02/12/2007 08:30 AM House FISHERIES
| Audio | Topic | 
|---|---|
| Start | |
| HB74 | |
| HB41 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 74 | TELECONFERENCED | |
| += | HB 41 | TELECONFERENCED | |
| + | TELECONFERENCED | 
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                       February 12, 2007                                                                                        
                           8:35 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Kyle Johansen                                                                                                    
Representative Craig Johnson                                                                                                    
Representative Gabrielle LeDoux                                                                                                 
Representative Peggy Wilson                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 74                                                                                                               
"An Act prohibiting mixing zones in freshwater spawning waters."                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 41                                                                                                               
"An Act returning certain duties regarding habitat management                                                                   
from the Department of Natural Resources to the Department of                                                                   
Fish and Game; and providing for an effective date."                                                                            
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                              
BILL: HB  74                                                                                                                  
SHORT TITLE: BAN MIXING ZONES IN SPAWNING AREAS                                                                                 
SPONSOR(s): REPRESENTATIVE(s) SEATON, GARA, LEDOUX                                                                              
                                                                                                                                
01/16/07       (H)       PREFILE RELEASED 1/5/07                                                                                
01/16/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/07       (H)       FSH, RES                                                                                               
02/05/07       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
02/05/07       (H)       Scheduled But Not Heard                                                                                
02/07/07       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
02/07/07       (H)       Heard & Held                                                                                           
02/07/07       (H)       MINUTE(FSH)                                                                                            
02/12/07       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
                                                                                                                              
BILL: HB  41                                                                                                                  
SHORT TITLE: TRANSFER HABITAT DIV FROM DNR TO F&G                                                                               
SPONSOR(s): REPRESENTATIVE(s) GARA                                                                                              
                                                                                                                                
01/16/07       (H)       PREFILE RELEASED 1/5/07                                                                                
01/16/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/07       (H)       FSH, RES, FIN                                                                                          
02/09/07       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
02/09/07       (H)       Heard & Held                                                                                           
02/09/07       (H)       MINUTE(FSH)                                                                                            
02/12/07       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
LYNN TOMICH KENT, Director                                                                                                      
Division of Water                                                                                                               
Department of Environmental Conservation                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 74.                                                                          
                                                                                                                                
KRISTIN SMITH                                                                                                                   
Copper River Watershed Project                                                                                                  
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 74.                                                                             
                                                                                                                                
STEVE BORRELL, Executive Director                                                                                               
Alaska Miners Association                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 74.                                                                          
                                                                                                                                
DR. ROLAND MAW                                                                                                                  
United Cook Inlet Drift Fishermen's Association;                                                                                
Past President, Kenai Wild                                                                                                      
Kasilof, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 74.                                                                             
                                                                                                                                
JOHN NELSON                                                                                                                     
Kokhanok Village, Alaska                                                                                                        
POSITION STATEMENT:  Testified in support of HB 74.                                                                             
                                                                                                                                
JIM KULAS, Environmental Manager                                                                                                
Red Dog Mine                                                                                                                    
Teck Cominco Alaska Incorporated                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 74.                                                                          
                                                                                                                                
LANCE TRASKY, fisheries biologist                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 41.                                                                             
                                                                                                                                
KERRY HOWARD, Executive Director                                                                                                
Office of Habitat Management and Permitting                                                                                     
Department of Natural Resources                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     During  hearing   of  HB  41,   provided                                                              
background information regarding OHMP and answered questions.                                                                   
                                                                                                                                
JOHN BITNEY, Legislative Liaison                                                                                                
Governor's Legislative Office                                                                                                   
Office of the Governor                                                                                                          
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     During  hearing   of  HB  41,   provided                                                              
clarification of the  governor's letter to the chair  of the Board                                                              
of Fisheries, dated February 8, 2007.                                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  PAUL   SEATON  called  the   House  Special   Committee  on                                                            
Fisheries  meeting  to  order  at  8:35:13  AM.    Representatives                                                            
Johnson, Johansen,  and Edgmon were present at the  call to order.                                                              
Representatives  Holmes,   Wilson,  and  LeDoux  arrived   as  the                                                              
meeting was in progress.                                                                                                        
                                                                                                                                
HB 74-BAN MIXING ZONES IN SPAWNING AREAS                                                                                      
                                                                                                                                
8:35:28 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the first order of  business would be                                                              
HOUSE  BILL   NO.  74,  "An   Act  prohibiting  mixing   zones  in                                                              
freshwater spawning  waters."  [Before  the committee is  CSHB 74,                                                              
Version LS0337\M, Bullock, 2/6/07, adopted on February 7, 2007.]                                                                
                                                                                                                                
8:36:54 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON directed  the committee's attention  to a generalized                                                              
discussion  of the  definition of  "placer  mine" and  "mechanical                                                              
dredging"  as well as  the covers  of three  fact sheets  from the                                                              
Environmental   Protection   Agency   (EPA)   that   discuss   the                                                              
aforementioned.                                                                                                                 
                                                                                                                                
8:38:19 AM                                                                                                                    
                                                                                                                                
LYNN  TOMICH KENT,  Director,  Division  of Water,  Department  of                                                              
Environmental   Conservation   (DEC),    provided   testimony   in                                                              
opposition  of HB 74.   Ms.  Kent paraphrased  from the  following                                                              
written statement [original punctuation provided]:                                                                              
                                                                                                                                
     The  Department  is  opposed  to CSHB  74(FSH)  for  the                                                                   
     following reasons:                                                                                                         
                                                                                                                                
     1. CSHB 74(FSH)  is not necessary to  protect anadromous                                                                 
     salmon from either a scientific or a perception basis.                                                                   
                                                                                                                              
     The   Department    of   Environmental    Conservation's                                                                   
     regulations prohibit  mixing zones in  anadromous salmon                                                                   
     spawning areas.  CSHB 74(FSH)  would put in  statute the                                                                   
     same  protections for  the  five species  of  anadromous                                                                   
     salmon that  have been part  of DEC's regulations  since                                                                   
     1995.                                                                                                                      
                                                                                                                                
     While  these  protections   are  not  necessary  from  a                                                                   
     scientific  perspective,  they   go  beyond  science  to                                                                   
     address  the need to  protect salmon  marketing and  the                                                                   
     public  perception that  Alaska's salmon  are clean  and                                                                   
     healthy.                                                                                                                   
                                                                                                                                
     2. There is  no justification for extending  the current                                                                 
     mixing zone  prohibition designed to protect  the salmon                                                                 
     marketing effort to protect "non-salmon" fish species.                                                                   
                                                                                                                              
     CSHB  74(FSH)  would  prevent  DEC  from  authorizing  a                                                                   
     mixing zone  in a non-salmon fish spawning  area even in                                                                   
     cases where  science can show the mixing zone  will have                                                                   
     no   adverse   effect   on   spawning.   There   is   no                                                                   
     justification    for   extending    the   mixing    zone                                                                   
     prohibition   which  is  intended   to  protect   salmon                                                                   
     marketing  efforts to  non-salmon  fish species.  Alaska                                                                   
     needs  to encourage  and support  responsible  community                                                                   
     growth and development of its natural resources.                                                                           
                                                                                                                                
     DEC's  regulations allow exceptions  to the  prohibition                                                                   
     of a  mixing zone  in "non-salmon"  spawning areas  when                                                                   
     site  specific conditions  show  that  the fish  species                                                                   
     will  be  protected  or  any  adverse  impacts  will  be                                                                   
     mitigated  as   determined  by  habitat   and  fisheries                                                                   
     biologists  with the Departments  of Fish and  Game, and                                                                   
     Natural     Resources,    under     their     mitigation                                                                   
     requirements,  just  as  they do  for  other  activities                                                                   
     that occur in waterbodies.                                                                                                 
                                                                                                                                
     Alaska's  communities and businesses  should be  allowed                                                                   
     to use mixing  zones if fish are protected.  There is no                                                                   
     justification  for  restricting   responsible  community                                                                   
     growth  and resource  development that  can comply  with                                                                   
     the   state's   requirements    for   the   growth   and                                                                   
     propagation of fish.                                                                                                       
                                                                                                                                
     3.  CSHB   74(FSH)  would   prohibit  mixing  zones   in                                                                 
     spawning areas for lampreys and smelts.                                                                                  
                                                                                                                              
     DEC would  be prevented from  authorizing a  mixing zone                                                                   
     in  all anadromous  fish  spawning areas.  Lampreys  and                                                                   
     smelts are  fish species included  in the definition  of                                                                   
     anadromous  fish. Unlike  the  importance  of salmon  to                                                                   
     Alaska's  social and  economic wellbeing,  DEC does  not                                                                   
     believe  non-salmon anadromous  fish species justify  an                                                                   
     absolute  prohibition on  mixing zones  that can  comply                                                                   
     with the  scientifically based  water quality  standards                                                                   
     for growth and propagation of fish.                                                                                        
                                                                                                                                
     4.  CSHB  74(FSH)  would  prohibit   reauthorization  of                                                                 
     mixing  zones  that have  become  a fish  spawning  area                                                                 
     unless  the discharge  was from  a municipal  wastewater                                                                 
     facility,   or   the  waterbody   is   an   artificially                                                                 
     constructed facility.                                                                                                    
                                                                                                                              
