Legislature(1997 - 1998)

02/22/1997 01:10 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE RESOURCES STANDING COMMITTEE                              
                       February 22, 1997                                       
                           1:10 p.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Bill Hudson, Co-Chairman                                       
 Representative Scott Ogan, Co-Chairman                                        
 Representative Beverly Masek, Vice Chair                                      
 Representative Joe Green                                                      
 Representative Irene Nicholia                                                 
 Representative Reggie Joule                                                   
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Representative Ramona Barnes                                                  
 Representative Fred Dyson                                                     
 Representative William K. ("Bill") Williams                                   
                                                                               
 OTHER HOUSE MEMBERS PRESENT                                                   
                                                                               
 Representative Alan Austerman                                                 
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 HOUSE BILL NO. 28                                                             
 "An Act repealing the Alaska Coastal Management Program and the               
 Alaska Coastal Policy Council, and making conforming amendments               
 because of those repeals."                                                    
                                                                               
      - HEARD AND HELD                                                         
                                                                               
 (* First public hearing)                                                      
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  HB 28                                                                
 SHORT TITLE: REPEAL COASTAL ZONE MGMT PROGRAM                                 
 SPONSOR(S): REPRESENTATIVE(S) THERRIAULT, Kelly                               
                                                                               
 JRN-DATE      JRN-PG                 ACTION                                   
 01/13/97        34    (H)   PREFILE RELEASED 1/3/97                           
 01/13/97        35    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/13/97        35    (H)   RESOURCES, FINANCE                                
 02/13/97              (H)   RES AT 1:00 PM CAPITOL 124                        
 02/13/97              (H)   MINUTE(RES)                                       
 02/20/97              (H)   RES AT 1:00 PM CAPITOL 124                        
 02/20/97              (H)   MINUTE(RES)                                       
 02/22/97              (H)   RES AT 1:00 PM CAPITOL 124                        
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 REPRESENTATIVE GENE THERRIAULT                                                
 Alaska State Legislature                                                      
 Capitol Building, Room 511                                                    
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 465-4797                                                    
 POSITION STATEMENT:  Testified as sponsor of HB 28.                           
                                                                               
 DIANE MAYER, Director                                                         
 Division of Governmental Coordination                                         
 Office of Management and Budget                                               
 Office of the Governor                                                        
 P.O. Box 110030                                                               
 Juneau, Alaska  99811-0030                                                    
 Telephone:  (907) 465-3563                                                    
 POSITION STATEMENT:  Provided department's position and answered              
                      questions regarding HB 28.                               
                                                                               
 R.K. GILDERSLEEVE, President                                                  
 Gildersleeve Logging Incorporated                                             
 Pouch B                                                                       
 Ketchikan, Alaska  99901                                                      
 Telephone:  (907) 225-1224                                                    
 POSITION STATEMENT:  Testified in support of HB 28.                           
                                                                               
 ERIC MUENCH                                                                   
 Alaska Woods Service Company                                                  
 P.O. Box 6811                                                                 
 Ketchikan, Alaska  99901                                                      
 Telephone:  (907) 225-5372                                                    
 POSITION STATEMENT:  Testified in support of HB 28.                           
                                                                               
 DAVID CROSBY, Attorney                                                        
 5280 Thane Road                                                               
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 586-6262                                                    
 POSITION STATEMENT:  Testified on HB 28.                                      
                                                                               
 DAVE HANNA                                                                    
 P.O. Box 20834                                                                
 Juneau, Alaska  99802                                                         
 Telephone:  (907) 789-1902                                                    
 POSITION STATEMENT:  Testified on HB 28.                                      
                                                                               
 LINDA FREED, Community Development Director                                   
 Kodiak Island Borough                                                         
 710 Mill Bay Road                                                             
 Kodiak, Alaska  99615                                                         
 Telephone:  (907) 486-9360                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 WILLIE GOODWIN, JR., Land Manager                                             
 Kikiktagruk Inupiat Corporation                                               
 P.O. Box 1050                                                                 
 Kotzebue, Alaska  99752                                                       
 Telephone:  (907) 442-3165                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 VICTOR KARMUN, Coastal Management Coordinator                                 
 Northwest Arctic Borough                                                      
 P.O. Box 1110                                                                 
 Kotzebue, Alaska  99752                                                       
 Telephone:  (907) 442-2500                                                    
                                                                               
 CHERI SHAW, Executive Director                                                
 Cordova District Fishermen United                                             
 P.O. Box 939                                                                  
 Cordova, Alaska  99574                                                        
 Telephone:  (907) 424-3447                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 DENNIS RANDA, President                                                       
 Alaska Council                                                                
 Trout Unlimited                                                               
 P.O. Box 3055                                                                 
 Soldotna, Alaska  99669                                                       
 Telephone:  (907) 262-9494                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 DALE BONDURANT                                                                
 HC1, Box 1197                                                                 
 Soldotna, Alaska  99669                                                       
 Telephone:  (907) 262-0818                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 DOUGLAS MERTZ                                                                 
 Prince William Sound Regional Citizens Advisory Council                       
 319 Seward Street                                                             
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 586-4004                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 GRETCHEN KEISER, Planner                                                      
 Community Development Department                                              
 City and Borough of Juneau                                                    
 155 South Seward Street                                                       
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 586-5230                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 WELLS WILLIAMS, Planning Director                                             
 City and Borough of Sitka                                                     
 100 Lincoln Street                                                            
 Sitka, Alaska  99835                                                          
 Telephone:  (907) 747-1824                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 CLAIRE JOHNSON, Board Member                                                  
 Alaska Wilderness Recreation and Tourism Association                          
 1705 Sawmill Creek Road                                                       
 Sitka, Alaska  99835                                                          
 Telephone:  (907) 747-5011                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 JIM GLASPELL, Environmental Consultant                                        
 19738 Ivy Home Circle                                                         
 Eagle River, Alaska  99577                                                    
 Telephone:  (907) 694-2127                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 CHUCK DEGNAN, Program Director                                                
 Bering Straits Coastal Resource Service Area Board                            
 P.O. Box 187                                                                
 Unalakleet, Alaska  99684                                                     
 (No telephone number provided)                                              
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 JOHN DUNHAM, Permitting and Zoning Manager                                  
 North Slope Borough                                                           
 P.O. Box 69                                                                   
 Barrow, Alaska  99723                                                         
 Telephone:  (907) 852-0440                                                    
 POSITION STATEMENT:  Testified in opposition to HB 28.                        
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-18, SIDE A                                                            
 Number 0001                                                                   
                                                                               
 CO-CHAIRMAN SCOTT OGAN called the House Resources Standing                    
 Committee meeting to order at 1:10 p.m.  Members present at the               
 call to order were Representatives Ogan, Hudson, Masek, Green,                
 Nicholia and Joule.  Absent were Representatives Dyson and                    
 Williams, as well as Representative Barnes, who was in a                      
 subcommittee meeting.                                                         
                                                                               
