Legislature(1997 - 1998)

01/30/1997 10:04 AM House O&G

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
             HOUSE SPECIAL COMMITTEE ON OIL AND GAS                            
                        January 30, 1997                                       
                           10:04 a.m.                                          
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Mark Hodgins, Chairman                                         
 Representative Scott Ogan                                                     
 Representative Norman Rokeberg                                                
 Representative Joe Ryan                                                       
 Representative Con Bunde                                                      
 Representative J. Allen Kemplen                                               
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Representative Tom Brice                                                      
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 HOUSE BILL NO. 51                                                             
 "An Act relating to the Department of Environmental Conservation."            
                                                                               
      - MOVED CSHB 51(O&G) OUT OF COMMITTEE                                    
                                                                               
 OVERVIEWS:  Department of Natural Resources; Department of Revenue            
                                                                               
      - POSTPONED TO FEBRUARY 6, 1997                                          
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  HB 51                                                                
 SHORT TITLE: REGULATIONS OF DEPT OF ENV. CONSERVATION                         
 SPONSOR(S): REPRESENTATIVE(S) ROKEBERG, KELLY, Foster                         
                                                                               
 JRN-DATE      JRN-PG               ACTION                                     
 01/13/97        41    (H)   PREFILE RELEASED 1/10/97                          
 01/13/97        41    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/13/97        41    (H)   OIL & GAS, FINANCE                                
 01/22/97       125    (H)   COSPONSOR(S): FOSTER                              
 01/23/97              (H)   O&G AT 10:00 AM CAPITOL 124                       
 01/23/97              (H)   MINUTE(O&G)                                       
 01/30/97              (H)   O&G AT 10:00 AM CAPITOL 124                       
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 BRUCE CAMPBELL, Legislative Assistant                                         
   to Representative Pete Kelly                                                
 Alaska State Legislature                                                      
 Capitol Building, Room 411                                                    
 Juneau, Alaska 99801                                                          
 Telephone:  (907) 463-2327                                                    
 POSITION STATEMENT:  Explained differences between HB 51 and                  
                      CSHB 51, Version K.                                      
                                                                               
 MAC MCLEAN, Representative                                                    
 Division of Habitat and Restoration                                           
 Department of Fish and Game                                                   
 1300 College Road                                                             
 Fairbanks, Alaska 99701-1557                                                  
 Telephone:  (907) 459-7281                                                    
 POSITION STATEMENT:  Testified in support of Amendment 1 to HB 51.            
                                                                               
 GERSHON COHEN, Executive Director                                             
 Alaska Clean Water Alliance                                                   
 P.O. Box 1441                                                                 
 Haines, Alaska  99827                                                         
 Telephone:  (907) 766-2296                                                    
 POSITION STATEMENT:  Testified on HB 51.                                      
                                                                               
 DWIGHT HALES                                                                  
 P.O. Box 1048                                                                 
 Haines, Alaska  99827                                                         
 Telephone:  (907) 766-2874                                                    
 POSITION STATEMENT:  Testified on HB 51.                                      
                                                                               
 SUSAN SCHRADER, Executive Director                                            
 Alaska Environmental Lobby                                                    
 P.O. Box 22151                                                                
 Juneau, Alaska 99802                                                          
 Telephone:  (907) 463-3366                                                    
 POSITION STATEMENT:  Testified on HB 51.                                      
                                                                               
 DOUGLAS MERTZ                                                                 
 Prince William Sound Regional                                                 
   Citizens Advisory Council                                                   
 319 Seward Street                                                             
 Juneau, Alaska 99801                                                          
 Telephone:  (907) 586-4024                                                    
 POSITION STATEMENT:  Testified on HB 51.                                      
                                                                               
 MARIE SANSONE, Assistant Attorney General                                     
 Natural Resources Section                                                     
 Civil Division                                                                
 Department of Law                                                             
 P.O. Box 110300                                                               
 Juneau, Alaska 99801-0300                                                     
 Telephone:  (907) 465-3600                                                    
 POSITION STATEMENT:  Testified on HB 51.                                      
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-3, SIDE A                                                             
 Number 001                                                                    
                                                                               
 CHAIRMAN MARK HODGINS called the House Special Committee on Oil and           
 Gas to order at 10:04 a.m.  Members present at the call to order              
 were Representatives Ogan, Rokeberg, Ryan, Kemplen and Hodgins.               
 Absent was Representative Brice.  Chairman Hodgins noted                      
 Representative Bunde was testifying at another meeting.                       
                                                                               
 HB 51 - REGULATIONS OF DEPT OF ENV. CONSERVATION                            
                                                                               
 Number 070                                                                    
                                                                               
 CHAIRMAN HODGINS announced the committee would continue the hearing           
 on HB 51, "An Act relating to the Department of Environmental                 
 Conservation."  He stated his intention to move the bill out of               
 committee.                                                                    
                                                                               
 Number 100                                                                    
                                                                               
 REPRESENTATIVE NORMAN ROKEBERG, sponsor of HB 51, explained he had            
 a proposed committee substitute for HB 51, Version K.  He moved to            
 adopt CSHB 51, 0-LS0091\K, Lauterbach, 1/29/97.                               
                                                                               
 CHAIRMAN HODGINS asked if there was an objection to the adoption of           
 the committee substitute.                                                     
                                                                               
 Number 243                                                                    
                                                                               
 REPRESENTATIVE SCOTT OGAN objected for the purposes of comparison             
 and discussion.                                                               
                                                                               
 Number 260                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG called upon Bruce Campbell from the office            
 of Representative Pete Kelly, a prime cosponsor of the bill, to               
 explain the differences between the original HB 51 and Version K.             
                                                                               
 Number 286                                                                    
                                                                               
 BRUCE CAMPBELL, Legislative Assistant to Representative Pete Kelly,           
 Alaska State Legislature, had been asked to review comments                   
 provided in the last discussion, particularly those of the                    
 Department of Environmental Conservation (DEC), the Department of             
 Fish and Game (ADF&G) and the public.  He explained differences               
 between the two bill versions.  In Section 2 of the original bill,            
 there was language about "economically feasible" that required the            
 DEC to hire several economists.  That language had been deleted.              
 Currently, Section 2, page 1, reads that the department may not               
 adopt a regulation under this section unless the regulation is                
 based on science.                                                             
                                                                               
 MR. CAMPBELL said part (c), defining "background condition," had              
 also been added in Section 2.  This seemed to be a point of concern           
 for the DEC.  A definition had been brought in from the state of              
 Washington, and this was briefly reviewed by the DEC.  Mr. Campbell           
 believed the definition would help the DEC in their regulation                
 writing process.                                                              
                                                                               
