Legislature(1993 - 1994)
02/14/1994 08:15 AM House RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE RESOURCES STANDING COMMITTEE
February 14, 1994
8:15 a.m.
MEMBERS PRESENT
Representative Bill Williams, Chairman
Representative Bill Hudson, Vice Chairman
Representative Con Bunde
Representative Pat Carney
Representative David Finkelstein
Representative Joe Green
MEMBERS ABSENT
Representative John Davies
Representative Jeannette James
Representative Eldon Mulder
OTHER LEGISLATORS PRESENT
Senator Drue Pearce
Representative Gary Davis
COMMITTEE CALENDAR
SJR 40: Urging the Congress to amend the Oil Pollution
Act of 1990 with respect to the financial
responsibility requirements for offshore
exploration and production facilities.
CSSJR 40(RES) MOVED OUT OF COMMITTEE WITH
INDIVIDUAL RECOMMENDATIONS
*HB 306: "An Act relating to an optional municipal tax
credit for costs of certain river habitat
protection improvements."
ADOPTED CSHB 306(RES) AND MOVED OUT OF COMMITTEE
WITH INDIVIDUAL RECOMMENDATIONS
WITNESS REGISTER
SENATOR DRUE PEARCE
Alaska State Legislature
State Capitol, Room 508
Juneau, Alaska 99801-1182
Phone: 465-4993
POSITION STATEMENT: Prime sponsor SJR 40
REPRESENTATIVE GARY DAVIS
Alaska State Legislature
State Capitol, Room 15
Juneau, Alaska 99801-1182
Phone: 465-2693
POSITION STATEMENT: Prime sponsor HB 306
GERON BRUCE
Alaska Department of Fish and Game
P.O. Box 25526
Juneau, Alaska 99802
Phone: 465-6143
POSITION STATEMENT: Supported HB 306 and answered questions
PREVIOUS ACTION
BILL: SJR 40
SHORT TITLE: URGE CONGRESS TO AMEND OIL POLLUTION LAW
SPONSOR(S): SENATOR(S) PEARCE,Leman,Taylor
JRN-DATE JRN-PG ACTION
01/19/94 2543 (S) READ THE FIRST TIME/REFERRAL(S)
01/19/94 2544 (S) RESOURCES
01/24/94 (S) RES AT 03:30 PM BUTRVICH RM 205
01/28/94 (S) RES AT 03:30 PM BUTRVICH RM 205
01/28/94 (S) MINUTE(RES)
02/02/94 2656 (S) RES RPT CS 4DP SAME TITLE
02/02/94 2656 (S) ZERO FN TO SJR & CS PUBLISHED
(S.RES)
02/04/94 (S) RLS AT 00:00 AM FAHRENKAMP
ROOM 203
02/04/94 (S) MINUTE(RLS)
02/07/94 2719 (S) RULES TO CALENDAR 3CAL 1NR 2/7
02/07/94 2722 (S) READ THE SECOND TIME
02/07/94 2722 (S) RES CS ADOPTED UNAN CONSENT
02/07/94 2722 (S) ADVANCED TO THIRD READING UNAN
CONSENT
02/07/94 2723 (S) PASSED Y14 N6-
02/07/94 2723 (S) ADAMS NOTICE OF RECONSIDERATION
02/07/94 2725 (S) COSPONSOR(S): TAYLOR
02/09/94 2764 (S) RECON TAKEN UP-IN THIRD READING
02/09/94 2764 (S) PASSED ON RECONSIDERATION
Y20 N-
02/09/94 2766 (S) TRANSMITTED TO (H)
02/11/94 2334 (H) READ THE FIRST TIME/REFERRAL(S)
02/11/94 2334 (H) RESOURCES
02/14/94 (H) RES AT 08:15 AM CAPITOL 124
BILL: HB 306
SHORT TITLE: MUNICIPAL TAX CREDIT/HABITAT PROTECTION
SPONSOR(S): REPRESENTATIVE(S) G.DAVIS,Phillips,Green
JRN-DATE JRN-PG ACTION
01/03/94 (H) PREFILE RELEASED
01/10/94 2007 (H) READ THE FIRST TIME/REFERRAL(S)
01/10/94 2007 (H) RESOURCES, FINANCE
01/14/94 2083 (H) COSPONSOR(S): GREEN
02/14/94 (H) RES AT 08:15 AM CAPITOL 124
ACTION NARRATIVE
TAPE 94-14, SIDE A
Number 000
The House Resources Committee was called to order by
Chairman Bill Williams at 8:20 a.m. Members present at the
call to order were Representatives Williams, Hudson, Bunde,
Carney, and Finkelstein. Members absent were
Representatives Davies, Green, James and Mulder.
