 - Military Training Credit.Version U.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 - Sectional Analysis.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 - One Page Briefing.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 - Support Letter.Ed Kringer at DoD.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB4 - Support letter.Vietnam Veterans of America.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 Fiscal Note SB004-DCCED-CBPL-02-09-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 Fiscal Note SB004-DOLWD-WIB-2-8-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 1 Fiscal Note SB001-DOA-FAC-2-08-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 2 Fiscal Note SB002-DNR-MLW-2-9-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 Fiscal Note SB002-DOA-DRB-1-22-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Letter of Support Mr. Steffy.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 4 Fiscal Note SB004-UA-SYSBRA-2-12-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 4