Legislature(2001 - 2002)

04/26/2002 01:53 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         April 26, 2002                                                                                         
                           1:53 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Beverly Masek, Co-Chair                                                                                          
Representative Drew Scalzi, Co-Chair                                                                                            
Representative Joe Green                                                                                                        
Representative Mike Chenault                                                                                                    
Representative Gary Stevens                                                                                                     
Representative Mary Kapsner                                                                                                     
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Hugh Fate, Vice Chair                                                                                            
Representative Lesil McGuire                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 140(FIN)                                                                                                 
"An Act relating to regulation and licensing of certain water-                                                                  
power development projects; and providing for an effective                                                                      
date."                                                                                                                          
                                                                                                                                
     - MOVED CSSB 140(FIN) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 356 am                                                                                                          
"An  Act  relating   to  the  authority  of   the  Department  of                                                               
Environmental  Conservation  to   issue  general  and  individual                                                               
permits  for  waste  disposal; and  providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                              
BILL: SB 140                                                                                                                  
SHORT TITLE:SMALL WATER-POWER DEVELOPMENT PROJECTS                                                                              
SPONSOR(S): SENATOR(S) TORGERSON                                                                                                
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
03/13/01     0641       (S)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
03/13/01     0641       (S)        RES, FIN                                                                                     
03/21/01                (S)        RES AT 3:30 PM BUTROVICH 205                                                                 
03/21/01                (S)        Heard & Held                                                                                 
03/21/01                (S)        MINUTE(RES)                                                                                  
04/06/01                (S)        RES AT 3:30 PM BUTROVICH 205                                                                 
04/06/01                (S)        -- Meeting Canceled --                                                                       
02/08/02                (S)        RES AT 3:30 PM BUTROVICH 205                                                                 
02/08/02                (S)        Moved Out of Committee                                                                       
02/08/02                (S)        MINUTE(RES)                                                                                  
02/11/02     2153       (S)        RES RPT 4DP 2NR                                                                              
02/11/02     2153       (S)        DP: TORGERSON, STEVENS,                                                                      
                                   HALFORD,                                                                                     
02/11/02     2153       (S)        WILKEN; NR: ELTON, LINCOLN                                                                   
02/21/02                (S)        FIN AT 9:30 AM SENATE FINANCE                                                                
                                   532                                                                                          
02/21/02                (S)        Heard & Held                                                                                 
02/21/02                (S)        MINUTE(FIN)                                                                                  
03/01/02     2336       (S)        FN1: (CED)                                                                                   
03/01/02     2336       (S)        FN2: (DNR)                                                                                   
03/01/02     2336       (S)        FN3: (DFG)                                                                                   
04/02/02                (S)        FIN AT 4:00 PM SENATE FINANCE                                                                
                                   532                                                                                          
04/02/02                (S)        Heard & Held                                                                                 
04/03/02                (S)        FIN AT 9:00 AM SENATE FINANCE                                                                
                                   532                                                                                          
04/03/02                (S)        Heard & Held -- Recessed to                                                                  
                                   4:00 pm --                                                                                   
04/03/02                (S)        MINUTE(FIN)                                                                                  
04/04/02     2630       (S)        FIN RPT CS 1DP 4NR TECH TITLE                                                                
                                   CH                                                                                           
04/04/02     2630       (S)        NR: KELLY, HOFFMAN, WILKEN,                                                                  
                                   OLSON;                                                                                       
04/04/02     2630       (S)        DP: GREEN                                                                                    
04/04/02     2630       (S)        FN1: (CED)                                                                                   
04/04/02     2630       (S)        FN2: (DNR)                                                                                   
04/04/02     2630       (S)        FN3: (DFG)                                                                                   
04/04/02                (S)        FIN AT 9:00 AM SENATE FINANCE                                                                
                                   532                                                                                          
04/04/02                (S)        Moved CS(FIN) Out of                                                                         
                                   Committee                                                                                    
04/04/02                (S)        MINUTE(FIN)                                                                                  
04/08/02     2658       (S)        RULES TO CALENDAR 1OR 4/8/02                                                                 
04/08/02     2659       (S)        READ THE SECOND TIME                                                                         
04/08/02     2659       (S)        FIN CS ADOPTED UNAN CONSENT                                                                  
04/08/02     2659       (S)        COSPONSOR(S): LEMAN                                                                          
04/08/02     2660       (S)        ADVANCED TO 3RD READING FLD                                                                  
                                   Y14 N5 E1                                                                                    
04/08/02     2660       (S)        ADVANCED TO THIRD READING 4/9                                                                
                                   CALENDAR                                                                                     
04/08/02                (S)        RLS AT 10:30 AM FAHRENKAMP                                                                   
                                   203                                                                                          
04/08/02                (S)        MINUTE(RLS)                                                                                  
04/09/02     2687       (S)        READ THE THIRD TIME CSSB
                                   140(FIN)                                                                                     
04/09/02     2687       (S)        PASSED Y17 N2 E1                                                                             
04/09/02     2688       (S)        EFFECTIVE DATE(S) SAME AS                                                                    
                                   PASSAGE                                                                                      
04/09/02     2688       (S)        ELLIS NOTICE OF                                                                              
                                   RECONSIDERATION                                                                              
04/10/02     2716       (S)        RECON TAKEN UP - IN THIRD                                                                    
                                   READING                                                                                      
04/10/02     2717       (S)        PASSED ON RECONSIDERATION Y15                                                                
                                   N3 E1 A1                                                                                     
04/10/02     2717       (S)        EFFECTIVE DATE(S) SAME AS                                                                    
                                   PASSAGE                                                                                      
04/10/02     2718       (S)        TRANSMITTED TO (H)                                                                           
04/10/02     2718       (S)        VERSION: CSSB 140(FIN)                                                                       
04/11/02     2877       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/11/02     2877       (H)        RES, FIN                                                                                     
04/26/02                (H)        RES AT 1:30 PM CAPITOL 124                                                                   
                                                                                                                                