 MR. CAMPBELL informed the committee that Section 3 is unchanged.              
 He referred to the Governor's news release dated January 24, 1997,            
 included in the committee files.  Mr. Campbell said the Governor is           
 asking for the same thing and is promoting the Minerals Commission            
 recommendation that the state assume primacy for the National                 
 Pollutant Discharge Elimination System (NPDES) Permit Program.  Mr.           
 Campbell stated, "So, we have clear support for that, we believe,             
 from the Administration."                                                     
                                                                               
 Number 449                                                                    
                                                                               
 MR. CAMPBELL referred to Section 4, number (4), on page 2, line 25,           
 and said the Resources Defense Council noted, at the previous                 
 committee meeting, that some of the language was confusing.  The              
 Department of Fish and Game also suggested adjusting language in              
 their written comments.  The Minerals Commission Report further               
 noted there was confusion over the use and construction of the                
 phrase "receiving water".  Mr. Campbell explained that in trying to           
 produce some carefully crafted language, verbatim comments from the           
 Minerals Commission had been combined with some of the comments               
 from the Department of Fish and Game.  He pointed out this was                
 probably the most substantive change from the original bill,                  
 Version B, to the committee substitute, Version K.  The latter                
 clearly states, "may not require water discharged by a user to be             
 of higher quality than the natural condition of the water receiving           
 the discharge".                                                               
                                                                               
 MR. CAMPBELL noted there had been confusion as to whether it was              
 the water the discharger received to use in a plant or mill, or the           
 water at the discharge point.  Pulp mills in salt water receive               
 fresh water in their processing but discharge into salt water.  The           
 discharge point is the point of issue and reference here, he                  
 emphasized.  That is modified by language from the Minerals                   
 Commission Report.  Mr. Campbell said in talking with water quality           
 experts, he believes this will greatly assist the DEC in                      
 development of regulations.                                                   
                                                                               
 Number 578                                                                    
                                                                               
 MR. CAMPBELL explained that page 3, lines 29 and 30, Section 4,               
 adds a new section (f), which refers to the background condition              
 mentioned in Section 2.  He believed the remaining portions of the            
 bill are unchanged from the version referred to the committee.                
                                                                               
 Number 614                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG asked when the Alaska Minerals Commission             
 Report was issued.                                                            
                                                                               
 MR. CAMPBELL responded it was a 1997 report released within the               
 last couple of weeks.  He believed everyone's office received the             
 report.                                                                       
                                                                               
 REPRESENTATIVE ROKEBERG asked Mr. Campbell to discuss technical               
 amendments that Representatives Rokeberg and Kelly were proposing.            
 He noted there was a series of technical changes from the                     
 recommendations of the ADF&G, which they wished to offer as                   
 Amendment 1.                                                                  
                                                                               
 REPRESENTATIVE OGAN pointed out there was a motion on the table to            
 accept the committee substitute.  He noted that he had objected for           
 the purpose of discussion.                                                    
                                                                               
 CHAIRMAN HODGINS advised there was a proposed committee substitute            
 before the committee.                                                         
                                                                               
 Number 738                                                                    
                                                                               
 REPRESENTATIVE KEMPLEN stated he received a copy of a letter from             
 the DEC, dated January 30.  He expressed uncertainty as to whether            
 the committee substitute, as presented, addressed the concerns                
 raised by the DEC.                                                            
                                                                               
 Number 780                                                                    
                                                                               
 MR. CAMPBELL responded, "It's not in the letter I've seen.  It's my           
 understanding it was presented to the chairman seconds ago, and so            
 I'm not aware of the letter.  And we may have, in fact, addressed             
 those concerns, but because it was not in a timely fashion, I                 
 cannot answer that question unless I at least see a copy of the               
 letter here."                                                                 
                                                                               
 CHAIRMAN HODGINS agreed the letter wasn't delivered in a timely               
 manner.  He himself had not had a chance to review it.  He                    
 cautioned the committee to deliberate on what was before them at              
 that point.                                                                   
                                                                               
 Number 822                                                                    
                                                                               
 REPRESENTATIVE KEMPLEN referred to a survey he conducted in his               
 district asking questions about issues that would probably be                 
 before the legislature.  One question he asked was whether                    
 "Regulations should be changed to reduce water quality standards."            
 Representative Kemplen said 65 percent of his constituents were               
 opposed to that statement.  He believed uncertainty existed about             
 the impact of the proposed changes.  Representative Kemplen said he           
 would like to be sure the uncertainties were dealt with before                
 moving forward with the legislation.                                          
                                                                               
 CHAIRMAN HODGINS explained the normal course would be to put the              
 committee substitute before the committee; they were still in that            
 stage.  He stated it would be appropriate to bring the committee              
 substitute before the committee and then address the proposed                 
 amendments.                                                                   
                                                                               
 Number 931                                                                    
                                                                               
 REPRESENTATIVE JOE RYAN made a motion to adopt the committee                  
 substitute for the purpose of discussion.                                     
                                                                               
 REPRESENTATIVE OGAN objected for the purpose of discussion.  He               
 still had a question he would like answered before the committee              
 substitute was accepted.  Representative Ogan asked for an                    
 explanation, from the DEC and the sponsors, of changes in Section             
 4.  He wanted to know the technical differences between water being           
 of higher quality than background conditions and the new language             
 of water receiving the discharge.                                             
                                                                               
 MR. CAMPBELL responded that the language was compiled from several            
 comments.  He noted there were no written or substantive specifics            
 from the department other than a review one or two weeks ago.  Mr.            
 Campbell stated, "I do not believe they changed discharge                     
 standards, but they helped define a logic loop that has become a              
 problem in -- for the department.  First off, it's clear that                 
 they're not requiring discharge by a user to be of a higher quality           
 than the natural condition of the water receiving the discharge."             
 For example, if a person were using water on the Mendenhall River             
 and it was muddy, that provided the background number for the                 
 operation.  If operating in salt water, there would be a salt water           
 discharge number, not a fresh water discharge number.  It did not,            
 however, impact uses within that water body.                                  
                                                                               
 MR. CAMPBELL indicated that was fairly well explained by language             
 following the semicolon on page 2, line 26, "if the available                 
 evidence reasonably demonstrates that the natural condition of a              
 body of water does not meet the standards contained in the water              
 quality criteria".  He said an example would be where water has               
 natural conditions that would not allow that natural water to meet            
 water quality criteria.  Mr. Campbell continued reading from the              
 bill, "under regulations of the department and the natural                    
 condition maintains and protects the existing uses of the water".             
 He explained, "So, if the water quality does not meet the water               
 criterion applicable to that water under regulations of the                   
 department, and the natural condition maintains and protects                  
 existing uses in that water body, then the natural conditioning of            
 the body of water constitutes the criterion and must be met by the            
 - met by the discharger into that body of water."                             
                                                                               