     It  is possible  for  mixing  zones to  become  spawning                                                                   
     areas even  though spawning  was not occurring  when the                                                                   
     mixing  zone was  first authorized.  DFG has  discovered                                                                   
     fish  spawning in  a mixing  zone previously  authorized                                                                   
     for  a drinking  water utility,  and in  some cases  for                                                                   
     domestic   wastewater   facilities.    Successful   fish                                                                   
     spawning in  a mixing zone is at least  partial evidence                                                                   
     that  the  water  quality  in the  mixing  zone  is  not                                                                   
     harmful  to fish. Allowing  mixing zones  in areas  that                                                                   
     have   become  successful   spawning  areas  should   be                                                                   
     allowed  for  any  facility  type,  not  just  municipal                                                                   
     wastewater   facilities  or   artificially   constructed                                                                   
     facilities. Businesses  and communities should  not lose                                                                   
     their mixing  zones just because  they are doing  such a                                                                   
     good  job  treating  their wastewater  that  fish  start                                                                   
     spawning in them.                                                                                                          
                                                                                                                                
     5. CSHB  74(FSH) includes  a definition  of "area"  that                                                                 
     is counter  to both  past and  current practices  by the                                                                 
     Departments  of  Fish  and Game  and  Natural  Resources                                                                 
     when determining  spawning areas  on both a  spatial and                                                                 
     temporal basis.                                                                                                          
                                                                                                                              
     The relative  sensitivity of Alaska's fish  resources is                                                                   
     seasonal.   Impacts  from   responsible  community   and                                                                   
     resource  development can  be avoided  by limiting  uses                                                                   
     and  activities  to times  of  the  year when  the  fish                                                                   
     resources  are not  there or  other seasonal  conditions                                                                   
     eliminate  adverse   impacts  to  the   fish  resources.                                                                   
     Alaska's resource  agencies have traditionally  employed                                                                   
     "seasonal restrictions"  to control development  impacts                                                                   
     to the environment.                                                                                                        
                                                                                                                                
     There  are  dozens  of  currently  permitted  facilities                                                                   
     with discharges  that do not  have an adverse  effect on                                                                   
     fish,  in part  due to  timing  restrictions imposed  on                                                                   
     their   discharge    via   permit   conditions.    DEC's                                                                   
     regulations  also  prohibit   mixing  zones  that  would                                                                   
     adversely affect  the capability of the area  to support                                                                   
     future  spawning,  incubation, and  rearing  activities.                                                                   
     CSHB  74(FSH) would  require  the Department  to  cancel                                                                   
     those permits  (other than  for placer mines)  and limit                                                                   
     future  permitting  in similar  situations  without  any                                                                   
     net environmental benefit to the fish.                                                                                     
                                                                                                                                
     6.  CSHB  74(FSH)  will  create   a  temporary  inequity                                                                 
     between existing placer miners and new placer miners.                                                                    
                                                                                                                                
     Placer mines  with mixing zone authorizations  under the                                                                   
     current general  permit do not  have to comply  with the                                                                   
     proposed  CSHB 74(FSH) restrictions  of AS  46.03.065(c)                                                                   
     until  the general  permit is  reauthorized -  currently                                                                   
     scheduled  for the fall  of 2010.  Any new placer  mines                                                                   
     seeking permit  coverage would  have to comply  with the                                                                   
     new  restrictions  of  CSHB  74(FSH)  immediately.  This                                                                   
     would  set up  a double-standard  for  existing vs.  new                                                                   
     placer mines during the next few mining seasons.                                                                           
                                                                                                                                
     7.  CSHB  74(FSH)  would  prohibit  re-authorization  of                                                                 
     mixing zones  for placer mines that cannot  operate with                                                                 
     a mixing zone limited to 500 feet.                                                                                       
                                                                                                                                
     There  are approximately  28 placer  mines that have  an                                                                   
     authorized mixing  zone greater than 500 feet  in length                                                                   
     -  the  proposed  limitation   in  CSHB  74(FSH).  These                                                                   
     facilities,   under  current  regulatory   requirements,                                                                   
     have already  done everything they can do  to ensure the                                                                   
     mixing  zone is as  small as  practicable. It is  likely                                                                   
     that many of  these facilities could not  be re-permited                                                                   
     under  the proposed  500  foot mixing  zone  limitation,                                                                   
     even  though they  are  currently operating  without  an                                                                   
     adverse impact to spawning.                                                                                                
                                                                                                                              
     8.  CSHB  74(FSH)  relies upon  a  new  undefined  term,                                                                 
     "useful  life" when  referring  to renewal  of a  mixing                                                                 
     zone   authorization   for    a   municipal   wastewater                                                                 
     facility.                                                                                                                
                                                                                                                                
     As many  facilities  age, they are  upgraded to  varying                                                                   
     degrees  from  minor modifications  to  almost  complete                                                                   
     reconstruction.  DEC knows  of no  standard or  criteria                                                                   
     for    determining   a    facility's   "useful    life."                                                                   
     Introduction  of the concept  of a "useful life"  raises                                                                   
     questions  about  what  constitutes  a  modification  or                                                                   
     upgrade to a  facility vs. reconstruction at  the end of                                                                   
     a facility's "useful life."                                                                                                
                                                                                                                                
     The "useful  life" of a  facility is also irrelevant  to                                                                   
     the  properties and  effects  of a  mixing  zone or  the                                                                   
     methods necessary to protect fish.                                                                                         
                                                                                                                                
     9.  CSHB  74(FSH)  is  inconsistent   with  the  current                                                                 
     statute   for   protection   of  fish   and   game   (AS                                                                 
     41.14.870),  interference with  salmon spawning  streams                                                                 
     and waters  (AS 16.10.010),  or submission of  plans and                                                                 
     specifications (AS 16.20.060).                                                                                           
                                                                                                                                
     Alaska's  legislature  has  enacted a  protective  legal                                                                   
     framework  for   all  waters  important  to   fish  with                                                                   
     additional  protections for  rivers,  lakes and  streams                                                                   
     that  are important  for  salmon spawning,  rearing,  or                                                                   
     migration.  State approval  must be  received from  DEC,                                                                   
     DNR,  or DFG prior  to the  construction  in, or use  of                                                                   
     waters   important   to  fish   spawning,   rearing   or                                                                   
     migration.                                                                                                                 
                                                                                                                                
     CSHB  74(FSH)   prohibits  all   mixing  zones   in  all                                                                   
     anadromous  fish  and  other  specifically  listed  fish                                                                   
     spawning  areas. However,  CSHB 74(FSH)  does not  amend                                                                   
     or  repeal  the  provisions  in  other  state  law  that                                                                   
     permit the  use of fish spawning  areas if there  are no                                                                   
     adverse impacts  from that  use. CSHB 74(FSH)  conflicts                                                                   
     with   current  legislative   policy  not   specifically                                                                   
     amended or repealed by CSHB 74(FSH).                                                                                       
                                                                                                                                
     10.  CSHB 74(FSH)  will impact  Alaska's  municipalities                                                                 
     and villages.                                                                                                            
                                                                                                                                
     CSHB  74(FSH) provides  for renewal  of existing  mixing                                                                   
     zones   for   municipal  or   village   treated   sewage                                                                   
     discharges when  spawning begins to occur in  the mixing                                                                   
     zone  after  one  is authorized.  In  all  other  cases,                                                                   
     though, the  bill prohibits mixing zones  for discharges                                                                   
     of  treated municipal  sewage  to anadromous  and  other                                                                   
     fish   spawning  areas.   Some   fish  species,   Arctic                                                                   
     grayling   for  example,   are   ubiquitous  and   spawn                                                                   
     throughout  Alaska's river  systems. CSHB 74(FSH)  would                                                                   
     preclude  the  use  of mixing  zones  to  authorize  the                                                                   
     discharge  of  treated sewage  from  a large  number  of                                                                   
     village  sewage  treatment  lagoons  that  discharge  to                                                                   
     interior  river  systems where  Arctic  grayling  spawn.                                                                   
     The alternative  of treating  sewage from villages  to a                                                                   
     level  where  no mixing  zone  would be  required  would                                                                   
     involve exorbitant costs and is simply not feasible.                                                                       
                                                                                                                                
     11. Mixing  zones are  already strictly regulated  under                                                                 
     existing regulations.                                                                                                    
                                                                                                                                
     Before  authorizing  any  mixing   zone  in  any  waters                                                                   
     (fresh  or   marine,  with  or  without   spawning  area                                                                   
     considerations),   the  Department   must  consider   19                                                                   
     specific  regulatory   provisions.  Many  of   them  are                                                                   
     designed  specifically  to  protect  aquatic  life.  For                                                                   
     example,  the Department must  find that the  designated                                                                   
     and  existing   uses  of  the  waterbody  as   a  whole,                                                                   
     including growth  and propagation of aquatic  life, will                                                                   
     be   maintained   and  protected,   and   that   overall                                                                   
     biological  integrity  of  the  waterbody  will  not  be                                                                   
     impaired.   In  addition,  a   mixing  zone  cannot   be                                                                   
     authorized  if it  will result  in an  acute or  chronic                                                                   
     toxic effect  in the water  column, sediments,  or biota                                                                   
     outside the  boundaries of the mixing zone;  result in a                                                                   
     reduction  in  fish  or  shellfish   population  levels;                                                                   
     result  in  permanent  or  irreparable  displacement  of                                                                   
     indigenous  organisms;  adversely affect  threatened  or                                                                   
     endangered   species;  form   a  barrier  to   migratory                                                                   
     species  or   fish  passage;  contain   pollutants  that                                                                   
     bioaccumulate,   bioconcentrate,    or   persist   above                                                                   
     natural levels  in sediments, water, or biota;  or cause                                                                   
     lethality to passing organisms.                                                                                            
                                                                                                                                