BILL: SB 356                                                                                                                  
SHORT TITLE:GENERAL PERMIT FOR WATER/WASTE DISPOSAL                                                                             
SPONSOR(S): STATE AFFAIRS                                                                                                       
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
03/27/02     2542       (S)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
03/27/02     2542       (S)        RES                                                                                          
04/03/02                (S)        RES AT 3:30 PM BUTROVICH 205                                                                 
04/03/02                (S)        Moved Out of Committee                                                                       
04/03/02                (S)        MINUTE(RES)                                                                                  
04/03/02                (S)        MINUTE(RES)                                                                                  
04/04/02     2631       (S)        RES RPT 4DP                                                                                  
04/04/02     2631       (S)        DP: TORGERSON, HALFORD,                                                                      
                                   STEVENS, WILKEN                                                                              
04/04/02     2631       (S)        FN1: ZERO(DEC)                                                                               
04/08/02                (S)        RLS AT 10:30 AM FAHRENKAMP                                                                   
                                   203                                                                                          
04/08/02                (S)        MINUTE(RLS)                                                                                  
04/09/02     2683       (S)        RULES TO CALENDAR 4/9/02                                                                     
04/09/02     2686       (S)        READ THE SECOND TIME                                                                         
04/09/02     2686       (S)        ADVANCED TO THIRD READING                                                                    
                                   UNAN CONSENT                                                                                 
04/09/02     2686       (S)        READ THE THIRD TIME SB 356                                                                   
04/09/02     2687       (S)        PASSED Y17 N2 E1                                                                             
04/09/02     2687       (S)        EFFECTIVE DATE(S) SAME AS                                                                    
                                   PASSAGE                                                                                      
04/09/02     2687       (S)        ELTON NOTICE OF                                                                              
                                   RECONSIDERATION                                                                              
04/10/02     2715       (S)        RECON TAKEN UP - IN THIRD                                                                    
                                   READING                                                                                      
04/10/02     2715       (S)        RETURN TO SECOND FOR AM 1                                                                    
                                   UNAN CONSENT                                                                                 
04/10/02     2715       (S)        AM NO 1 ADOPTED UNAN CONSENT                                                                 
04/10/02     2716       (S)        AUTOMATICALLY IN THIRD                                                                       
                                   READING ON RECON                                                                             
04/10/02     2716       (S)        PASSED ON RECONSIDERATION Y14                                                                
                                   N3 E1 A2                                                                                     
04/10/02     2716       (S)        EFFECTIVE DATE(S) SAME AS                                                                    
                                   PASSAGE                                                                                      
04/10/02     2718       (S)        TRANSMITTED TO (H)                                                                           
04/10/02     2718       (S)        VERSION: SB 356 AM                                                                           
04/11/02     2878       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/11/02     2878       (H)        RES                                                                                          
04/26/02                (H)        RES AT 1:30 PM CAPITOL 124                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
DARWIN PETERSON, Staff                                                                                                          
to Senator John Torgerson                                                                                                       
Alaska State Legislature                                                                                                        
Capitol Building, Room 427                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented SB 140 on behalf of Senator John                                                                 
Torgerson, sponsor.                                                                                                             
                                                                                                                                