CHAIRMAN BILL WILLIAMS announced a quorum was present and
advised committee members they will hear SJR 40 and HB 306.
SJR 40 - URGE CONGRESS TO AMEND OIL POLLUTION LAW
CHAIRMAN WILLIAMS told committee members they had passed HJR
49 several weeks ago, which urged the federal Minerals
Management Service (MMS) to interpret definitions in the Oil
Pollution Act of 1990 (OPA `90) as narrowly as possible in
promulgating their regulations under the financial
responsibility sections of OPA '90.
CHAIRMAN WILLIAMS said SJR 40 addresses the same concerns,
but covers another angle of the problem by addressing the
concerns to Congress. He encouraged members to use the
hearing to refresh their memories about the issues involved
with the OPA `90 regulations, because the committee would be
meeting with the MMS officials the next day to discuss
concerns.
Number 028
SENATOR DRUE PEARCE, PRIME SPONSOR, SJR 40, stated SJR 40
takes a different tack than HJR 49 did. In December, the
Energy Council passed a resolution in favor of changes to
the OPA `90 financial responsibility section. As a part of
that, and after meetings with people from the MMS, the
Executive Committee had a draft resolution drawn up and SJR
40 follows the lines of that resolution. She said even
though MMS would like to interpret the OPA `90 restrictions
and regulations innovatively, the law says there is a $150
million financial responsibility for every facility. Those
facilities are offshore facilities but include anything that
is in, under or on any U.S. navigable or territorial water.
Therein, lies the problem.
Number 045
SENATOR PEARCE pointed out that MMS cannot change the
definition because it will then filter down onto some of
their other regulations. It is believed that Congress will
ultimately need to change that section of the bill. SJR 40
requests that Congress act now before the financial
responsibility section has negative effects on Alaska
businesses. She noted the Energy Council has it's spring
meeting in Washington, D.C., every year and the first
weekend in March she will be attending that meeting. She
added there will be a meeting with the Alaska Congressional
delegation. She hoped to present both resolutions to the
delegation and have a discussion directly with them, along
with a meeting at the Department of Interior and the
Department of Energy. Senator Pearce stated she planned to
present both resolutions into public record on Wednesday.
Number 070
REPRESENTATIVE DAVID FINKELSTEIN asked Senator Pearce to
explain why the two resolutions are not redundant.
SENATOR PEARCE replied that Representative Green's and her
staff chose different language. The Administration feels
the two resolutions are very complimentary and feels
comfortable with having both resolutions taking a different
tack. She noted that the MMS people have been asking for a
way to interpret the definition in some manner in which they
can make the regulations more palatable for states like
Alaska.
REPRESENTATIVE FINKELSTEIN thought that if there are two
measures on the same subject, the first one passes and the
other one disappears.
SENATOR PEARCE stated the two resolutions are on the same
subject, but take different tacks.
Number 091
REPRESENTATIVE JOE GREEN explained the final cure has to be
through Congress which can sometimes be a slow, methodical
process. If the state can suppress MMS to not implement the
rigid regulations, (interpreting the definition in the
broadest possible sense) through HJR 49 and then allow SJR
40 to get to Congress, the state will prevent a period of
time when the regulations might be enacted before the law is
changed.
REPRESENTATIVE BILL HUDSON felt both resolutions are
complimentary. He asked Senator Pearce if she had asked the
Congressional delegation of the probability of having
Congress act on changes of OPA `90.
SENATOR PEARCE replied she had discussed the issue primarily
with Senator Steven's office. She said all Congressional
delegations are reticent to go back into OPA `90, but they
understand that it is not just an Alaska problem or a
wetlands problem, it is a problem in every state. She
pointed out that the broad way MMS is interpreting the
definition, it will include many airports throughout the
country, gas stations, etc. She did not think that is what
Congress intended and added that Congress has admitted that
is not what they intended.