 HB 28 - REPEAL COASTAL ZONE MGMT PROGRAM                                    
                                                                               
 Number 0068                                                                   
                                                                               
 CO-CHAIRMAN OGAN announced the hearing was primarily for public               
 testimony on House Bill No. 28, "An Act repealing the Alaska                  
 Coastal Management Program and the Alaska Coastal Policy Council,             
 and making conforming amendments because of those repeals."                   
                                                                               
 Number 0183                                                                   
                                                                               
 REPRESENTATIVE GENE THERRIAULT, sponsor of HB 28, said he had                 
 previously believed the sole fiscal note was that from the Office             
 of Management and Budget, Division of Governmental Coordination               
 (DGC).  However, there were additional fiscal notes from affected             
 departments.                                                                  
                                                                               
 REPRESENTATIVE THERRIAULT said that morning, he had questioned                
 division directors at the Department of Natural Resources (DNR)               
 subcommittee meeting to determine "general fund effort" relating to           
 the coastal zone program.  For example, money received by the DNR             
 under the Reimbursable Services Agreement (RSA) all went to the               
 Division of Lands.  However, the Division of Oil and Gas also had             
 duties under the program and used general funds to participate.               
 That was part of his concern with the program's expense.                      
                                                                               
 REPRESENTATIVE THERRIAULT had requested information on effort, man-           
 hours and general funds in individual divisions; he had written to            
 the commissioners of the Department of Environmental Conservation             
 (DEC), the DNR, and the Department of Fish and Game (ADF&G); and he           
 would probably request information from the Department of Law.  He            
 would provide that information to the committee upon receipt.                 
                                                                               
 Number 0343                                                                   
                                                                               
 REPRESENTATIVE THERRIAULT said Harry Noah's comments at the                   
 previous hearing encapsulated the questions he himself was posing.            
 He emphasized that while the Alaska Coastal Management Program                
 (ACMP) requires coordination, coordination does not require the               
 ACMP.  The coordination portion is the "baby" that should not be              
 thrown out with the bath water.                                               
                                                                               
 REPRESENTATIVE THERRIAULT referred to Mr. Noah's discussion of the            
 agency permitting process.  There are regulatory hoops to jump                
 through.  On top of that is the coastal zone process, which should            
 be viewed as another permit to obtain.  He suggested considering              
 the expense of that additional permit and process to the state and            
 to individuals.                                                               
                                                                               
 Number 0552                                                                   
                                                                               
 REPRESENTATIVE THERRIAULT referred to the previous hearing's                  
 discussion of the additional layer of permitting process for                  
 adjacent lands straddling the coastal zone.  He asked what                    
 additional was being protected along the coast.                               
                                                                               
 REPRESENTATIVE THERRIAULT cited an example.  Acting on legal                  
 advice, the Coastal Policy Council hired a hearing officer to                 
 review a petition under a statute in effect prior to 1994.                    
 However, the DEC's attorney determined the council had no authority           
 to do so, and the DEC was hiring a second hearing officer.  This              
 was a case where a good program had perhaps spun out of control,              
 with unnecessary state expenditures of time and resources.                    
                                                                               
 Number 0737                                                                   
                                                                               
 REPRESENTATIVE THERRIAULT reported that:  1) he had come up with a            
 chart of required permitting processes; 2) he would request a copy            
 of a large chart put together by the DGC; and 3) he would request             
 a copy of a "white paper" that compared the permitting processes              
 and coordination required in Interior Alaska with those required on           
 the coast.                                                                    
                                                                               
 Number 0869                                                                   
                                                                               
 CO-CHAIRMAN BILL HUDSON believed it was important to highlight                
 additional requirements within the ACMP, associated costs and time            
 delays.  "Maybe they're totally necessary," he commented.  He also            
 inquired about a breakdown of the distribution of state and federal           
 funds.                                                                        
                                                                               
 REPRESENTATIVE THERRIAULT said his information indicates $967,000             
 in federal funds flows to 34 coastal districts, with a general fund           
 match.  Approximately $760,000 goes to state agencies.  He                    
 suspects, however, that state agencies actually expend quite a bit            
 more time, effort, and, therefore, man-hours and money in                     
 participating in the program.                                                 
                                                                               
 REPRESENTATIVE THERRIAULT said for a proposed project in Fairbanks,           
 zoning requirements were followed.  This could be appealed to the             
 borough planning and zoning commission, then to the borough                   
 assembly, which could be sued if unhappy with the outcome.  The               
 state never entered into it.  But as he understood it, under the              
 coastal zone system, the state stepped in and picked up all legal             
 costs.  He questioned the necessity of that.                                  
                                                                               
 Number 1075                                                                   
                                                                               
 CO-CHAIRMAN OGAN said for him, the bottom line was whether                    
 environmental or habitat degradation would occur should the program           
 be eliminated.  He asked whether essentially the DNR, the DEC and             
 the ADF&G require everyone to obtain permits, while the ACMP                  
 coordinates that effort and oversees it in a duplicative way.                 
                                                                               
 REPRESENTATIVE THERRIAULT said that is somewhat his suspicion.  He            
 noted that many districts have adopted departments' regulations and           
 are therefore consistent.                                                     
                                                                               
 REPRESENTATIVE THERRIAULT commented that the ADF&G has the right to           
 interject comments into a DEC water permitting process.  However,             
 he believes the ADF&G uses the ACMP to give themselves a trump card           
 to stop the issuance of permits, a trump card the legislature, as             
 policy makers for state law, had specifically not given them.                 
                                                                               
 Number 1263                                                                   
                                                                               
 DIANE MAYER, Director, Division of Governmental Coordination (DGC),           
 Office of Management and Budget, Office of the Governor, noted that           
 the DGC is responsible for implementing the ACMP.                             
                                                                               
 Number 1311                                                                   
                                                                               
 REPRESENTATIVE IRENE NICHOLIA asked how many positions would be               
 lost under HB 28.                                                             
                                                                               
 MS. MAYER said the DGC has 24 positions in the FY 98 budget.  This            
 bill would eliminate 23 of them.                                              
                                                                               
 REPRESENTATIVE NICHOLIA asked whether Ms. Mayer could provide a               
 list of where those positions are and their titles.                           
                                                                               
 MS. MAYER said yes.  She referred to one of Mr. Noah's charts,                
 which showed ACMP as a small layer of process above a larger layer            
 of process.  She suggested if the issue is redundancy, ACMP is the            
 only entity on the books that brings all existing processes                   
 together on a project basis.  It synchronizes scheduling and                  
 organizing of public notice, comments, and other aspects, which               
 includes identifying issues and having discussions based on agency            
 expertise about problem-solving.                                              
                                                                               