SALLY SADDLER, Legislative Liaison                                                                                              
Division of Community and Business Development                                                                                  
Department of Community & Economic Development                                                                                  
P.O. Box 110801                                                                                                                 
Juneau, Alaska  99811-0801                                                                                                      
POSITION STATEMENT:  Provided testimony and answered questions                                                                  
relating to SB 140.                                                                                                             
                                                                                                                                
SUSAN SCHRADER                                                                                                                  
Alaska Conservation Voters (ACV)                                                                                                
P.O. Box 22151                                                                                                                  
Juneau, Alaska  99802                                                                                                           
POSITION STATEMENT:  Expressed ACV's  concerns relating to SB 140                                                               
and SB 356.                                                                                                                     
                                                                                                                                
JAN KONIGSBERG                                                                                                                  
Trout Unlimited                                                                                                                 
1399 West 34th, Suite 205                                                                                                       
Anchorage, Alaska  99503                                                                                                        
POSITION STATEMENT:   Provided testimony on SB 140;  on behalf of                                                               
the Alaska Public Waters Coalition  he suggested that the current                                                               
federal  program  works  but acknowledged  that  a  few  problems                                                               
exist;  urged the  committee to  try to  fix the  current federal                                                               
program rather than start a new state program.                                                                                  
                                                                                                                                
WILL ABBOTT, Commissioner                                                                                                       
Regulatory Commission of Alaska (RCA)                                                                                           
Department of Community & Economic Development                                                                                  
1016 West 6th Avenue                                                                                                            
Anchorage, Alaska  99501                                                                                                        
POSITION STATEMENT:   Provided  testimony and  answered questions                                                               
relating to SB 140.                                                                                                             
                                                                                                                                
CHIP DENNERLEIN, Director                                                                                                       
Division of Habitat and Restoration                                                                                             
Alaska Department of Fish & Game                                                                                                
333 Raspberry Road                                                                                                              
Anchorage, Alaska  99518-1579                                                                                                   
POSITION STATEMENT:   Testified on SB 140;  expressed support for                                                               
the concept of  the bill but also expressed  related concerns and                                                               
he  offered  strong support  for  the  adoption of  the  proposed                                                               
amendment seeking direction from the legislature.                                                                               
                                                                                                                                
JOE BALASH, Staff                                                                                                               
to Senator Gene Therriault                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room 121                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:   Presented  SB 356 on  behalf of  the Senate                                                               
State Affairs  Standing Committee,  sponsor, which   Senator Gene                                                               
Therriault chairs.                                                                                                              
                                                                                                                                
COLONEL FRED LEHMAN, U.S. Army Alaska Garrison Commander                                                                        
(Address not provided)                                                                                                          
Fort Richardson, Alaska  99488                                                                                                  
POSITION STATEMENT:  Testified on  SB 356; urged the committee to                                                               
include  an  amendment  that  would  exempt  training  activities                                                               
involving munitions  conducted by the U.S.  Department of Defense                                                               
or a U.S. military agency.                                                                                                      
                                                                                                                                
JOHN McDONAGH, Environmental Counsel                                                                                            
U.S. Army Alaska                                                                                                                
600 Richardson Drive, Number 5700                                                                                               
Fort Richardson, Alaska  99505-6700                                                                                             
POSITION STATEMENT:  Testified on  SB 356; urged the committee to                                                               
include  an  amendment  that  would  exempt  training  activities                                                               
involving munitions  conducted by the U.S.  Department of Defense                                                               
or a U.S. military agency.                                                                                                      
                                                                                                                                
TOM CHAPPLE, Director                                                                                                           
Division of Air and Water Quality                                                                                               
Department of Environmental Conservation                                                                                        
555 Cordova Street.                                                                                                             
Anchorage, Alaska  99501                                                                                                        
POSITION STATEMENT:   Provided  testimony and  answered questions                                                               
relating to SB 356.                                                                                                             
                                                                                                                                