SENATOR PEARCE remarked that MMS believes they need to go to
Congress with clear definitions of the actual economic
problems which the strict interpretation will cause. She
said the final response from the state will be delivered to
MMS in testimony on Wednesday.
Number 131
REPRESENTATIVE HUDSON made a motion to MOVE CSSJR 40(RES)
with a fiscal note out of committee with INDIVIDUAL
RECOMMENDATIONS.
CHAIRMAN WILLIAMS asked if there were any objections to the
motion. Hearing none, the MOTION PASSED.
(CHAIRMAN WILLIAMS noted for the record that REPRESENTATIVE
GREEN joined the committee at 8:25 a.m.)
HB 306 - MUNICIPAL TAX CREDIT/HABITAT PROTECTION
Number 147
CHAIRMAN WILLIAMS advised committee members there is a draft
committee substitute in their folders, which was prepared by
the sponsor of the bill.
REPRESENTATIVE GARY DAVIS, PRIME SPONSOR, read his sponsor
statement: "House Bill 306 will create a Municipal Tax
Incentive Program (MTIP) to encourage private property
owners to voluntarily protect important fishing habitat.
Currently, under statute, it is not possible for local
governments to provide a property tax credit. This
legislation will grant local municipalities the ability to
designate certain tax incentives for improving certain
anadromous riparian habitats. This bill specifically
addresses the Kenai River. The habitats must be determined
by the State to warrant special management. In order to be
eligible for a tax credit, the constructed improvement must
aid in protecting the Kenai River or a tributary of the
Kenai River from degradation due to public or private use;
or restoring riparian fish habitat in the Kenai River or a
tributary of the Kenai River that has been damaged by land
use practices or can be damaged without preventative
measures.
"The eligible improvements will be in compliance with state
and federal laws and certified by the Alaska Department of
Fish and Game (ADF&G) as meeting the established criteria.
Let it be noted that the Kenai River Special Management Area
(KRSMA) Advisory Board established under statute, supports
HB 306. The KRSMA Advisory Board is appointed by the
Commissioner of Natural Resources to develop and implement
the Kenai River Special Management Area plan established in
AS 41.21.502(a). House Bill 306 sets parameters that allow
local governments flexibility in determining their needs and
interests, while protecting riparian habitats. No local
government is required to create a MTIP that is not wanted.
MTIPs have proven effective in conserving riparian habitat
elsewhere in the country. Once the MTIP proves effective on
the Kenai River it may serve as a pilot project for other
areas of the state."
Number 201
REPRESENTATIVE DAVIS said as indicated in the sponsor
statement, the KRSMA Advisory Board is an important board in
relating what goes on in the Kenai River. They made certain
recommendations on HB 306 and their concerns have been
incorporated into the committee substitute.
REPRESENTATIVE PAT CARNEY asked why HB 306 was not written
to permit any municipality in the state to allow the tax
credit for other projects other than just the Kenai River.
REPRESENTATIVE DAVIS responded that as indicated, there
would probably be a fiscal note should the bill cover
statewide. Since the Kenai River is established under
statute as a special management area, it is felt that it
will be in the state's best interest to use HB 306 as a
pilot project to determine the expected benefits. He said
there was an attempt to think of other areas in the state
which might be in the same situation where there are a lot
of private property owners along a heavily fished river, and
none could be identified.
Number 241
REPRESENTATIVE CON BUNDE wondered if passing HB 306 and
providing tools to the communities along the Kenai River to
use, will the communities use the tools.
REPRESENTATIVE DAVIS felt the communities will. The Kenai
River has been under the sharp eye of habitat agencies for a
number of years. The habitat question along the river is
something that both commercial and sport fish interests have
agreed is in their best interests to conserve as much of the
habitat as possible, in order to preserve and see continued
returns of all salmon species. He said the city of Soldotna
has established an overlay district, which requires Kenai
Riverfront property owners to submit a request to the city
before any development can be done on their property.
Through that additional zoning requirement, there have been
many innovative approaches to improvements along the
riverbank seen. He felt HB 306 will see the same amount of
interest at the borough level.