 MR. CAMPBELL stated the key phrase is that the natural condition              
 maintains and protects existing uses in the water.  Uses in salt              
 water were different from uses in fresh water.  In some cases those           
 standards are lower, and in some cases those standards are higher.            
 He stated, "But we're saying it's those uses in the discharge water           
 that become the uses that determine which standards of criteria are           
 implemented by DEC.  And this helps DEC dramatically in determining           
 a logic loop they've created in their regulatory definition of                
 `natural condition,' where they're not allowed to discharge                   
 anything but pristine, crystalline water into areas that are not              
 pristine, they are muddy or they have natural conditions such as              
 high arsenic in Fairbanks ...."  Mr. Campbell noted it is a bit               
 complicated, but only because of problems created over the past 10          
 or 15 years in this field.                                                    
                                                                               
 Number 1187                                                                   
                                                                               
 REPRESENTATIVE OGAN asked if that language was based on another               
 model.                                                                        
                                                                               
 MR. CAMPBELL replied yes.  He referred to the Minerals Commission             
 Report, page 2, and explained, "They are recommending in dealing              
 with water and natural conditions, they insert this language, `If             
 available evidence reasonably demonstrates that the natural                   
 condition of a water body is of lower quality than a water                    
 (indisc.) criterion,' they -- they list for use classes in [18] AAC           
 70.020(b).  Our drafter said, `Well, yes, this is nice, but you               
 can't cite a regulation in code, which makes sense to us but not              
 necessarily to the Minerals Commission.  And so we have just simply           
 said, in lieu of that, `under regulations of the department.'"                
                                                                               
 MR. CAMPBELL noted that ADF&G's letter also identified this as an             
 area of concern.  The ADF&G proposed modifying the first phrase,              
 "water receiving a discharge".  Mr. Campbell explained, "They used            
 slightly different words, but in discussions with our drafter, we             
 thought this was the clearest language to say `water receiving a              
 discharge.'"                                                                  
                                                                               
 REPRESENTATIVE OGAN stated his belief it was good public policy,              
 when accepting a committee substitute, to debate it before                    
 acceptance.                                                                   
                                                                               
 CHAIRMAN HODGINS said he concurred with Representative Ogan's                 
 concerns.                                                                     
                                                                               
 Number 1291                                                                   
                                                                               
 REPRESENTATIVE RYAN moved to adopt the committee substitute for               
 discussion purposes.                                                          
                                                                               
 REPRESENTATIVE KEMPLEN objected.                                              
                                                                               
 A roll call vote was taken.  Representatives Hodgins, Ogan,                   
 Rokeberg and Ryan voted in favor of adopting the committee                    
 substitute.  Representative Kemplen voted against adopting the                
 committee substitute.  So CSHB 51 was adopted.                                
                                                                               
 REPRESENTATIVE RYAN indicated he would like to speak to a                     
 representative from the DEC regarding their letter.                           
                                                                               
 Number 1339                                                                   
                                                                               
 CHAIRMAN HODGINS called for a brief at-ease at 10:25 p.m.  The                
 meeting was called back to order at 10:26 p.m.                                
                                                                               
 REPRESENTATIVE ROKEBERG indicated Mr. Campbell had amendments for             
 the committee to review.  He asked Mr. Campbell to distribute                 
 Amendment 1, generated from Representative Kelly's office, which              
 read:                                                                         
                                                                               
      Amendment:  from ADF&G written comments.                                 
           Before:  House Oil & Gas Committee                                  
      Page 2, line 21.  Following "shall consider"                             
           Insert:  "reasonably available information on"                      
      Page 3, line 24.  following "(e)"                                        
           Delete:  "The"                                                      
           Insert:  "Except as otherwise provided in AS 46.03.087,             
           the"                                                                
      Page 4, line 14.  Following "consider"                                   
           Insert:  "and prepare a written finding assessing"                  
      Page 4, line 15.  Delete:  "and prepare written findings"                
                                                                               
 MR. CAMPBELL explained that an excellent letter had been received             
 from ADF&G the day before, in time for an amendment but too late to           
 meet drafting deadlines for the committee substitute.  He                     
 emphasized that Representative Kelly wanted to compliment the ADF&G           
 for providing timely, productive and constructive comments.                   
                                                                               
 Number 1457                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG moved that Amendment 1 be adopted.                    
                                                                               
 MR. CAMPBELL discussed Amendment 1.  On page 2, line 21, following            
 "shall consider", it inserted "reasonably available information               
 on".  Mr. Campbell said this was a good point brought up by the               
 ADF&G.  He stated, "There is only a limited amount of background              
 data available, and if they have to consider every water body                 
 without information, it doesn't do them much good.  And so this               
 would allow the individual applying to provide them some                      
 information, so it would be readily available to them.  It would              
 allow the department, if they knew of other background data, or if            
 the Division of Water in the Department of Natural Resources                  
 provided some background data, they would have a reasonably                   
 (indisc.) of information of which to base their discussion on                 
 naturally occurring pollutants."                                              
                                                                               
 MR. CAMPBELL continued with Amendment 1.  On page 3, line 24,                 
 following "(e)", it deleted "The" and inserted, "Except as                    
 otherwise provided in AS 46.03.087, the".  Mr. Campbell believed              
 this to be a logical addition to the bill because the new language            
 being created in AS 46.03.087 does not override part (e).                     
                                                                               
 MR. CAMPBELL continued with Amendment 1.  On page 4, line 14,                 
 Section 2, following "consider", Amendment 1 added, "and prepare a            
 written finding assessing the technological feasible of the                   
 proposal".  On page 4, line 15, Amendment 1 deleted, "and prepare             
 written findings".  Mr. Campbell explained these improved the                 
 language of the bill.                                                         
                                                                               
 Number 1607                                                                   
                                                                               
 MAC MCLEAN, Representative, Division of Habitat and Restoration,              
 Department of Fish and Game (ADF&G), testified via teleconference             
 from Fairbanks.  He noted he was standing in for Geron Bruce.  He             
 said the ADF&G accepts the amendments, which reflect the intent of            
 ADF&G's letter forwarded to the committee.                                    
                                                                               
 Number 1640                                                                   
                                                                               
 CHAIRMAN HODGINS asked if there were questions or discussion on               
 Amendment 1.  He asked if there was any objection.  There being no            
 objection to Amendment 1, it was adopted.                                     
                                                                               