MATT GILL, Staff                                                                                                                
to Representative Eldon Mulder                                                                                                  
Alaska State Legislature                                                                                                        
Capitol Building                                                                                                                
Juneau, Alaska  99801                                                                                                           
POSITION  STATEMENT:     Testified  on   SB  356  on   behalf  of                                                               
Representative  Eldon Mulder  in  support of  any amendment  that                                                               
would clarify the  U.S. Army's position regarding the  use of the                                                               
Eagle River Flats artillery training range.                                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-39, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIR  BEVERLY  MASEK  called  the  House  Resources  Standing                                                               
Committee meeting to  order at 1:53 p.m.   Representatives Masek,                                                               
Scalzi, Green, Chenault, and Stevens  were present at the call to                                                               
order.    Representatives Kapsner  and  Kerttula  arrived as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
SB 140-SMALL WATER-POWER DEVELOPMENT PROJECTS                                                                                 
                                                                                                                                
CO-CHAIR MASEK announced  that the first order  of business would                                                               
be  CS  FOR  SENATE  BILL  NO.  140(FIN),  "An  Act  relating  to                                                               
regulation  and  licensing  of  certain  water-power  development                                                               
projects; and providing for an effective date."                                                                                 
                                                                                                                                
Number 0075                                                                                                                     
                                                                                                                                
DARWIN PETERSON,  Staff to Senator  John Torgerson,  presented SB
140  on  behalf of  Senator  Torgerson,  sponsor.   Mr.  Peterson                                                               
explained that U.S. Senator Frank  Murkowski had sponsored a bill                                                               
amending the Federal Power Act  to provide state jurisdiction for                                                               
Alaska  over small  hydroelectric projects.   Consequently,  this                                                               
legislation transferred  licensing and regulatory  authority over                                                               
hydroelectric projects of five thousand  kilowatts or less to the                                                               
State of Alaska.                                                                                                                
                                                                                                                                
MR. PETERSON  suggested that  bringing this  regulatory authority                                                               
to the  state will reduce  the great time and  expense associated                                                               
with  federal  licensing  and  the   regulation  of  small  hydro                                                               
projects in  Alaska.  He noted  that the time and  money required                                                               
for  federal licensing  is virtually  prohibitive for  some small                                                               
utility  and  personal  projects.    Before  Alaska  can  acquire                                                               
jurisdiction  from  the   Federal  Energy  Regulatory  Commission                                                               
(FERC), the legislature  must approve this bill  and the governor                                                               
must submit a program  satisfying FERC's regulatory requirements.                                                               
As  SB 140  is currently  drafted, the  Regulatory Commission  of                                                               
Alaska  (RCA) would  be the  regulatory agency  responsible.   He                                                               
said all of the  current environmental protections required under                                                               
federal law  will still  apply, and cannot  be preempted  by this                                                               
legislation.                                                                                                                    
                                                                                                                                
Number 0228                                                                                                                     
                                                                                                                                
CO-CHAIR SCALZI noted  that the Alaska Department of  Fish & Game                                                               
(ADF&G) had expressed concerns about  the scope of review and the                                                               
time allotment,  and he  said ADF&G  suggested that  there hadn't                                                               
been  adequate time  to  address  issues that  may  occur in  the                                                               
approximately six  hundred different sites throughout  the state.                                                               
He asked Mr. Peterson if there  had been discussion with ADF&G on                                                               
remedying those concerns.                                                                                                       
                                                                                                                                
MR.  PETERSON  in  response,  noted  that  Senator  Torgerson  is                                                               
familiar  with ADF&G's  concerns.   He offered  his understanding                                                               
that  the program  will go  forth by  enacting this  legislation;                                                               
subsequently, the RCA  would establish a program  very similar to                                                               
FERC's  current program  and would  work with  FERC to  develop a                                                               
much  better  understanding  of how  this  program  is  currently                                                               
regulated.  Mr.  Peterson suggested that the  [new program] can't                                                               
be much different  from FERC's current program or  FERC would not                                                               
approve  of it,  and  that FERC  has ultimate  veto  power as  to                                                               
whether  the  State of  Alaska  acquires  jurisdiction over  this                                                               
program.   He said the  unknown variables could not  be addressed                                                               
in  this  legislation,  but  rather would  be  addressed  by  the                                                               
administration when developing the new program.                                                                                 
                                                                                                                                
