Legislature(1995 - 1996)

03/27/1996 08:31 AM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE RESOURCES STANDING COMMITTEE                              
                         March 27, 1996                                        
                           8:31 a.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative William K. "Bill" Williams, Co-Chairman                        
 Representative Joe Green, Co-Chairman                                         
 Representative Scott Ogan, Vice Chairman                                      
 Representative Alan Austerman                                                 
 Representative Ramona Barnes                                                  
 Representative John Davies                                                    
 Representative Pete Kott                                                      
 Representative Don Long                                                       
 Representative Irene Nicholia                                                 
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 All members present                                                           
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 *HOUSE BILL 547                                                               
 "An Act relating to a four-year moratorium on entry into Southeast            
 Alaska dive fisheries; and providing for an effective date."                  
                                                                               
      - PASSED HB 547 OUT OF COMMITTEE                                         
                                                                               
 HOUSE BILL 342                                                                
 "An Act relating to water quality."                                           
                                                                               
      - HEARD AND HELD                                                         
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  HB 547                                                               
 SHORT TITLE: MORATORIUM ON S.E. DIVE FISHERIES                                
 SPONSOR(S): RESOURCES                                                         
                                                                               
 JRN-DATE     JRN-PG    ACTION                                                 
 03/25/96      3310    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/25/96      3310    (H)   RESOURCES                                         
 03/27/96              (H)   RES AT  8:00 AM CAPITOL 124                       
                                                                               
 BILL:  HB 342                                                               
 SHORT TITLE: WATER QUALITY STANDARDS                                          
 SPONSOR(S): REPRESENTATIVE(S) ROKEBERG                                        
                                                                               
 JRN-DATE     JRN-PG    ACTION                                                 
 05/09/95      2042    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 05/09/95      2042    (H)   O&G, RESOURCES                                    
 10/17/95              (H)   O&G AT  1:00 PM ANCHORAGE LIO                     
 10/17/95              (H)   MINUTE(O&G)                                       
 02/13/96              (H)   O&G AT 10:00 AM CAPITOL 124                       
 02/20/96              (H)   O&G AT 10:00 AM CAPITOL 124                       
 02/20/96              (H)   MINUTE(O&G)                                       
 03/21/96              (H)   O&G AT 10:00 AM CAPITOL 124                       
 03/22/96      3267    (H)   O&G RPT  CS(O&G) 1DP 3NR                          
 03/22/96      3268    (H)   DP: ROKEBERG                                      
 03/22/96      3268    (H)   NR: G.DAVIS, B.DAVIS, WILLIAMS                    
 03/22/96      3268    (H)   2 FISCAL NOTES (DEC, F&G)                         
 03/22/96      3268    (H)   REFERRED TO RESOURCES                             
 03/27/96              (H)   RES AT  8:00 AM CAPITOL 124                       
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 CHERYL SUTTON, Legislative Assistant                                          
   to Representative Bill Williams                                             
 Capitol, Room 128                                                             
 Juneau, AK  99801                                                             
 Telephone:  (907) 465-3715                                                    
 POSITION STATEMENT:  Presented sponsor statement CS HB 547.                   
                                                                               
 FRANK HOMAN, Commissioner                                                     
 Commercial Fisheries Entry Commission                                         
 8800 Glacier Highway, Suite 109                                               
 Juneau, AK 99801-8079                                                         
 Telephone:  (907) 789-6160                                                    
 POSITION STATEMENT: Testified in support of CS HB 547.                        
                                                                               
 GERON BRUCE, Legislative Liaison                                              
 Department of Fish and Game                                                   
 P. O. Box 25526                                                               
 Juneau, AK  99811-5526                                                        
 Telephone:  (907) 465-6143                                                    
 POSITION STATEMENT:  Testified in support of CS HB 547.                       
                                                                               
 CLAY BEZENEK, President                                                       
 Ketchikan Chapter - Southeast Alaska Harvest Divers                           
 P. O. Box 6464                                                                
 Ketchikan, AK  99901                                                          
 Telephone:  (907) 225-3738                                                    
 POSITION STATEMENT:  Testified in support of CS HB 547.                       
                                                                               
 SCOTT HEITMAN                                                                 
 MV Seahad                                                                     
 3213 Timberline Court                                                         
 Ketchikan, AK  99901                                                          
 Telephone:  (907) 225-9227                                                    
 POSITION STATEMENT:  Testified in support of CS HB 547.                       
                                                                               
 JAMES L. LeCRONE                                                              
 P. O. Box 541                                                                 
 Sitka, AK  99835                                                              
 Telephone: (907) 747-7992                                                     
 POSITION STATEMENT:  Testified in support of CS HB 547.                       
                                                                               
 LARRY TRANI, President                                                        
 Sitka Chapter - Southeast Alaska Harvest Divers                               
 2008 HPR                                                                      
 Sitka, AK  99835                                                              
 Telephone:  (907) 747-8114                                                    
 POSITION STATEMENT: Testified in support of CS HB 547.                        
                                                                               
 ANDREW KITTAMS, Diver                                                         
 Petersburg Chapter, Southeast Alaska Harvest Divers                           
 P. O. Box 1544                                                                
 Petersburg, AK  99833                                                         
 Telephone:  (907) 772-4823                                                    
 POSITION STATEMENT:  Testified in support of CS HB 547.                       
                                                                               
 STEVE LACROIX, Board Member                                                   
 Ketchikan Chapter - Southeast Alaska Harvest Divers                           
 P. O. Box 5686                                                                
 Ketchikan, AK  99901                                                          
 Telephone:  (907) 772-3709                                                    
 POSITION STATEMENT:  Testified in support of CS HB 547.                       
                                                                               
 PATRICK CASSIN                                                                
 Sea Urchin Test Fishery                                                       
 P. O. Box 109                                                                 
 Metlakatla, AK  99826                                                         
 Telephone:  (907) 886-3195                                                    
 POSITION STATEMENT:  Testified on CS HB 547.                                  
                                                                               
 TOM TRUMPETER                                                                 
 P. O. Box 8641                                                                
 Ketchikan, AK  99901                                                          
 Telephone:  (907) 886-6546                                                    
 POSITION STATEMENT:  Testified in support of CS HB 547.                       
                                                                               
 GRANT THOMPSON                                                                
 P. O. Box 333 Katlian                                                         
 Sitka, AK  99835                                                              
 Telephone:  (907) 747-7889                                                    
 POSITION STATEMENT:  Testified in support of CS HB 547.                       
                                                                               
 BURGESS BAUDER                                                                
 P. O. Box 277                                                                 
 Sitka, AK  99835                                                              
 Telephone:  (907) 747-3056                                                    
 POSITION STATEMENT:  Testified in support of CS HB 547.                       
                                                                               
 MIKE BANGS                                                                    
 P. O. Box 1733                                                                
 Petersburg, AK  99833                                                         
 Telephone:  772-3720                                                          
 POSITION STATEMENT: Testified in support of CS HB 547.                        
                                                                               
 MICHAEL REIF                                                                  
 P. O. Box 2346                                                                
 Sitka, AK  99835                                                              
 Telephone:  (907) 747-6005                                                    
 POSITION STATEMENT:  Testified in support of CS HB 647.                       
                                                                               