 MS. MAYER believes if the ACMP layer were removed, the other layer            
 would "scatter into ribbons."  The ACMP works with applicants up-             
 front to decide what "ribbons" to tie together in their process,              
 putting them in touch with agencies, determining applicable                   
 personnel and scheduling those personnel as a synchronized team.              
 She questioned the bill's presumption that an efficiency exists in            
 "shredding these ribbons and having them all work independently."             
                                                                               
 MS. MAYER explained that companies such as Fort Knox find someone             
 to tie those ribbons together, paying not only a designated                   
 coordinator, but also the person in charge in each agency.  For               
 many projects, that cost of coordination may not have a big impact.           
 However, the DGC handles 400 projects, both large and small.  And             
 by statute and regulation, it could bring these people together.              
                                                                               
 Number 1584                                                                   
                                                                               
 CO-CHAIRMAN HUDSON asked whether she was talking about the ACMP or            
 the DGC.                                                                      
                                                                               
 MS. MAYER, noting that HB 28 repeals the coastal management                   
 program, said the coordination piece, the function of the DGC, is             
 nested right in the law legislators are being asked to repeal.                
                                                                               
 CO-CHAIRMAN HUDSON asked whether the coordination piece would not             
 exist otherwise, unless separate legislation created or maintained            
 it.                                                                           
                                                                               
 Number 1659                                                                   
                                                                               
 MS. MAYER said, "Right."  She explained, "To the extent that we're            
 just talking about the coordination function, if you move HB 28,              
 you lose both of these and then you're faced with recreating the              
 wheel, basically, for the coordination piece."                                
                                                                               
 MS. MAYER referred to the chart and said this is where local                  
 communities plan, establish criteria reflecting their desires for             
 development in their own coastal area and receive "a million-plus             
 annually."  In addition, when a federal permit is required, the               
 ACMP is the strongest means of integrating federal agencies into              
 project-based reviews.                                                        
                                                                               
 CO-CHAIRMAN OGAN opened the meeting for public testimony.                     
                                                                               
 Number 1751                                                                   
                                                                               
 R.K. GILDERSLEEVE, President, Gildersleeve Logging Incorporated,              
 testified via teleconference from Ketchikan in support of HB 28.              
 Raised in Alaskan logging camps owned by his father, he had                   
 purchased the operations in the 1980s.  Including subcontractor               
 employees, their camps normally employ up to 125 people but are               
 facing severe declines as timber supplies diminish.                           
                                                                               
 MR. GILDERSLEEVE believes HB 28 would remove a redundant layer of             
 state regulation.   He said coastal zone management reviews have              
 been used by state agencies to impede development and make it less            
 economic.  State agencies need and have regulatory authority to               
 ensure that industry maintains measurable standards, but coastal              
 zone management costs the state and the public without protecting             
 any resources not already protected by other regulations.                     
                                                                               
 MR. GILDERSLEEVE discussed his own company.  Regulated to maintain            
 air and water quality standards, they can be cited by state and               
 federal agencies if found out of compliance.  They must regularly             
 report on compliance with many standards.  Permits are required for           
 fuel storage and transfer, drinking water, (indisc.) treatment,               
 camp location, maritime operations and electrical generation.  In             
 addition, the Forests Practices Act specifies logging practices to            
 protect habitat and water quality.  Their operation has been                  
 visited by five or six agencies in a single day.                              
                                                                               
 MR. GILDERSLEEVE believes the state entered into the ACMP for                 
 reasons no longer valid, including the lure of federal funding and            
 distrust of the U.S. Forest Service by at least one state agency,             
 which currently manages "the fish and game on the Tongass."  Now              
 that the two long-term timber sales are reduced, the need for ACMP            
 management is no longer there.                                                
                                                                               
 Number 1941                                                                   
                                                                               
 MR. GILDERSLEEVE said another reason for creating coastal zone                
 management was the state had the money then.  In addition, land use           
 planning under Title 38 was not very far along nor well understood.           
 Now, most parts of the state fall under a formally adopted land use           
 plan.  He sees no need to re-examine every possible designation               
 whenever a landowner wants to use his land.  Nor does he see a need           
 for agencies to meet repeatedly for what are usually temporary                
 uses, just because that use lies in the coastal zone.  He said such           
 uses are always held to measurable standards, by a myriad of                  
 regulations, whether or not the land lies in the coastal zone.                
                                                                               
 Number 2021                                                                   
                                                                               
 ERIC MUENCH, Alaska Woods Service Company, testified via                      
 teleconference from Ketchikan in support of HB 28.  He said the               
 program has outlived its usefulness.  Its purpose of protecting               
 coastal waters is now accomplished separately by the Clean Water              
 Act, the Clean Air Act, the U.S. Army Corps of Engineers 404                  
 permitting process and other protective measures.                             
                                                                               
 MR. MUENCH believes the program performs poorly at allowing the               
 state and communities to "provide guidance into the actions of                
 higher levels of government."  Federal agencies such as the                   
 Environmental Protection Agency (EPA) and National Marine Fisheries           
 Service (NMFS) show no willingness to take guidance from local or             
 state plans.                                                                  
                                                                               
 MR. MUENCH said the greatest fault of the program is pretending to            
 protect marine waters through regulation of upland activity.  That            
 requirement is addressed by clean water requirements of state and             
 federal law.  He suggested the coastal zone boundary lacks a                  
 biological, topographical or other feature defining where upland              
 activity's effects on marine waters begin or end.                             
                                                                               
 Number 2102                                                                   
                                                                               
 MR. MUENCH said most environmental controversy involves land use              
 preferences on specific parcels of land.  Many environmental laws             
 allow participants to take part in that controversy who would                 
 otherwise have no place doing so, he said, indicating the ACMP is             
 one such program.                                                             
                                                                               
 MR. MUENCH believes the single useful feature of the program is the           
 coastal project questionnaire, through which developers can become            
 aware of state regulatory functions that could affect their                   
 projects, and which coordinates state responses through the DGC.              
 He suggested this feature be expanded statewide, separate from the            
 coastal management program, to provide guidance and expedite the              
 public's passage through "a maze of confusing governmental                    
 regulations, regardless of where the project is located."                     
                                                                               
 Number 2152                                                                   
                                                                               
 CO-CHAIRMAN OGAN asked for clarification about the questionnaire.             
                                                                               
 MR. MUENCH replied that the coastal project questionnaire lists               
 state agencies having regulatory power over some form of land or              
 water use.  The developer, or whoever wants to initiate a project,            
 can go through a checklist of agencies, compare it with the planned           
 activity, and find out which agency must be dealt with as far as              
 permits or other interactions are concerned.                                  
                                                                               
