Legislature(2021 - 2022)ANCH LIO DENALI Rm

07/27/2021 10:00 AM House FISHERIES

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10:03:43 AM Start
10:04:08 AM Presentation(s): Dnr Water Regulations
11:22:07 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: DNR Water Regulations TELECONFERENCED
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         July 27, 2021                                                                                          
                           10:03 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Geran Tarr, Chair                                                                                                
Representative Louise Stutes, Vice Chair (via teleconference)                                                                   
Representative Dan Ortiz (via teleconference)                                                                                   
Representative Sarah Vance (via teleconference)                                                                                 
Representative Kevin McCabe (via teleconference)                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Jonathan Kreiss-Tomkins                                                                                          
Representative Andi Story                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):  DNR WATER REGULATIONS                                                                                         
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DAVID SONG, Staff                                                                                                               
Representative Geran Tarr                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  On behalf of Representative Tarr, committee                                                              
chair, reviewed the proposed regulations by the Department of                                                                   
Natural Resources (DNR) for instream flow reservations.                                                                         
                                                                                                                                
ERIC FJELSTAD                                                                                                                   
Resource Development Council                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided a presentation regarding the                                                                    
proposed regulations from the Department of Natural Resources                                                                   
for instream water reservations.                                                                                                
                                                                                                                                
BOB SHAVELSON, Advocacy Director                                                                                                
Cook Inletkeeper                                                                                                                
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Regarding the  proposed regulations from the                                                             
Department   of   Natural   Resources,  provided   a   PowerPoint                                                               
presentation,  titled "Instream  Flow Reservations:  Proposed DNR                                                               
Rules Repeat Mistakes from Outside."                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:03:43 AM                                                                                                                   
                                                                                                                                
CHAIR GERAN TARR called the  House Special Committee on Fisheries                                                             
meeting  to order  at  10:03 a.m.    Representatives Stutes  (via                                                               
teleconference),  Vance  (via   teleconference),  and  Tarr  were                                                               
present  at  the  call  to order.    Representatives  Ortiz  (via                                                               
teleconference) and  McCabe (via  teleconference) arrived  as the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
^PRESENTATION(S):  DNR Water Regulations                                                                                        
            PRESENTATION(S):  DNR Water Regulations                                                                         
                                                                                                                              
10:04:08 AM                                                                                                                   
                                                                                                                                
CHAIR TARR  announced that  the only order  of business  would be                                                               
presentations  by  Eric  Fjelstad  of  the  Resource  Development                                                               
Council and Bob  Shavelson of the Cook  Inletkeeper regarding the                                                               
proposed  regulations from  the Department  of Natural  Resources                                                               
for instream flow reservations.                                                                                                 
                                                                                                                                
10:04:54 AM                                                                                                                   
                                                                                                                                
DAVID  SONG,  Staff,  Representative  Geran  Tarr,  Alaska  State                                                               
Legislature, on  behalf of Representative Tarr,  committee chair,                                                               
reviewed the  proposed regulations  by the Department  of Natural                                                               
Resources (DNR)  for instream flow reservations.   He paraphrased                                                               
from  a document  on Representative  Tarr's letterhead  entitled,                                                               
"Summary of  DNR Water Regulation Changes,"  which read (original                                                               
punctuation provided, with some formatting changes):                                                                            
                                                                                                                                
     The Department of  Natural Resources recently announced                                                                    
     regulatory    changes   regarding    water   management                                                                    
     regulations,  specifically  Title   11  of  the  Alaska                                                                    
     Administrative  Code.  These  regulatory  changes  have                                                                    
     potentially  significant   impacts  on   instream  flow                                                                    
     reservation procedures  and the larger debate  on water                                                                    
     rights. The changes are summarized below:                                                                                  
                                                                                                                                
    1. 11 AAC 93.115 (Closure of an application for a water                                                                 
        right):                                                                                                               
        This code was changed  to remove the  appeal process                                                                    
        for water right applications that were closed at the                                                                    
        discretion of the Commissioner.                                                                                         
     2. 11 AAC 93.142 (Content of application):                                                                             
        This code was changed to add  qualifying language to                                                                    
        the existing code,  such as saying  "purported need"                                                                    
        instead of  simply  stating  the  "need"  for  water                                                                    
        reservation. It also  states that  applications must                                                                    
        include  "applicable"   data  to   substantiate  the                                                                    
        "purported need."  By  adding  this  qualifying  and                                                                    
        subjective language, it  gives DNR  more flexibility                                                                    
      to determine whether or not an application is valid.                                                                      
      3. 11 AAC 93.146 (Issuance of a certificate of water                                                                  
        reservation):                                                                                                         
        This code  was changed  significantly  to alter  the                                                                    
        recipient of the  certificate of  water reservation.                                                                    
        Under the  new  changes,  only applicants  that  are                                                                    
        state  or   federal   agencies   will  receive   the                                                                    
         certificate directly. Individuals or NGOs [non-                                                                        
        governmental organizations], for instance,  will not                                                                    
        receive the certificate    instead  DNR will  be the                                                                    
        certificate holder  (and  will  be  responsible  for                                                                    
        compliance).                                                                                                            
        Additionally, the certificate holder (and applicant)                                                                    
        will have  the ability  to participate/initiate  any                                                                    
        administrative/judicial    proceedings    re:    the                                                                    
        application  decision  or  the   management  of  the                                                                    
        certificate.                                                                                                            
     4. 11 AAC 93.147 (Review of reservation of water):                                                                     
        This code  is changed  slightly for  grammatical and                                                                    
        procedural clarity  (inserting the  words "original"                                                                    
        in front of the word "purpose,"  and "subsequent" in                                                                    
        front of the word "applicant").                                                                                         
     5. 11 AAC 93.210 (Temporary water use):                                                                                
        This code is  changed to say  that instead  of being                                                                    
        able to extend a temporary permit  for an additional                                                                    
        5 years,  a  temporary  use  of  water can  only  be                                                                    
        extended for a maximum  of 5 years  (including "time                                                                    
        served").                                                                                                               
     6. 11 AAC 93.220 (Procedure for temporary water use):                                                                  
        This code is changed to specify  that an application                                                                    
        must also include the  point of discharge  or return                                                                    
        flow, if there are any.                                                                                                 
     7. 11 AAC 93.510 (Public notice and hearing):                                                                          
        This code  is  completely  rewritten to  remove  the                                                                    
        requirement  of  DNR   to  publish   proposed  water                                                                    
        reservations in the local  community's newspaper. It                                                                    
        also removes the requirement of DNR to hold a public                                                                    
        hearing  with   oral/written  testimony.   A  public                                                                    
        meeting  (not   hearing)   may   be  held   at   the                                                                    
        Commissioner's discretion, but public  input must be                                                                    
        provided through  the  Alaska  Online Public  Notice                                                                    
        System. Only  affected property  owners, applicants,                                                                    
        governmental agencies, and "appropriators of record"                                                                    
        will   be   notified   of   DNR   water   management                                                                    
        designations.                                                                                                           
     8. 11 AAC 93.970 (Definitions)                                                                                         
        "Appropriators of  record" are  redefined to  be the                                                                    
        "holders of  a permit,"  rather than  the applicants                                                                    
        for the  permit.  The  Division  of Land  and  Water                                                                    
        Management is  also  redefined  as the  Division  of                                                                    
        Mining, Land, and Water.                                                                                                
                                                                                                                                