 DEREK THYNES                                                                  
 P. O. Box 1015                                                                
 Petersburg, AK  99833                                                         
 Telephone:  (907) 772-3709                                                    
 POSITION STATEMENT:  Testified in support of CS HB 547.                       
                                                                               
 LARRY COTTER                                                                  
 Pacific Associates                                                            
 234 Gold Street                                                               
 Juneau, AK  99801                                                             
 Telephone:  (907) 586-3107                                                    
 POSITION STATEMENT:  Testified on CS HB 547.                                  
                                                                               
 SUSAN BRALEY, Chief                                                           
 Water Quality Technical Services                                              
 Department of Environmental Conservation                                      
 410 Willoughby Avenue, Suite 105                                              
 Juneau, Ak  99801-1795                                                        
 Telephone:  (907) 465-5308                                                    
 POSITION STATEMENT:  The department has concerns with CS HB 342.              
                                                                               
 KATY MCKERNEY, Water Quality Specialist                                       
 Water Quality Technical Services                                              
 Department of Environmental Conservation                                      
 410 Willoughby Avenue, Suite 105                                              
 Juneau, AK  99801-1795                                                        
 Telephone:  (907) 465-5302                                                    
 POSITION STATEMENT:  Available for questions on CS HB 342.                    
                                                                               
 BECKY GAY, Executive Director                                                 
 Resource Development Council                                                  
 121 West Fireweed Lane, Suite 250                                             
 Anchorage, AK  99503-2035                                                     
 Telephone:  (907) 276-0700                                                    
 POSITION STATEMENT:  Testified in support of CS HB 342.                       
                                                                               
 BRIAN CREWDSON                                                                
 3000 Arctic Boulevard                                                         
 Anchorage, AK  99503                                                          
 Telephone:  (907) 786-5511                                                    
 POSITION STATEMENT:  Available for questions on CS HB 342.                    
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 96-43, SIDE A                                                            
 Number 000                                                                    
                                                                               
 CO-CHAIRMAN WILLIAM K. "BILL" WILLIAMS called the House Resources             
 Committee meeting to order at 8:31 a.m.  Members present at the               
 call to order were Representatives Williams Green, Austerman,                 
 Davies, Long and Nicholia.  Representatives Barnes, Kott and Ogan             
 arrived late.                                                                 
                                                                               
 HB 547 - MORATORIUM ON S.E. DIVE FISHERIES                                  
                                                                               
 CO-CHAIRMAN WILLIAM K. "BILL" WILLIAMS stated his intent to move HB
 547 out of committee.  He requested a motion to adopt the committee           
 substitute for HB 547, version (F), for purposes of discussion.               
                                                                               
 Number 131                                                                    
                                                                               
 REPRESENTATIVE IRENE NICHOLIA moved for the adoption of CSHB 547.             
 Hearing no objection, it was so ordered.                                      
                                                                               
 Number 150                                                                    
                                                                               
 CHERYL SUTTON, Legislative Staff to Representative Williams, read             
 the sponsor statement into the record:                                        
                                                                               
 "House Bill 547 would place a moratorium on new entrants into four            
 of the Southeast Alaska dive fisheries.  It would include sea                 
 urchin, sea cucumber, geoduck and abalone.  The Southeast dive                
 fishery is a discrete fishery different from other parts of the               
 state and the participants are unique to Southeast.                           
                                                                               
 MS. SUTTON read, "Commercial fishermen are attempting to diversify            
 within commercial fisheries.  In the Southeast dive fisheries,                
 diversification is occurring by fishing for more than one species.            
 This increased interest and effort caused the number of divers to             
 be precariously high at the end of 1995.                                      
                                                                               
 MS. SUTTON said, "The purpose of this moratorium is to set aside a            
 period of time for examination of each aspect of the Southeast dive           
 fisheries absent concern of increasing harvest effort.  There is              
 more than keen interest in the dive fisheries from residents and              
 non-residents.  The Department of Fish and Game has been gathering            
 assessment and management data on these fisheries.  A moratorium on           
 new entry into the Southeast Alaska dive fisheries is necessary to            
 allow a proper review and analysis of the sea cucumber, abalone,              
 sea urchin and geoduck fisheries.                                             
                                                                               
 MS. SUTTON continued, "The Southeast Alaska sea urchin fishery                
 cannot be opened due to lack of research and management.  The large           
 number of new divers interested in this fishery would be difficult            
 to manage and may threaten the sustained yield management of the              
 sea urchin resource.                                                          
                                                                               
 Number 263                                                                    
                                                                               
 MS. SUTTON proceeded, "House Bill 547 places a four-year moratorium           
 on entrants into the sea cucumber, sea urchin, geoduck and abalone            
 fisheries.  The moratorium is necessary to provide an opportunity             
 to investigate alternative means of fishing effort regulation that            
 may be more appropriate for these fisheries.                                  
                                                                               
 MS. SUTTON said, "Coordination of available data and investigation            
 into the management of these fisheries should provide long-term               
 opportunities to the state and its residents.  These valuable                 
 fishery resources need special attention.  House Bill 547 would               
 provide the mechanism for the development of sustainable fisheries            
 which provide the best economic opportunity to the participants and           
 the best economic return for the state."                                      
                                                                               
 Number 315                                                                    
                                                                               
 MS. SUTTON briefed the committee on the CS for HB 547 explaining              
 changes from the original bill.  Section 1.  Legislative Findings,            
 adds:                                                                         
                                                                               
 (6) individuals who participated in the abalone, sea cucumber, and            
 geoduck fisheries in Southeast Alaska during 1994 and 1995, would             
 have been likely to participate in a sea urchin fishery during                
 those years if a fishery had occurred;                                        
                                                                               
 (7) current economic dependence on a fishery is best demonstrated             
 by recent participation in, and economic reliance upon, a fishery;.           
                                                                               
 Number 355                                                                    
                                                                               
 MS. SUTTON explained, Section 2 (d) adds: (1) during calendar year            
 1992 or 1993, the applicant commercially harvested sea urchin in              
 the Southeast Alaska sea urchin fishery while holding the                     
 appropriate interim-use permits;.                                             
                                                                               
 Number 369                                                                    
                                                                               
 MS. SUTTON briefed the committee on the intent of the legislation:            
                                                                               
 Section 1.  Legislative Findings that support placing a moratorium            
 on these four species.                                                        
                                                                               
 Section 2.  Deals with how it will be executed.  We have created              
 two years for each species for qualifying years to fish during the            
 moratorium.  If someone has fished for sea cucumber, geoduck, or              
 abalone during calendar years 1994-1995, they would be allowed to             
 fish during the moratorium.  For sea urchin, because there has not            
 been a commercial fishery in recent years and they are in an                  
 assessment by test fishery mode, the bill goes back to calendar               
 years 1992 and 1993 to be consistent with qualifying years. The               
 geoduck qualification was extended through January 1996 because the           
 fishery was occurring then and there were residents who were                  
 participating in the fishery.                                                 
                                                                               
 MS. SUTTON explained that the Limited Entry Commission does not               
 know at this time whether it will be necessary to limit entrance              
 into these fisheries and the moratorium will provide the time to              
 examine the issue.  There is a real concern within the Department             
 of Fish and Game on the increased effort.  There is an enormous               
 amount of interest in these resources from places like Maine,                 
 Oregon, Washington State and California.  They have harvested some            
 of these resources in other parts of the country and some in                  
 Alaska.  Alaska needs to get a handle on the management of these              
 fisheries and the moratorium will buy the time to do that.                    
                                                                               