 Number 2205                                                                   
                                                                               
 DAVID CROSBY, Attorney, came forward to testify, saying he was in             
 private practice.  For the past 15 or 20 years, he had represented            
 clients with development interests statewide, including North Slope           
 oil and gas, local mines and logging in the Hydaburg area.                    
 However, he was not speaking on behalf of any client but presenting           
 his own thoughts.  Most of the projects he represented involved               
 multiple federal, state, and sometimes local permits.                         
                                                                               
 MR. CROSBY suggested most problems he had encountered were not with           
 this process but with "rogue staffers" within agencies, at lower              
 levels, who had their own agendas.  He was uncertain HB 28 would              
 solve that problem, and it could make it worse.  The DGC had been             
 able, through its processes, to address concerns over rogue                   
 staffers, "to work them through in a process that involved                    
 commissioners from the various agencies."  Where they were unable             
 to work them out, they had a well-defined process where Mr. Crosby            
 knew that ultimately, he could get up to the commissioner level, if           
 need be, where he "had some political accountability."  He said,              
 "If you throw this entire program out, I'm not sure where that                
 process goes to."                                                             
                                                                               
 Number 2289                                                                   
                                                                               
 MR. CROSBY expressed concern that if HB 28 passed, the power of               
 individual agencies may increase.  Problems he had experienced had            
 more often than not been with the ADF&G.  He feared that doing away           
 with governmental coordination and making the process less visible            
 might increase that department's power, in particular.                        
                                                                               
 MR. CROSBY suggested there might also be increased difficulty in              
 dealing with federal agencies.  Concerns expressed in the Coastal             
 Zone Management Act were not going to go away.  To the extent that            
 the state was perceived as acting irresponsibly or throwing out the           
 standards, there was a tendency on the federal side to do what the            
 state would not do.  He said those processes had many fewer points            
 where one could interact.                                                     
                                                                               
 Number 2365                                                                   
                                                                               
 MR. CROSBY cautioned that eliminating the Coastal Zone Management             
 Act could result in more litigation, not less.  One reaction to               
 feeling powerless was to sabotage.  One way to sabotage was through           
 litigation.  He explained, "We have had projects where we have been           
 able, through the processes of the Coastal Zone Management Act, to            
 explain the project, to improve the project in many ways, to learn            
 how to answer the environmental concerns, and in some instances,              
 through a process of compromise, sometimes just because we've been            
 able to explain our project better, to get people that might have             
 sued us to accept the result."                                                
                                                                               
 MR. CROSBY said he was not sure what happens when the avenue for              
 that kind of expression is cut off.  He suggested sometimes courts            
 show deference to a person's position because they know that person           
 has worked the process.  With no process, the courts may approach             
 it de novo, with uncertain results.                                           
                                                                               
 Number 2428                                                                   
                                                                               
 MR. CROSBY said from a personal standpoint, it would trouble him to           
 turn the clock back on this effort at comprehensive planning for              
 the coastal zone, which attempts to tie together various concerns             
 of development and conservation.  He tends to view the Coastal Zone           
 Management Act as a tool, not an obstacle.                                    
                                                                               
 CO-CHAIRMAN HUDSON indicated he was intrigued by Mr. Crosby's                 
 "rogue staffer" approach.  He wondered whether the DGC has                    
 statutory power to manage or overcome a rogue staffer.                        
                                                                               
 [Reply cut off by tape change]                                                
                                                                               
 TAPE 97-18, SIDE B                                                            
 Number 0006                                                                   
                                                                               
 CO-CHAIRMAN HUDSON said a number of people, including Mr. Crosby,             
 spoke about the benefits of the DGC.  He wondered whether anyone              
 had looked at empowering it.  Citing the old Transportation                   
 Commission as an example, he suggested considering a whole new                
 relationship, with some sort of citizen board, for example, to                
 provide the oversight and connection.                                         
                                                                               
 MR. CROSBY said he would not advocate more regulation.                        
                                                                               
 CO-CHAIRMAN HUDSON responded, "But more power."                               
                                                                               
 MR. CROSBY said, "Certainly there could be more power to deal with            
 the various agencies, and to require them to come to reason on                
 these things.  And I think that's what DGC is doing now in many               
 instances.  And incidentally, there's a network that exists among             
 staffers of these various agencies, between Fish and Game and the             
 Environmental Protection Agency and what have you.  And there's a             
 lot of cross-over that goes on.  And a staffer who is unhappy with            
 the result here can go over there.  And I think that the present              
 process within the Division of Governmental Coordination tends to             
 minimize that."  He agreed Co-Chairman Hudson's idea was something            
 to think about.                                                               
                                                                               
 Number 0131                                                                   
                                                                               
 REPRESENTATIVE JOE GREEN pointed out that a Title 16 permit could             
 not be superseded by an action of the DEC, for example.  He                   
 believes it would be unwise to empower any one agency, giving them            
 a "trump card."  Furthermore, there would still be requirements of            
 maintaining reviews within various expertise groups.  He discussed            
 the impeding of progress by the "rogues" and indicated response               
 time lines help somewhat.  He concluded that the DGC does act as a            
 "mover" in the process.                                                       
                                                                               
 Number 0270                                                                   
                                                                               
 REPRESENTATIVE THERRIAULT noted that HB 28 amends AS 46.40.                   
 Referring to AS 46.35, he paraphrased, "It is the purpose to                  
 establish a simplified procedure to assist those who have to                  
 satisfy requirements of state, federal and local law to obtain                
 permits, to provide to the members of the public a better                     
 opportunity to present their views, to provide to applicants for              
 the use of air, land or water resources of the state a greater                
 degree of certainty on permit requirements, to increase the                   
 coordination between federal, state and local agencies and their              
 administration of the programs, and to establish an opportunity for           
 members of the public to obtain information."                                 
                                                                               
 REPRESENTATIVE THERRIAULT suggested these statutes, not contingent            
 on maintaining AS 46.40, speak directly to what the "baby" should             
 be and do.  Governmental coordination will happen if the Governor             
 wants it to, he said.  And the 23 or 24 ACMP staff would not                  
 necessarily "disappear" under HB 28, unless the legislature removes           
 from the budget those general fund dollars and that staffing.                 
                                                                               
 Number 0352                                                                   
                                                                               
 REPRESENTATIVE REGGIE JOULE referred to Mr. Crosby's comment about            
 the possibility of more litigation and asked for examples.                    
                                                                               
 MR. CROSBY believes two kinds of people get involved in                       
 environmental disputes.  First are those acting in good faith,                
 needing more information to be satisfied a project will not be an             
 environmental problem.  Sometimes information coming from a                   
 governmental agency has greater credibility than that provided by             
 a developer, he noted.                                                        
                                                                               
 MR. CROSBY said second are people who are frustrated and angry                
 about their perceived lack of power in the system.  They oppose any           
 development and cannot be satisfied.  Through the development                 
 permit processes, oftentimes they can be forced to articulate their           
 arguments.  "And you begin to understand their arguments so that              
 you can respond to them," he said.                                            
                                                                               