REPRESENTATIVE DAVIS pointed out that the program will also
be used as an educational tool. For years, there has been
an attempt to inform everyone who uses the riverbanks about
the need to preserve habitat.
Number 300
REPRESENTATIVE GREEN stated he has gone with a guide to look
at some of the inexpensive repairs made along the river. He
stressed there are large areas of the river which are
eroding and some of these repairs not only stabilize the
bank, but do provide habitat. He felt HB 306 is extremely
timely and a great idea.
REPRESENTATIVE HUDSON felt there are other streams which
also have been impacted and hoped there will be language in
the bill indicating it is a pilot project, so it can
possibly be expanded to include other streams which ADF&G
might identify as potential recipients.
REPRESENTATIVE DAVIS agreed and hoped that people keep an
eye on the activity afforded under HB 360 so it can be
expanded at some point.
Number 345
REPRESENTATIVE CARNEY asked if they were talking about
private property on the Kenai River which people are
trespassing on.
REPRESENTATIVE DAVIS responded HB 306 addresses private
property.
REPRESENTATIVE CARNEY wondered if people with private
property have a choice as to whether or not other people can
use their property for access to the river.
Number 370
REPRESENTATIVE DAVIS replied it is their private land.
There have been questions regarding an automatic 25-foot
public easement along each side of the river, but he had not
been able to find anything in statute which allows that.
Over the years, in pursuing that question, he has been
assured that is not the case. He stressed that private
property owners do have control over their property.
REPRESENTATIVE CARNEY said in many cases private property
owners do not have a choice with regard to allowing other
people to use their property for recreational purposes. He
noted that he almost had to abandon a piece of property he
owns because there is so much public traffic. He would have
to spend all of his time policing it. He felt perhaps they
should consider giving people a tax credit when their
property is heavily utilized by the public.
Number 418
REPRESENTATIVE DAVIS remarked that in the Kenai River area,
everyone is aware of how people will use whatever property
they want to get to a fishing spot. What is happening is
people are sending requests to ADF&G saying their land is
being used as a public fishing ground and asking the state
to buy their property. The state would like to buy much of
that land, as sufficient public access is definitely a
problem.
REPRESENTATIVE GREEN stated a person can get on the Russian
River from almost anywhere along it's three mile length. It
is just about the opposite on the Kenai River. There are
very few access points and the Kenai is a very fast moving
river. He stressed that a wake really causes a problem and
tying up a boat where there is no vegetation to take up the
constant movement of water between the boat and the land,
causes the land to erode rapidly. He felt if there can be
more private people taking advantage of HB 306 and showing
that it is possible, then the Park Service might do the same
thing.
REPRESENTATIVE BUNDE asked ADF&G to answer the easement
question. He also wondered if usage will be increased with
this bill, thereby increasing habitat degradation.
Number 495
REPRESENTATIVE HUDSON stated it was not desirable to put too
much more of the private land in public hands because the
number of people on the river will increase.
REPRESENTATIVE CARNEY wondered why the words "Kenai River"
could not be eliminated from HB 306 and make it generally
apply to any river in the state.
REPRESENTATIVE DAVIS believed with the Kenai River Special
Management Area in place and with the amount of work the
habitat division will be required to do, the department
would be flooded with plans to review, etc.
REPRESENTATIVE CARNEY stated there is a zero fiscal note for
the Kenai River, which has many problems and he cannot
imagine there will be additional costs with other streams.
REPRESENTATIVE FINKELSTEIN felt there would be a higher
fiscal note and pointed out that the fiscal note in the
committee members' files was somewhat odd. It says it will
cost a fair amount of money but they love the idea so much,
they will do it.
Number 580
GERON BRUCE, ALASKA DEPARTMENT OF FISH AND GAME, expressed
support of HB 306. The Kenai River is being loved to death.
There is a combination of extraordinary resources which
attract much use, easy accessibility and a large population
center nearby. He said the department has been watching the
situation on the Kenai River with some concern for a period
of time, and there are a number of programs which are being
implemented to address the problems. He noted that HB 306
will provide an additional tool which will be valuable and
help correct the situation, as well as prevent it from
getting worse.