 Number 536                                                                    
                                                                               
 CO-CHAIRMAN JOE GREEN wanted to know if HB 547 sunsets limited                
 entry.                                                                        
                                                                               
 MS. SUTTON replied that the bill allows people who have                       
 participated in those dive fisheries during the qualifying years              
 laid out in the bill to participate in the fisheries during the               
 period of the moratorium which is up to four years.  Any one of               
 those species can come out by the legislature creating another law            
 to bring them out.  It just limits the people during the period of            
 the moratorium, it does not necessarily mean that the Commercial              
 Fisheries Entry Commission will find that each one of these species           
 needs to have a limited access by whatever means.  It just is for             
 the period of the moratorium.  After that period, the findings will           
 determine who, what, when and where.                                          
                                                                               
 CO-CHAIRMAN GREEN interjected, so it is limited entry for a four              
 year period.                                                                  
                                                                               
 Number 601                                                                    
                                                                               
 CO-CHAIRMAN WILLIAMS noted the arrival of Representatives Ogan,               
 Kott and Austerman.                                                           
                                                                               
 Number 605                                                                    
                                                                               
 REPRESENTATIVE DON LONG wondered if this legislation would be                 
 extension of the limited entry program.                                       
                                                                               
 MS. SUTTON stated that the moratorium falls under the commission's            
 present duties and responsibilities.  What the Commercial Fisheries           
 Entry Commission will do during the time the moratorium is in                 
 place, is they will work with the participants in the fishery, the            
 Department of Fish and Game, the Board of Fisheries and their own             
 staff to look at the available information and make determinations            
 about the effort in these fisheries.                                          
                                                                               
 Number 662                                                                    
                                                                               
 REPRESENTATIVE ALAN AUSTERMAN professed his support for the concept           
 of the moratorium saying that the state needs to look at more of              
 its fisheries, especially, the new fisheries, and make sure that we           
 do not disallow what the state has done in the past with crab and             
 shrimp.  He advocated private enterprise, but stressed that this is           
 a finite resource, and by allowing the private sector to come in              
 and devour everything, we end up destroying a fishery.                        
                                                                               
 REPRESENTATIVE AUSTERMAN pointed out that the bill will give the              
 state time to protect the fisheries while fishing continues and               
 information can be gathered.  He contended that this is not a                 
 limited entry system in the true sense but it give us a moratorium.           
                                                                               
 REPRESENTATIVE AUSTERMAN deduced that at the end of four years,               
 there may be fisheries that do not need to be limited.  We do not             
 know that because of how we, as legislators, continue to cut the              
 Department of Fish and Game's budget.  For example, there are only            
 two crab biologists in the state of Alaska; one crab biologist is             
 retiring and the department is leaving that position vacant because           
 of budget constraints.                                                        
                                                                               
 Number 777                                                                    
                                                                               
 REPRESENTATIVE JOHN DAVIES questioned the eligibility requirements            
 of the moratorium suggesting that the bill appears to gerrymander             
 the dates and recommended the committee look at a definite                    
 interval.                                                                     
                                                                               
 REPRESENTATIVE DAVIES said the bill seems to allow people to cross            
 fish sea urchins and asked for an explanation.                                
                                                                               
                                                                               
 MS. SUTTON replied that sea urchins were commercially fished a                
 number of years ago and were not fished very strongly because the             
 market did not support the fishery.  Sea urchins are in a test                
 fishery mode, with no commercial opportunity.  The Department of              
 Fish and Game is trying to investigate how they might manage this             
 fishery.                                                                      
                                                                               
 MS. SUTTON referred to Legislative Finding (6) stating that the sea           
 urchin fishery was treated differently, Representative Williams did           
 not want to exclude the folks who did participate before it went              
 into an assessment mode.  That is why the qualification years go              
 back to the early calendar years in 1992 and 1993.  The bill is               
 cross-pollinated because the folks who were fishing in the other              
 dive fisheries probably would have fished in the sea urchin fishery           
 had it been open for that opportunity.                                        
                                                                               
 MS. SUTTON explained the reason the geoduck fishery was extended is           
 because the season was open in January 1996.  There were local                
 residents who participated and Representative Williams did not want           
 to exclude those folks because the fishery was open.                          
                                                                               
 Number 949                                                                    
                                                                               
 REPRESENTATIVE DAVIES wanted to know if the abalone fishery closes            
 at the end of the calendar year.                                              
                                                                               
 MS. SUTTON deferred to Frank Homan, Commercial Fisheries Entry                
 Commission.                                                                   
                                                                               
 REPRESENTATIVE DAVIES referred to Ms. Sutton's comments about cross           
 pollination of sea urchins and asked why geoduck and abalone were             
 not considered.                                                               
                                                                               
 MS. SUTTON answered because of the numbers of participants in those           
 fisheries, and the fact that they were open continuously without              
 interruption, our office felt the sea urchin was a special                    
 circumstance.                                                                 
                                                                               
 Number 1080                                                                   
                                                                               
 CO-CHAIRMAN GREEN supported the fact that the state needs to come             
 to terms with its fisheries.  He wondered if there was potential              
 for the permits to increase in value.                                         
                                                                               
 MS. SUTTON explained that these are not permits.  She elaborated              
 that the purpose of the moratorium is to buy time, without                    
 additional pressure, to make proper assessments.  She agreed with             
 Representative Austerman's comments about there being no money to             
 manage a sea urchin fishery.  There is assessment data, but there             
 is no money to manage that fishery.  All of those things have to be           
 figured out and they have to be figured out in an atmosphere where            
 there are no additional pressures on the resource.  A moratorium              
 provides that protection.                                                     
                                                                               
 CO-CHAIRMAN GREEN commented that his line of questions were for               
 educational purposes rather than argument.  Has there been a                  
 consideration for a two-year moratorium?  Of those who do not                 
 qualify, are those fishermen supportive of the moratorium?                    
                                                                               
 Number 1189                                                                   
                                                                               
 MS. SUTTON claimed that there are folks who do not qualify under              
 one fishery, or another and see the need for, and support, the                
 moratorium.                                                                   
                                                                               
 REPRESENTATIVE AUSTERMAN asked if the permits were transferable.              
                                                                               
 MS. SUTTON advised that the permits were not transferable.                    
                                                                               
 REPRESENTATIVE AUSTERMAN pointed out that if the permits were not             
 transferable, then there was no value to them.                                
                                                                               
 Number 1235                                                                   
                                                                               
 REPRESENTATIVE DAVIES asked that staff point that out in the bill.            
                                                                               
 MS. SUTTON stated that the limited entry commissioner would provide           
 more information on that concern.                                             
                                                                               
 REPRESENTATIVE DAVIES asked if limiting the fishing seasons was an            
 alternative to enacting a moratorium.                                         
                                                                               
 MS. SUTTON said the seasons are severely limited, abalone is,                 
 basically, nonexistent at this time, in terms of the opportunity to           
 fish in it.  The sea cucumber is, maybe, one day a week during a              
 select period of time.  The department has gone to every management           
 tool they can to hone down opportunity.  Representative Williams              
 wants to look at all of the fisheries and see if there is a better            
 management regime, and it is hard to do that under pressure of not            
 knowing how many participants there are going to be in that period            
 of time.                                                                      
                                                                               