     In summary,  mixing zones are not a blanket  approval to                                                                   
     discharge  pollutants into water.  Their size and  shape                                                                   
     are calculated  by engineers  using mathematical  models                                                                   
     and    site   specific    information   including    the                                                                   
     concentration  of  pollutants,  water volumes  and  flow                                                                   
     rates.                                                                                                                     
                                                                                                                                
     Once authorized,  many permits require the  permittee to                                                                   
     monitor   the  concentration   of   pollutants  in   the                                                                   
     discharge and  to monitor the  waterbody at the  edge of                                                                   
     the  mixing  zone  to  ensure  that  all  water  quality                                                                   
     standards  are  being met  at  the  edge of  the  mixing                                                                   
     zone.  DEC  also conducts  independent  inspections  and                                                                   
     independent monitoring of permittees.                                                                                      
                                                                                                                                
8:48:35 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked if,  prior to 2006  and the implementation  of                                                              
the new  regulations [which are  mirrored in HB 74],  the division                                                              
denied villages  mixing zones  for municipal wastewater  treatment                                                              
plants.                                                                                                                         
                                                                                                                                
MS.  KENT explained  that many  villages have  lagoon systems  and                                                              
the  lagoons are  nondischarging  for  most of  the  year.   Those                                                              
lagoons  and  facilities  have  been  permitted  to  discharge  at                                                              
certain  times of  the  year in  order  to avoid  spawning  times.                                                              
Therefore, if  the seasonal restrictions  aren't available  to the                                                              
village, the village won't be able to discharge its lagoons.                                                                    
                                                                                                                                
8:49:42 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked, "Under the  current regulations,  as written,                                                              
that define  spawning areas, you had  not denied any permits.   Is                                                              
that  correct?"    He  also  asked if  that  was  correct  in  the                                                              
previous decade.                                                                                                                
                                                                                                                                
MS.   KENT   answered,  "I'm   not   sure."     In   response   to                                                              
Representative  LeDoux,  Ms.  Kent  agreed  to  find  out  whether                                                              
permits had been  denied under the current regulations.   She then                                                              
related that  the mixing  zone authorization  for the  Pogo Mine's                                                              
domestic  wastewater discharge  from  its mining  man camp  wasn't                                                              
denied.   However, the company  was required to  perform extensive                                                              
studies of  the Good Paster River  in order to find a  small place                                                              
in the  river that  was underlain  by bedrock  and unsuitable  for                                                              
fish spawning,  which would  be used  for its domestic  wastewater                                                              
discharge  outfall.  In  response to  Representative Johnson,  Ms.                                                              
Kent   agreed  to   inform  the   committee  of   the  number   of                                                              
applications.                                                                                                                   
                                                                                                                                
8:51:50 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  inquired as  to why Ms.  Kent believes  the language                                                              
"useful life," which  is used throughout statute,  is different in                                                              
this case.  He  requested that Ms. Kent update  her testimony with                                                              
regard to that distinction.                                                                                                     
                                                                                                                                
MS.  KENT  said  that  she  hasn't  reviewed  the  other  statutes                                                              
referring to  "useful life."   However, she  said that  she's well                                                              
aware of  the facility  upgrades occurring in  rural Alaska.   She                                                              
noted that she would review that language.                                                                                      
                                                                                                                                
8:53:04 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON related  his understanding  that there  may be  some                                                              
inordinate discrimination  between new placer miners  and existing                                                              
placer  miners.     He   recalled  the   practice  of   provisions                                                              
grandfathering  in  existing  facilities  until  new  permits  are                                                              
available, such  as the  general permit that  will be  reissued in                                                              
2010.                                                                                                                           
                                                                                                                                
MS.  KENT explained  that  the legislation  is  written such  that                                                              
anyone  who  isn't  currently  placer  mining  but  wishes  to  be                                                              
covered  this summer  will need  to apply for  coverage under  the                                                              
existing  general   permit  and   comply  with  the   restrictions                                                              
specified in  HB 74.   For instance, any  new placer  miners would                                                              
have to  comply with the  limitation on  the length of  the mixing                                                              
zone.   In further response  to Chair Seaton,  Ms. Kent  said that                                                              
the only difference  is that HB  74 is drafted such that  it would                                                              
apply  differently  to the  existing  permitted placer  mines  and                                                              
those  seeking a  permit between  now and  the reauthorization  of                                                              
the general permit.                                                                                                             
                                                                                                                                
8:55:06 AM                                                                                                                    
                                                                                                                                
KRISTIN  SMITH,  Copper  River  Watershed  Project,  informed  the                                                              
committee   that  the  Copper   River  Watershed   Project   is  a                                                              
membership  nonprofit  that focuses  on  the entire  Copper  River                                                              
region.   The  project  represents  the  salmon economies  of  the                                                              
Copper  River region.   She  further informed  the committee  that                                                              
the Copper River  watershed relies on a commercial  salmon fishing                                                              
economy, subsistence  salmon economy,  and a growing  sportfishing                                                              
salmon  economy.   She  related  that  the Copper  River  region's                                                              
salmon economy amounts  to about $20 million annually  on average.                                                              
Therefore, [the  Copper River Watershed Project]  supports banning                                                              
mixing zones  in spawning areas.   She emphasized that  fish are a                                                              
public  resource and  should be  managed for  the public  benefit.                                                              
Allowing mixing  zone pollution in  public waters benefits  a few,                                                              
not the  general public.   Furthermore,  mixing  zones need  to be                                                              
banned  from spawning  areas  at  all times  because  of the  harm                                                              
caused by residual  pollutants.  Public waters have  to be managed                                                              
for all forms of  pollution in order to be effective  and spawning                                                              
areas have  to be treated as  such rather than a  particular point                                                              
in time.   Ms. Smith related  that water quality treatment  in the                                                              
Copper   River  region   has   illustrated   that  the   long-term                                                              
polycyclic   aromatic   hydrocarbons  bioaccumulate   and   micro-                                                              
organisms  can accumulate  in their  tissue.   However, the  state                                                              
water quality standards  don't take bioaccumulation  into account,                                                              
but  rather  only  measure  acute episodes  of  pollution.    It's                                                              
critical  to move HB  74 through,  she said.   She then  expressed                                                              
her outrage at having to testify on this subject again.                                                                         
                                                                                                                                
8:58:54 AM                                                                                                                    
                                                                                                                                
STEVE  BORRELL,  Executive Director,  Alaska  Miners  Association,                                                              
provided testimony  in opposition to HB  74 as well as  Version M,                                                              
which  he  characterized   as  more  onerous  than   the  original                                                              
legislation.  Mr. Borrell provided the following testimony:                                                                     
                                                                                                                                
     States are allowed  to authorize mixing zones  under the                                                                   
     Clean  Water Act  because in  some  situations no  other                                                                   
     alternative  exists  to  handle  some  discharges.    In                                                                   
     Alaska  most   of  the  mixing  zones  are   for  sewage                                                                   
     discharges   by   municipalities   and  a   few   mining                                                                   
     operations  also need  mixing zones  to comply with  the                                                                   
     very  stringent  discharge  limits that  are  in  place.                                                                   
     Mixing  zones   are  the  option  of  last   resort  and                                                                   
     authorized   by  DEC  only   after  no  other   feasible                                                                   
     alternative  is  determined.   Mixing  zones  are  sized                                                                   
     based  on the  flow of the  receiving water  and by  law                                                                   
     must be  "as small as  practicable".  That  term appears                                                                   
     in law  throughout EPA regulations,  in statute,  and in                                                                   
     state.    Mixing  zones  are  not  allowed  when  salmon                                                                   
     spawning  is occurring;  timing  restrictions  currently                                                                   
     placed  on mixing  zones  so they  cannot  be used  when                                                                   
     salmon are spawning.   The CS to House Bill  74 adds the                                                                   
     words "at  any time" and  would eliminate use  of mixing                                                                   
     zones even when  spawning was not occurring.   DEC would                                                                   
     not  be able  to issue  mixing  zones "at  any time"  if                                                                   
     spawning ever occurs in that area.                                                                                         
                                                                                                                                
     The second change  made ... by the committee  substitute                                                                   
     adds the  term "a  turbidity mixing zone".   There  is a                                                                   
     hidden  problem  within  this   addition  of  the  term.                                                                   
     Turbidity  modifications   are  currently   allowed  for                                                                   
     placer and  dredge miners and  this is, in  essence, the                                                                   
     mixing  zone.    However, EPA  and  DEC,  after  several                                                                   
     years   of   study  and   multiple   legal   challenges,                                                                   
     determined  that turbidity  was  a reasonable  surrogate                                                                   
     for naturally  occurring arsenic and that if  a very low                                                                   
     limit  was placed  on  turbidity,  the permit  would  be                                                                   
     protected for  arsenic in the discharged water  as well.                                                                   
     Therefore, with  the change made  by the CS, the  use of                                                                   
     turbidity as  a surrogate would  likely not  be allowed.                                                                   
     The  bill  appears to  grandfather  municipalities  that                                                                   
     currently  have  mixing  zones that  become  a  spawning                                                                   
     area after  the mixing  zone is  approved.  However,  if                                                                   
     the  municipality needs  to expand,  to modify, or  make                                                                   
     some  change to  the sewage  plant, it  would require  a                                                                   
     different  permit and  it would  no  longer qualify  and                                                                   
     could  no  longer  have  the same  mixing  zone  or  any                                                                   
     mixing zone.   It is my  understanding that this  is the                                                                   
     situation  for the  City of  Palmer  where changes  have                                                                   
     occurred  in the Matanuska  River since  the permit  was                                                                   
     issued and the  discharge area for the Palmer  sewage is                                                                   
     now a spawning  bed for salmon.  This bill  is likely to                                                                   
     contribute to  the demise and closure of  some villages.                                                                   
     By  not being  able to obtain  a mixing  zone, the  bill                                                                   
     will add  one more huge  costly hurdle to villages  that                                                                   
     are already  struggling to survive.   The bill  makes no                                                                   
     provisions  for  the many  villages  and  municipalities                                                                   
     that do not  now have a discharge permit,  and therefore                                                                   
     do  not  have  a  mixing  zone.     These  villages  ...                                                                   
     typically  have a  sewage lagoon  and  each spring  when                                                                   
     water  is  either pumped  or  drained  off the  top  and                                                                   
     pumped  into  an  adjacent  stream  or river.    In  the                                                                   
     spring of  the year,  the river is  high and provides  a                                                                   
     mixing zone for the discharge from the lagoon.                                                                             
                                                                                                                                