10:10:04 AM                                                                                                                   
                                                                                                                                
CHAIR TARR  noted that today's  meeting was  originally scheduled                                                               
to have  DNR staff  provide the  committee with  an introduction.                                                               
However, she said,  DNR notified the committee last  week that it                                                               
would be unable to participate because  it is at the point in the                                                               
process  that  is  considered  the quiet  period  where  DNR  has                                                               
received  and is  reviewing public  comments.   So,  DNR was  not                                                               
comfortable  presenting at  this hearing  and Mr.  Song therefore                                                               
provided this  brief overview of  the proposed changes,  which is                                                               
available on  BASIS.  She  requested that committee  members with                                                               
questions follow up with DNR.                                                                                                   
                                                                                                                                
CHAIR TARR invited Mr. Fjelstad to begin his presentation.                                                                      
                                                                                                                                
10:11:47 AM                                                                                                                   
                                                                                                                                
ERIC  FJELSTAD, Resource  Development Council  (RDC), provided  a                                                               
presentation   regarding  the   proposed  regulations   from  the                                                               
Department  of   Natural  Resources  (DNR)  for   instream  water                                                               
reservations (IFRs).   He  noted he is  an attorney  with Perkins                                                               
Coie, a past president of RDC,  and that RDC represents a variety                                                               
of  interests including  tourism, fishing,  mining, oil  and gas,                                                               
and Alaska Native corporations.   He maintained that the instream                                                               
flow regulatory  scheme has been  inaccurately reduced  to either                                                               
"support fish or you don't."                                                                                                    
                                                                                                                                
MR.  FJELSTAD stated  that the  issue in  play over  the past  10                                                               
years regarding the instream flow  regulatory process is that the                                                               
existing  process  doesn't  protect   fish  and  therefore  these                                                               
instream flow regulations are needed,  which he and most of RDC's                                                               
membership emphatically  disagree with.  He  asserted that Alaska                                                               
has a  robust process for  protecting fish, given it  cuts across                                                               
the  jurisdictions of  the  Alaska Department  of  Fish and  Game                                                               
(ADF&G)  through habitat  permitting, DNR  through water  rights,                                                               
and the  Department of  Environmental Conservation  (DEC) through                                                               
corresponding federal agencies.   In large project permitting, he                                                               
said,  protection  of  fish  is  the number  one  issue,  not  an                                                               
ancillary issue, there is no gap that needs to be filled.                                                                       
                                                                                                                                
10:16:10 AM                                                                                                                   
                                                                                                                                
MR. FJELSTAD  described instream  flow reservation  as a  form of                                                               
water rights  where the water is  kept in the stream  system, the                                                               
opposite of  agriculture where water  is piped from a  stream and                                                               
pumped onto a field.  He  said instream flow reservation has been                                                               
reduced to using it for fish,  which is the concern largely being                                                               
talked about  here, but  it can be  for any purpose.   It  has an                                                               
impact on anyone wanting water, he  stated.  A right to keep that                                                               
water in the  stream can make it hard or  impossible to get water                                                               
out  of the  stream for  a use.   Use  of water  is not  just the                                                               
resource community  needing water, he continued,  communities all                                                               
over Alaska  draw water from  rivers and other waterbodies  for a                                                               
variety of reasons  including drinking water.  So,  a water right                                                               
that says the water must stay  in the waterbody has the potential                                                               
to create issues, he stated, and that is part of RDC's concern.                                                                 
                                                                                                                                
MR.  FJELSTAD  said  RDC has  monitored  the  regulatory  process                                                               
currently  underway described  by Mr.  Song.   As  well, RDC  has                                                               
monitored the  specific instream  flow reservations  granted over                                                               
the  last  decade  and  found   that  DNR  routinely  provides  a                                                               
reservation where  more than  100 percent of  the water  has been                                                               
reserved for a third or more of  the year.  This means more water                                                               
has been reserved  than is literally in the stream,  but it isn't                                                               
supposed to  work that way.   In theory, he explained,  it should                                                               
work such that the quantum of  water necessary to protect fish is                                                               
determined and that's the reservation,  there is still water left                                                               
so to speak.   This is a big and  unresolved technical problem in                                                               
the process,  he specified,  not a legal  problem.   Mr. Fjelstad                                                               
qualified  that DNR  isn't doing  this  intentionally, it's  just                                                               
hard  to get  this right  because  rain, dry  periods, and  other                                                               
things make  water levels  go up  and down.   However,  he noted,                                                               
it's a  real problem to  a user, like  a community trying  to get                                                               
drinking water  when, through an  instream flow  reservation, the                                                               
community is  subject to  a regime  that says it  must be  in the                                                               
stream and it's all the water.                                                                                                  
                                                                                                                                
10:18:20 AM                                                                                                                   
                                                                                                                                
MR. FJELSTAD  stated that RDC's  second point and key  comment is                                                               
who should  hold the certificate and  who should enforce it.   He                                                               
said RDC  believes water  is a public  asset while  protection of                                                               
water,  and  specifically  fish,  is a  public  priority.    Fish                                                               
protection is one of the highest  charges given to the experts at                                                               
ADF&G, DNR, DEC, and other agencies,  he argued, and to vest that                                                               
responsibility in  a private party  from a policy  perspective is                                                               
not supported  by RDC and doesn't  make sense.  Alaska  is unique                                                               
in  that  it currently  allows  any  person  to seek,  hold,  and                                                               
enforce a certificate.  That is  not a positive attribute or good                                                               
policy, he  opined, and it is  amongst the changes that  Mr. Song                                                               
described.  The changes would  shift who can hold the certificate                                                               
to public  entities, and  RDC believes that  the State  of Alaska                                                               
should be  holding these  certificates, Mr.  Fjelstad said.   The                                                               
State  of  Alaska has  the  people  with the  responsibility  and                                                               
expertise to  protect fish, resources,  and water.  The  State of                                                               
Alaska and its political subdivisions  should be holding that and                                                               
enforcing it, he  continued, which is one of the  issues in these                                                               
regulations.   So, he said,  RDC doesn't support  the regulations                                                               
as  currently  proposed because  while  DNR  tried to  make  some                                                               
progress on  that it's  still muddled and  needs to  be clarified                                                               
that  the state  and  its political  subdivisions  will hold  and                                                               
enforce the certificates.                                                                                                       
                                                                                                                                