 Number 1302                                                                   
                                                                               
 FRANK HOMAN, Commissioner, Commercial Fisheries Entry Commission,             
 referred to statistical tables in committee packets and encouraged            
 members to use them as reference.                                             
                                                                               
 MR. HOMAN began, What is happening in dive fisheries is sort of a             
 classic example of fisheries that are headed toward a distressed              
 situation. In the statistics, the average harvests per individual,            
 or the average harvest per participant, is declining which means              
 there is more and more pressure being put on the resource and the             
 number of participants are increasing.                                        
                                                                               
 MR. HOMAN informed that the abalone season is almost down to no               
 season at all because there is no ability to limit the number of              
 participants in the fishery.                                                  
                                                                               
 MR. HOMAN related that the sea urchin fishery has been closed for             
 two years because the department cannot control the number of                 
 participants into that fishery.  In the bill, the other dive                  
 fisheries would be allowed to fish in that fishery, that is, only             
 if it opens.  As long as the sea urchin fishery remains closed,               
 even those eligible under this bill would not be allowed to fish.             
 Whether that clears itself up in the four year moratorium or not,             
 it is possible that there would not be a sea urchin fishery in that           
 time except for the test fishery.                                             
                                                                               
 Number 1433                                                                   
                                                                               
 MR. HOMAN applauded Representative Williams office, the department            
 and the divers, forming a unit in Southeast Alaska, working toward            
 alternatives in the long term.                                                
                                                                               
 MR. HOMAN said the moratorium just stops the procedure of entry               
 into the fishery but does not necessarily lead to a limitation of             
 any of the four fisheries in question.                                        
                                                                               
 Number 1518                                                                   
                                                                               
 MR. HOMAN returned to the origin of limited entry program: two                
 criteria set out in statute say a fishery can be limited for two              
 purposes: resource conservation and the economic health of the                
 fishery.  If the fisheries are in distress, they can easily be                
 closed completely by the department so that no one is able to                 
 participate.  However, in the purpose of the limited entry                    
 commission purpose they do add a balance in there saying the                  
 economic health of the fishery.  What the legislature was trying to           
 craft at that time was to allow the fishermen in Alaska to                    
 participate in a balance with the resource so that both would                 
 remain healthy and have a sustained yield over time.                          
                                                                               
 Number 1594                                                                   
                                                                               
 MR. HOMAN clarified for Chairman Green that during the time of the            
 moratorium, the commission would issue "interim use permits" and an           
 interim use permit has no value and they are nontransferable except           
 in some very extenuating circumstances, such as a medical reason.             
                                                                               
 Number 1671                                                                   
                                                                               
 MR. HOMAN explained a reason for the bill is also the timeliness of           
 the legislature being able to act on a moratorium.  By this bill,             
 the legislature can declare the moratorium as of a specific date.             
 The commission has a statute that allows for moratorium, but it is            
 a very complex statute and requires the Department of Fish and Game           
 and the commissioner to make findings that a moratorium should be             
 established, it also requires the Board of Fisheries to authorize             
 the department to petition the commission to act on a moratorium.             
                                                                               
 MR. HOMAN predicted that testimony from the divers would indicate             
 that time is of the essence and the longer that these fisheries               
 remain open to entry, the higher the numbers will be and the worse            
 the situation will be.                                                        
                                                                               
 Number 1692                                                                   
                                                                               
 MR. HOMAN related that there is a model available for a moratorium.           
 Four years ago, the legislature adopted a moratorium for the                  
 Southeast Dungeness Crab fishery and during that four year period,            
 the commission was able to work with the department and the fleet             
 and come up with an acceptable solution to the increasing numbers.            
 He encouraged legislative consideration of HB 547.                            
                                                                               
 Number 1728                                                                   
                                                                               
 REPRESENTATIVE RAMONA BARNES understood Alaska's constitution,                
 Article A, Section III, that the fish and game resources of the               
 state belong to all the people for the common use and are to be               
 managed under the sustained yield principle.  She asked whether it            
 is not, historically, true that the Department of Fish and Game is            
 mandated to manage under the sustained yield principle through                
 their own bags and limits of harvests rather than allowing one                
 fisherman an opportunity over another one.                                    
                                                                               
 Number 1768                                                                   
                                                                               
 MR. HOMAN replied that Representative Barnes had hit on a key                 
 element of the reason for the passage of the Limited Entry Act                
 which was that there was no ability until 1972 to limit the number            
 of fishermen.  There was no way, other than closing seasons,                  
 eventually, to keep the fisheries economical.  A constitutional               
 amendment in 1972 allowed a restriction on the number of entrants,            
 the reasoning was that at least, for those people in there, there             
 would be an economically viable fishery.                                      
                                                                               
 Number 1873                                                                   
                                                                               
 REPRESENTATIVE BARNES referred to the limited entry law that was              
 passed, as a constitutional amendment by the people, and asked if             
 that law was for a specific fishery or a specific species.                    
                                                                               
 MR. HOMAN responded that the intent was for fisheries of Alaska.              
                                                                               
 Number 1852                                                                   
                                                                               
 REPRESENTATIVE BARNES alluded to limited entry permits that apply             
 to salmon fishing and asked if the permits were costly, almost                
 impossible to buy back once they are sold to out of state                     
 fishermen.  She asked, "How did you determine through the limited             
 entry commission that one permit was not transferrable but another            
 permit was transferrable."  She wanted to know how the limited                
 entry commission determined that it had the right to limit                    
 fisheries into this fishery.                                                  
                                                                               
 Number 1870                                                                   
                                                                               
 MR. HOMAN answered that the constitution allowed the limited entry            
 commission to limit any commercial fishery in the state.  In order            
 to do that, the commission has to investigate that fishery and do             
 substantial research into who is participating and the resource               
 that is available.  These determinations take a long time to                  
 investigate and to consult with the Department of Fish and Game in            
 each specific fishery.                                                        
                                                                               
 MR. HOMAN informed, at the very beginning, there were 19 different            
 salmon fisheries that the legislature said were distressed and the            
 commission did not have to do the economic analysis because it was,           
 at the time, evident that they were distressed, particularly,                 
 Bristol Bay fisheries were in a disaster.  The legislature told the           
 commission on those specific fisheries they could limit without the           
 analysis.  Since that time, on every fishery that has been limited,           
 the commission had conducted that analysis and public hearings.               
                                                                               
 Number 1966                                                                   
                                                                               
 REPRESENTATIVE DAVIES reasoned that the bill establishes limited              
 entry for a short period of time.  He questioned the need for a               
 bill when it appears that the commission has the authority to                 
 establish a four year moratorium.                                             
                                                                               
 MR. HOMAN explained one of the problems with the moratorium statute           
 is that the Commercial Fisheries Entry Commission cannot instigate            
 the moratorium.  It requires a request from the commissioner of the           
 Department of Fish and Game and the approval of the Board of Fish.            
 The moratorium legislation was adopted at a time when there was               
 concern about fisheries limitations and, particularly, what the               
 federal agencies were doing.  The commission was restricted from              
 the ability to adopt a moratorium and, on our own initiative, we              
 cannot adopt a moratorium.  It has to come from outside the agency.           
                                                                               