 REPRESENTATIVE ROKEBERG offered Amendment 2, which read:                      
                                                                               
      TO:  CSHB 50\K DATED 1/29/97                                             
      PAGE 2, Line 7 after "shall":                                            
      DELETE:  "seek and maintain"                                             
      INSERT:  "continue to investigate the feasibility of securing"           
                                                                               
 REPRESENTATIVE ROKEBERG noted that Amendment 2, relating to Section           
 3, was intended to authorize the state of Alaska to continue to               
 investigate the potentiality of taking over, from the federal                 
 government, the National Pollutant Discharge Elimination System               
 (NPDES) permitting process.  "This gives the department statutory             
 authority to seek this," he explained.  As was pointed out by Mr.             
 Campbell, the committee had page 2 of the Governor's press release.           
 Representative Rokeberg read from the press release, "Commerce                
 Commissioner Hensley, whose staff provided the administrative and             
 professional support for the Alaska Minerals Commission, says it is           
 recommending that the state should take control of the federal                
 National Pollutant Discharge Elimination System program to simplify           
 the permit process.  At present, a federal agency based in Seattle            
 runs the program.  The commission believes the process would be               
 more efficient if it were operated by Alaskans.  The water quality            
 standards would remain subject to federal approval."                          
                                                                               
 REPRESENTATIVE ROKEBERG believed this should be a great help to the           
 DEC and the state in providing statutory authority.  He added,                
 "Maintaining this particular section of the bill, Mr. Chairman,               
 should not have a fiscal note responsibility under the nature of              
 it's draftsmanship and intent.  However, I don't believe it is                
 really under the purview of this body, as a committee, to review              
 that particular amount of money which is contained in the attached            
 fiscal note, because the bill has further referral, including the             
 Finance Committee, which will deal with those particular issues.              
 In my opinion, there is no requirement under the way this bill is             
 drafted to have that approximately $3.2 million fiscal note.                  
 That's not the intent of this particular language.  But I believe             
 the Amendment 2, as offered, helps clarify that somewhat, so I                
 would ask for committee approval."                                            
                                                                               
 Number 1819                                                                   
                                                                               
 CHAIRMAN HODGINS noted the motion to accept Amendment 2 and asked             
 if there were questions.                                                      
                                                                               
 Number 1825                                                                   
                                                                               
 REPRESENTATIVE OGAN inquired what the ramifications are.  He asked            
 whether the federal government currently has primacy over this                
 issue.                                                                        
                                                                               
 REPRESENTATIVE ROKEBERG indicated they do presently.                          
                                                                               
 REPRESENTATIVE OGAN indicated he was not sure what the language               
 does.                                                                         
                                                                               
 REPRESENTATIVE ROKEBERG pointed out the language allows the                   
 department to continue investigating the feasibility of securing              
 federal approval, under the federal Clean Water Act, of the state's           
 permitting program to provide these permits.  Representative                  
 Rokeberg read from line 11, "If, at any time, the department                  
 determines that statutory or (conjunctively) budgetary changes are            
 necessary to obtain or maintain federal approval of the state's               
 program under this subsection, the department shall notify the                
 legislature through the governor."                                            
                                                                               
 REPRESENTATIVE ROKEBERG explained, "In other words, we're giving              
 them a free hand to implement what is the Governor's policy to                
 pursue this.  Now, if it's going to require substantial monies to             
 do this, then they need to come to the legislature and ask for                
 budgetary authority."  This language in and of itself only gives              
 them authority, he said.  It does not mandate that they go forward.           
 Therefore, there should be no fiscal note.  But it does give them             
 clearance to seek this approval, which is optional under the Clean            
 Water Act.                                                                    
                                                                               
 Number 1920                                                                   
                                                                               
 REPRESENTATIVE KEMPLEN said he believed Representative Rokeberg did           
 a good job with Amendment 2 and that it is a step forward.                    
                                                                               
 Number 1942                                                                   
                                                                               
 CHAIRMAN HODGINS noted Amendment 2, as proposed by Representative             
 Rokeberg, was before the committee.  He asked if there was an                 
 objection.  Hearing none, he advised that Amendment 2 was adopted.            
                                                                               
 CHAIRMAN HODGINS opened the meeting up for public comment.                    
                                                                               
 Number 2000                                                                   
                                                                               
 GERSHON COHEN, Executive Director, Alaska Clean Water Alliance,               
 testified via teleconference from Haines.  He referred to Section             
 1 and said it creates a new mission for the DEC.  He cited AS                 
 46.03.010(a), relating to the Declaration of Policy, and read it to           
 the committee members:  "It is the policy of the state to conserve,           
 improve and protect its natural resources and environment, to                 
 enhance the health, safety and welfare of the people of the state             
 and their overall economic and social well-being."                            
                                                                               
 MR. COHEN also read AS.03.010(b):  "It is the policy of the state             
 to improve and coordinate the environmental plans, functions,                 
 powers and programs of the state to the end that the state may                
 fulfill its responsibility as trustee of the environment for the              
 present and future generations."  Mr. Cohen explained that in                 
 contrast, HB 51 would mandate the degradation of Alaska's water               
 quality by weakening the standards that control pollution, just               
 because a member of the private sector wants to reduce the cost of            
 treatment for the waste they discharge into waters that belong to             
 all Alaskans.                                                                 
                                                                               
 MR. COHEN referred to Section 2 and said he supports the removal of           
 (2)(b)(1).  He said Section 087(b)(2) would seem to have a similar            
 affect on state law.  Alaska's Water Quality standards are, by                
 definition, statewide in their application, and they should not be            
 modified because of the impact that they have on an individual                
 discharger.  He said individual issues would be more properly                 
 addressed by the state's existing site-specific criteria                      
 regulation, 70.035.  Mr. Cohen said the Clean Water Act already               
 takes economic factors into consideration, but does so in the                 
 context of the attainable uses of the water body, the adoption of             
 industry-wide performance standards based on specific water quality           
 criteria and technically achievable treatment methods.  These                 
 standards are not intended to have zero impact on all members of an           
 industry.  They were adopted after a thorough analysis of the                 
 technical and economic potential of the industry to reduce                    
 pollution, and they reflect the ability of a majority of players in           
 an industry to meet the standards.  Mr. Cohen said to require that            
 the regulations are so economically feasible for a person (indisc.)           
 governed undercuts the primary purpose of the standards and the               
 department's mission to prohibit pollution that could adversely               
 impact the public's health and welfare and protect natural                    
 resources of the state.                                                       
                                                                               