10:20:37 AM                                                                                                                   
                                                                                                                                
MR. FJELSTAD closed his presentation  by asking the question:  Is                                                               
there a need for instream flow  reservations (IFRs)?  He said the                                                               
answer is probably  yes.  He pointed out that  RDC has never been                                                               
on the  record saying  it doesn't  support these  or wants  to do                                                               
away  with  the  program.    In  the  context  of  large  project                                                               
development,  he  said,  RDC's  view  is  that  the  question  of                                                               
protecting  fish is  front and  center  and is  addressed in  the                                                               
process.  Instream flow reservations,  he maintained, don't serve                                                               
a  purpose  there because  specific  permits  and other  programs                                                               
address this question head-on.                                                                                                  
                                                                                                                                
MR. FJELSTAD stated that if  project development isn't happening,                                                               
there  can over  time  be death  by a  thousand  cuts with  water                                                               
resources.   For example,  with urban sprawl  someone can  take a                                                               
little  water out  of a  stream here  and someone  take a  little                                                               
water  out there,  and  over time  it adds  up.   The  difference                                                               
between that scenario and a large  project, he said, is the large                                                               
project process drives  an outcome where the stream  is looked at                                                               
holistically and  scrutinized over  time through monitoring.   He                                                               
maintained  that if  large  project  permitting isn't  happening,                                                               
there can  be various withdrawals  of water that  are unaccounted                                                               
for.   So, he  continued, in  the absence  of large  projects, if                                                               
there is a  threat to a waterbody  an IFR can serve  a purpose if                                                               
done  right.    If  the  technical analysis  is  good,  he  said,                                                               
preserving a  minimum amount  of water in  some of  these streams                                                               
probably is sensible, but RDC thinks  it should be a limited tool                                                               
limited to DNR for situations where truly needed.                                                                               
                                                                                                                                
10:22:54 AM                                                                                                                   
                                                                                                                                
CHAIR TARR invited questions from the committee.                                                                                
                                                                                                                                
10:23:42 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  ORTIZ  pointed  out  that when  talking  about  a                                                               
particular  stream or  project  and water,  the  water itself  is                                                               
intermixable with a much broader  area than just the stream being                                                               
talked  about.     He  agreed  Alaska  probably   has  some  good                                                               
protections but stated that the  result is declining fish numbers                                                               
where the cause  is not any specific project  or development, but                                                               
the net effect of  everything and not doing a very  good job.  He                                                               
asked Mr. Fjelstad whether he agrees that this is the case.                                                                     
                                                                                                                                
MR. FJELSTAD  replied that when  standing in the Kenai  River one                                                               
wonders  where all  the  king  salmon are.    But, he  continued,                                                               
different  conclusions are  drawn in  different places  - Bristol                                                               
Bay right now has  a record run - so he  doesn't agree across the                                                               
board that salmon  are in trouble categorically.   Causes for the                                                               
variations in the runs probably are  myriad.  He said RDC's focus                                                               
is ensuring that  regulatory regimes are rational,  that there is                                                               
cause and effect between what  the regulatory regime is trying to                                                               
do and  the problem.   For example, if it  is assumed there  is a                                                               
challenge with  salmon, taking the  measures here doesn't  make a                                                               
lot of sense,  it's an add-on that doesn't bring  a lot of value,                                                               
it brings  a huge  amount of  complexity to  this.   Mr. Fjelstad                                                               
posed a  scenario in which  the DNR  regulations die on  the vine                                                               
and are not finalized.  He  said the statute was any person could                                                               
seek an  instream flow reservation,  and while there is  a burden                                                               
of  gathering the  data one  doesn't even  have to  be an  Alaska                                                               
resident.   Someone could  move to  Florida and  seek an  IFR and                                                               
become  a player  at that  point from  the standing  perspective,                                                               
roughly comparable  to the State of  Alaska itself.  He  said RDC                                                               
believes that  that is not the  right policy for Alaska  and that                                                               
policy  decisions should  be vested  with the  State of  Alaska's                                                               
salmon experts.  He added that  RDC agrees there is concern about                                                               
salmon but disagrees that this  is the right mechanism to address                                                               
the broader concern on what's happening with salmon.                                                                            
                                                                                                                                
10:27:54 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ORTIZ  acknowledged that  salmon receive  the most                                                               
attention when  talking about  protection of  Alaska's resources.                                                               
He  stated  that  there  should  be  concern  about  the  broader                                                               
picture,  which  includes  salmon,  and whether  it  is  halibut,                                                               
rockfish,  or hooligan  the situation  is in  a general  decline.                                                               
Resource development or not on  rivers, he continued, is just one                                                               
piece of a big  picture that is going on and  he is troubled that                                                               
there  is  much talk  about  protecting  resources, but  the  net                                                               
result is losing the battle.                                                                                                    
                                                                                                                                
MR. FJELSTAD,  in reply  to Chair  Tarr, said  he had  no further                                                               
response.                                                                                                                       
                                                                                                                                
CHAIR TARR noted that the  current regulatory proposal is similar                                                               
to legislation  considered in  2013.  She  said the  question and                                                               
characterization about  who should hold the  certificate, such as                                                               
individuals, NGOs,  or out-of-state  residents, seem valid.   She                                                               
asked whether  RDC has taken  a position about tribes  and stated                                                               
she is troubled  that this may be a place  where the proposal has                                                               
gone too far.                                                                                                                   
                                                                                                                                
MR.  FJELSTAD  responded that  RDC's  view  is consistent  across                                                               
resources, which is  that the State of Alaska  should be managing                                                               
its  resources in  all  situations where  it  can, including  the                                                               
debate  with the  federal government  about resources.   He  said                                                               
Bristol Bay's  success story is  probably because it is  the most                                                               
actively managed fishery  resource in the state.   Reservation of                                                               
rights and the management of  fish, he continued, are intertwined                                                               
in a  way that cannot  be disconnected,  so RDC thinks  the state                                                               
has the  resources and is  accountable to the people  through the                                                               
political  process,  and  that's  relevant here.    He  said  RDC                                                               
believes  that  both holding  the  certificate  and enforcing  it                                                               
should be vested in the State of Alaska.                                                                                        
                                                                                                                                
10:31:33 AM                                                                                                                   
                                                                                                                                
CHAIR  TARR  summarized  that Mr.  Fjelstad  spoke  to  technical                                                               
challenges and who should hold  and enforce the certificate.  She                                                               
asked whether she is correct that  at this time RDC has submitted                                                               
comments which state  that RDC doesn't support  the current draft                                                               
regulations because  it is  still muddled  about who  should hold                                                               
and enforce the certificate.                                                                                                    
                                                                                                                                
MR.  FJELSTAD confirmed  the  summary about  the  two points  but                                                               
cautioned about  over-simplifying.  He  stated that  RDC supports                                                               
directionally what  DNR is  trying to do  but doesn't  agree with                                                               
the end point  where DNR has come out on  this, so RDC's comments                                                               
urge that DNR do some more work.                                                                                                
                                                                                                                                