 Number 2077                                                                   
                                                                               
 REPRESENTATIVE AUSTERMAN reiterated that if the Department of Fish            
 and Game had the staff to research these fisheries to find out how            
 big they are and what they can sustain, the state would not be in             
 this kind of situation.  He argued that until that time, the state            
 has to have the ability to come in and stop the over fishing of a             
 resource.  Even within the four year period, it will be difficult             
 for ADF&G and the commission to come up with guidance because they            
 do not have the money to do the work that needs to be done.                   
                                                                               
 Number 2150                                                                   
                                                                               
 REPRESENTATIVE DAVIES asked for clarification on the interim use              
 permits.                                                                      
                                                                               
 MR. HOMAN responded, Title 16, Chapter 43, the commission issues              
 permits for all fisheries in the state but only some of them are              
 limited.  The permits that are not permanent limited entry permits            
 are called interim use permits and they are not transferrable.                
                                                                               
 Number 2233                                                                   
                                                                               
 GERON BRUCE, Legislative Liaison, Department of Fish and Game,                
 stated the department's support of the concept of the moratorium              
 and explained the department's perspective to the problems that               
 occur in managing these fisheries:  Effort, what kind of resource             
 you are harvesting, what its productivity is, what level of harvest           
 it can sustain and then what kind of effort is going to be                    
 harvesting that resource so that effort can be matched through                
 season and bag limits to what the resource can sustain over time.             
                                                                               
 MR. BRUCE stated that in these particular fisheries, these                    
 organisms, we do not know a lot about them.  They are difficult to            
 study, they are on the bottom of the ocean.  We do know that,                 
 generally, they are slow growing organisms susceptible to over                
 harvest.  For example, geoducks can live to be as old as 100 years            
 and, typically, when they are harvested they are about 30 years               
 old.  It does take a long time for the organisms to reach the point           
 at which they are harvestable.                                                
                                                                               
 Number 2300                                                                   
                                                                               
 MR. BRUCE apprised that, in season, it is important to gather                 
 harvest data, to track progression of the fishery and to take the             
 available surplus and not exceed it.  In cases where the fishery              
 occurs too rapidly, by the time the department assesses where we              
 are in the harvest, we have already exceeded the quota.  Repeated             
 situations lead to stressing and over harvesting the resource, a              
 declining resource, and, ultimately, a resource that is trouble.              
                                                                               
 MR. BRUCE continued, in the dive fisheries, the Board of Fisheries,           
 has attempted to spread the fishery out by limiting the number of             
 days in the week that a fishery could occur.  Those measures were             
 not successful because of the rapidly, increasing interest in these           
 fisheries because of the high value of the product.  Other, similar           
 fisheries along the coast, in California, are going to limited                
 entry.  People are being forced out of those fisheries and they are           
 looking for opportunities to diversify.                                       
                                                                               
 Number 2362                                                                   
                                                                               
 MR. BRUCE further stated that the moratorium would enable the                 
 Department of Fish and Game to stabilize the fishery, conduct the             
 fishery in a more orderly manner, one that would be more matched to           
 the department's ability to do management and assessment with the             
 staff that it has.  He hoped that in four years the legislature               
 might provide the department with more money to enable them to hire           
 more staff to manage the fisheries more effectively.                          
                                                                               
 Number 2385                                                                   
                                                                               
 MR. BRUCE commented that the Board of Fisheries adopted, several              
 years ago, a regulation dealing with high impact emerging fisheries           
 which directed the department not to open those kinds of fisheries            
 unless the department had harvest assessment data and was managing            
 the fishery on a sustained basis.  That is why the sea urchin                 
 fishery was closed after its initial opening, the department did              
 not have an assessment program in place.  The principle of managing           
 these fisheries is to prepare a crop assessment to determine what             
 the standing crop is, what kind of productivity there is, and what            
 percentage of that can be taken on a sustained basis and manage               
 from that.                                                                    
                                                                               
 MR. BRUCE stated the assessment was not in place for the sea                  
 urchins and, therefore, did not have the fundamental element needed           
 to manage on a sustained basis.  So, the fishery was not opened.              
 The department is working to complete management assessments in               
 several districts in Southeast Alaska.  It is one option for doing            
 these kind of assessments without any additional general fund                 
 support.                                                                      
                                                                               
 Number 2448                                                                   
                                                                               
 REPRESENTATIVE DAVIES wanted to know how much time it takes for the           
 commissioner to request a moratorium.                                         
                                                                               
 MR. BRUCE said the commissioner has to submit a request to the                
 Board of Fisheries and that would have to be added to their agenda.           
 In this case, the board is concluding their meeting cycle for this            
 year, so the earliest that it could go to them would be next winter           
 and then allowing them time to act upon it would take a year or two           
 ....(change tape)                                                             
                                                                               
 TAPE 96-43, SIDE B                                                            
 Number 000                                                                    
                                                                               
 MR. BRUCE commented that Phil Daugherty, Department of Fish and               
 Game biologist would be available for questions.                              
                                                                               
 CO-CHAIRMAN WILLIAMS announced that he would hear from witnesses on           
 the teleconference network.                                                   
                                                                               
 Number 077                                                                    
                                                                               
 CLAY BEZENEK, President, Ketchikan Chapter - Southeast Alaska                 
 Harvest Divers Association, testified on behalf of the association            
 encouraging the passage of HB 537.  He agreed with Representative             
 Austerman that ADF&G is a great gun for the fishermen, but if the             
 department has no ammo, then they are not too effective.                      
                                                                               
 Number 140                                                                    
                                                                               
 SCOTT HEITMAN testified from Ketchikan thanking Representative                
 Williams and his staff for introducing HB 547.  He said we all want           
 a fishery group that will provide us with a decent living.  We                
 believe this bill provides for a stable fishery in which Alaska               
 fishermen can invest capital.                                                 
                                                                               
 Number 181                                                                    
                                                                               
 JAMES L. LECRONE testified from Sitka in support of HB 547.  He               
 stated that there is too much pressure in the dive fisheries and              
 this bill looks like a good alternative.                                      
                                                                               
 Number 190                                                                    
                                                                               
 LARRY TRANI, President, Sitka Chapter - Alaska Harvest Divers                 
 Association, testified on behalf of the members and stated that all           
 45 members currently dive in one or more of the dive fisheries and            
 are near unanimous in support of passage of HB 547 as written.                
                                                                               
 Number 229                                                                    
                                                                               
 ANDREW KITTAMS, Petersburg diver, testified on behalf of the                  
 Petersburg Chapter, Southeast Alaska Harvest Divers, in support of            
 HB 547.  He said, we have seen decreased fishing time and, almost,            
 a 50 percent increase in all of our fisheries last year.  It is               
 just not equitable to put money into our vessels to make them safe,           
 as well as the equipment, to go out and harvest these resources.              
                                                                               
 MR. KITTAMS addressed Representative Davies question about the bill           
 segregating between abalone, sea urchins, geoducks and sea                    
 cucumbers.  He said, there are 120 people fishing geoducks that               
 would be eligible under this moratorium.  We were only allowed four           
 days of harvest last year, at six hours a day, for a total of 24              
 hours.  In the sea cucumber fishery, there are about 400 people               
 fishing sea cucumbers and were allowed about eight, one day                   
 openings, one day per week.  He said if those 400 harvesters were             
 also allowed to fish geoducks or abalone, it would totally decimate           
 the amount of time for those of us who have put in the time and               
 effort to learn these fisheries.  They are segregated because there           
 are different numbers of people, different harvest levels and                 
 different resources to harvest in each fishery.                               
                                                                               