 MR. COHEN referred to Section 2(c).  He said substituting the term            
 "background condition" for the existing term "natural condition"              
 must be opposed.  He stated, "Current water quality standards, as             
 I said above, already addresses the issue of natural background in            
 the site-specific criteria section, 70.035.  And it is, by the                
 quote in the definition, of the conditions existing in a water body           
 prior to any human-caused influence.  There is no definition for              
 `background condition' in the state's regulations.  As described in           
 2(c), water quality lowered as a result of human action, either by            
 a previously permitted mixing zone or an unpermitted discharge,               
 would then constitute lower background conditions, granting a new             
 discharger permission to release more pollution because a previous            
 discharger lowered natural water quality.  It would essentially               
 authorize a mixing zone for the new discharger without any review             
 of the appropriateness of further increasing the pollutant loading            
 in the water body.  In addition to inappropriately increasing the             
 volume of polluted water, this provision would violate the intent             
 of the mixing zone regulation, 70.240, the provisions requiring an            
 evaluation prior to the authorization of multiple mixing zones.               
 Although language has been inserted regarding discharges into                 
 already disturbed watersheds, the term `disturbed watershed' is               
 undefined."                                                                   
                                                                               
 Number 2197                                                                   
                                                                               
 MR. COHEN referred to Section 4 and said he wasn't clear on it                
 after hearing Mr. Campbell's comments.  "It seems like we're going            
 back and forth here now between natural and background conditions,"           
 he explained.  "The section, as it's written, violates the most               
 fundamental tenet of the Clean Water Act.  It calls for an end to             
 (indisc.) toxic discharges into waters of the United States.  As              
 stated above, waters that either were legally or illegally polluted           
 in the past by human activity should not become the standards of              
 the future discharge of toxic materials."                                     
                                                                               
 CHAIRMAN HODGINS said he would grant Mr. Cohen another minute to              
 finish up.                                                                    
                                                                               
 MR. COHEN referred to Section 4 and said HB 51 establishes the                
 requirement that implementation of water quality standards be based           
 on scientific and technical evidence.  "But this direction is                 
 directly undermined by the requirement that ADEC complete their               
 technical findings, economic evaluation and drafting of regulatory            
 language within 90 days," he stated.  "It would be unlikely that              
 the ADEC could complete the mandated review for any single                    
 regulation in a 90-day time period.  It takes multiple                        
 applications.  This language would render ADEC's review process               
 meaningless."                                                                 
                                                                               
 MR. COHEN referred to Section 46.030.087(a)(2) and said the federal           
 government has adopted very few water quality standards and                   
 particulars with regard to aquatic life.  As a result of these                
 procedures, it would be very difficult for the state to adopt or to           
 maintain regulations where no federal standards for criteria exist,           
 since the adoption could be interpreted as the taking of a more               
 stringent position than the federal standards.  As a result, the              
 state's water and all who depend upon them will be extremely                  
 vulnerable to the impacts of toxic discharges."                               
                                                                               
 MR. COHEN explained (a)(3) arbitrarily authorizes the power to the            
 state that belongs to the federal government, such as the right to            
 approve the testing methods used for compliance of permit                     
 limitations.  "Alternative testing methods proposed by the state              
 must be approved by the EPA," he said.  "In conclusion, rather than           
 simplifying the permitting process, this legislation will lead to             
 greater and confusion and litigation.  Water quality standards are            
 statewide regulations.  How will ADEC choose the specific                     
 conditions to apply to standards, (indisc.), when approached by an            
 individual discharger, when conditions vary dramatically across               
 Alaska?  Does the legislature intend to lower the statewide                   
 (indisc.) to the lowest condition that occurs for a given parameter           
 anywhere within the state's waters?"                                          
                                                                               
 Number 2276                                                                   
                                                                               
 CHAIRMAN HODGINS called for an at-ease at 10:45 a.m.  The meeting             
 was called back to order at 10:46 a.m.                                        
                                                                               
 CHAIRMAN HODGINS noted Representative Rokeberg had questions for              
 Mr. Cohen, and he asked that responses be brief.  He advised Mr.              
 Cohen that he could submit written comments that would be included            
 in the bill packet.                                                           
                                                                               
 Number 2292                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG asked Mr. Cohen how many members are part             
 of the Alaska Clean Water Alliance.                                           
                                                                               
 MR. COHEN stated their membership comes from all over the state.              
 He indicated he couldn't give an exact number.  Mr. Cohen noted the           
 alliance is supported by organizations and individuals that                   
 represent conservation, public health, fishing, Native rights and             
 subsistence interests.                                                        
                                                                               
 REPRESENTATIVE ROKEBERG asked if there were more than three members           
 or less than six.                                                             
                                                                               
 MR. COHEN said it was considerably more than six.                             
                                                                               
 REPRESENTATIVE ROKEBERG asked Mr. Cohen if the state of Alaska has            
 ever issued a site-specific permit.                                           
                                                                               
 MR. COHEN responded that he believes they have.                               
                                                                               
 REPRESENTATIVE ROKEBERG replied, "I don't think they have, as a               
 matter of fact.  I think Red Dog's still looking for theirs.  Also,           
 you should be aware that your comments about not being able to                
 adopt more stringent requirements was in HB 342, which was vetoed             
 by the Governor, and that was one reason he vetoed the bill, 'cause           
 it allowed the DEC to adopt more -- less stringent requirements,              
 you might be interested to note.  Plus, your testimony is incorrect           
 about having to adopt things within 90 days.  There's a lot of                
 misinformation and misunderstanding about what the bill's intent              
 is.  It only indicates that when a petitioner comes forward that              
 the department must take action within 90 days, either to adopt the           
 federal standard and/or start the process through the                         
 Administrative Procedures Act, which could take as long as a year,            
 and allow public comment to adopt a regulation."                              
                                                                               
 Number 2381                                                                   
                                                                               
 DWIGHT HALES was next to testify via teleconference from Haines on            
 behalf of himself.  He asked the committee to consider the issue of           
 "background conditions."  In his view, the definition of                      
 "background conditions" is critical.  He asked the committee to be            
 cautious in what they allow, saying, "for of course you don't want            
 to craft a dirty-water loophole into a bill intended to protect the           
 children and adults of Alaska who might be taking (indisc.) toxins            
 into their bodies.  For example, a pre-existing mixing zone                   
 shouldn't become the basis for justifying additional discharges,              
 which then can be used to justify still more discharges, and so               
 on."  Mr. Hales believed economic considerations should always                
 remain secondary to health, fish and game considerations,                     
 particularly with so much statewide dependence on subsistence.                
 "And these health, fish and game considerations are typically based           
 upon sound scientific evaluation, whereas economic considerations             
 often have other reasons for their being," he explained.  Mr. Hales           
 concluded by saying, "With the desire to encourage the state in the           
 interest of efficiency to assume the administrative burden of                 
 NPDES, I would question whether the state can assume this                     
 additional administrative burden in the light of recent and serious           
 budget cuts.  It is the very department responsible for undertaking           
 such a burden."  Mr. Hales said the apparent desire was to so                 
 weaken the department that it would be ineffectual.                           
                                                                               