CHAIR TARR  thanked Mr. Fjelstad.   She invited Mr.  Shavelson to                                                               
begin his presentation.                                                                                                         
                                                                                                                                
10:33:37 AM                                                                                                                   
                                                                                                                                
BOB  SHAVELSON, Advocacy  Director,  Cook Inletkeeper,  regarding                                                               
the  proposed   regulations  from   the  Department   of  Natural                                                               
Resources  (DNR),  provided  a  PowerPoint  presentation,  titled                                                               
"Instream Flow  Reservations: Proposed DNR Rules  Repeat Mistakes                                                               
from Outside."   He  noted that Cook  Inletkeeper is  a nonprofit                                                               
organization  and said  he  has been  looking  at salmon  habitat                                                               
protection and  water management  issues for  the past  27 years.                                                               
He displayed  the second  slide, titled  "Topics for  Today," and                                                               
stated that  Alaska prides itself  on being different,  yet DNR's                                                               
proposal  for  Alaska will  be  repeating  the same  mistakes  in                                                               
fisheries  resource  management  as   were  made  in  Washington,                                                               
Oregon,  and California.   He  said he  will focus  on one  issue                                                               
within these  rule changes,  which is the  stripping away  of the                                                               
rights of  Alaska residents  and Native tribes  to keep  water in                                                               
fish streams.   He  added that  he will also  describe a  fix for                                                               
keeping a certain amount of water in the streams.                                                                               
                                                                                                                                
10:35:22 AM                                                                                                                   
                                                                                                                                
MR. SHAVELSON continued to the  third slide, titled "Background,"                                                               
and explained that  as a western state Alaska  operates under the                                                               
Prior Appropriation  Doctrine of first  in time, first  in right,                                                               
meaning the  first entity to  have a  water right has  a superior                                                               
right to  use that water  over anyone who  comes after them.   He                                                               
further explained that there are two  types of water rights.  The                                                               
first  type is  an  out-of-steam diversion  or appropriation  for                                                               
"beneficial  use"  of   the  water  or  a   temporary  water  use                                                               
authorization,  which  is  a  lesser water  right  but  still  an                                                               
authorization  from the  state to  use  the water  for a  limited                                                               
time.   The second  type is an  instream flow  reservation (IFR),                                                               
which is  what is being talked  about here.  This  is where water                                                               
can  be  kept in  a  stream  and under  this  statute  it is  for                                                               
protecting fish, recreational uses,  and aesthetic values.  Under                                                               
Alaska's current rules, he pointed  out, anyone may apply for and                                                               
hold  a certificate  to take  water out  of a  stream or  to keep                                                               
water in a stream.                                                                                                              
                                                                                                                                
10:36:38 AM                                                                                                                   
                                                                                                                                
MR.  SHAVELSON  proceeded  to  the   fourth  slide,  titled  "DNR                                                               
Proposal," and specified  that the DNR proposal  would strip away                                                               
the rights  of Alaskans  to hold  certificates for  instream flow                                                               
reservations.   Alaskans could still  incur the  substantial time                                                               
and cost  to apply for the  certificate, but they could  not hold                                                               
the certificate, he  said, DNR would be the holder  of that water                                                               
right.   He  compared this  proposal with  the current  DNR rules                                                               
that will  continue to allow  outside corporations to  hold water                                                               
rights  to  take water  out  of  a  salmon stream,  yet  Alaskans                                                               
couldn't hold  the certificate to keep  water in a stream.   That                                                               
is the crux of the issue here, he stated.                                                                                       
                                                                                                                                
10:37:40 AM                                                                                                                   
                                                                                                                                
MR.  SHAVELSON  displayed  the fifth  slide,  titled  "Government                                                               
Knows Best,"  and argued that  this proposal takes  a government-                                                               
knows-best  attitude  by  stripping  away the  rights  of  Alaska                                                               
residents  and  tribes to  protect  their  fish while  empowering                                                               
state and  federal agencies and  bureaucrats to  exclusively hold                                                               
these instream  flow rights.   This is  a failed approach  in the                                                               
Lower 48, he stated.                                                                                                            
                                                                                                                                
MR.  SHAVELSON  moved  to  the   sixth  slide,  titled  "Why  the                                                               
Changes?"   He said DNR  has refused  to explain to  Alaskans why                                                               
it's  pursuing  these  significant  changes,  although  some  lip                                                               
service was  given about DNR wanting  some statutory consistency,                                                               
but that makes no sense.   Also, he opined, DNR's refusal to come                                                               
before  the  committee  today  to  talk  about  such  significant                                                               
changes is  alarming because there  is no  such thing as  a quiet                                                               
period after  an agency has  taken public  comment on rules.   He                                                               
added that these are the same  positions that have been heard for                                                               
many  years  from the  Resource  Development  Council (RDC),  the                                                               
Alaska  Oil and  Gas Association  (AOGA), and  the Alaska  Miners                                                               
Association (AMA).                                                                                                              
                                                                                                                                
10:39:16 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE VANCE asked  how Mr. Shavelson knew  ahead of time                                                               
that  DNR wouldn't  be testifying  given the  committee was  only                                                               
informed today that DNR would be unable to join the meeting.                                                                    
                                                                                                                                
MR. SHAVELSON  offered his  belief that  DNR pulled  back several                                                               
days ago.                                                                                                                       
                                                                                                                                
REPRESENTATIVE VANCE asked how Mr. Shavelson learned about that.                                                                
                                                                                                                                
CHAIR TARR stated that DNR was  heard from on either Wednesday or                                                               
Thursday of last  week and she shared that  during a conversation                                                               
about the  scheduling and flow  of presentations for today.   She                                                               
apologized if it came as a surprise to Representative Vance.                                                                    
t                                                                                                                               
REPRESENTATIVE  VANCE said  it seems  inappropriate  to use  this                                                               
against  DNR in  the slide  show when  it wasn't  communicated to                                                               
committee members  and the  public; DNR has  no recourse  at this                                                               
point  to explain  why it  was unable  to attend.   She  told Mr.                                                               
Shavelson  that she  is listening  to  his concerns  but said  it                                                               
would be best to leave out this rhetoric.                                                                                       
                                                                                                                                
CHAIR  TARR apologized  for inadvertently  not removing  DNR from                                                               
the BASIS [schedule].   She related that DNR  requested she share                                                               
with the committee  that the agency is in the  quiet period.  She                                                               
recommended that  people follow  up with  DNR directly  and noted                                                               
her disappointment about the late date of cancellation.                                                                         
                                                                                                                                
REPRESENTATIVE VANCE stated  she has questions for  DNR but noted                                                               
the  legislature has  no authority  to  amend these  regulations.                                                               
She said  it is in  the hands of  the public to  submit comments,                                                               
questions, and concerns about the proposal.                                                                                     
                                                                                                                                