     A  cursory  view  of discharge  permits  now  in  effect                                                                   
     provides  some  interesting  results.    First  off,  it                                                                   
     appears  that  every  fish processing  plant  in  either                                                                   
     fresh or  salt water already  has a mixing zone.   These                                                                   
     mixing zones  vary from a few meters to  several hundred                                                                   
     meters in size.                                                                                                            
                                                                                                                                
MR. BORRELL  then reviewed  the specifics of  mixing zones  in the                                                              
following  areas:     Palmer,   Point  Barrow,  Soldotna,   Kenai,                                                              
Dillingham, King Salmon,  and Homer.  He mentioned  that there are                                                              
various fish processing  plants on the Kenai River,  but he didn't                                                              
have the details of the permits.  Mr. Borrell opined:                                                                           
                                                                                                                                
     This  bill does  not  address the  real  question.   The                                                                   
     real question:   Is  there adverse  impact due to  these                                                                   
     mixing  zones or  due to  any  other mixing  zones.   If                                                                   
     there  is  adverse  impact,  no mixing  zone  should  be                                                                   
     allowed   irrespective   of   whether  it   involves   a                                                                   
     municipality, a  fish processing plant, a village,  or a                                                                   
     mine.   If there  is no  adverse impact  and that's  the                                                                   
     purpose of  the science that's  required to  obtain such                                                                   
     a   permit   and   there    are   no   other   practical                                                                   
     alternatives,  a mixing  zone may be  appropriate.   All                                                                   
     discharges  must   be  treated  equally  and   the  same                                                                   
     rigorous  science  must  be applied  before  any  mixing                                                                   
     zone is approved.                                                                                                          
                                                                                                                                
9:07:04 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON noted  that the City of Palmer has  provided a letter                                                              
in support of HB 74.                                                                                                            
                                                                                                                                
9:07:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked how villages and  municipalities have                                                              
faired prior to the regulatory change last year.                                                                                
                                                                                                                                
MR.  BORRELL  said  that  he  didn't   know  the  details  of  the                                                              
situation  prior to  the  regulatory change.    Under the  current                                                              
regulations, it  appears that a  village can obtain a  mixing zone                                                              
[permit]  in   a  resident  fish   spawning  area,   he  surmised.                                                              
However,  under   the  legislation   those  villages   that  don't                                                              
currently have a  mixing zone wouldn't be able to  obtain one.  He                                                              
recalled  a DEC EPA  meeting several  years ago  in which  the EPA                                                              
representative  admitted  that  many remote  villages  don't  have                                                              
permits  of  any  kind  and  mentioned  that  they  can't  get  to                                                              
everything.                                                                                                                     
                                                                                                                                
9:09:50 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON, in  response to  Representative Johnson,  clarified                                                              
that in essence  House Bill 328 of the Twenty-Fourth  Alaska State                                                              
Legislature is identical to [HB 74].                                                                                            
                                                                                                                                
9:10:29 AM                                                                                                                    
                                                                                                                                
DR. ROLAND MAW,  United Cook Inlet Drift Fishermen's  Association;                                                              
Past President,  Kenai Wild,  began by  noting his agreement  with                                                              
Ms. Smith's  comments regarding  the hydrocarbon  issue.   Dr. Maw                                                              
related his  support of HB 74.   With regard to  marketing salmon,                                                              
he said  that perception  is the  reality.   He then recalled  his                                                              
attendance at the  Chefs of America convention  where he displayed                                                              
the  Kenai  Wild  salmon  product.   The  chefs  held  cards  that                                                              
specify endorsed  products  available to  them, products  that are                                                              
in  question  for  consumption,  and  products  that  wouldn't  be                                                              
purchased.   There was some question  about Alaska salmon  as some                                                              
of  the   salmon  products   from  Alaska   were  listed   in  the                                                              
questionable category.   However,  Kenai Wild, Kenai,  and Bristol                                                              
Bay salmon  as well as southeast  troll salmon were listed  in the                                                              
endorsed products  category.  He  recalled spending a lot  of time                                                              
discussing  the  handling  procedures, environment  in  which  the                                                              
fish were raised,  and about heavy metals and  other contaminants.                                                              
Therefore,  he surmised  that if  Alaska isn't  careful with  this                                                              
mixing zone  issue, some of  Alaska's products won't  be supported                                                              
or listed in the endorsed category.                                                                                             
                                                                                                                                
9:16:21 AM                                                                                                                    
                                                                                                                                
JOHN NELSON  stated support  for HB  74.   He highlighted  that he                                                              
lives  in an area  with pristine  waters.   In fact,  the area  is                                                              
part  of the  sockeye capital  of  the world.   Additionally,  the                                                              
village utilizes  Lake Iliamna water for human  consumption.  With                                                              
regard to earlier  testimony that villages have  the obligation to                                                              
pump/discharge  their sewer  lagoons  in fresh  water, Mr.  Nelson                                                              
stated his  disagreement.   He informed  the committee  of various                                                              
villages, including  the Village of Kokhanok that  don't discharge                                                              
contaminated water into [fresh water].                                                                                          
                                                                                                                                
9:18:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX related  her  understanding  then that  the                                                              
Village of  Kokhanok isn't concerned  about any dire  consequences                                                              
that  Mr. Borrell  discussed  in  relation to  village  wastewater                                                              
systems.                                                                                                                        
                                                                                                                                
MR. NELSON replied,  "No, no I wasn't.  No, I just  wanted to make                                                              
a commentary of that."                                                                                                          
                                                                                                                                
9:19:04 AM                                                                                                                    
                                                                                                                                
JIM  KULAS, Environmental  Manager,  Red  Dog Mine,  Teck  Cominco                                                              
Alaska  Incorporated,  began  by  saying  that he  is  calling  on                                                              
behalf   of  Teck   Cominco   and   its  partner   NANA   Regional                                                              
Corporation.   He  related  Red  Dog's opposition  to  HB 74,  and                                                              
opined  that  existing regulations  adequately  protect  spawning.                                                              
He  explained that  at  the  Red Dog  Mine  two mixing  zones  are                                                              
necessary  and are used,  although they  are only  used as  a last                                                              
resort.    The  mine  has  done   exhaustive  work  to  treat  its                                                              
discharge  to meet  the best  standards possible.   The  discharge                                                              
permitting process  is very rigorous and detailed.   For instance,                                                              
the Red  Dog Mine  had a  permit renewed  by EPA  that took  eight                                                              
years  to obtain.   Furthermore,  to obtain a  mixing zone  permit                                                              
requires  considerable  study  and  science  to justify  it.    He                                                              
explained  how this  is monitored  by the state  annually  and how                                                              
the Red Dog  Mine spends over $1  million per year to  monitor its                                                              
discharge.   Again, the  mixing zones  were a  last resort  as the                                                              
mine  was  spending  almost  $5  million per  year  to  treat  and                                                              
discharge  water  and roughly  $50  million  in capital  costs  to                                                              
construct the [treatment]  plant.  The aforementioned  illustrates                                                              
the effort  before requesting a mixing  zone.  In the  case of Red                                                              
Dog Mine,  what it discharges  meets drinking water  standards for                                                              
metals.    However,  the  mixing  zone is  necessary  for  pH  and                                                              
dissolved solids.   Mr. Kulas  pointed out  that the Red  Dog Mine                                                              
has been discharging  for 18 years and through  all the exhaustive                                                              
studies, no aquatic  harm has been identified.  In  fact, the fish                                                              
population  downstream from  the  mine's discharge  has  increased                                                              
over the life  of the operation.  Therefore,  Mr. Kulas reiterated                                                              
that the existing  regulations allow for protection.   With regard                                                              
to the  question of  grandfathering,  he pointed  out that  all of                                                              
the  permits   issued  by   EPA  only   have  a  five-year   life.                                                              
Therefore,  he questioned  how satisfactory  grandfathering  would                                                              
be for a permit with a limited life.                                                                                            
                                                                                                                                
9:23:16 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON related  his understanding,  "So, you  were able  to                                                              
get your  mixing zone  permit and  do this  for the decade  before                                                              
January 1, 2006, you've been able to operate.  Is that correct?"                                                                
                                                                                                                                
MR.  KULAS replied  yes, adding  that the  Red Dog  Mine has  been                                                              
discharging since 1990.                                                                                                         
                                                                                                                                