Number 0391                                                                                                                     
                                                                                                                                
REPRESENTATIVE STEVENS  referred to the sponsor  statement and he                                                               
asked for clarification about  hydroelectric projects [located on                                                               
Indian  reservations,  conservation  units  of  [Alaska  National                                                               
Interest Lands  Conservation Act (ANILCA)], or  rivers designated                                                               
for  the  Wild  and  Scenic  Rivers System]  that  would  not  be                                                               
eligible for state jurisdiction.                                                                                                
                                                                                                                                
MR. PETERSON explained that the  language was taken directly from                                                               
federal  legislation  and that  the  only  Indian reservation  in                                                               
Alaska   is  Metlakatla,   which  the   state  wouldn't   acquire                                                               
jurisdiction over.   Mr.  Peterson said he  didn't know  how many                                                               
Wild and  Scenic Rivers there are  in Alaska, but that  any small                                                               
hydro projects on those rivers would not be applicable.                                                                         
                                                                                                                                
Number 0500                                                                                                                     
                                                                                                                                
CO-CHAIR SCALZI  moved to  adopt CSSB 140(FIN).   There  being no                                                               
objection, it was so ordered.                                                                                                   
                                                                                                                                
Number 0510                                                                                                                     
                                                                                                                                
CO-CHAIR   SCALZI  turned   attention  to   a  proposed   written                                                               
amendment, which read [original punctuation provided]:                                                                          
                                                                                                                                
     The  Regulatory Commission  of Alaska,  in colsultation                                                                    
     [sic]  with the  Commissioners of  DNR, DCED  and DF&G,                                                                    
     will report  to the  legislature by February  15th 2003                                                                    
     with  their assessment  of how  the licensing  of small                                                                    
     hydro  projects  by  the  state   of  Alaska  would  be                                                                    
     accomplished.   This report will include  the impact on                                                                    
     the   operating   budget,  funding   mechanism,   staff                                                                    
     requirements,  potential  statutory changes,  timelines                                                                    
     and  public  participation for  developing  regulations                                                                    
     and   any  other   items   deemed   important  by   the                                                                    
     administration.                                                                                                            
                                                                                                                                
CO-CHAIR   SCALZI  said   he  thought   the  proposed   amendment                                                               
essentially  asks for  direction from  the legislature  and won't                                                               
have any effect  on the bill.  He asked  if Senator Torgerson had                                                               
any problem with the proposed amendment.                                                                                        
                                                                                                                                
MR. PETERSON,  in response, said Senator  Torgerson doesn't think                                                               
the proposed  amendment is necessary  because this bill  would go                                                               
into   effect  January   1,   2003.     He   suggested  the   new                                                               
administration   should  be   able  to   coordinate  with   those                                                               
departments and  work together so  the RCA can develop  a program                                                               
that closely  resembles FERC's program  and satisfies all  of the                                                               
agency's  concerns.    Mr.  Peterson said  it  is  the  sponsors'                                                               
opinion that  this [amendment]  would complicate  the issue.   He                                                               
explained that  the intent of  the bill  is to take  the enabling                                                               
federal  legislation and  authorize the  administration to  begin                                                               
the process of discovering how the  program will work and to work                                                               
with FERC  to establish a program.   Mr. Peterson noted  that the                                                               
proposed amendment may have an unnecessary fiscal impact.                                                                       
                                                                                                                                
Number 0780                                                                                                                     
                                                                                                                                
SALLY  SADDLER, Legislative  Liaison, Division  of Community  and                                                               
Business   Development,  Department   of  Community   &  Economic                                                               
Development, testified.   She explained  that when this  bill was                                                               
introduced, the administration convened  an interagency team that                                                               
consisted  of  DNR,  ADF&G, [Alaska  Coastal  Management  Program                                                               
(ACMP)], RCA, and DCED to look  over the bill to try to determine                                                               
what the  full effects and  impacts would be.   She said  some of                                                               
those common points that had  emerged from the interagency team's                                                               
review of the  bill are that the RCA is  an appropriate agency to                                                               
assume  these duties,  and while  it represents  an expansion  of                                                               
what the RCA  is currently doing, it is believed  that the fiscal                                                               
notes will reflect those additional  duties; that the development                                                               
of  small hydro  projects  can support  economic development  and                                                               
improve the availability and cost  of hydropower in rural Alaska;                                                               
and  that a  state program  may have  advantages by  allowing the                                                               
focus of the process to be  on those issues that are pertinent to                                                               
Alaska.                                                                                                                         
                                                                                                                                