MR.  SHAVELSON concurred  that these  are regulatory  changes but                                                               
pointed out that the legislature can  amend statute.  He said the                                                               
regulations are implementing the Alaska  Water Use Act, Title 46.                                                               
He  suggested that  that's  where  the focus  should  be; if  the                                                               
executive branch  agencies refuse to come  before the legislature                                                               
to  explain  these things,  the  legislature  must recognize  how                                                               
serious these issues are and act on it.                                                                                         
                                                                                                                                
10:43:57 AM                                                                                                                   
                                                                                                                                
MR.  SHAVELSON continued  his  presentation.   He  turned to  the                                                               
seventh slide,  titled "Zero Fiscal  Note," and stated  that what                                                               
is being talked  about here is the political will  and desire for                                                               
DNR to  move forward in  a constructive way with  instream flows.                                                               
Under  the proposed  rules, he  noted, an  entity coming  forward                                                               
with an instream  flow application would incur the  time and cost                                                               
to apply,  but DNR  would hold the  certificate for  the instream                                                               
flow reservation which  would entail more work for DNR.   Yet, he                                                               
argued, DNR put  a zero fiscal note on this  rule which indicates                                                               
that DNR  isn't taking  this very  seriously.   He turned  to the                                                               
eighth  slide,  titled  "Alaska  Values?"    He  read  the  quote                                                               
depicted on  the slide:  "Don't  tell me what you  value, show me                                                               
your budget, and I'll tell you  what you value."  The zero fiscal                                                               
note, Mr. Shavelson said, tells  him there isn't much interest in                                                               
moving forward with instream flows from this development agency.                                                                
                                                                                                                                
10:44:58 AM                                                                                                                   
                                                                                                                                
MR. SHAVELSON  spoke to  the nineth slide,  titled "Unfair."   He                                                               
argued it is unfair that  a private outside corporation can still                                                               
take water out  of a waterbody, but an Alaska  resident or Native                                                               
tribe  cannot  hold the  right  to  keep  water in  a  waterbody.                                                               
Similarly  situated people  and  groups  are treated  differently                                                               
under DNR's proposal, he continued, and this creates a bias.                                                                    
                                                                                                                                
MR.  SHAVELSON  proceeded  to  the  tenth  slide,  titled  "Mixed                                                               
Messages."   Corporations want the  whole pie, he  asserted, they                                                               
want private certificates to hold  the right to take public water                                                               
out of the stream, but they don't  want anyone to be able to keep                                                               
water  in that  stream.   He  noted that  the  Alaska Chamber  of                                                               
Commerce, the  Alaska Oil and  Gas Association, and  the Resource                                                               
Development  Council  all  submitted  the  same  words  in  their                                                               
comments on  4/2/[21]:   "Private parties  must not  have control                                                               
over public water."  This is  exactly what is had with an out-of-                                                               
stream diversion, he  stated, it is taking a  public resource and                                                               
putting it into private hands.                                                                                                  
                                                                                                                                
MR. SHAVELSON  showed the eleventh slide,  titled "Constitutional                                                               
Questions."   He maintained there are  substantial constitutional                                                               
questions.  He  read from the Alaska  Constitution, Article VIII,                                                               
Section  3. Common  Use, which  states:   "Wherever occurring  in                                                               
their natural state,  fish, wildlife, and waters  are reserved to                                                               
the people for common use."   He said it doesn't seem like common                                                               
use if  one party can take  it for one purpose  and another party                                                               
can't use  it for another.   He held that this  really stands out                                                               
in Article  VIII, Section 17. Uniform  Application, which states:                                                               
"Laws and  regulations governing the  use or disposal  of natural                                                               
resources shall  apply equally to all  persons similarly situated                                                               
with reference to the subject matter  and purpose to be served by                                                               
the law or regulation."                                                                                                         
                                                                                                                                
10:47:40 AM                                                                                                                   
                                                                                                                                
MR. SHAVELSON  moved to the  twelfth slide, titled  "DNR Conflict                                                               
of Interest,"  and noted that  there can be  monetary, political,                                                               
or  policy conflicts.   He  noted that  DNR is  the state's  lead                                                               
resource development agency and related  that during his 27 years                                                               
of doing  this work  he has never  seen DNR deny  a permit  for a                                                               
large oil and gas or  mining project; development is presumed and                                                               
always moves  forward.  Therefore,  he asserted, it  doesn't make                                                               
sense for  DNR to be  the de facto  agency to hold  instream flow                                                               
reservations  because  it  doesn't  have the  political  will  to                                                               
support fish protection through instream flow reservations.                                                                     
                                                                                                                                
10:50:18 AM                                                                                                                   
                                                                                                                                
MR.  SHAVELSON addressed  the thirteenth  slide, titled  "Current                                                               
System Failures."   He argued that  there is an inherent  bias in                                                               
the  current system  where the  agencies favor  the out-of-stream                                                               
diversions  because   the  agencies  process   appropriations  or                                                               
temporary water  use authorizations all the  time, while instream                                                               
flow  applications  are  backlogged.   He  took  issue  with  Mr.                                                               
Fjelstad's statement  that Alaska has a  robust permitting regime                                                               
that protects fish.   This isn't true, he said,  an example being                                                               
that on  2/21/[21] ADF&G Commissioner Doug  Vincent-Lang told the                                                               
House Resources  Standing Committee that the  state would "never"                                                               
allow  a  fish stream  to  be  dewatered,  yet DNR  is  currently                                                               
processing  water right  applications  for the  Donlin Mine  that                                                               
would  allow  the  dewatering  of  fish streams.    There  is  no                                                               
political will  to protect fish  and wildlife and the  people and                                                               
communities they support,  he opined, and that's  why a statutory                                                               
change makes sense.                                                                                                             
                                                                                                                                
MR. SHAVELSON reviewed the  fourteenth slide, titled "Temperature                                                               
Data."   He related that  Cook Inletkeeper pioneered the  work of                                                               
looking  at stream  temperatures in  recognition that  salmon and                                                               
other resident fish are cold  water fish and warming temperatures                                                               
were  creating stress  in  fish.   For  the  past  20 years  Cook                                                               
Inletkeeper has  kept data  loggers around  Cook Inlet,  he said,                                                               
and the results are alarming.   Temperatures routinely exceed the                                                               
levels that  the Department  of Environmental  Conservation (DEC)                                                               
says are safe for fish in the state's water quality standards.                                                                  
                                                                                                                                
MR.  SHAVELSON continued  to the  fifteenth  slide, titled  "Heat                                                               
Creates Stress."   He pointed  out that heat stress  makes salmon                                                               
more  vulnerable  to  pollution,   predation,  and  disease,  and                                                               
increases mortality events.  For  example, he reported, fish were                                                               
having heart attacks in the  Kuskokwim River because they were so                                                               
hot and  the river's oxygen level  was low.  He  stressed that as                                                               
Alaska  continues to  warm, it  is even  more imperative  to keep                                                               
enough water in the streams to give Alaska's fish a chance.                                                                     
                                                                                                                                