9:23:40 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON inquired  as to the difference between  the situation                                                              
10-12 years  ago and today.   He also inquired  as to why  Red Dog                                                              
Mine  was  able   to  operate  and  survive  under   the  previous                                                              
regulations  and why  it would  be  difficult to  return to  those                                                              
previous regulations.                                                                                                           
                                                                                                                                
MR. KULAS  explained that  in the  case of the  Red Dog  Mine, the                                                              
original  discharge permit  was  based on  a technology  standard.                                                              
That  permit and  those limits  were relatively  easy to  achieve.                                                              
Subsequent  to  the  issuance  of that  permit,  EPA  changed  its                                                              
permitting  requirements  to  what's  considered  a  water-quality                                                              
based  standard.   At  that point,  the  permit  limits were  much                                                              
lower and  thus the  mixing zone  was required.   He informed  the                                                              
committee that  the Red Dog  Mine has to  change its  operation to                                                              
respond to  the Grayling spawning  period such that  the discharge                                                              
is  decreased  so  that  the mixing  zone  isn't  required.    The                                                              
aforementioned  is achieved  with state oversight  during  which a                                                              
biologist is  brought on site to  observe spawning and  inform the                                                              
mine when it has concluded.                                                                                                     
                                                                                                                                
9:26:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  asked if  Mr.  Kulas  is saying  that  the                                                              
standards and requirements are more stringent now.                                                                              
                                                                                                                                
MR. KULAS  replied yes.   When EPA changed  the basis  for writing                                                              
the  permit limits  from  a technology  basis  to a  water-quality                                                              
basis, the  permit limits were  ratcheted down considerably.   For                                                              
example, in  the case of zinc the  Red Dog Mine was  allowed 1,500                                                              
parts per  million (ppm) in its  discharge and that  was decreased                                                              
to  198  ppm,  which  is  almost   10-fold.    The  aforementioned                                                              
occurred on virtually every permit limit.                                                                                       
                                                                                                                                
9:26:59 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON, upon  determining no  one else  wished to  testify,                                                              
closed public testimony.                                                                                                        
                                                                                                                                
[HB 74 was held over.]                                                                                                          
                                                                                                                                
HB 41-TRANSFER HABITAT DIV FROM DNR TO F&G                                                                                    
                                                                                                                                
9:27:31 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the final order of  business would be                                                              
HOUSE  BILL NO.  41, "An  Act returning  certain duties  regarding                                                              
habitat management  from  the Department  of Natural Resources  to                                                              
the Department  of Fish and Game;  and providing for  an effective                                                              
date."                                                                                                                          
                                                                                                                                
LANCE  TRASKY,   fisheries  biologist,  began  by   informing  the                                                              
committee  that   for  31  years  he  was  a   fisheries  research                                                              
biologist,  habitat biologist,  and  regional  supervisor for  the                                                              
former Division  of Habitat within  the Alaska Department  of Fish                                                              
&  Game  (ADF&G).   Mr.  Trasky  paraphrased  from  the  following                                                              
written remarks [original punctuation provided]:                                                                                
                                                                                                                                
     I am  testifying today  to voice  my strong support  for                                                                   
     House  Bill  41  which  would  reverse  former  Governor                                                                   
     Murkowski's   Executive  Order   107  and  returns   the                                                                   
     responsibility  to protect  salmon  streams and  prevent                                                                   
     blockages of  fish streams to  the Department of  Fish &                                                                   
     Game where it rightfully belongs.                                                                                          
                                                                                                                                
     Such an  action will accomplish  two things.   First, it                                                                   
     will help  to restore public  confidence in  the state's                                                                   
     regulatory  system  which was  badly  eroded during  the                                                                   
     Murkowski administration.   Secondly, it will  place the                                                                   
     authority    on   how   to    protect   our    socially,                                                                   
     economically,   and   culturally    valuable   fisheries                                                                   
     resources  back in  the hands  of Department  of Fish  &                                                                   
     Game fisheries  biologists with a statutory  mandate and                                                                   
     the expertise  to protect, preserve, maintain  and where                                                                   
     possible extend  the fish and wildlife resources  in the                                                                   
     interest  of the economy  and well  being of the  state,                                                                   
     as the founding fathers of this state intended.                                                                            
                                                                                                                                
     Alaska's  founders witnessed  decades  of fisheries  and                                                                   
     fisheries  habitat  mismanagement  when  other  interest                                                                   
     trumped conservation.   The founders also  witnessed the                                                                   
     final demise  of the once great salmon fisheries  of the                                                                   
     Pacific Northwest  in the 1950's and had  predicted that                                                                   
     the loss  of habitat  as a result  would be the  biggest                                                                   
     long-term  threat facing Alaska's  fisheries as  well as                                                                   
     the  subsistence,  commercial   and  sport  fishers  who                                                                   
     depend   upon  them.     As  the   framework  of   state                                                                   
     government  was taking  shape,  a heated  debate  ensued                                                                   
     between   Alaskan  fishermen   and  those  involved   in                                                                   
     mining,  logging, and  hydropower development  regarding                                                                   
     how state government  would be organized in  addition to                                                                   
     deciding  what functions  various  agencies would  have.                                                                   
     Miners and  loggers wanted  a traditional system  with a                                                                   
     Department  of Natural Resources  and a simple  fish and                                                                   
     game   management  division   having  no  authority   in                                                                   
     critical  habitat decisions.   Fish  interests wanted  a                                                                   
     separate Department  of Fish &  Game.  They  also wanted                                                                   
     this  department  to  have   an  equal  voice  in  state                                                                   
     resource   management   decisions,    a   constitutional                                                                   
     mandate   for  sustained   yield,   and  the   statutory                                                                   
     authority  to  prevent  the  destruction  of  anadromous                                                                   
     fish habitat  on public  and private  lands, as well  as                                                                   
     to  prevent  blockage  of fish  passage  from  dams  and                                                                   
     other  obstructions.   Fisheries  interest  won out  and                                                                   
     for 43 years this was the law of the land.                                                                                 
                                                                                                                                
     Unfortunately  in 2003, Governor  Murkowski was  able to                                                                   
     do  what   our  founding  fathers   feared  most.     By                                                                   
     transferring the  Anadromous Fish Act and the  Fish Ways                                                                   
     Act  to  the  Alaska  Department  of  Natural  Resources                                                                   
     (ADNR)  and  implementing   a  Memorandum  of  Agreement                                                                   
     granting  ADNR   oversight  of  the  Federal   Fish  and                                                                   
     Wildlife  Coordination Act,  and radically changing  the                                                                   
     Alaska  Coastal Management  Program; Governor  Murkowski                                                                   
     was  able to  funnel  all of  the authority  to  approve                                                                   
     development projects  into the ADNR.  He  also appointed                                                                   
     manager who  shared his views  to implement  his vision.                                                                   
     He  set  Alaska  on  the same  dead-end  road  that  the                                                                   
     former salmon producing western states followed.                                                                           
                                                                                                                                
     The  transfer   of  these   statutory  authorities   and                                                                   
     programs  has directly affected  the consideration  that                                                                   
     fish  habitat  and subsistence,  commercial,  and  sport                                                                   
     fishermen  receive  in state  resource  development  and                                                                   
     permitting decision in several ways:                                                                                       
                                                                                                                                
     1. ADF&G and  ADNR have very different missions.   ADF&G                                                                   
     has the statutory  mandate to protect and  maintain fish                                                                   
     resources,  while ADNR  has the mandate  to develop  the                                                                   
     states'   renewable    and   non-renewable    resources.                                                                   
     Removing  the  responsibility  to protect  fish  habitat                                                                   
     from   ADF&G  makes   it  much   easier   for  ADNR   to                                                                   
     inappropriately  sacrifice  fish habitat  to  facilitate                                                                   
     non-renewable resource development.                                                                                        
                                                                                                                                
     2. The  balance that state  founders sought  in resource                                                                   
     development decisions  has been lost.  Some  people have                                                                   
     tried  to make the  argument that  ADNR employees  would                                                                   
     protect  fish  as  diligently  as  they  did  at  ADF&G.                                                                   
     These people  must not have heard of  corporate culture.                                                                   
     The  transfer  of  staff  and  authorities  is  akin  to                                                                   
     moving  the Mercedes  design  team to  Hyundai and  then                                                                   
     expecting that they will still be building Mercedes.                                                                       
                                                                                                                                
     3. Over  my career  I was involved  with many  different                                                                   
     development  projects  where the  Department  of Fish  &                                                                   
     Game  and ADNR  had  very  different positions  on  ADNR                                                                   
     projects  and activities  affecting  fish, wildlife  and                                                                   
     public use.  Examples include:                                                                                             
                                                                                                                                
        · One example was the issue of requiring logging                                                                        
          operations  on state  and private  lands to  follow                                                                   
          the  law  and  submit  plans  for  stream  crossing                                                                   
          structures   to   review    for   adequacy   before                                                                   
          construction.    Loggers  and  ADNR  did  not  want                                                                   
          ADF&G's  Habitat  Division  to require  loggers  to                                                                   
          obtain  permits from  ADF&G to  build roads  across                                                                   
          fish streams.   ADF&G asserted its  authority under                                                                   
          the  Anadromous Fish  Act  and Fish  Ways Acts  and                                                                   
          continued to require loggers to get permits.                                                                          
                                                                                                                                