 MR. CROSBY explained, "You may not be able to keep them from suing.           
 But when they do sue, you can point out to the court that you've              
 been through ... the various processes with the permitting agencies           
 and up to the Coastal Policy Council.  And I think you can tend to            
 isolate the nay-sayers.  But at the same time, I think that you               
 perform a valuable function by providing information to people who            
 are really only in the process, in good faith, to find out whether            
 or not there is a problem."                                                   
                                                                               
 Number 0457                                                                   
                                                                               
 CO-CHAIRMAN OGAN noted that Representative Alan Austerman was                 
 present and invited him to join them at the table.                            
                                                                               
 REPRESENTATIVE THERRIAULT said except where a Title 46 application            
 is required because of activity in a stream, he believes the ADF&G            
 has circumvented the legislature in using the ACMP to interject               
 itself into the process.                                                      
                                                                               
 MR. CROSBY said that is a legitimate point.  However, in some                 
 situations, the ADF&G has permitting authority.  In addition, there           
 is communication between agencies, which defer to one another on              
 points where they believe the other agency has expertise.                     
                                                                               
 Number 0543                                                                   
                                                                               
 DAVE HANNA came forward to testify, saying he was a fifth-                    
 generation Alaskan whose family had worked the length and breadth             
 of the state.  No member of his family had ever been a proponent of           
 more government.  Self-employed in construction and resource                  
 development, he has been active in mineral resource extraction,               
 timber harvest, road building, bridge building, shoreline                     
 development and protection, and commercial and residential                    
 development.                                                                  
                                                                               
 MR. HANNA has worked with and without coastal zone management and             
 the DGC.  Often, development in Alaska involves federal agencies              
 including the U.S. Army Corps of Engineers, the Environmental                 
 Protection Agency, the U.S. Fish and Wildlife Service and the                 
 National Marine Fisheries Service.  In addition, it involves Alaska           
 departments and local planning and zoning agencies.                           
                                                                               
 MR. HANNA said prior to the ACMP, no program coordinated agencies             
 nor forced federal cooperation with municipal or private                      
 development.  Developers attempted to procure permission from                 
 agencies.  There was lack of communication, endless modification of           
 projects, and needless repetition of effort by agencies and private           
 developers alike, with applicants bounced like a ball back and                
 forth between agencies with their own agendas.  The federal                   
 government was free to react at their leisure.  This endless                  
 repetition often discouraged private developers to the point where            
 they abandoned their efforts.                                                 
                                                                               
 Number 0681                                                                   
                                                                               
 MR. HANNA said since the inception of coastal zone management, and            
 the benefit of the DGC, municipalities and private developers have            
 the assurance of fair and timely review of proposed developments.             
 He believes this one act may have done more than anything else to             
 promote responsible development in Alaska and to help diversify and           
 stabilize a fluctuating economy.                                              
                                                                               
 MR. HANNA concluded, "Coastal zone has given us a new voice in                
 federal activities in our state.  Quarrels over state-versus-                 
 federal authority seem to comprise a large portion of our problems            
 in developing our state.  I cannot imagine any responsible                    
 legislator relinquishing any tool available to help maintain our              
 ability to self-regulate our development of our resources."                   
                                                                               
 MR. HANNA stated, "If anything, I feel that the benefits of this              
 program should be expanded to help all residents of our state and             
 strengthen our ability to foster responsible development.  We do              
 have problems in the government, but eliminating coastal zone would           
 indeed be throwing the baby out with the bath water."                         
                                                                               
 Number 0749                                                                   
                                                                               
 LINDA FREED, Community Development Director, Kodiak Island Borough,           
 testified via teleconference.  She said to borough residents, hard-           
 hit by the Exxon Valdez oil spill, the ACMP is the most significant           
 tool to influence state and federal decisions with regards to oil             
 and gas development and transportation.  The borough became                   
 involved with the ACMP in 1979 because of concerns about proposed             
 federal offshore oil and gas lease sales.  As a cooperative state,            
 federal and local program, the ACMP gives the region some local               
 control over activities and decisions of larger government                    
 entities.                                                                     
                                                                               
 MS. FREED said the ACMP also provides a tool to get the attention             
 of oil companies whose activities could negatively impact resources           
 upon which residents depend.                                                  
                                                                               
 MS. FREED said recently the borough was involved with several                 
 contentious appeals relating to the DEC's approval of the Prince              
 William Sound Tanker C-Plan Decision.  Prior to this decision, the            
 borough had never filed an appeal on a project decision.  However,            
 the borough believed this was a major state public policy decision            
 meriting attention from department commissioners and the Alaska               
 Coastal Policy Council.  She commented that the council is the                
 existing mechanism for dealing with "rogue staffers."                         
                                                                               
 Number 0944                                                                   
                                                                               
 MS. FREED said in June 1996, after months of negotiations using the           
 ACMP as a tool, the borough signed an agreement with the DEC and              
 the major crude oil shippers in the state.  The agreement, which              
 established a framework for protecting the borough from future oil            
 spills, was possible because the ACMP gave local residents and the            
 municipality the tools to bring the industry and the state to the             
 table to address their concerns.                                              
                                                                               
 MS. FREED said the ACMP had funded a special project to identify              
 sensitive areas in her region, with the information to become part            
 of a federal-state contingency plan to guide the shipping industry            
 and allow them to develop better individual contingency plans.  The           
 project allowed Ouzinkie residents input into governmental                    
 regulation and the opportunity to better understanding the oil                
 industry.  Without the ACMP, it would not have been possible,                 
 either on a cooperative or financial basis.                                   
                                                                               
 MS. FREED said this was only one area in which the borough had                
 benefited from the ACMP.  She suggested other coastal regions would           
 have stories as well.  She stated that the Kodiak Island Borough              
 opposes HB 28.                                                                
                                                                               
 MS. FREED believes if only the coordination function is retained,             
 the ACMP would cost more in general funds than it does now, since             
 permit coordination in Alaska is basically subsidized by the                  
 federal government.  She noted that the local control aspect of the           
 process is embodied in the substance of the program.                          
                                                                               
 Number 1100                                                                   
                                                                               
 WILLIE GOODWIN, JR., Land Manager, Kikiktagruk Inupiat Corporation,           
 testified via teleconference from Kotzebue, saying he was a Coastal           
 Policy Council member for six years and served as co-chair.  He               
 opposes HB 28.  With the ACMP, state agencies can better monitor              
 development without requiring personnel at the sites.  For example,           
 a resident could comment, or the local government could monitor the           
 permitting process or order permits to protect the local                      
 environment or resources.                                                     
                                                                               
 MR. GOODWIN said the process took years to refine.  It benefits the           
 state and local residents.  Each plan, for each area, was carefully           
 thought out, and the state was very much involved as policies were            
 developed.  Through this process, local residents are able to be              
 heard when a proposed project will affect their lives.                        
                                                                               