MR. SHAVELSON displayed the sixteenth  slide, titled "Alaska Fish                                                               
Need Cold Water."  He  stated that instream flow reservations are                                                               
one  of  the  most  important  tools to  help  Alaska  wild  fish                                                               
populations roll  with the  punches of  ever-warming Alaska.   He                                                               
pointed out that  Bristol Bay is a success story  because of that                                                               
area's   intact  systems   and  relatively   cold  water,   while                                                               
Southcentral and  Southeast Alaska haven't been  so fortunate and                                                               
are  seeing the  intersection between  development and  fisheries                                                               
declines.   Bristol  Bay,  he  added, is  a  shining example  for                                                               
keeping  a holistic  management regime  for fisheries,  including                                                               
instream flows.                                                                                                                 
                                                                                                                                
10:52:31 AM                                                                                                                   
                                                                                                                                
MR. SHAVELSON  spoke to the  seventeenth slide, titled  "What Can                                                               
We Do?"   He said the system is currently  broken   instream flow                                                               
reservations are  not being processed  and are  backlogged, while                                                               
out-of-stream  diversions are  prioritized.   He  stated that  it                                                               
isn't  going to  work  if Alaska  has a  development-at-all-costs                                                               
regime, which has been the case in the Lower 48.                                                                                
                                                                                                                                
MR.  SHAVELSON  proceeded  to the  eighteenth  slide,  titled  "A                                                               
Simple Solution."   He  said the  solution is  automatic instream                                                               
flow reservations    the  requirement that  all that  all out-of-                                                               
stream appropriations leave behind  enough water to protect fish.                                                               
This solution  is common  sense, more  efficient, and  saves time                                                               
and money, he  stated.  This kind of statutory  change is needed,                                                               
he  advised, because  it will  not  be seen  through the  current                                                               
rulemaking at DNR.  This  would be the legislature making simple,                                                               
common-sense changes to the Alaska Water Use Act, he said.                                                                      
                                                                                                                                
10:53:54 AM                                                                                                                   
                                                                                                                                
MR. SHAVELSON  turned to the nineteenth  slide, titled "Repeating                                                               
Mistakes."   He urged committee members  to read King of  Fish, a                                                             
book  by  Professor David  R.  Montgomery  of the  University  of                                                               
Washington.   He  related that  the  book documents  the loss  of                                                               
salmon from Europe, New England,  and the Pacific Northwest.  The                                                               
author's  research found  that it  wasn't simple  negligence that                                                               
led to the  demise of these once prolific salmon  runs across the                                                               
globe,  it was  willful negligence  where people  knew what  they                                                               
were doing was  wrong but did it anyway.   "That's where we're at                                                               
right now,"  he opined. "We're at  a crossroads, we know  that if                                                               
we  strip away  the right  to keep  water in  our streams,  we're                                                               
going to be  going down the very  same path that they  did in the                                                               
Lower 48 and that's not going  to be successful for salmon or the                                                               
communities they support."                                                                                                      
                                                                                                                                
MR.  SHAVELSON  concluded  his presentation  with  the  twentieth                                                               
slide,  titled  "Public Input  Needed."    He said  it's  vitally                                                               
important for  the legislature  to hear  from the  public through                                                               
more hearings to understand this  issue because it is a threshold                                                               
issue for  the future  of Alaska's wild  salmon populations.   He                                                               
urged  that  the legislature  encourage  DNR  to delay  the  rule                                                               
making  and  to  go  forward  with legislation  if  needed.    He                                                               
displayed the twenty-first slide and offered to take questions.                                                                 
                                                                                                                                
10:55:38 AM                                                                                                                   
                                                                                                                                
CHAIR TARR  noted that  the Alaska  Miners Association  (AMA) was                                                               
invited  to  provide  a presentation  before  the  committee  but                                                               
declined;  as well,  AMA was  asked to  share comments,  but none                                                               
were  received.   She further  noted that  there was  outreach to                                                               
tribes and  others for  information and  feedback.   Any comments                                                               
received from the public can be found online in BASIS, she said.                                                                
                                                                                                                                
10:57:07 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ORTIZ thanked both presenters.                                                                                   
                                                                                                                                
10:57:31 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MCCABE recalled hearing  or reading somewhere that                                                               
DNR doesn't reserve  some of the water all the  time, it reserves                                                               
more than  all the  water at  least a  third of  the time  in any                                                               
year.   He questioned how the  state can reserve more  water than                                                               
is naturally in the stream and said  it appears to come down to a                                                               
competition between  resources.  Alaska  needs to find  a neutral                                                               
ground for all  the resources, he opined, there  can't be battles                                                               
all the  time over scarce resources,  a path forward needs  to be                                                               
found.  He requested Mr. Shavelson's ideas.                                                                                     
                                                                                                                                
MR.  SHAVELSON  replied  that  those  are  the  technical  issues                                                               
referred to by  Mr. Fjelstad and DNR would be  the entity able to                                                               
answer.   He  stated that  in a  management system  with a  prior                                                               
appropriation   regime,    waterbodies   are    frequently   over                                                               
appropriated, an  example being  the Colorado  River.   There are                                                               
many vagaries  in water flow,  he explained, there  isn't perfect                                                               
information,  and it's  hard  to  quantify.   He  pointed to  the                                                               
simplicity of having  the requirement that when  someone wants to                                                               
use water there must be enough water left for the fish.                                                                         
                                                                                                                                
10:59:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MCCABE offered his belief  that for four months of                                                               
the year  DNR is reserving  more water  for fish than  the stream                                                               
carries  and  opined  that  there   needs  to  be  a  commonsense                                                               
approach.   He posed a scenario  of a private person  holding the                                                               
property rights  to all the water  in a stream and  asked whether                                                               
there can  be a  court case.   He said  those kinds  of questions                                                               
need to be resolved.                                                                                                            
                                                                                                                                
MR. FJELSTAD agreed with Mr.  Shavelson that the technical points                                                               
are a  DNR issue, a  resource question.   He said IFRs  are being                                                               
finalized  without  really  understanding the  particulars  of  a                                                               
given  stream, and  the net  effect is  allocation of  more water                                                               
than  is in  the  stream,  which is  a  problem.   Regarding  his                                                               
statement that  RDC supports water  being instream,  he clarified                                                               
that the  context was  that there is  a specific  situation here,                                                               
and this is  key to RDC's position  on this.  He  said RDC thinks                                                               
that the large  permit process itself brings  a holistic approach                                                               
to protecting  fish habitat  and water, and  that process  may or                                                               
may not  generate an IFR  in the context  for that process.   But                                                               
that's not  his point, Mr. Fjelstad  noted, his point is  that in                                                               
the absence of  that process there are impacts on  fish and water                                                               
because there is no large  permitting process happening, it takes                                                               
place one diversion  at a time over years.   Arguably, there is a                                                               
place for  instream flows in  those circumstances because  of the                                                               
absence of a  permitting process that pulls it  all together, but                                                               
that would be  a very limited use  of this.  He  said RDC doesn't                                                               
support  the  concept that  Mr.  Shavelson  raised of  having  in                                                               
statute or regulation  a universal instream flow  that applies to                                                               
every stream across the board.  But,  he said, there may be a use                                                               
for specific  technically sound IFRs  for situations  where there                                                               
isn't development and this large-scale permitting process.                                                                      
                                                                                                                                