MR. BRUCE told members to keep in mind, the department's
studies indicate that 80 percent of the juvenile rearing
salmon in the Kenai River inhabit the area within six feet
of the bank. They utilize the area for cover and feed, and
it is an area where the water velocity slows down, so the
small juvenile fish are able to maintain their position.
Therefore, it is an extremely productive area. In the
entire river itself, 80 acres account for approximately 80
percent of the productivity for rearing fish.
Number 600
REPRESENTATIVE HUDSON asked if ADF&G has the authority to
charge a fee for private property plans review.
MR. BRUCE said he did not believe they did. He stated the
legislature is usually rigorous about restricting the
ability of the department to charge and establish fees.
REPRESENTATIVE HUDSON believed the legislature had given the
Department of Commerce and Economic Development authority to
charge whatever fees necessary to handle licenses, etc. and
thought it might be something they will want to consider.
REPRESENTATIVE BUNDE asked Mr. Bruce if he could address the
question about public easements.
MR. BRUCE responded that he could not answer the question
and felt it was a land management question which the
Department of Natural Resources or legal could answer. He
said he will pursue an answer.
REPRESENTATIVE GREEN asked Mr. Bruce to also check and see
when there is a setback from the existing riverbank and the
bank erodes, does the setback follow the bank.
Number 647
REPRESENTATIVE FINKELSTEIN stated he would be surprised if
there is a public easement because if there is, a person
could walk along the entire shore of the Kenai River. He
said there is very little public land and it can be
frustrating when trying to find access to the river. He
asked what the general status is of the $3 million which was
appropriated for habitat work along the Kenai River.
MR. BRUCE explained that is the other major initiative which
is beginning to go forward and he will provide an update to
the committee at a later date.
REPRESENTATIVE FINKELSTEIN questioned if that money and work
can include acquisition.
MR. BRUCE replied it can.
REPRESENTATIVE BUNDE made a motion to MOVE committee
substitute for HB 306 with two fiscal notes from committee
with INDIVIDUAL RECOMMENDATIONS.
CHAIRMAN WILLIAMS stated there is a need to adopt the
committee substitute first.
REPRESENTATIVE BUNDE WITHDREW his motion.
REPRESENTATIVE FINKELSTEIN asked the sponsor to explain the
differences between the committee substitute and the
original bill.
TAPE 94-14, SIDE B
Number 000
REPRESENTATIVE DAVIS replied, the differences resulted from
the recommendations made by the KRSMA subcommittee. He said
on page 1, line 11, it now reads "degradation of fish
habitat due to public or private use;". Page 1, line 12,
now reads "restoring riparian fish habitat along or in the
Kenai River...". Page 2, lines 4 and 5, now read "If the
credit is granted for more than one year and the land or
taxable interest in the land is conveyed, the portion of the
credit remaining is extinguished." Page 2, line 13, now
reads "located more than 150 feet from the mean high tide
line...". Page 2, lines 25 and 26 now read "the criteria
established under this subsection. The department may
require submission of plans for approval before construction
as a condition of certification."
REPRESENTATIVE CARNEY asked if someone could define fish
habitat, as he thought fish habitat was in the water itself
rather than on the shore.
Number 025
REPRESENTATIVE DAVIS responded that HB 306 allows for review
and credit for improvements along or in the Kenai River and
back up to 150 feet.
REPRESENTATIVE HUDSON made a motion to ADOPT the committee
substitute for HB 306.
CHAIRMAN WILLIAMS asked if there were objections. Hearing
none, CSHB 306(RES) was ADOPTED.
REPRESENTATIVE HUDSON made a motion to MOVE CSHB 306(RES)
with two zero fiscal notes out of committee with INDIVIDUAL
RECOMMENDATIONS.
CHAIRMAN WILLIAMS asked if there were objections. Hearing
none, the MOTION PASSED.
ANNOUNCEMENTS
CHAIRMAN WILLIAMS announced the committee will meet February
15 at 3:00 p.m. with officials from the Minerals Management
Service to discuss issues concerning the Oil Pollution Act
of 1990. He also announced the committee will meet February
16 at 8:15 a.m. to consider SB 77 and SJR 13.
ADJOURNMENT
There being no further business to come before the House
Resources Committee, Chairman Williams adjourned the meeting
at 9:10 a.m.
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