 MR. GOODWIN referred to Timber Creek, cited by the sponsor the                
 previous week, and said, "It's unfortunate that the legislator who            
 represents this guide wants to scrap the whole program because a              
 resident from Fairbanks couldn't get his tracking permit in another           
 area."  He said the state made a deal with the federal government             
 to manage Alaska's coast under this program, and a deal is a deal.            
                                                                               
 MR. GOODWIN concluded that although perhaps the program needs                 
 refining in parts of the state, it works for the Northwest Arctic             
 Borough.  With all the federal lands within the borough, he                   
 believes there would be more problems dealing with the federal                
 government than with state agencies should a permit come before               
 them.  Their plan allows development like the Red Dog Mine to                 
 proceed yet still protects sensitive habitat areas.                           
                                                                               
 Number 1284                                                                   
                                                                               
 VICTOR KARMUN, Coastal Management Coordinator, Northwest Arctic               
 Borough, testified via teleconference from Kotzebue, saying he                
 opposes HB 28.  He believes the Red Dog Mine exists because of the            
 program.  He also believes that had the ACMP existed in the late              
 1940s and 1950s, there would be no big cleanup programs or                    
 procedures today.                                                             
                                                                               
 MR. KARMUN said the ACMP gives state and local governments a more             
 equal partnership with the federal government.  Through the DGC, it           
 requires federal agencies to address Alaska coastal concerns, gives           
 small coastal villages a voice in permitting decisions and provides           
 streamlined review of new development projects.  Finally, it                  
 prevents a state or federal agency, or a private entity, from                 
 running roughshod over any locality with the ACMP in place.                   
                                                                               
 Number 1393                                                                   
                                                                               
 CO-CHAIRMAN OGAN asked whether the process allows a small local               
 organization to run roughshod over someone trying to do a                     
 development.                                                                  
                                                                               
 MR. KARMUN replied, "No, sir, not the way it is right now."                   
                                                                               
 Number 1419                                                                   
                                                                               
 CHERI SHAW, Executive Director, Cordova District Fishermen United             
 (CDFU), testified via teleconference, speaking on her own behalf as           
 well as on behalf of the CDFU.  She said the CDFU strongly opposes            
 House Bill 28.  The ACMP is an effective tool for coastal                     
 communities that empowers residents to set local standards.                   
 Unorganized boroughs should retain their right to consider                    
 development that will affect their areas.  The coastal zone                   
 management program provides unique benefits not found in other                
 programs, including one-stop shopping in the permitting process.              
                                                                               
 MS. SHAW said the program was unanimously re-authorized the                   
 previous year by the U.S. House of Representatives and the U.S.               
 Senate.  The federal government supports and subsidizes it.  The              
 state receives $3 million per year to fund it, which would be lost            
 if HB 28 passes.                                                              
                                                                               
 MS. SHAW referred to the ACMP's structure.  She said the federal              
 government mandated new management measures in the re-                        
 authorization.  Although changes might be necessary, eliminating              
 this program is not the way.  She cautioned that if the program is            
 repealed and hindsight proves that to be a mistake, Alaska may                
 never be able to recreate the ACMP in the future.                             
                                                                               
 MS. SHAW said recently, Cordova and the CDFU benefited from the               
 ACMP and the Coastal Policy Council in the debate over Lease Sale             
 79 and review of the Prince William Sound Contingency Plan.  The              
 CDFU found both to be important resources to which to turn.                   
                                                                               
 MS. SHAW said she personally finds it disturbing that a legislator            
 from the Interior would introduce a bill limiting citizens' rights            
 in coastal communities, where he has no constituents.  She said she           
 would fax her testimony.                                                      
                                                                               
 Number 1547                                                                   
                                                                               
 The Kenai teleconference operator advised that she would fax                  
 testimony from Linda Wright, who had to leave.                                
                                                                               
 Number 1582                                                                   
                                                                               
 DENNIS RANDA, President, Alaska Council, Trout Unlimited, testified           
 via teleconference from Kenai in opposition to HB 28.  He said                
 Trout Unlimited represents 600 Alaskans and 100,000 people                    
 nationwide.  A Kenai Peninsula resident since 1974, Mr. Randa                 
 participated in the original coastal zone policy drafting by the              
 Kenai Peninsula Borough in 1988.  He believes it is effective,                
 especially in involving local people.  Under HB 28, Trout                     
 Unlimited, a grassroots organization, would be severely hampered in           
 its efforts to ensure its concerns are met by developmental actions           
 along our coastal plain.                                                      
                                                                               
 MR. RANDA said when he first looked at this bill, he asked what was           
 broken.  After reading it, he asked how the bill fixed it.  He does           
 not believe HB 28 addresses either question.  He said the program             
 gives people "something to deal with in their coastal issues" and             
 provides developers a known route through the process.                        
                                                                               
 Number 1794                                                                   
                                                                               
 DALE BONDURANT testified via teleconference from Kenai in                     
 opposition to HB 28.  He believes the sponsor's intention is to               
 create a process with less responsibility and less cost for                   
 resource development.  He cited other bills that similarly propose            
 fast-track extraction of Alaska's resources, with little                      
 responsibility regarding resource conservation or environmental               
 protection.                                                                   
                                                                               
 Number 1976                                                                   
                                                                               
 DOUGLAS MERTZ, Prince William Sound Regional Citizens Advisory                
 Council (RCAC), came forward to testify.   An independent nonprofit           
 corporation, the RCAC promotes environmentally safe operation of              
 the Alyeska Terminal and associated tankers.  It has 18 member                
 organizations, including municipalities and other interest groups             
 in the area impacted by the Exxon Valdez oil spill.                           
                                                                               
 MR. MERTZ said the RCAC opposes HB 28 because eliminating the ACMP            
 would shut down perhaps the most important program by which                   
 Alaskans participate in development decisions that affect them.  In           
 short, HB 28 would eliminate the local role and leave decisions to            
 state bureaucrats in Juneau and Anchorage.                                    
                                                                               
 MR. MERTZ indicated government should protect people's right to               
 have a voice in decisions affecting them.  The RCAC is not anti-oil           
 or anti-development.  It wants natural resource development without           
 sacrificing other valuable resources.  Mr. Mertz noted that the               
 ACMP provides a system for mediating conflicting interests short of           
 litigation.                                                                   
                                                                               
 MR. MERTZ said the ACMP does need improvement.  However, he                   
 believes the system could work better while still protecting the              
 interests of local residents.  In addition to the coordination                
 function, the local role in the decision process is a second "baby"           
 to avoid throwing out with the bath water.                                    
                                                                               
 Number 2239                                                                   
                                                                               
 CO-CHAIRMAN OGAN asked that Mr. Mertz submit specific suggestions             
 on improving the ACMP in writing.                                             
                                                                               