11:03:10 AM                                                                                                                   
                                                                                                                                
CHAIR TARR  asked whether Mr.  Shavelson has any comments  on the                                                               
question about the private property rights.                                                                                     
                                                                                                                                
MR. SHAVELSON  responded no, but  said he is curious  about RDC's                                                               
policy rationale  behind not supporting a  solution that requires                                                               
keeping enough water in streams to protect fish.                                                                                
                                                                                                                                
CHAIR  TARR  said  she  will  try to  come  back  to  that  after                                                               
Representative McCabe asks his next question.                                                                                   
                                                                                                                                
11:03:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MCCABE said  his understanding  is that  IFRs are                                                               
property rights.  He  posed a scenario in which he  has an IFR in                                                               
a stream  and asked whether he  could shut down the  stream, bill                                                               
someone  for using  the  water, or  take someone  to  court.   He                                                               
opined that  this seems  like it is  creating big  government and                                                               
pitting  agencies against  each other.   He  surmised that  ADF&G                                                               
already regulates  a certain amount of  the fish in a  stream and                                                               
said this seems to be adding fuel to the fish-war fire.                                                                         
                                                                                                                                
MR.  FJELSTAD answered  that a  group of  lawyers would  probably                                                               
have an all-day  debate on what is the nature  of that IFR right.                                                               
He noted  that generally in western  water law, a water  right to                                                               
take water out of a stream is  a form of property right.  Keeping                                                               
water in a stream through an IFR  is some form of right, he said,                                                               
and the  particulars would engender  a long debate about  what is                                                               
the nature  of it.   It can be a  bridge through this  process as                                                               
DNR  contemplates regulation  changes.   It is  different than  a                                                               
permit, a license, or something, it  puts the holder of that in a                                                               
special place  and that  is one  of the  concerns.   These issues                                                               
play off against  each other, he added;  the technical challenges                                                               
are one  reason why  RDC believes  this should  be vested  in the                                                               
state.   These  technical  problems  need to  be  worked out  and                                                               
working  them out  with the  state agencies  that are  charged by                                                               
statute with  overseeing these issues  is the sensible way  to do                                                               
that.  It is  hard to work something out with  someone who may be                                                               
fundamentally opposed to working things out, he stated.                                                                         
                                                                                                                                
11:06:19 AM                                                                                                                   
                                                                                                                                
CHAIR  TARR invited  Mr. Shavelson  to respond  to Representative                                                               
McCabe's questions.                                                                                                             
                                                                                                                                
MR. SHAVELSON answered  that he agrees with Mr.  Fjelstad that it                                                               
is not  well-defined as  to what that  property right  looks like                                                               
for an  instream flow.   The same argument  could be made  for an                                                               
out-of-stream appropriation  right, he stated.   For example, how                                                               
would it play  out if Exxon holds  a water right for  an ice road                                                               
and the  state says it needs  that water for something  else?  In                                                               
any case  the government  is always going  to have  an overriding                                                               
public interest,  he continued.     There are  a variety  of ways                                                               
that the government, through regulation  or law, can come back in                                                               
and protect the public interest.                                                                                                
                                                                                                                                
11:07:50 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MCCABE  noted  that  IFRs  are  private  property                                                               
rights that delegate to an  individual the ability to control all                                                               
land use upstream.   He asked whether a  conservation group could                                                               
acquire an IFR, and would the state  be able to take it back.  He                                                               
recalled Mr. Shavelson mentioning that  the state would always be                                                               
able to take it back, such as with an ice road.                                                                                 
                                                                                                                                
MR. SHAVELSON  responded that  in any  realistic vision  of water                                                               
management in Alaska  these kinds of lockups are not  going to be                                                               
seen.   Whether looking at them  hypothetically or realistically,                                                               
he  added,  they  would  play   out  on  both  the  out-of-stream                                                               
appropriation side and the instream  appropriation side.  He said                                                               
he doesn't think Alaska will  see corporations locking up all the                                                               
water by  taking it out of  a stream and he  doesn't think Alaska                                                               
will see anybody locking it up by keeping it all in the stream.                                                                 
                                                                                                                                
REPRESENTATIVE MCCABE recounted reading  an article while in high                                                               
school that said water was going  to become a bigger issue in the                                                               
world than fuel  and electricity.  He said he  thinks it has come                                                               
to that.                                                                                                                        
                                                                                                                                
CHAIR TARR  concurred.   She related that  she participated  in a                                                               
panel discussion on water issues  at a Pacific Northwest Economic                                                               
Region conference  and said Alaska  is in a much  better position                                                               
regarding  the things  being dealt  with.   She remarked  that it                                                               
seems  there is  an opportunity  here  to address  some of  these                                                               
challenges and not repeat the mistakes  of the past.  She offered                                                               
her  understanding  that  Mr.  Shavelson  supports  Alaskans  and                                                               
tribes being  able to apply  for instream flow  reservations, but                                                               
noted  that the  current  setup would  allow,  for example,  non-                                                               
Alaskans or out  of state NGOs.  She asked  Mr. Shavelson whether                                                               
that  is a  place  where  the state  might  want  to limit  those                                                               
applications  to  Alaskans and  tribes  to  moderate the  current                                                               
situation and the concern had by others.                                                                                        
                                                                                                                                
MR. SHAVELSON  replied that  he has  heard these  concerns before                                                               
but hasn't  seen them  play out, which  is why  the hypotheticals                                                               
can be distracting.   He said the goal here  is Alaskans managing                                                               
Alaska's resources.   The  system is broken,  he stated,  and the                                                               
simple  solution  is  to  automatically   keep  enough  water  in                                                               
Alaska's streams to protect fish whenever looking at an out-of-                                                                 
stream diversion.                                                                                                               
                                                                                                                                
11:11:43 AM                                                                                                                   
                                                                                                                                
CHAIR TARR  invited Mr. Fjelstad  to provide closing  comments or                                                               
respond to questions.                                                                                                           
                                                                                                                                
MR.  FJELSTAD responded  to  Mr. Shavelson's  comment.   He  said                                                               
RDC's viewpoint is  that the technical process is  broken.  Every                                                               
IFR has resulted  in an over-allocation of water,  meaning it's a                                                               
counter for more water in the  stream than is there in actuality.                                                               
However, he  continued, the process  isn't broken in  the context                                                               
of  permitting  that happens  for  major  developments; a  robust                                                               
process accounts  for fish, water,  and habitat, it's  all pulled                                                               
together in that  process.  That process works and  is working on                                                               
an ongoing basis, he maintained.                                                                                                
                                                                                                                                