 TAPE 97-3, SIDE B                                                             
 Number 017                                                                    
                                                                               
 CHAIRMAN HODGINS noted that any written testimony provided would be           
 included in the bill packet.  He asked if anyone else on                      
 teleconference wished to testify.  He then asked Susan Schrader to            
 come forward and give her testimony.                                          
                                                                               
 SUSAN SCHRADER, Executive Director, Alaska Environmental Lobby,               
 came before the committee to testify.  She indicated the Alaska               
 Environmental Lobby is a coalition of 22 environmental groups and             
 represents over 10,000 Alaskans who have concerns with conservation           
 issues.  She read her statement into the record:                              
                                                                               
 "Once again, Alaskans are having to come forward to defend our                
 basic right - our right to access clean water for our families to             
 drink, to recreate in, and to use for our economic benefits.                  
                                                                               
 "I do need to mention that the public process has been made a bit             
 more difficult today by the fact that the new version of the bill             
 was not available until just moments ago, and we also did not have            
 the benefits of any prior warning of amendments.  And I think once            
 again, this points out to the public that the legislative process             
 is not always particularly friendly to the public process.                    
                                                                               
 "I grew up in Cleveland, Ohio, back in the days before the Clean              
 Water Act.  My father did not allow myself and my brothers to swim            
 in Lake Erie.  We didn't eat the fish from Lake Erie that we                  
 caught.  I was there in Cleveland when the Cuyahoga River, the butt           
 of many jokes, caught fire.                                                   
                                                                               
 "But I'm not joking when I state that industry will not, without              
 strong governmental oversight, necessarily do `the right thing'               
 when it comes to protecting water quality.  It happened in Ohio.              
 It's going to happen here in Alaska.  It has already happened here            
 in Alaska.  Each industry along the banks of the Cuyahoga surely              
 would have maintained that they could not `afford' the cost to                
 clean up their discharges, that it may not have been economically             
 feasible.  Each industry along the banks of that Cuyahoga River               
 that caught fire would probably see no reason why they should                 
 attempt to clean up their discharges, to bring their discharges up            
 to standard, since the water they were getting from upstream was              
 already badly polluted.  Each industry along the banks of the                 
 Cuyahoga probably would really have loved the language that this              
 bill presents for natural background and as it's been redefined for           
 background conditions.                                                        
                                                                               
 "But Alaska is not Ohio in 1969, so why are we attempting to weaken           
 the ability of DEC's mandate to protect, conserve and improve our             
 water quality in this state?  Industry will be able to deal with              
 water quality standards in Alaska that might be higher than federal           
 standards.  They'll be able to handle that.  DEC has bent over                
 backwards to work with industry, and we heard a lot about this last           
 week.  A simple example would have been Mr. Conway's description of           
 how they work with placer mining to come to grips with the problem            
 of the high background arsenic levels.  This is workable.  We don't           
 need this legislation to interfere.  By continuing the yearly deep            
 budget cuts that are directed at DEC, and by attempting to continue           
 to pass legislation such as this, the legislature is really trying            
 to hamstring our resource agencies from fulfilling their missions.            
 And obviously the public is getting the impression that the short-            
 term economic gains for industry, the friends of the legislators,             
 is of much more importance to this body than is the productive,               
 healthy water of our state that can be used by families of Alaska             
 now and in the future."                                                       
                                                                               
 Number 162                                                                    
                                                                               
 REPRESENTATIVE OGAN asked whether the Cuyahoga River borders any              
 other state boundaries or goes exclusively through Ohio.                      
                                                                               
 MS. SCHRADER indicated it runs exclusively through Ohio.                      
                                                                               
 REPRESENTATIVE OGAN said, "You know, you were talking about your              
 comment about the background water.  So if this law was in place,             
 if the water was pure at the head waters, that the first plant down           
 water -- downstream would be getting pure water and they would                
 required to -- that background water -- you could discharge water             
 equivalent to that background water.  Is that correct?  So as you             
 work your way down the stream, as long as the guys upstream are               
 abiding by the law, then the water shouldn't be any dirtier                   
 downstream.  Is that correct?"                                                
                                                                               
 MS. SCHRADER replied, "Yes, and in a perfect world, that is exactly           
 how my understanding is of the process, how it would work.  I guess           
 the concern comes from many factors that, since I am not a water              
 quality expert, I don't know.  But certainly one big one would be             
 non-point pollution sources, where those headwaters, as they flow             
 down, would be being polluted from many small, cumulative sources             
 that no one could go in and particularly say, `You need a permit or           
 you need a permit.'  And that's what happens, is the water when it            
 is received by the first big industry is not particularly pure."              
                                                                               
 REPRESENTATIVE OGAN commented that as long as everyone abided by              
 the law, the water would not be made dirtier by people who had                
 these permits and abided by the law.                                          
                                                                               
 Number 234                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG said the Federal Clean Water Act and its              
 various permutations were really the reason the Cuyahoga River and            
 many other rivers had been cleaned up in this country.  He asked              
 Ms. Schrader, "But are you aware that the nature of this bill, the            
 thrust of this bill, is to make sure that we are no less than                 
 federal requirements and then, obviously because of the primacy of            
 federal law, we have to meet those at any rate?  And that that is             
 the thrust of this legislation?"                                              
                                                                               
 MS. SCHRADER indicated she was aware of that.                                 
                                                                               
 Number 263                                                                    
                                                                               
 REPRESENTATIVE RYAN asked whether Ms. Schrader was familiar with              
 Lakewood, Ohio, and noted he grew up there.                                   
                                                                               
 MS. SCHRADER indicated her father had a medical practice there.               
                                                                               
 REPRESENTATIVE RYAN said if you go thirty miles up the Cuyahoga,              
 you can catch some of the nicest fish in the world.  He explained             
 that a large chemical company there used to "dump stuff" in the               
 river.  He asked, "That chemical company, taking in water from the            
 upstream source and discharging it back into the river in the same            
 condition they got it from the upstream source,  would that not be            
 an ideal, using the water for whatever purposes, putting it back              
 the way it was when they got it?"                                             
                                                                               