 MR. MERTZ agreed to get back to the committee.                                
                                                                               
 Number 2267                                                                   
                                                                               
 GRETCHEN KEISER, Planner, Community Development Department, City              
 and Borough of Juneau (CBJ), came forward to testify.  Aware of the           
 ACMP since the 1970s, she had also previously worked at the DGC.              
 She discussed points made in a resolution, Serial No. 1852,                   
 recently passed by the CBJ assembly in opposition to HB 28.                   
                                                                               
 MS. KEISER offered a document on the CBJ's coastal program and said           
 there are areas not necessarily attended to by the state.  For                
 example, in Juneau, policies address landslide and avalanche areas.           
                                                                               
 TAPE 97-19, SIDE A                                                            
 Number 0006                                                                   
                                                                               
 MS. KEISER said another example is habitat policies.  For statewide           
 coastal districts, this cuts both ways.  Juneau has a policy                  
 regarding 50-foot setbacks for development along designated                   
 "important anadromous streams."  On the other hand, language in               
 habitat policies talks about the ability to overcome some                     
 restrictions in habitat policies if there is a significant public             
 need.                                                                         
                                                                               
 MS. KEISER said it is the local community that brings forth the               
 issue of public need.  Although much of coastal management is about           
 environmental protection, this is where a district can step forward           
 with a community's development needs.                                         
                                                                               
 MS. KEISER said the ACMP provides a formal role for local                     
 government, giving it a more equitable share of government                    
 authority when dealing with the state.  "It's very different than             
 Title 38's best interest findings, where districts, local                     
 governments, can comment in the coastal management program," she              
 noted.  The DGC acts as a mediator agency, allowing everyone a say.           
                                                                               
 MS. KEISER said the ACMP streamlines the review and approval of               
 coastal development projects.  For her, a local planner, the DGC              
 provides a single point of contact in the state bureaucracy.                  
 Removing that would create an additional workload on local                    
 governments.                                                                  
                                                                               
 Number 0319                                                                   
                                                                               
 MS. KEISER noted that federal pass-through monies are given to the            
 CBJ, which currently receives $40,000 per year to fund one-half of            
 a salary for a person who works on coastal development project                
 reviews and wetlands permitting.  Roughly $150,000 had been                   
 provided over the last five years for special projects.  For                  
 example, the CBJ received $25,000 to develop a map atlas for                  
 wetlands to facilitate permitting, plus $3,000 for information                
 sheets on permitting.                                                         
                                                                               
 MS. KEISER said the CBJ resolution opposes HB 28.  The assembly               
 urges that if the bill goes forward, it go into subcommittee for              
 further analysis.  She suggested focusing on permit coordination              
 and improving that process.  She further suggested the legislature            
 may want to participate more formally in the Administration's                 
 streamlining effort.                                                          
                                                                               
 Number 0469                                                                   
                                                                               
 REPRESENTATIVE THERRIAULT asked Ms. Keiser to look at AS 46.35 to             
 determine whether there is a "gap in that other alternative                   
 coordination function" from her perspective.  He asked whether the            
 CBJ could not control issues such as avalanche zones through a                
 master plan using the planning and zoning process.                            
                                                                               
 MS. KEISER believes the key point of coastal management is that it            
 allows Juneau to interject those actions that they would take                 
 locally into the state permitting process.  Without any formal role           
 for local government, there could be a "disconnect" in the                    
 permitting process.  The state could say no.  The local government            
 could say yes.  And the applicant would be out of luck.                       
                                                                               
 Number 0644                                                                   
                                                                               
 REPRESENTATIVE THERRIAULT referred again to AS 46.35.  He said if             
 the state had land within the CBJ and was proposing to permit                 
 something on that land, it had to fit within the overall CBJ                  
 zoning.                                                                       
                                                                               
 MS. KEISER said certainly where the state is the applicant, it                
 would talk to the CBJ.  However, she believes most projects going             
 through consistency review belong to private individuals.  Those              
 individuals should get a simultaneous, coordinated message from               
 state and local governments, which occurs under the ACMP.                     
                                                                               
 Number 0719                                                                   
                                                                               
 REPRESENTATIVE THERRIAULT said if he wanted to lease state land for           
 a project requiring a state permit, for example, it would be                  
 precluded if it did not fit within the CBJ zoning.  The borough has           
 the right, separate from the ACMP, to control facilities and                  
 functions on land within its boundaries through planning and                  
 zoning.                                                                       
                                                                               
 MS. KEISER agreed but said it is incumbent on levels of government            
 to work together to facilitate a timely review, which happens with            
 the ACMP's coordination function.  From her perspective, it is not            
 good government to do otherwise.                                              
                                                                               
 REPRESENTATIVE THERRIAULT said he appreciated that comment and her            
 suggestion to look at ensuring that the coordination continues.               
                                                                               
 Number 0943                                                                   
                                                                               
 WELLS WILLIAMS, Planning Director, City and Borough of Sitka (CBS),           
 testified via teleconference in opposition to HB 28.  He said the             
 coastal management process is valuable to the community and the               
 state.  He expressed appreciation for the sponsor's motives but               
 believes HB 28 does not achieve the objectives.                               
                                                                               
 MR. WILLIAMS said the CBS sees coastal management through three               
 distinctly different eyes.  First, it is a way to involve citizens.           
 Second, the CBS is a regulator, and the ACMP provides an                      
 opportunity to influence decisions.  He said the CBS has a                    
 structure different from Juneau's.  About the only way they can               
 influence a project on state land in outlying areas, for example,             
 is through the coastal zone management process, since that vehicle            
 is not incorporated into the CBS zoning guides.                               
                                                                               
 MR. WILLIAMS said third, the CBS builds projects along the                    
 waterfront and is, in many ways, an applicant like anyone else                
 going through the process.  The DGC has helped in recent projects,            
 providing ways to resolve disputes and allowing projects to go                
 forward.                                                                      
                                                                               
 MR. WILLIAMS concluded that the ACMP is important as a planning               
 tool, in addition to its importance, often cited, as a coordination           
 tool.                                                                         
                                                                               
 Number 1150                                                                   
                                                                               
 CLAIRE JOHNSON, Board Member, Alaska Wilderness Recreation and                
 Tourism Association (AWRTA), testified via teleconference from                
 Sitka, speaking on behalf of the AWRTA and herself.  A nonprofit              
 organization with over 300 statewide members, the AWRTA's goals               
 include advocating conservation and responsible use of resources;             
 becoming an integral part of the economic and resource use                    
 decision-making process; promoting professionalism of natural                 
 resource-dependent tour and lodge operators, travelers and                    
 recreational users; promoting guidelines for low-impact and                   
 sustainable recreation and tourism; and supporting (indisc.)                  
 interested in marketing, permitting and legislative issues, as                
 consistent with its other goals.                                              
                                                                               