 Number 291                                                                    
                                                                               
 STEVE LACROIX, Board of Directors, Ketchikan Chapter - Southeast              
 Alaska Harvest Divers Association, related that the committee had             
 heard earlier testimony from Clay Bezenek in full support of HB
 547.  He said he would focus on what will happen if this bill does            
 not pass.  If the bill does not pass, the state is going to have so           
 many participants in these fisheries, coming from out of state,               
 that the divers will not be able to make the meager amount of money           
 that we have already been making.  "We know that is going to happen           
 and that is why we consider this an emergency situation."                     
                                                                               
 Number 311                                                                    
                                                                               
 PATRICK CASSIN testified from Ketchikan relating his experiences by           
 participating in the sea urchin test fishery.  He expressed his               
 opinion to separate sea urchins from the legislation.                         
                                                                               
 TOM TRUMPETER testified from Ketchikan stating his involvement in             
 sea urchin fishery for 20 years, nine years in Alaska.  As a former           
 resident of California, he is aware of a great number of fishermen            
 waiting to come to Alaska when the fishery does open.  He sees a              
 great need for something to done.                                             
                                                                               
 Number 421                                                                    
                                                                               
 GRANT THOMPSON testified from Sitka stating that he has a dive boat           
 and has been fishing since 1990.  He agreed with HB 547 except for            
 several points: Geoducks, as is, makes it 60 percent out of state             
 divers for the next four years.  He recommended adding a clause for           
 a person in school or the armed services during 1994-1995 that was            
 an Alaskan citizen and actively involved in industry. He expressed            
 opinion that it is important to control industry.                             
                                                                               
 Number 460                                                                    
                                                                               
 BURGESS BAUDER testified from Sitka relating his experiences in the           
 dive fisheries and voiced his support of HB 547 as written.                   
                                                                               
 Number 486                                                                    
                                                                               
 MIKE BANGS testified from Petersburg relating his experiences in              
 the dive fisheries and urged the committee's adoption of HB 547               
 which he feels is fair to everyone.                                           
                                                                               
 Number 535                                                                    
                                                                               
 MICHAEL REIF, Member, Sitka Chapter - Alaska Harvest Divers                   
 Association, testified in support of HB 547 because the fisheries             
 resources of Alaska are very valuable.  He said, "We, as divers,              
 are beginning to recognize this more and more. I believe HB 547 is            
 a rational approach to opening the sea urchin fishery."  "This                
 fishery will be valuable some day and the question I ask, is this             
 bill going to provide more value for Alaskans or not?  The answer             
 is, this bill will, because there are 533 people qualified under              
 this bill to fish sea urchins."  He related that what he hears, and           
 what the Department of Fish and Game, hears is that big producers             
 are going to come from the East Coast, Maine, and from the West               
 Coast, Oregon, California and Washington.  The moratorium is a tool           
 developed by the state to allow time elements to reevaluate and for           
 consideration, this tool is needed to protect the resources and the           
 economics of these resources.                                                 
                                                                               
 Number 711                                                                    
 DEREK THYNES, lifetime Petersburg resident, testified on behalf of            
 the Petersburg Divers in support of HB 547 stating that he dives              
 for geoducks and sea cucumbers.  He said, in the last year, between           
 1994 and 1995, those fisheries have doubled and he predicted that             
 geoducks will double within the next year.                                    
                                                                               
 SCOTT THOMAS, Ketchikan Chapter, Southeast Alaska Harvest Divers              
 Association testified in full support of HB 547.  He related his              
 experiences in the geoduck and sea cucumber fisheries.  He said the           
 bill addresses the problem now and, hopefully, the divers can                 
 salvage something out of these fisheries.                                     
                                                                               
 Number 766                                                                    
                                                                               
 LARRY COTTER, Oceanfresh Alaska, explained that this company is               
 presently conducting a sea urchin test fishery in Metlakatla and              
 supports HB 547, in its entirety, with the exception of the                   
 inclusion of sea urchins.  He requested that sea urchins not be               
 included in the legislation because the company feels that the                
 fishery has not yet occurred. It is potentially a huge fishery in             
 Southeast Alaska, with millions of pounds of urchins available for            
 harvest, perhaps hundreds of jobs in the dive industry and millions           
 of dollars of value.  Oceanfresh feels this fishery needs to be               
 developed in a very rational manner so that it maximizes the                  
 economic return to Alaska and the job opportunities to Alaska.  In            
 order to do that, that fishery needs to occur during the course of            
 a year.  Our existing management techniques may not fit well with             
 the sea urchin fishery, but we hope that during the next year, the            
 Board of Fisheries and the Department of Fish and Game will work              
 together with the industry to analyze the existing management tools           
 and try to develop a management program for sea urchins that is               
 rational and fits the needs of that fishery.                                  
                                                                               
 MR. COTTER further expressed that, if at that time, it is deemed by           
 the board or by the legislature, next year, that a moratorium is              
 necessary, we would support the bill at that time.  He asked the              
 committee to not close the door on alternatives to traditional                
 methods of management today.                                                  
                                                                               
 Number 859                                                                    
                                                                               
 REPRESENTATIVE DAVIES asked Mr. Cotter to explain why rational                
 development of the industry would not be possible under this bill.            
                                                                               
 MR. COTTER replied that Oceanfresh believes that if traditional               
 open access for sea urchin occurs there will be a gold rush in                
 Southeast Alaska led by divers, from throughout the lower 48, who             
 have expertise in sea urchins and they will be accompanied by sea             
 urchin companies who have the expertise that we, currently, do not            
 have available in Alaska.  We think that the value will be consumed           
 by nonresidents and the fishery will last a very short period of              
 time.  We do not think that is in the best interest of Alaska.                
 MR. COTTER continued, "In order to avoid that, one might say that             
 we should have a moratorium and put it into effect now so that we             
 limit the participation by non residents." " Oceanfresh thinks in             
 the last case scenario, yeah, that is the way to do it."  "But we             
 think there are other alternatives and other approaches that might            
 be used to maximize Alaskan participation."  "There are a lot of              
 Alaskan fishermen in Southeast Alaska who could dive for a living             
 and have not dove for a living yet, but given the situation of the            
 salmon industry, they may choose to participate in that fishery in            
 the future if it gets going because it provides them with a real              
 means to make a living in the future."                                        
                                                                               
 REPRESENTATIVE DAVIES asked Mr. Cotter how the state could prevent            
 the "gold rush."                                                              
                                                                               
 Number 933                                                                    
                                                                               
 CO-CHAIRMAN GREEN also wanted to know the answer to that question             
 and rationalized that having a moratorium would protect against               
 this "gold rush" because not only would fishermen come from the               
 lower 48 but the fishermen who are excluded from the other                    
 fisheries would shift over and the state would end up with an                 
 artificial evaluation period.                                                 
                                                                               