        · A second example is mixing zones in spawning                                                                          
          areas.    The Alaska  Department  of  Environmental                                                                   
          Conservation   (ADEC)  proposed  to   change  their                                                                   
          regulation's  to  allow  mixing zones  for  harmful                                                                   
          substances in  fish spawning areas during  both the                                                                   
          Hickel   and  Knowles   Administration.     Habitat                                                                   
          Division led  the ADF&G's opposition to  the change                                                                   
          and  it  was  withdrawn  both  times.    After  the                                                                   
          Habitat   and   Restoration  (H&R)   Division   was                                                                   
          transferred to  ADNR and the change  [ADEC proposed                                                                   
          regulations  on  mixing  zones]  was  supported  by                                                                   
          ADNR; no one in ADF&G fought it.                                                                                      
                                                                                                                                
9:33:59 AM                                                                                                                    
                                                                                                                                
MR. TRASKY continued:                                                                                                           
                                                                                                                                
     4.  One  question  which  comes  up  often  is  how  has                                                                   
     permitting  changed  now  that  it  is  administered  by                                                                   
     ADNR?  Because there  is  no public  notice  requirement                                                                   
     for the  thousands of ADNR  fish habitat permits  issued                                                                   
     annually,  the only  people  who know  if these  permits                                                                   
     effectively  protect fish  habitat are  the ADNR  person                                                                   
     issuing  the permit  and  the applicant.    The same  is                                                                   
     true for  violations of  these permits.   I do  not have                                                                   
     access  to these permits  but asked  this question  of a                                                                   
     number  of state,  federal  and private  biologists  who                                                                   
     have  experience in  ADF&G fish  habitat permitting  and                                                                   
     are knowledgeable  about fish habitat  permitting before                                                                   
     and after  the transfer of  ADF&G's permit authority  to                                                                   
        ADNR.  I won't disclose their names or positions                                                                        
     because of concerns about retaliation.  However, here                                                                      
     is what I was told about the differences:                                                                                  
                                                                                                                                
     A. Comments from Federal Biologists:                                                                                       
                                                                                                                                
        1. I review federal projects affecting fish and                                                                         
          wildlife  and do  not see ADF&G  or ADNR-Office  of                                                                   
          Habitat  Management  and  Permitting  (OHMP)  as  a                                                                   
          player  in projects any  more.   Often no one  from                                                                   
          ADF&G or OHMP even attends project meetings.                                                                          
                                                                                                                                
        2. My agency has no relationship with ADF&G or ADNR-                                                                    
          OHMP any  more.  Staff at one OHMP  office does not                                                                   
          even return calls.                                                                                                    
                                                                                                                                
        3. The policy at OHMP seems to be to narrowly                                                                           
          interpret  their  responsibilities   to  permitting                                                                   
          within the  banks of anadromous streams  and stream                                                                   
          blockages.      Overshadowing    issues   such   as                                                                   
          activities  which may  impact a  watershed seem  to                                                                   
          be ignored.   There is little interest  in wildlife                                                                   
          issues.                                                                                                               
                                                                                                                                
        4. The few former ADF&G H&R staff that remains at                                                                       
          OHMP  seems to be  trying to  do a  good job.   The                                                                   
          new  hires  that  attend  project  meetings  rarely                                                                   
          open  their mouths.   Most of them  do not  seem to                                                                   
          know much  about the issues  that they  are dealing                                                                   
          with.                                                                                                                 
                                                                                                                                
        5. Consultants have asked me why ADF&G and OHMP no                                                                      
          longer   asks  any  tough   questions  related   to                                                                   
          environmental  documents  for  the  road,  oil  and                                                                   
         gas, and mining projects they are working on.                                                                          
                                                                                                                                
        6. Some of the best biologists have left OHMP when                                                                      
          they  had  an opportunity  to  return to  ADF&G  or                                                                   
          retire.                                                                                                               
                                                                                                                                
9:36:12 AM                                                                                                                    
                                                                                                                                
MR. TRASKY continued:                                                                                                           
                                                                                                                                
     B. Comments from State Biologists:                                                                                         
                                                                                                                                
        1. OHMP  staff    has   lost   the    close   working                                                                   
          relationship  with ADF&G staff and  the information                                                                   
          that  they  provided  on  projects.   There  is  no                                                                   
          priority  in   OHMP  to  solicit  ADF&G   input  on                                                                   
          projects,  particularly  projects  that  ADF&G  may                                                                   
          not like.                                                                                                             
                                                                                                                                
        2. Regional OHMP staff does not receive any support                                                                     
          on enforcement actions.                                                                                               
                                                                                                                                
        3. The permits that the OHMP leadership wants us to                                                                     
          write  do not contain  project specific  conditions                                                                   
          and  are largely  unenforceable.   The emphasis  is                                                                   
          on  reducing  review  time  and  increasing  permit                                                                   
          numbers,   not  a  high   level  of  fish   habitat                                                                   
          protection.                                                                                                           
                                                                                                                                
        4. For a fisheries or wildlife biologist, working at                                                                    
          ADNR is  a dead end.   For career advancement  they                                                                   
          will need to go elsewhere.                                                                                            
                                                                                                                                
        5. A number of experience habitat biologists left                                                                       
          ADNR  when  the  opportunity   arose.    They  were                                                                   
          replaced   with   people    with   little   or   no                                                                   
          experience.                                                                                                           
                                                                                                                                
        6. ADNR-OHMP   biologists   are   discouraged    from                                                                   
          participating   in  multi-agency   working   groups                                                                   
          which  are working  on  means to  avoid impacts  on                                                                   
          fish  and  wildlife  and   from  attending  project                                                                   
          meetings.   Biologists  don't  do coastal  reviews,                                                                   
          or  review  subdivision   plats  that  the  Borough                                                                   
          sends  over  even  though   the  development  would                                                                   
          affect a salmon stream.                                                                                               
                                                                                                                                
9:37:38 AM                                                                                                                    
                                                                                                                                
MR. TRASKY summarized as follows:                                                                                               
                                                                                                                                
     In  summary  I  believe that  the  changes  that  former                                                                   
     Governor  Murkowski   made  during  his   administration                                                                   
     substantially reduced  the protection that  fish habitat                                                                   
     receives both  at the policy  level and the  issuance of                                                                   
     permits  for individual  projects.    It also  increases                                                                   
     the  risk   that  large   projects  will  be   approved.                                                                   
     Projects  that  will  have very  significant  short  and                                                                   
     long-term  impacts  on fish  and wildlife  resources  as                                                                   
     well  as  commercial, subsistence  and  sport  fishermen                                                                   
     who depend  on these resources.   I urge you  to restore                                                                   
     the  balance in  state resource  decisions  and pass  HB
     41.                                                                                                                        
                                                                                                                                
9:38:25 AM                                                                                                                    
                                                                                                                                
KERRY  HOWARD, Executive  Director, Office  of Habitat  Management                                                              
and  Permitting (OHMP),  Department  of Natural  Resources  (DNR),                                                              
mentioned   that  committee   members  should   have  a   book  of                                                              
background  information on  OHMP.  She  related her  understanding                                                              
that the  committee has a copy  of the letter Governor  Palin sent                                                              
to the Board  of Fisheries indicating  her intent not to  move the                                                              
habitat office back  to DNR.  Therefore, Ms. Howard  said that she                                                              
would provide  some background about  OHMP in hopes that  it would                                                              
help explain some  of the things Governor Palin  considered in her                                                              
decision.                                                                                                                       
                                                                                                                                
9:39:39 AM                                                                                                                    
                                                                                                                                
MS. HOWARD turned  the committee's attention to the  first page of                                                              
the book  provided by OHMP,  which specifies the  agency's mission                                                              
statement  as follows:   "The  mission  of the  Office of  Habitat                                                              
Management  and Permitting  is to protect  Alaska's valuable  fish                                                              
and wildlife resources  and their habitats as  Alaska's population                                                              
and  economy  continue  to  expand."   She  highlighted  that  the                                                              
agency's mission  is derived from  the Alaska State  Constitution.                                                              
Article   VIII   specifically  addresses   the   state's   natural                                                              
resources, Section  1 specifies:   "It's the  policy of  the state                                                              
to  encourage the  development  of its  resources  by making  them                                                              
available for  maximum use consistent  with the public  interest."                                                              
Section  4   specifies:    "Fish   and  all  other   replenishable                                                              
resources  belonging to the  state shall  be utilized,  developed,                                                              
and  maintained on  the sustained  yield  principle."   Therefore,                                                              
OHMP's  mission  is  intended to  acknowledge  and  implement  the                                                              
aforementioned constitutional  responsibilities.   Some interested                                                              
parties  have asserted  that  DNR and  ADF&G  have very  different                                                              
mission  statements and  that having  the habitat  office at  DNR,                                                              
habitat won't be  protected as well.  However,  both agencies must                                                              
abide by  the constitution  and both have  statutes that  refer to                                                              
"conservation and  development".   Ms. Howard highlighted  that AS                                                              
44.37.020(a)  says,   in  part:     "The  Department   of  Natural                                                              
Resources   shall   administer   the   state   program   for   the                                                              
conservation  and  development  of  natural  resources"  while  AS                                                              
44.39.020 specifies,  in part:   "The Department of Fish  and Game                                                              
shall  administer  the  state program  for  the  conservation  and                                                              
development  of  the state's  commercial  fisheries,  sport  fish,                                                              
birds,  game,   and  fur-bearing   animals."    Additionally,   AS                                                              
16.05.020(2)  requires  the  commissioner  of  ADF&G  "to  manage,                                                              
protect,  maintain,  improve,  and   extend  the  fish,  game  and                                                              
aquatic  plant resources  of  the  state in  the  interest of  the                                                              
economy  and  general  well-being  of  the  state."    Ms.  Howard                                                              
pointed  out that  the  statutes of  the  former habitat  division                                                              
were  unchanged  when  it  was  moved  to  DNR.    Therefore,  the                                                              
biologists  at OHMP  implement the  exact same  statutes that  are                                                              
implemented  at  ADF&G.    Furthermore,  biologists  at  DNR  work                                                              
closely  with  biologists  at ADF&G  in  implementing  duties  and                                                              
routinely consult  with them on  matters for which they  have data                                                              
and  expertise and  incorporate that  information into  permitting                                                              
decisions.   The aforementioned  is specified  in a memorandum  of                                                              
understanding (MOU)  between the two  agencies.  She  then pointed                                                              
out  that the  second  page of  the  book reviews  the  division's                                                              
statutory  responsibilities   and  priorities.     The  division's                                                              
priorities  are  the  issuance of  fish  habitat  permits,  active                                                              
participation   in  the  Forest   Resources  and  Practices   Act,                                                              
participation   in   the  Alaska   Coastal   Management   Program,                                                              
participation  as a  team member  with  multi-agency reviews  that                                                              
involve  large project,  and maintain  and  update the  anadromous                                                              
waters catalog.                                                                                                                 
                                                                                                                                