 MS. SCHRADER agreed that would certainly be the ideal.                        
                                                                               
 REPRESENTATIVE RYAN explained he used to have a air service in the            
 Interior, flying in miners.  "And they were required to take water            
 in that was glacial silt and mud and so forth and turn out drinking           
 water standards," he said.  "So pretty soon, they quit mining.  And           
 of course I went out of business, and now I'm down here."  He                 
 speculated perhaps the environmental community should have thought            
 about that and left him flying in the Interior.                               
                                                                               
 REPRESENTATIVE RYAN said Ms. Schrader feels HB 51 is weakening                
 standards.  He asked, "What portion do you see that's setting a               
 standard, and saying this is a criteria you have to meet, rather              
 than leaving an arbitrary and capricious standard that DEC can                
 apply to anyone, under any circumstance, anytime they feel, with              
 whatever time limit they would like to use?  What is so wrong with            
 setting something and saying, `Here is the time you have to                   
 operate, here is the condition you have meet, and then we'll go on,           
 rather than the way it is now?"                                               
                                                                               
 MR. SCHRADER believed the key is flexibility.  She much preferred             
 to see that the trained scientist and experts at the DEC have the             
 flexibility to consider an individual permit, a site-specific                 
 criteria, et cetera, rather than the legislature coming in with               
 broad and perhaps ambiguous legislation, which she believed                   
 deprives the DEC of the flexibility to work out the best possible             
 solution with individual permittees.                                          
                                                                               
 Number 372                                                                    
                                                                               
 REPRESENTATIVE KEMPLEN referred to a point made by Mr. Hales from             
 Haines regarding a background condition, where Mr. Hales mentioned            
 the possibility of a pre-existing mixing zone used to justify more            
 pollution.  Representative Kemplen asked if that was something Ms.            
 Schrader saw as possible under this proposed legislation.                     
                                                                               
 MS. SCHRADER said she shares Mr. Hales concerns with respect to the           
 mixing zones.  "That's a very large concern of my member groups,"             
 she added.                                                                    
                                                                               
 Number 444                                                                    
                                                                               
 DOUGLAS MERTZ, Prince William Sound Regional Citizens Advisory                
 Council (PWSRCAC), came before the committee to give his testimony.           
 The PWSRCAC is an organization composed of municipalities,                    
 environmental citizens and business organizations within the area             
 affected by the Exxon Valdez oil spill.  Mr. Mertz explained, "The            
 Prince William Sound RCAC has some real concerns about the bill,              
 but its problem is that it has not been able to determine how it              
 fits in with its bottom line, which is, quite simply, the on-the-             
 ground affect of this legislation on water quality and other                  
 concerns in Prince William Sound and the other affected areas."               
                                                                               
 MR. MERTZ noted that people had not had time to review the                    
 committee substitute or the amendments adopted that day.  He urged            
 that the bill be held over to allow time to analyze the bottom-line           
 effect.  He also asked that an additional referral be requested,              
 either to the House Resources Committee or another committee with             
 a broad purview.                                                              
                                                                               
 Number 512                                                                    
                                                                               
 MARIE SANSONE, Assistant Attorney General, Natural Resources                  
 Section, Civil Division, Department of Law, came before the                   
 committee to remark on the technical drafting of the bill.  She               
 noted the department's substantive concerns were reflected in the             
 letter from the DEC.  She explained the title of the bill says it             
 is an act relating to the DEC, which is a very broad title and may            
 not give adequate notice of the contents of the bill, in that the             
 contents refer mostly to regulations and permitting.  "This could             
 be a constitutional problem and an issue that should be discussed             
 with the drafting attorney," Ms. Sansone advised.  "When a title is           
 not adequate, or does not give adequate notice, it's possible that            
 the entire bill can be later invalidated by a court.  So even                 
 though it's a technical issue, it is very important."                         
                                                                               
 MS. SANSONE stated, "Another concern we noted in the way the bill             
 was drafted was that the background condition section, which is               
 very contentious, or has a number of issues that would need to be             
 evaluated, that was placed into Alaska Statute 46.03.020, which               
 concerns the DEC's powers as a department.  This material, however,           
 goes more to water quality regulations, so it seems to be out of              
 place ...."  Ms. Sansone suggested the drafter of the bill might              
 give some attention to whether that was in the right section.                 
                                                                               
 MS. SANSONE also noted concern with the term, "state bodies of                
 water."  She referred to page 3, lines 1 and 2, of the current                
 committee substitute.  She explained, "The issue of (indisc.)                 
 waters for purposes of permitting or regulation can be very                   
 contentious and subject to a great deal of litigation because the             
 Federal Clean Water Act covers navigable waters or waters of the              
 United States.  Our state regulations apply to waters of the state.           
 So to have a proper definition is important.  There is a definition           
 in state law, at [AS] 46.03.900(35), of waters that are state                 
 waters.  And that's something that would want to be looked at."               
                                                                               
 MS. SANSONE said another concern involved use of the terms                    
 "hydrologic conditions" and "discharge characteristics," which                
 appear now on page 4, lines 17 and 22.  Ms. Sansone explained, "The           
 phrase `hydrologic conditions' is not used in the water quality               
 laws all that much.  The Clean Water Act, all of the federal                  
 regulations that implement the Act, all the state regulations are             
 concerned with what are the physical, the chemical and the                    
 biological characteristics of the water.  Hydrologic                          
 characteristics are only one aspect of physical characteristics.              
 That term normally refers to the water cycle of precipitation and             
 then infiltration into the ground stream flow and then evaporation.           
 It would not cover all the physical characteristics of the water,             
 and it would not cover all the characteristics that the regulatory            
 agencies would look to in preparing a water quality standard or               
 implementing it.  So that we see that term as problematic."                   
                                                                               
 Number 760                                                                    
                                                                               
 CHAIRMAN HODGINS noted the arrival of Representative Con Bunde, who           
 arrived at 11:08 a.m.                                                         
                                                                               
 MS. SANSONE continued, "The other problem in those lines is the               
 term `discharge characteristics.'  The discharge characteristics              
 could mean the wastewater discharge that's coming out of the pipe             
 or -- discharge is also used in the field of water regulation to              
 refer to stream flow.  The stream flow is the discharge in the                
 stream.  So that term could also mean, for example, the volume of             
 the water, the rate of flow, the characteristics of the stream, but           
 not the wastewater.  So we felt that the term was susceptible to              
 two different meanings and could cause a lot of problems in                   
 implementation."  Ms. Sansone added that seemed to be a drafting              
 problem.  She emphasized she was addressing technical and drafting            
 considerations rather than substantive merits.                                
                                                                               