 MS. JOHNSON said these goals closely resemble those of the Sitka              
 Coastal Management District Program.  The ACMP is an integral                 
 process the AWRTA supports.  There is no specific process for                 
 tourism planning and looking out for the long-term health of the              
 industry and the resources on which it depends.  Coastal resources            
 are critically important to tourism and recreation in Southeast               
 Alaska.  The ACMP is the one process where local communities can              
 bring about their concerns and have input about the coastal zone.             
                                                                               
 MS. JOHNSON said the ACMP is a way to bring the interests of                  
 different industries and communities together to try to balance and           
 resolve differences.  If anything, these types of processes need to           
 be strengthened, not gutted.  Ms. Johnson said the AWRTA urges that           
 HB 28 be withdrawn.                                                           
                                                                               
 Number 1279                                                                   
                                                                               
 MS. JOHNSON spoke on her own behalf, saying Alaska is being                   
 inundated by industries and people with money, who want more money            
 at the expense of Alaskans and wilderness itself.  She discussed a            
 floating lodge resort proposed in the local borough, which involved           
 at least eight state and federal agencies.  In this case, the U.S.            
 Fish and Wildlife comments on the project directly conflicted with            
 the ADF&G findings, and the federal agency had no knowledge of the            
 state's comments.  She said this is one of several instances where            
 she ran across conflicting decisions by different agencies,                   
 resulting in her making repeated telephone calls to resolve them.             
                                                                               
 MS. JOHNSON said she understands Mental Health Trust lands are                
 exempt from the ACMP, but she does not know why.  She concluded by            
 stating her strong opposition to HB 28.                                       
                                                                               
 Number 1475                                                                   
                                                                               
 JIM GLASPELL, Environmental Consultant, testified via                         
 teleconference.  Since 1981, he has been involved with 15 local               
 coastal programs, helping them prepare, revise and implement plans.           
 Recognizing the ACMP's "growing pains," he hopes the current                  
 program assessment will lead to procedural improvements and better-           
 written policy standards, which are much needed.                              
                                                                               
 MR. GLASPELL believes state agency permit coordination procedures             
 do not provide the same opportunities as the ACMP process for local           
 notification, review and permit input.  Agency coordination                   
 requirements vary, differ in time lines, and are not always closely           
 followed.  Local citizens who do not read the legal section of the            
 newspaper daily would have difficulty even finding out what permits           
 or activities were being considered in the coastal zone.                      
                                                                               
 MR. GLASPELL does not believe federal and state laws and permits              
 duplicate or negate the need for local coastal zone plans and                 
 development standards.  Those local plans and standards supplement            
 state and federal regulations in the permit process.  They                    
 specifically reflect local issues.                                            
                                                                               
 MR. GLASPELL cited examples.  Outside the ACMP process, no                    
 statewide standards address coastal habitat protection.  Nor do               
 they recognize variable functions and values of wetlands or wetland           
 mitigation opportunity.  No standards address cumulative impact nor           
 protect subsistence resources and uses.  Nothing statewide looks at           
 petroleum storage facilities that hold less than 400,000 gallons of           
 fuel and their proximity to streams and water bodies.  Mr. Glaspell           
 said these are gaps that the ACMP performance standards, included             
 in coastal plans, help to fill.                                               
                                                                               
 MR. GLASPELL said one should not assume current state and federal             
 statutes and regulations will remain in place.  He believes the               
 coastal zone management program is not redundant.  Eliminating the            
 ACMP would significantly reduce local input, resulting in loss of             
 important coastal development performance standards.  He urged                
 rejection of HB 28.  He further urged reinforcement of state                  
 support for local oversight of coastal development activities.                
                                                                               
 Number 1705                                                                   
                                                                               
 CHUCK DEGNAN, Program Director, Bering Straits Coastal Resource               
 Service Area Board, testified via teleconference from Unalakleet.             
 He said the board opposes HB 28.  Coastal management is a joint               
 effort of local, state and federal governments and the private                
 sector.  For rural Alaskans, it is an important opportunity for               
 meaningful participation in federal and state decisions affecting             
 their lives.  The ACMP process works very well, even when there are           
 disagreements among participants, and provides an appeal procedure            
 when a party disagrees with a ruling.                                         
                                                                               
 MR. DEGNAN noted that the board opposed the Timber Creek trapping             
 cabin permit.  However, the DNR had issued the permit and the                 
 matter was currently before the courts.                                       
                                                                               
 Number 1760                                                                   
                                                                               
 JOHN DUNHAM, Permitting and Zoning Manager, North Slope Borough,            
 testified via teleconference from Barrow.  The borough opposes HB
 28 because the ACMP provides a meaningful tool to protect the                 
 quality of life on the North Slope, which has the most biologically           
 sensitive coastal areas in any state.  "I believe this is the                 
 reason for the federal legislation," he stated.                               
                                                                               
 MR. DUNHAM said the ACMP is the only program providing local                  
 government an equal footing in state and federal permitting                   
 decisions.  Loss of the ACMP would eliminate local government's               
 ability to effectively comment on development in federal waters.              
 He noted that local and state governments' planning and zoning                
 authority extends only three miles offshore.  Loss of authority to            
 comment on development projects in federal waters would have a                
 significant impact on the quality of life for borough residents, as           
 well as for the people of Bristol Bay, Kodiak Island, the Kenai               
 Peninsula and communities along the Bering Sea.                               
                                                                               
 MR. DUNHAM said HB 28 reduces local government to an advising body            
 to state and federal permitting agencies, if comments even are                
 solicited from local governments.  He believes if HB 28 became law,           
 developers in Alaska's coastal areas would be challenged more                 
 frequently in court regarding development decisions.                          
                                                                               
 MR. DUNHAM said he understands there is a provision for                       
 coordination in the bill that retains what is perceived to be the             
 good aspects of the current program.  He asked whether coordination           
 could be required of a local home rule government.                            
                                                                               
 Number 1860                                                                   
                                                                               
 CO-CHAIRMAN OGAN asked if anyone else wished to testify.  He                  
 announced HB 28 would be heard again February 25 at a listen-only             
 teleconference.  He intended to put it into subcommittee at that              
 time, with Representative Green as chairman.                                  
                                                                               
 REPRESENTATIVE THERRIAULT noted that AS 46.35 specifies that                  
 "department" means the Department of Environmental Conservation               
 (DEC) and that "commissioner" refers to the DEC's commissioner.  He           
 did not want to convey that this set of statutes is the ideal                 
 framework for coordination or that it should be done by the DEC.              
 He suggested there might be modification to this framework.                   
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 Number 1956                                                                   
                                                                               
 CO-CHAIRMAN OGAN adjourned the House Resources Standing Committee             
 meeting at 3:17 p.m.                                                          
                                                                               

Document Name Date/Time Subjects