MS.  SADDLER explained  that when  this  federal legislation  was                                                               
pending  in  Washington,  D.C.,  then-Governor  Knowles  wrote  a                                                               
letter  that   supported  giving  Alaska  jurisdiction   for  the                                                               
takeover  of those  "FERC-like" responsibilities.   She  said the                                                               
governor also recognized  that this is a  complex undertaking and                                                               
the [importance]  of a state  program that results in  the proper                                                               
protection of  fish, wildlife,  and the  environment at  least as                                                               
well  as, or  as  rigorously as,  FERC currently  does  it.   Ms.                                                               
Saddler  said the  governor also  acknowledged the  importance of                                                               
establishing  an appropriate  funding mechanism  for the  process                                                               
that could either  be a direct appropriation or based  on a user-                                                               
fee  system. Currently,  she  said, the  RCA  operates under  the                                                               
regulatory cost-charge,  which is  a recovery system  that passes                                                               
those fees on to different  users.  She offered her understanding                                                               
that [the  RCA] is coming  up against the  regulatory cost-charge                                                               
cap.                                                                                                                            
                                                                                                                                
MS. SADDLER  noted that  the packet  contains three  fiscal notes                                                               
for the  RCA, DNR, and ADF&G,  and she suggested it  will take up                                                               
to  two years  to  develop regulations  that  define the  program                                                               
operations.     She  said  once   those  regulations   have  been                                                               
recommended or  are established, FERC  would have up to  one year                                                               
to approve the program before  ceding authority to the state, and                                                               
that the  interagency team believes  it would be prudent  to have                                                               
the RCA  and respective commissioners  report the results  of the                                                               
scoping  project  back to  the  legislature.   Ms.  Saddler  said                                                               
agencies  currently understand  their roles  and responsibilities                                                               
under the FERC process, but it  is not entirely clear whether all                                                               
that FERC  does and  what the  state will  be assuming  are fully                                                               
understood.                                                                                                                     
                                                                                                                                
MS.  SADDLER said,  for  example, in  the case  of  ADF&G, it  is                                                               
unknown whether the  state would have the  statutory authority to                                                               
take  on  the  FERC  program.     She  explained  that  FERC  has                                                               
jurisdiction  over  entire  watersheds,   while  ADF&G  only  has                                                               
oversight over  streambeds.   She suggested that  there may  be a                                                               
mismatch  and that  some statutory  requirements may  need to  be                                                               
implemented.   Ms.  Saddler said  the thought  is that  with this                                                               
amendment, items  like the  impact on  the operating  budget, the                                                               
kind  of funding  mechanism that  would be  recommended, staffing                                                               
requirements, and any  sort of statutory changes  that are needed                                                               
for the smooth  implementation of the provisions  of this program                                                               
would be included.                                                                                                              
                                                                                                                                
Number 1078                                                                                                                     
                                                                                                                                
SUSAN  SCHRADER,  Alaska  Conservation Voters  (ACV),  testified.                                                               
Ms. Schrader explained  that this bill does begin  the process of                                                               
authorizing  state takeover  of FERC  authority for  licensing of                                                               
small  hydro projects.   She  said ACV's  main concern  with this                                                               
program  is  the  expense  that  will  be  entailed  to  do  this                                                               
properly, and while  it is realized that FERC  will have ultimate                                                               
authority to  approve whatever program  the state comes  up with,                                                               
it is  pretty unrealistic to suggest  that this is a  place where                                                               
the  state should  be putting  its limited  funds.   Ms. Schrader                                                               
acknowledged that there are some  problems with the FERC process,                                                               
and  she  said   an  appropriate  response  would   be  what  the                                                               
congressional delegation  can do  to address those  problems with                                                               
FERC.  She  suggested that there are no  particular advantages to                                                               
the state's  taking over this  costly process, and  she expressed                                                               
concern as  to whether RCA is  the appropriate lead entity  to be                                                               
looking at this.                                                                                                                
                                                                                                                                