9:42:41 AM                                                                                                                    
                                                                                                                                
MS. HOWARD  then directed attention  to the organizational  chart,                                                              
which  illustrates  that  OHMP  is  a  small  organization.    The                                                              
division  has   37  full-time   positions  statewide,   which  are                                                              
delineated  into 7  area offices.   There  is also  an OHMP  staff                                                              
position in  the Joint Pipeline  Office.  Ms. Howard  acknowledged                                                              
that there was a  great amount of turnover when OHMP  was moved to                                                              
DNR.  However, 42  percent of OHMP's staff are  former habitat and                                                              
restoration employees  and since vacancies have been  filled, over                                                              
79 percent  of OHMP's  staff are  from ADF&G.   Additionally,  the                                                              
qualifications  for a  habitat biologists  are the  same as  those                                                              
for being  a habitat biologist in  ADF&G.  Ms.  Howard highlighted                                                              
that  in addition  to OHMP  there is  a habitat  office in  ADF&G,                                                              
which  is called  Region  V Habitat.    Essentially  the Region  V                                                              
office in  ADF&G has the  same number of  staff as OHMP.   The two                                                              
divisions,   she   said,   work    together   professionally   and                                                              
collegially in  order to ensure  there's no duplication  of duties                                                              
and share information and knowledge.                                                                                            
                                                                                                                                
9:44:18 AM                                                                                                                    
                                                                                                                                
MS.  HOWARD highlighted  that  the book  she  provided includes  a                                                              
PowerPoint  presentation  that   provides  additional  information                                                              
regarding  what  OHMP does  as  well  as additional  missions  and                                                              
measures.    The book  also  includes  a  short white  paper  that                                                              
provides  additional information  regarding  Executive Order  (EO)                                                              
107  and  the  changes  that accompanied  it.    Ms.  Howard  then                                                              
directed  attention to  the MOU  between ADF&G  and DNR  regarding                                                              
reviews  of  land   and  water  use  activities.     The  MOU  was                                                              
originally  signed  in October  2003  and  has been  amended  four                                                              
times to  provide additional  clarity and  specificity as  well as                                                              
delineate   how   coordination   between   OHMP   and   ADF&G   is                                                              
accomplished.  She  explained that OHMP, in addition  to its Title                                                              
41 permit responsibilities,  has the lead role  reviewing resource                                                              
development  projects  unless  they are  within  or  significantly                                                              
impacting  a  legislatively  designated  special  area  for  which                                                              
ADF&G  has  the  lead.    However,  she  acknowledged  that  other                                                              
divisions at  ADF&G have information  and expertise that  would be                                                              
useful in  making permit decisions on  large projects.   Page 6 of                                                              
the  MOU specifies  that  OHMP  either directly  coordinates  with                                                              
ADF&G  staff,  Category  2,  or  Region  V  Habitat  is  asked  to                                                              
consolidate  ADF&G  comments, Category  3,  and provide  to  OHMP.                                                              
The categorization  of the project is dependent  upon the activity                                                              
itself   and   the   potential    significant   adverse   impacts.                                                              
Significant adverse  impacts always result in the  project being a                                                              
Category 3.   The following are  examples of Category  3 projects:                                                              
South  National  Petroleum  Reserve-Alaska  (NPR-A),  Abbott  Loop                                                              
Extension, Beluga  Coal, Juneau Access,  Knik Arm Crossing,  and a                                                              
general  placer  permit.    The Pebble  Project  was  initially  a                                                              
Category  3 project,  but  last  fall it  was  decided that  ADF&G                                                              
should  have a  full seat  at the  table,  entirely separate  from                                                              
OHMP  and the MOU  was amended  to do  so.   Ms. Howard  confirmed                                                              
that  OHMP isn't  reviewing  subdivision  plans,  but pointed  out                                                              
that  it's   because  the   MOU  gives   that  responsibility   to                                                              
biologists at ADF&G.                                                                                                            
                                                                                                                                
9:46:49 AM                                                                                                                    
                                                                                                                                
MS.  HOWARD  highlighted  that   Governor  Palin's  letter  [dated                                                              
February 8,  2007] says  that she will  have the commissioners  of                                                              
ADF&G and DNR review  the MOU in order to ensure  that interagency                                                              
cooperation,  responsibilities,  and exchange  of information  are                                                              
working well.   In fact, the first meeting for  the aforementioned                                                              
is  the coming  Thursday.    In  conclusion, Ms.  Howard  recalled                                                              
Representative Gara's  opening remarks on HB 41 when  he said that                                                              
the state  has an important  duty to protect  the fisheries.   The                                                              
aforementioned  duty,  she  said,  was taken  seriously  when  the                                                              
habitat  division was  housed  in  ADF&G and  it  continues to  be                                                              
taken seriously by biologists at DNR.                                                                                           
                                                                                                                                
9:47:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN related  his understanding  that OHMP  is                                                              
an awful place to  work and staff are afraid to  speak their mind.                                                              
He asked  Ms. Howard to  comment on that.   He then asked  if most                                                              
of OHMP's  employees are classified  employees and members  of the                                                              
state employee's association.                                                                                                   
                                                                                                                                
MS. HOWARD  commented that  reasonable people  can disagree.   She                                                              
guaranteed   the  committee   that   there   are  no   sideboards,                                                              
constraints,  or threats to  her staff.   She explained  that only                                                              
two employees  of OHMP,  herself and  the operations manager,  are                                                              
partially  exempt  and  the remainder  are  classified  employees.                                                              
Ms.  Howard opined,  "When  people disagree,  it's  often easy  to                                                              
resort  to  second  hand  information   to  try  to  construct  an                                                              
argument  about how  bad you  think that  they are.   But I  would                                                              
welcome  anyone to  bring forward  a specific  project where  they                                                              
think   my   staff  has   not   done   their  job,   they're   not                                                              
participating,  they're  shirking  their  duties, and  let's  talk                                                              
about  specifics.     Let's  not   talk  about  generalities   and                                                              
innuendos  because just  last week  ...  I had  a two-day  meeting                                                              
with  my area  managers  and they  were,  quite frankly,  offended                                                              
that some  parties were  saying that they  felt like  they weren't                                                              
doing their job."                                                                                                               
                                                                                                                                
9:49:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  asked  if  OHMP's  classified  employees                                                              
have a grievance process if they feel they are being kept quiet.                                                                
                                                                                                                                
MS. HOWARD  confirmed  that there  is a process,  but deferred  to                                                              
union  representatives.   She informed  the  committee that  there                                                              
hasn't  been  a  single  grievance  filed.   She  said  she  would                                                              
welcome the  committee to invite  any of  her staff to  testify in                                                              
regard to how they feel about their jobs.                                                                                       
                                                                                                                                
9:50:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  related his understanding that  anyone who                                                              
came  forward  with  a grievance  would  be  protected  under  the                                                              
state's whistleblower's statute.                                                                                                
                                                                                                                                
MS.  HOWARD noted  her  agreement.   She  reiterated  that she  is                                                              
offended to hear  that she and her operation's  manager threatened                                                              
retribution,  which she said  was unfounded  and ungrounded.   She                                                              
also  said  that  she  would  happily  speak  with  members  about                                                              
specifics.                                                                                                                      
                                                                                                                                
9:50:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  cautioned the  committee  with regard  to                                                              
unnamed sources.   If someone has a grievance,  then he/she should                                                              
come forward and state it.                                                                                                      
                                                                                                                                
9:51:11 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  reminded  members   that  when  someone  testifies,                                                              
members should  consider the source  and its reliability  and work                                                              
through what it means.                                                                                                          
                                                                                                                                
9:52:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN  related that  the concern with  regard to                                                              
the working environment  at OHMP came from the  opening remarks of                                                              
the sponsor as well as from public testimony.                                                                                   
                                                                                                                                
9:52:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES recalled testimony  regarding the  level of                                                              
transparency  of the discussion,  depending  upon the location  of                                                              
the habitat  division.  She further  recalled that the  notion was                                                              
that  when  the  division  was  under  ADF&G,  there  would  be  a                                                              
commissioner-level discussion  between the division  through ADF&G                                                              
and  the commissioner  of DNR  with  regard to  permits and  other                                                              
decisions  in  question.    With the  division  within  DNR,  that                                                              
debate will  now occur  within a single  department and  ADF&G may                                                              
not be involved  at all.  Representative Holmes  requested comment                                                              
on the aforementioned transparency issue.                                                                                       
                                                                                                                                