11:12:57 AM                                                                                                                   
                                                                                                                                
CHAIR  TARR  noted  DNR  would  be  the  certificate  holder  and                                                               
recalled Mr.  Shavelson's statement  about conflict  of interest.                                                               
She posed  a scenario  in which this  proposal goes  forward, but                                                               
with ADF&G being the certificate  holder.  She asked whether such                                                               
a scenario  would change Mr.  Shavelson's perspective  or address                                                               
the conflict of interest.                                                                                                       
                                                                                                                                
MR. SHAVELSON  answered that  ADF&G has  a different  mandate and                                                               
would  look at  this  through  a different  lens.    He said  the                                                               
technical problems mentioned by Mr.  Fjelstad would still need to                                                               
be addressed and added that the  slate needs to be wiped clean to                                                               
recognize the  long history  of out-of-stream  diversions getting                                                               
up-to-date prioritization while the  instream flows with ADF&G at                                                               
the  lead are  lagging  considerably.   This  is about  political                                                               
will, he  reiterated, so this  brings him back to  his [proposed]                                                               
solution of  just leaving  enough water  in Alaska's  streams and                                                               
waterbodies for fish if water is going to be taken out of them.                                                                 
                                                                                                                                
CHAIR TARR related  that in looking at a list  of applications on                                                               
the docket  there were some  circumstances where there  wasn't an                                                               
active  out-stream flow  application  so there  wasn't a  project                                                               
necessarily that was applying for  that.  She recalled that Trout                                                               
Unlimited and other  groups had interest in the  Bristol Bay area                                                               
and said that is one of  the reasons she asked the question about                                                               
limitations  to Alaskans  or  Alaska entities.    Given that  Mr.                                                               
Shavelson's  [proposed]   solution  is   to  have   those  things                                                               
corresponding  to each  other, she  asked  whether, absent  that,                                                               
instream flow reservations would not happen.                                                                                    
                                                                                                                                
MR. SHAVELSON  noted that Trout  Unlimited has offices  in Alaska                                                               
and has many  local members, so he doesn't know  that it could be                                                               
characterized as an  outside interest.  He said  people in groups                                                               
that care  about the  resource are trying  to be  proactive here,                                                               
but  the agencies  are saying  that they're  going to  wait until                                                               
there is  an actual  conflict, which  flies in  the face  of this                                                               
idea  of having  a  holistic management  regime  where "we  don't                                                               
always have  to   have our  hair on fire before  we take action."                                                               
He  stated that  [Cook Inletkeeper]  is  willing to  come to  the                                                               
table and have  the discussion and say, "Let's  just assume we're                                                               
going to protect our fish and  anytime somebody wants to take the                                                               
water out we just leave enough to protect those fish."                                                                          
                                                                                                                                
CHAIR TARR clarified  that in mentioning Trout  Unlimited she was                                                               
thinking about groups  that have a national  presence in addition                                                               
to an Alaska presence.                                                                                                          
                                                                                                                                
MR.  SHAVELSON  pointed  out  that  Canadian  and  other  outside                                                               
corporations  not residing  in Alaska  are routinely  seen taking                                                               
water out of Alaska's streams with out-of-stream diversions.                                                                    
                                                                                                                                
CHAIR TARR responded that she  hadn't contextualized it that way,                                                               
so this gives her a new way to evaluate it.                                                                                     
                                                                                                                                
11:17:06 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE VANCE  commented that the presentations  helped in                                                               
understanding the  bigger picture,  but technical  questions need                                                               
to be  asked of DNR to  further understand this.   She encouraged                                                               
the public to continue asking questions and submitting comments.                                                                
                                                                                                                                
11:17:41 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ORTIZ  noted that throughout  today's presentation                                                               
Mr.  Shavelson has  said  one  of the  simplest  solutions is  to                                                               
"leave enough  water in  the streams  to protect  the fish."   He                                                               
inquired  as to  whether this  is a  commonly known  standard and                                                               
whether it would  be easy to determine how much  water would need                                                               
to be in a stream to protect fish.                                                                                              
                                                                                                                                
MR.  SHAVELSON replied  that there  are vagaries  in the  natural                                                               
systems and those complexities require  data collection.  He said                                                               
many  things  need  to  be  taken  into  consideration,  such  as                                                               
rainfall,  precipitation,   snowmelt,  and   groundwater  influx.                                                               
Every stream is  going to be different at the  point of diversion                                                               
or where  the water is being  kept in the stream,  so it requires                                                               
research, but it can be quantified.                                                                                             
                                                                                                                                
11:19:20 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MCCABE  thanked the  presenters and  expressed his                                                               
appreciation for hearing  all sides of the issue  so that members                                                               
can make intelligent decisions.                                                                                                 
                                                                                                                                
11:19:38 AM                                                                                                                   
                                                                                                                                
CHAIR TARR invited Mr. Shavelson to provide closing comments.                                                                   
                                                                                                                                
MR. SHAVELSON  encouraged committee members to  consider the vast                                                               
number of opposing  comments from Alaska tribes  and Alaskans who                                                               
regarding DNR's [proposed] rule changes.   That will give members                                                               
a strong  sense of how  Alaskans feel  about the issue,  he said,                                                               
and will hopefully help drive additional legislative scrutiny.                                                                  
                                                                                                                                
11:20:13 AM                                                                                                                   
                                                                                                                                
CHAIR TARR  stated that people  were very interested in  having a                                                               
hearing on  this issue during  the legislative session,  but time                                                               
didn't allow  for that to  happen.  She offered  her appreciation                                                               
to  committee members  for attending  today's presentation.   She                                                               
said she is open to suggestions  from members as to any follow-up                                                               
meetings or action that members want to take.                                                                                   
                                                                                                                                
11:22:07 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries meeting  was adjourned  at 11:22                                                               
a.m.                                                                                                                            

Document Name Date/Time Subjects
2016 dnr 11 AAC 93 scoping comments request - March 18 2016 deadline.pdf HFSH 7/27/2021 10:00:00 AM
2021 04 02 _SS comments_DNR Water Regs.pdf HFSH 7/27/2021 10:00:00 AM
2021 04 02 CVTC Water Reservation Comments to DNR.pdf HFSH 7/27/2021 10:00:00 AM
Inletkeeper - DNR Instream Flow Comments 20210401.pdf HFSH 7/27/2021 10:00:00 AM
DNR Regs Memo.pdf HFSH 7/27/2021 10:00:00 AM
Comments to DNR on Water Regs..pdf HFSH 7/27/2021 10:00:00 AM
Curyung Comments on DNR Water Regulations.pdf HFSH 7/27/2021 10:00:00 AM
Inletkeeper - Instream Flow Presentation 20210727.pdf HFSH 7/27/2021 10:00:00 AM
AMA Comments DNR Water Regulations.pdf HFSH 7/27/2021 10:00:00 AM
RDC Comment on DNR Water Regs.pdf HFSH 7/27/2021 10:00:00 AM