 Number 769                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG said the term "hydrologic" was inserted in            
 the previous session's Senate bill by Senator Loren Leman, a                  
 hydrologic engineer.  Representative Rokeberg said, "I'd like to              
 point out that I'm pleased that the Department of Law has taken an            
 interest in this legislation, and I would promise you that we will            
 address some concerns that we're able to as the bill moves along              
 ...."                                                                         
                                                                               
 REPRESENTATIVE ROKEBERG referred to the NPDES Permitting Program              
 and stated his understanding that the department is currently                 
 pursuing that program and studying it.  He noted in testimony the             
 committee received from the department the previous Tuesday, it was           
 stated that they had issued a contract for $25,000 to look at                 
 administrative changes that would be necessary to take over the               
 NPDES Program.                                                                
                                                                               
 Number 857                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG stated there were concerns raised about               
 public input and the ability to speak to this bill.  He said                  
 basically, with very few changes, the bill was the same as HB 342,            
 which passed the legislature last session.  He expressed pleasure             
 that on its reintroduction, the bill had generated statewide                  
 interest from all segments of industry, the public and the                    
 environmental community.  He believed this was an important issue.            
 Neither he nor Representative Kelly, as sponsors, wanted to                   
 jeopardize the quality of Alaska's water.   He stated, "The                   
 intention of this bill, Mr. Chairman, is to bring the balance to              
 the application of federal and state standards to both the public             
 and businesses in the state that are endeavoring to do business.              
 We need more a level of certainty in what we do up here, and there            
 seems to be an ongoing level of confusion and inability on the part           
 of our paid-for and hardworking bureaucracy, but they just don't              
 seem to be getting their act together."  Representative Rokeberg              
 said the legislature is the policy-making body of the state and               
 represented the people.  He believed ad hoc small groups and legal            
 defense funds should not be making public policy in this state.               
                                                                               
 Number 945                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG made a motion to move the committee                   
 substitute for HB 51.                                                         
                                                                               
 REPRESENTATIVE KEMPLEN objected and said there were a couple of               
 fiscal notes.                                                                 
                                                                               
 REPRESENTATIVE ROKEBERG modified his motion by adding the two                 
 fiscal notes as they were.  He believed the House Finance Committee           
 would be an adequate forum, although that day's testimony warranted           
 the removal of some $3.2 million as far as the NPDES permit was               
 concerned.  "I'll leave that to the will of the committee," he                
 stated, indicating he did not mind moving it as-is.                           
                                                                               
 Number 987                                                                    
                                                                               
 REPRESENTATIVE KEMPLEN referred to that day's testimony, which had            
 produced serious concerns in his mind that the committee was                  
 perhaps moving forward too quickly.  People had not had an adequate           
 opportunity to review the amendments or the committee substitute.             
 Representative Kemplen indicated concern that the people of Alaska            
 were not getting adequate notice of the proposed changes.                     
                                                                               
 REPRESENTATIVE KEMPLEN believed the issues being raised are                   
 significant.  He stated, "In particular, the one about the                    
 background condition still produces uncertainty as to whether or              
 not that it is an appropriate public policy.  The item of the 90-             
 days' review certainly appears to add more paperwork to the                   
 bureaucracy ...."   Representative Kemplen believed the intent of             
 the proposed legislation was admirable.  "We do need to Alaskanize            
 our water quality regulations," he said.  "It doesn't make sense to           
 me, when we have glacial silt, to be, you know, producing                     
 absolutely clean water at the end of some sort of production or               
 manufacturing or mining process."  Representative Kemplen referred            
 to the Red Dog Mine and said he saw no reason why that particular             
 industry needs to clean up that water, when the natural condition             
 is, to a great extent, already polluted.  He stated his hope that             
 the committee would hold the bill for further discussion so those             
 concerns could be met.                                                        
                                                                               
 Number 1143                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG pointed out that the committee process, in            
 large part, should overcome some of the concerns suggested by                 
 Representative Kemplen.  "There will be more than adequate                    
 opportunity for the public to testify," he said.  He noted there              
 was more than 45 minutes left in that meeting and that there had              
 been previous hearings.  He said there was no intention to shut the           
 public out.                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG thanked the DEC for responding in writing             
 to the committee's requests.  Unfortunately, the committee had not            
 received the department's response in adequate time to be able to             
 integrate it in the testimony that day.                                       
                                                                               
 Number 1247                                                                   
                                                                               
 REPRESENTATIVE RYAN said he had an objection to the fiscal note               
 from the Habitat Division of the Department of Fish and Game.  If             
 he recalled correctly, in the last two budget cycles that                     
 particular division had "almost been put away, but it seemed to               
 have more lives than a cat."  He did not see any justification for            
 the amount of money they were asking for a biologist, $188,000.               
 Representative Ryan said he would like to move that the committee             
 make a zero fiscal note and send that forward with the bill.                  
                                                                               
 REPRESENTATIVE BUNDE pointed out there was already a motion on the            
 floor.                                                                        
                                                                               
 REPRESENTATIVE RYAN said he would amend the motion to make the                
 fiscal note from the Habitat Division a zero fiscal note.                     
                                                                               
 REPRESENTATIVE OGAN said he believed the mover of the first motion            
 would have withdraw his motion in order to take up Representative             
 Ryan's motion.                                                                
                                                                               
 CHAIRMAN HODGINS said the committee had to deal with the first                
 motion.  If it was defeated, then Representative Ryan could make              
 his motion.  He noted that Representative Rokeberg had said there             
 would be close scrutiny of the fiscal notes in the House Finance              
 Committee.                                                                    
                                                                               
 REPRESENTATIVE RYAN withdrew his motion for a zero fiscal note.               
                                                                               
 CHAIRMAN HODGINS noted the motion before the committee to move CSHB
 51, as amended, out of committee.  He asked if there were any                 
 objections.                                                                   
                                                                               
 REPRESENTATIVE KEMPLEN objected.                                              
                                                                               
 Number 1317                                                                   
                                                                               
 A roll call vote was taken.  Representatives Hodgins, Bunde,                  
 Rokeberg, Ryan and Ogan voted in favor of moving the bill.                    
 Representative Kemplen voted against moving the bill.  So CSHB
 51(L&C) moved out of the House Special Committee on Oil and Gas.              
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 Number 1362                                                                   
                                                                               
 CHAIRMAN HODGINS adjourned the House Special Committee on Oil and             
 Gas meeting at 11:24 a.m.                                                     
                                                                               
                                                                               

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