MS. HOWARD  acknowledged that business  was done  differently when                                                              
two different  departments were  involved in the  decision-making.                                                              
However, all of  the decisions remain public documents  and public                                                              
information.     She  recalled  that  [prior  to   the  division's                                                              
transfer  to DNR], on  large projects,  particularly coastal  zone                                                              
projects, ADF&G,  DNR, and DEC would  all forward comments  to the                                                              
governor's office  in the Alaska Coastal Management  Program to be                                                              
put forward  as a state position.   There were  informal elevation                                                              
procedures  should the  finding  be objectionable  to  any of  the                                                              
commenters.   The  same process  still happens,  it merely  occurs                                                              
within  DNR.   Ms.  Howard  said that  she  and her  staff  submit                                                              
comments to the  Office Project Management and  Permitting (OPMP),                                                              
which consolidates  comments  from the various  divisions  of DNR.                                                              
She emphasized that  any project larger than a bed  box results in                                                              
the  staff of  OHMP communicating  with biologists  at ADF&G,  and                                                              
therefore the  comments forwarded  [by OHMP] incorporate  comments                                                              
from ADF&G.   Again, the [comments are submitted  to OPMP, there's                                                              
an elevation process,  and informal discussions.   Ms. Howard said                                                              
she  didn't believe  there have  been many  elevations, which  she                                                              
interpreted  to  mean  that  staff  are  coming  to  agreement  on                                                              
projects  between discussions  among themselves.   She noted  that                                                              
she  routinely  discusses projects  with  her  staff and  if  it's                                                              
important enough,  it's brought  to the commissioner's  attention.                                                              
Almost 2,500  permits a  year are reviewed  and although  she said                                                              
she doesn't  know about  every project and  permit, she  does know                                                              
about the ones  with potential for controversy.   She related that                                                              
most recently she  briefed the commissioner on a  project in which                                                              
ADF&G proposed to  use explosives within Trinity  and Shell Creek,                                                              
anadromous fish streams,  to remove beaver dams.   This permit was                                                              
denied because  OHMP staff  didn't believe  the use of  explosives                                                              
in an  anadromous fish stream  was protective  of the fish  or the                                                              
habitat.   Ms.  Howard then  related that  she has  worked in  the                                                              
habitat  division  under both  departments,  and  opined that  the                                                              
staffs  of both  offices have  done  a good  job representing  the                                                              
state's interests on fish and fish habitat.                                                                                     
                                                                                                                                
9:57:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES   inquired  as  to  how  often   there  are                                                              
commissioner-level  discussions between  DNR and  ADF&G with  OHMP                                                              
in DNR versus when the division was located in ADF&G.                                                                           
                                                                                                                                
MS. HOWARD  said that she doesn't  have exact numbers,  but opined                                                              
that  it's less  [with OHMP  under  DNR] which  she attributed  to                                                              
changes  in  the  coastal  management  program.    Under  the  old                                                              
coastal  program,   the  habitat   standard  specified   that  the                                                              
division "shall maintain  or enhance" and if that  couldn't occur,                                                              
then there  was a three-part  test to  reach a different  outcome.                                                              
The  changes  to  the  coastal   management  program  included  an                                                              
attempt to streamline  the standards by eliminating  any standards                                                              
that  already duplicated  what other  state  and federal  agencies                                                              
did.     Therefore,   changing  the   threshold  and   eliminating                                                              
duplication, OHMP has  less on which to comment  under the habitat                                                              
standard.                                                                                                                       
                                                                                                                                
9:59:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON commented  that  with budget  cuts and  the                                                              
need  to  move  development  projects   forward  while  protecting                                                              
fisheries, the  two departments  should be merged.   He  said that                                                              
although he  is saying it facetiously,  he recalls being  a former                                                              
employee  of  an  agency  and  that   departments  have  different                                                              
missions and cultures.   Furthermore, there isn't  a regulation or                                                              
statute that  doesn't carry a  certain amount of  discretion while                                                              
upholding the process.   Representative Edgmon opined,  "I find it                                                              
hard  to  believe that  ...  the  habitat  division has  the  same                                                              
makeup  or  the   same  outlook  in  the  Department   of  Natural                                                              
Resources  as  it  would  in  the  Department  of  Fish  &  Game."                                                              
Furthermore,  the division  is physically  located in a  different                                                              
place  and  thus  doesn't  interact  with  the  directors  of  the                                                              
divisions  within   ADF&G  as  before.     The  division   is  now                                                              
interfacing  with   department  employees,   many  of   which  are                                                              
political  employees  whose  background  is in  the  industry  and                                                              
whose  mission it  is to  make natural  resource development  take                                                              
place.   He reiterated  that there  have to  be some  differences.                                                              
With  regard  to  earlier  statements   regarding  the  governor's                                                              
position,  Representative Edgmon  related  his understanding  that                                                              
Governor Palin  will revisit  the decision  to house the  division                                                              
within DNR after a year has elapsed.                                                                                            
                                                                                                                                
MS. HOWARD  noted that in  the past there  has been the  notion to                                                              
merge all  three resource  agencies, on  which point she  deferred                                                              
to the legislature.   She then pointed  out that over  half of the                                                              
area offices [of OHMP] are located within ADF&G buildings.                                                                      
                                                                                                                                
10:03:06 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked if,  either  when the  division  was                                                              
under  ADF&G or  DNR,  the public  was  able  to receive  internal                                                              
memorandums  in  regard  to  particular  projects.   She  posed  a                                                              
scenario in  which the  commissioners of  ADF&G and DNR  disagreed                                                              
with each other, and asked if that would be open to the public.                                                                 
                                                                                                                                
MS.  HOWARD answered  that everything  OHMP does  is available  to                                                              
the  public.   Although all  state  agencies have  the ability  to                                                              
have  certain  things that  are  deliberative  confidential,  that                                                              
doesn't enter  the realm of  the permitting  world, she said.   In                                                              
fact, [OHMP]  routinely copies whoever  wants to be copied  on any                                                              
permit comments  or decisions.   The ADF&G always receives  a copy                                                              
of everything OHMP writes.                                                                                                      
                                                                                                                                
10:04:29 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOHNSON recalled  prior  testimony that  indicated                                                              
permits  were issued  and  only the  permitter  and the  permittee                                                              
knew about  it and that there  wasn't public testimony  or notice.                                                              
He asked if the aforementioned actually happens.                                                                                
                                                                                                                                
MS.  HOWARD  said  that  Title  41,  under  which  OHMP  operates,                                                              
doesn't  have  a public  notice  requirement  which was  the  case                                                              
under  the  former habitat  division,  Title  16.   However,  that                                                              
doesn't  mean that  the public  can't obtain  documents or  aren't                                                              
made aware of them.                                                                                                             
                                                                                                                                
10:05:43 AM                                                                                                                   
                                                                                                                                
JOHN BITNEY,  Legislative Liaison, Governor's  Legislative Office,                                                              
Office  of the  Governor, returned  attention to  the letter  from                                                              
Governor  Palin to  the chair  of  the Board  of Fisheries,  dated                                                              
February 8, 2007.   To clarify the letter, he  stated that despite                                                              
this letter, the  governor is concerned about  habitat protection.                                                              
When   Governor   Palin   took   office,  some   of   the   acting                                                              
commissioners  were  charged  with reviewing  options  and  making                                                              
recommendations  regarding  the  best  course  of  options.    The                                                              
following  three  options  were  presented  to  the  governor  for                                                              
consideration:  the  status quo, evaluate the MOU and  place it in                                                              
review between  DNR and  [ADF&G], or  return the habitat  division                                                              
back to ADF&G.   The governor  chose to keep the  habitat division                                                              
at DNR, but  asked the departments  to review the MOU  in order to                                                              
evaluate  what  changes  are  necessary   to  improve  interagency                                                              
cooperation.   The aforementioned  could be  done over  the course                                                              
of  a  few weeks  or  months  and  include  some outreach  to  the                                                              
stakeholders  and interested  parties.   Mr.  Bitney related  that                                                              
although  the governor is  sympathetic to  the concerns  regarding                                                              
the move  to DNR, she also  recognizes that simply  moving offices                                                              
back and forth  is disruptive.  The governor,  he further related,                                                              
is  willing  to  review  the  protection   issues  and  reconsider                                                              
anything necessary following a full review of the MOU.                                                                          
                                                                                                                                
10:10:51 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON asked  if, regardless of the fate of  HB 41, there is                                                              
a timeframe  that limits  the governor's  authority to  change the                                                              
departments by EO.                                                                                                              
                                                                                                                                
MR. BITNEY said that's his understanding.                                                                                       
                                                                                                                                
10:11:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HOLMES asked  if the governor's  office is  making                                                              
any particular request as to how the committee treats HB 41.                                                                    
                                                                                                                                
MR. BITNEY  reiterated that  if more  information comes  to light,                                                              
the governor's  office will  remain open.   He further  reiterated                                                              
that the governor doesn't want to be disruptive.                                                                                
                                                                                                                                
10:13:06 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON announced that HB 41 would be held for further                                                                     
testimony and committee discussion.                                                                                             
                                                                                                                                
10:13:28 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 10:13                                                                   
a.m.                                                                                                                            
                                                                                                                                
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