 Number 987                                                                    
                                                                               
 MR. COTTER said, "I am not trying to make your decision here more             
 difficult.  We are not, necessarily, opposed to a moratorium on               
 urchins, we think it is premature to do it.  A year from now, we              
 think that may be a rational decision because by that time,                   
 hopefully, the collective body, the industry, the department and              
 the Board of Fish, will have had the opportunity to sit down and              
 look at what is necessary to manage and develop the sea urchin                
 fishery.  We do not want preclude additional participation by                 
 Alaskans through any vehicle between now and then.  A year from               
 now, if that did not work, sure, let's have a moratorium."                    
                                                                               
 Number 1048                                                                   
                                                                               
 CO-CHAIRMAN WILLIAMS closed public testimony on HB 547.                       
                                                                               
 Number 1056                                                                   
                                                                               
 REPRESENTATIVE PETE KOTT moved that CS HB 547 (RES) move from the             
 House Resources Committee with individual recommendations and                 
 attached fiscal note.  Hearing no objection, it was so ordered.               
                                                                               
 Number 1111                                                                   
                                                                               
 CO-CHAIRMAN WILLIAMS passed the gavel to Co-Chairman Green to chair           
 testimony on HB 342.                                                          
 HB 342 - WATER QUALITY STANDARDS                                            
                                                                               
 CO-CHAIRMAN GREEN announced the committee hear testimony on HB 342            
 from the Department of Environmental Conservation and then hear               
 testimony from Resource Development Council in Anchorage.  He said            
 the committee would not have the time to pass the bill today.                 
                                                                               
 Number 1160                                                                   
                                                                               
 SUSAN BRALEY, Chief, Water Quality Technical Services, Department             
 of Environmental Conservation, said, "Among other things, our                 
 section is responsible for managing and administering the Alaska              
 Water Quality Standards which are regulations designed to protect             
 the water qualities of the state of Alaska."  "I am here today to             
 testify on behalf of the department on CS HB 342, an Act relating             
 to water quality.  I did testify during the initial hearing on this           
 bill about concerns the department has with the proposed                      
 legislation.                                                                  
                                                                               
 MS. BRALEY proceeded, "The department continues to have concerns              
 with this committee substitute bill because the changes it proposes           
 are difficult to interpret and, as written, will allow already                
 polluted waters to be further polluted.  Further, the new section             
 proposed in AS 46.03.08 5(C) which is at the very end of the bill             
 requiring the department to promptly adopt water quality standards            
 consistent with federal water quality standards every time they               
 change will force the state to, blindly, adopt national standards             
 with no consideration or evaluation of their practical or                     
 scientific application to Alaskan waters.                                     
                                                                               
 MS. BRALEY stated, "Overall, the language in the bill appears to              
 incorrectly use the terms for water quality criteria, water quality           
 standards and effluent discharge limits.  This leads to difficulty            
 in interpreting the legislation and how it relates to the existing            
 water quality standards for Alaska.                                           
                                                                               
 MS. BRALEY continued, "As stated earlier, the bill does not                   
 recognize that some waters are already polluted.  New sections (1)            
 and (2) of this bill, which are at the very beginning of the bill,            
 would limit the ability to clean waters back up to their original             
 condition since the language suggests that an effluent limit may              
 not be more strict than the quality of the existing water received            
 for the use.  Thus, a discharger would only have to clean up their            
 discharge to meet the existing polluted condition of the specific             
 water body.                                                                   
                                                                               
 MS. BRALEY emphasized, "It would be useful to understand the intent           
 of this language and why the legislature finds it necessary to make           
 statutory changes.  It appears to be trying to get at the natural             
 background condition of a water which can sometimes naturally                 
 exceed water quality standards.  As a point of clarification, the             
 department would like to refer to several places in our water                 
 quality standard regulations where the natural background of a                
 water is considered in setting a criteria limit.                              
                                                                               
 Number 1287                                                                   
                                                                               
 MS. BRALEY referred to Alaska Water Quality Standards, 18 AAC 70,             
 dated January 4, 1995, page 7, "look at pH and you will see that pH           
 may not be less that 6.0 or greater than 8.5 and may not vary more            
 than 0.5 Ph units from natural conditions."  "The next column on              
 `Turbidity' you will see that they base the maximum exceedences on            
 above natural conditions.  So, they do consider the natural                   
 condition of the water body."                                                 
                                                                               
 Number 1310                                                                   
                                                                               
 MS. BRALEY referenced page 9 of the handbook, directing members to            
 the column "Sediment," "no measurable increase in concentration of            
 settleable solids above natural conditions." She further referenced           
 ADEC regulations on page 27, subsection (b) which basically says              
 that if the department finds that a natural condition of a water              
 body has been demonstrated to be of lower quality, the and if the             
 department sees that the uses are fully protected, the department             
 can go in and set a site specific criteria for that particular                
 water.  "Just a real life example, we are currently using this for            
 the permitting of the Alaska-Juneau Mine at Gold Creek where the              
 total dissolved solids fraction is naturally, or, at least, it has            
 been higher in the last 50 years since historic mining occurred.              
 The `critters' have learned to live in that water and, probably, to           
 reduce it would cause more harm than good.  So, we are doing a site           
 specific criteria for that particular creek based on the natural              
 condition.  This also applies to the permitting of Cominco at Red             
 Dog Creek, we are doing basically the same thing.                             
                                                                               
 Number 1390                                                                   
                                                                               
 MS. BRALEY said, "The department also has difficulty understanding            
 why the new section in AS 46.03.085 (a) is considered necessary.              
 This is at the bottom of the first page of the bill.  As a point of           
 clarification, again, if you turn back to page 9 where we have the            
 sediment criteria listed, the department would like to note that              
 water quality standard revisions which were approved in January               
 1995 already clarified that the measurement for sediment is                   
 settleable solids using the volumetric Imhoff cone method.  We                
 believe this regulation satisfies the intent of this new statutory            
 section, although, again, I am not real clear on the intent and it            
 would probably help to understand what this is trying to give.  We            
 made that clarification specifically because there was some                   
 confusion about the definition of sediment and whether it included            
 suspended solids and settleable.  So, that was a specific change we           
 made to the regulation to address.                                            
                                                                               
 Number 1454                                                                   
                                                                               
 MS. BRALEY said, "Subsection (b) is also difficult to interpret, it           
 appears to say that the department can not apply an effluent limit            
 that is more restrictive than federal water quality standards.  The           
 language also suggests that effluent limit cannot be more strict              
 than the quality of the intake water.  Although, again, because of            
 the language it could be interpreted to mean the upstream or                  
 receiving water.                                                              
                                                                               
 MS. BRALEY said, "As mentioned earlier, the last subsection (c)               
 regarding the proposed requirement for the Department of                      
 Environmental Conservation to promptly adopt any change in federal            
 water quality standards is `problematic and alarming' from the                
 DEC's perspective.  One must remember that these federal standards            
 are set at the national level and do not take into consideration              
 state or region specific conditions.  So, before adopting, the                
 state must carefully review the new federal standards and research            
 and evaluate their applicability to Alaskan waters before taking              
 any action to adopt them.                                                     
                                                                               