MS.  SCHRADER  noted  that   FERC  regulations  are  particularly                                                               
esoteric, and suggested that the RCA  might find that it is quite                                                               
a daunting  task to design a  program [and implement] all  of the                                                               
regulations  within  two years.    She  turned attention  to  the                                                               
ongoing funding [that would be  necessary] for the departments to                                                               
implement  this program,  and she  pointed out  that DNR  has had                                                               
problems with its water-quantity  program because it doesn't have                                                               
enough funding or  staff needed to process  the applications, and                                                               
yet the legislature  is looking at adding more tasks  and jobs to                                                               
its [workload].   She suggested that  one of two things  is going                                                               
to happen:   With not enough  money to support the  state's doing                                                               
this  type of  licensing,  the small  hydropower developers  that                                                               
want  the licenses  are going  to find  that they're  not gaining                                                               
time by the  state having the authority and that  it will be just                                                               
as timely  a process as  having FERC  do it; in  the alternative,                                                               
the process will  be short-cut so that the  developers don't have                                                               
long  time  delays,  and  that   will  come  at  the  expense  of                                                               
unavoidable  environmental   impacts,  resulting  in  a   lot  of                                                               
outraged public.                                                                                                                
                                                                                                                                
MS. SCHRADER  expressed concern  about the  language of  the bill                                                               
and she said  as it is currently written, there  is no protection                                                               
for state  special lands -  state parks, state game  refuges, and                                                               
critical  habitat areas  -  leaving them  all  possibly open  for                                                               
consideration for  hydropower development.  Certainly,  she said,                                                               
any proposals  to do projects  in those  areas are going  to meet                                                               
with a  lot of  public opposition  and lead to  a lot  of delays,                                                               
which, to  her understanding, is one  of the major points  of the                                                               
state's taking over, to avoid  the delays that already exist with                                                               
FERC.  She  said ACV is very interested in  finding ways to bring                                                               
cleaner,  more economically  affordable power  generation to  the                                                               
rural communities  and would like  to see the reliance  on diesel                                                               
generation minimized as much as possible.                                                                                       
                                                                                                                                
Number 1312                                                                                                                     
                                                                                                                                
MS.  SCHRADER  suggested that  hydropower  is  not necessarily  a                                                               
clean, environmentally friendly source; she  said it can be under                                                               
certain situations but does require  careful oversight.  She said                                                               
ACV would  like to see  [rural communities] get away  from diesel                                                               
generation  and move  toward  hydropower,  which, she  suggested,                                                               
could still  be done  within the framework  of the  FERC process.                                                               
Ms. Schrader said  there is no need for the  state to assume what                                                               
she suspects will  be a very costly program  that the legislature                                                               
is going to have to deal  with yearly to fund all those positions                                                               
at  the  various departments  involved.    She pointed  out  that                                                               
Alaska would  be the very  first state  to which FERC  would have                                                               
delegated  the  authority  for  this  oversight.    Ms.  Schrader                                                               
suggested it may  be a good thing, but she  said she didn't know,                                                               
and that  she thought  it was  little risky for  the state  to be                                                               
looking at  that [because]  it is  the first  time this  has ever                                                               
been done.                                                                                                                      
                                                                                                                                
CO-CHAIR  MASEK  noted   that  Representative  Stevens'  research                                                               
indicated  that  there   are  27  rivers  listed   in  the  state                                                               
designated  under  the Wild  and  Scenic  River System  that  are                                                               
exempt from this bill.                                                                                                          
                                                                                                                                
Number 1464                                                                                                                     
                                                                                                                                
JAN KONIGSBERG, Trout Unlimited, noted  that he was testifying on                                                               
behalf  of  Alaska Public  Waters  Coalition  ("Coalition").   He                                                               
characterized  the  Coalition  as an  association  that  includes                                                               
sport fishing groups,  conservation organizations, former members                                                               
of  the  "Alaska water  board,"  and  other individuals  who  are                                                               
concerned about  executive actions or legislative  and regulatory                                                               
initiatives   that  affect   Alaska's  water   resources.     Mr.                                                               
Konigsberg explained that  SB 140 will allow the  State of Alaska                                                               
to assume licensing authority for  hydroelectric projects of five                                                               
megawatts  or  less.    He   said  the  Coalition  believes  that                                                               
regardless  of  the  size, all  proposed  hydroelectric  projects                                                               
should be  scrutinized thorough a  rigorous licensing  process to                                                               
ensure that the project, once  constructed and in operation, will                                                               
have the  least environmental  impact possible  over the  life of                                                               
the project.   Mr. Konigsberg  said the Coalition is  not opposed                                                               
to this  legislation if the  state can accomplish  this licensing                                                               
in a  manner at  least as  stringent as  FERC, but  the Coalition                                                               
does not believe that this will necessarily be the case.                                                                        
                                                                                                                                