 Number 1512                                                                   
                                                                               
 MS. BRALEY continued, "As a case in point, I would like to use the            
 arsenic criteria as an example.  In 1993, EPA adopted federal                 
 standards for toxic criteria in, what they call, the National Toxic           
 Rule, they impose these numbers on Alaska as well as several other            
 states that EPA felt did not have toxic criteria developed in their           
 state standards.  At that time, Alaska argued strongly against the            
 imposition and, especially, the arsenic criteria which Alaska felt            
 was unrealistically stringent and not scientifically defensible.              
 To give prospective, the state adopted level for arsenic is the               
 drinking water standard of 50 parts per billion.  The federal                 
 standard carried in the National Toxic Rule is set at 0.18 parts              
 per billion.  Just to give you an idea of how different it is from            
 what we now have.                                                             
                                                                               
 MS. BRALEY stated, "Recent information from EPA confirms that                 
 Alaska's concerns were well founded, and they have admitted that              
 the 0.18 parts per billion arsenic standard is not scientifically             
 defensible.  Unfortunately, EPA has not gotten around to                      
 administratively removing it from the books, so the federal                   
 standard remains at 0.18 ppb.  The DEC is fighting this issue with            
 the EPA at this point where several NPDES permits are being                   
 reviewed in Alaska.  EPA permitters continue to apply the federal             
 number for determining what conditions the dischargers must meet.             
                                                                               
 MS. BRALEY continued, "One of our strongest arguments is that our             
 adopted criteria remain at 50 parts per billion.  Therefore, the              
 EPA should offer the state some flexibility in what it has adopted.           
 Had we blindly adopted 0.18 parts per billion, you can be assured             
 that EPA would be sitting back at this time asking the state how we           
 plan to justify and defend our newly adopted number.  In closing,             
 we ask that you carefully review this bill in front of you to                 
 determine if it truly meets the intent it was designed for.  The              
 water quality standards are admittedly complex and the department             
 can offer staff assistance in determining how we can help correct             
 specific situations without making broad statutory changes which              
 may instead have unattended negative affects.                                 
                                                                               
 Number 1641                                                                   
                                                                               
 REPRESENTATIVE DAVIES asked Ms. Braley to characterize how many               
 instances where the state has adopted the standard in regulations             
 that is higher than the federal standard, and more stringent than.            
                                                                               
 MS. BRALEY responded that there are actually very few, but the one            
 that comes to mind that has caused some heartburn for the oil and             
 gas industry is the petroleum hydrocarbon criteria.                           
                                                                               
 MS. BRALEY's staff spoke up from the audience saying, "we have a              
 total petroleum hydrocarbon standard that is like 10 parts per                
 billion and one that is 15 parts per billion.  The federal                    
 government has developed a few polynuclear aromatic hydrocarbon               
 standards that are chemical specific.  Our total is low and it has            
 been real low for about 10 years, and the unfortunate thing is.."             
                                                                               
 CO-CHAIRMAN GREEN asked the staff member to come forward.                     
                                                                               
 Number 1734                                                                   
                                                                               
 KATY McKERNEY, Water Quality Standard Specialist, Department of               
 Environmental Conservation said, "As far as hydrocarbons, we have             
 a very low total hydrocarbon standard, it is considered very low,             
 it is 10 parts per billion and it is a total standard so that means           
 everything and there is a total aqueous which is 15.  The federal             
 government has developed some chemical specific criteria for                  
 polynuclear aromatic hydrocarbons that are much higher.  That                 
 reason that number is low is because when we were developing it for           
 the state, there were some studies done on the North Slope and they           
 looked at the most sensitive stages.                                          
                                                                               
 MS. McKERNEY closed by stating that the question really comes down            
 to the application and that is where we may have some issues to               
 address with industry and others.                                             
                                                                               
 CO-CHAIRMAN GREEN announced that the committee would recess until             
 Friday, March 29th.  He asked that Ms. Braley return at that time.            
 He also asked committee members to hold their questions until the             
 committee was reconvened since there were still people on the                 
 teleconference network waiting to testify.                                    
                                                                               
 Number 1842                                                                   
                                                                               
 BECKY GAY, Executive Director, Resource Development Council for               
 Alaska testified on HB 342 reading her statement into the record:             
                                                                               
 "RDC supports the goal of the CS for HB 342 to strengthen the                 
 mandate for economically-feasible and technologically-achievable              
 state water quality standards which are scientifically-based and              
 consistent with federal standards.                                            
                                                                               
 MS. GAY stated, "RDC also supports the CS specifying EPA-approved             
 measurements which are in line with the state Department of                   
 Environmental Conservation's (DEC) current policy on settleable               
 solids measurements, and which in fact, strengthen that policy.               
                                                                               
 Additional, RDC supports legislation which provides for the                   
 following:                                                                    
                                                                               
 An efficient `change mechanism' for changing state regulations to             
 match federal regulations;                                                    
                                                                               
 A professional and definitive process, including an independent               
 panel review, for evaluating any conclusion which results in state            
 standards being set stricter than federal requirements;                       
                                                                               
 An allowance for discharge waters to match the quality of the                 
 receiving waters.  This will strengthen when natural levels exceed            
 the state standard, as is often the case in Alaska, particularly              
 with arsenic.                                                                 
                                                                               
 MS. GAY continued, "Presently states are required to amend                    
 regulation to match federal regulations only when federal                     
 regulations become more restrictive.  This is a one-way street.             
 The state needs to legislate a similar requirement to automatically           
 adjust state standards when federal changes result in less strict           
 standards, or when federal mandates are deleted from law.  Such a             
 provision still allows the state to set stricter standards if it              
 chooses, but will encourage a pro-active response automatically and           
 a review of that decision.                                                    
                                                                               
 MS. GAY informed, "For those few cases where the state argues for             
 a stricter standard than federally required, this legislation                 
 should establish an impartial review methodology for evaluating the           
 merit of such an argument.  Such a review should also allow for an            
 appeal from the regulated community or industries involved.                   
                                                                               
 MS. GAY testified, "One change RDC recommends is replacing Section            
 1 (b) and Section 2 (c) with language which would read, "The                  
 Commissioner may not require a more restrictive water quality for             
 discharge water than the existing quality of the receiving water."            
 This should help the DEC's concern that polluted or impaired                  
 waterbodies might become more degraded under the current language."           
                                                                               
 MS. GAY said the RDC believes that the background level, if they do           
 exceed the water quality, then the background level should become             
 the standard.                                                                 
                                                                               
 MS. GAY referred to the last section of the bill stating she felt             
 it important, in state regulations, to find an efficient way to               
 change water quality standards or criteria if the federal ones go             
 down which is not very easy to do now.  That is what we were trying           
 to shoot for in that section.                                                 
                                                                               
 MS. GAY stated that Brian Crewdson, arsenic expert, was standing by           
 if the committee had more questions.                                          
                                                                               
 BRIAN CREWDSON responded to Chairman Green that he had nothing to             
 add but was available for questions.                                          
                                                                               
 CO-CHAIRMAN GREEN confirmed with Ms. Gay and Mr. Crewdson that they           
 would be available for the continuation meeting on Friday 29th.               
                                                                               
 MS. GAY stated that she would not be available.                               
                                                                               
 MR. CREWDSON said he would be available.                                      
                                                                               
 Number 2090                                                                   
                                                                               
 CO-CHAIRMAN GREEN announced that the House Resources Committee                
 meeting would recess until 8:00 a.m. Friday, March 27, 1996.                  
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 Having no further business to come before the House Resources                 
 Committee, Chairman Green recessed the meeting at 10:03 a.m.                  
                                                                               

Document Name Date/Time Subjects