MR.   KONIGSBERG   said  the   Coalition   is   puzzled  by   the                                                               
legislatures'  "seeming  eagerness"  to mandate  that  the  state                                                               
assume  a federal  program  for which  there  is no  accompanying                                                               
appropriation,  especially given  the  magnitude  of the  state's                                                               
current fiscal problems.   He suggested that the  fiscal note, of                                                               
approximately $300,000  after the three-year period,  is probably                                                               
too conservative  of an  estimate.   Mr. Konigsberg  talked about                                                               
the  legislature's rationale  for embracing  an unfunded  federal                                                               
mandate,   and  he   suggested  that   the  proponents   of  this                                                               
legislation  are convinced  that a  state licensing  program will                                                               
provide  regulatory  relief  from  what they  believe  to  be  an                                                               
onerous  federal   process,  but   that  these   same  proponents                                                               
acknowledge that  the state process  must be as rigorous  as that                                                               
of the federal government.  "How  can both be true, we would like                                                               
to know," he asked.                                                                                                             
                                                                                                                                
MR.  KONIGSBERG  asked,  if  the  program was  to  be  funded  at                                                               
$300,000  per  year,  how  the general  public  would  take  that                                                               
appropriation that may come from  a general fund, when other dire                                                               
needs exist within  human service agencies.  He  pointed out that                                                               
some of these  projects will be built  by out-of-state hydropower                                                               
developers,  some  of whom  will  receive  federal grants.    Mr.                                                               
Konigsberg said not only will  the state be incurring significant                                                               
administrative costs  pursuant to  hydropower licensing,  it will                                                               
assume, "we believe," significant  liability, particularly in the                                                               
area of  dam safety.  Currently,  he explained, the state  has no                                                               
liability for  FERC-licensed projects; once the  state undertakes                                                               
licensing,  it  will  also be  responsible  for  dam  inspection.                                                               
Therefore, he  said, in the  case of  a dam failure,  should that                                                               
result  in damage  to  life  and private  property  or result  in                                                               
natural resource damage,  it may not be the dam  owner alone that                                                               
is responsible or held accountable.                                                                                             
                                                                                                                                
Number 1678                                                                                                                     
                                                                                                                                
MR. KONIGSBERG  suggested that if  the state were sued,  the cost                                                               
of litigation and  actual damages could dwarf the  annual cost of                                                               
the  licensing  program.   He  said  it  is wishful  thinking  to                                                               
presume  that a  state regulatory  program will  be any  speedier                                                               
than the current  federal program.  First, he said,  this will be                                                               
new terrain  for the RCA, so  startup missteps and delays  can be                                                               
expected, and he  pointed out that DNR has not  been able to keep                                                               
up  with a  relatively  simple and  straightforward water  rights                                                               
program.  So, realistically, how  would DNR deal with an increase                                                               
in workload in  its water and dam safety programs  as required by                                                               
state hydropower  programs, he asked.   Mr.  Konigsberg suggested                                                               
if the real  intent of this legislation is  to achieve hydropower                                                               
licensing efficiency  at the  expense of  stringent environmental                                                               
enforcement by  skimping on environmental review  and permitting,                                                               
then  these  projects  will  face lengthy  delays  due  to  legal                                                               
challenges.  He  suggested that the FERC process  works but needs                                                               
improvement, and he said it would  behoove the state to join with                                                               
others to improve  the federal program rather than take  on a new                                                               
program in this period of fiscal uncertainty.                                                                                   
                                                                                                                                
Number 1753                                                                                                                     
                                                                                                                                
WILL  ABBOTT,  Commissioner,   Regulatory  Commission  of  Alaska                                                               
(RCA),   Department  of   Community  and   Economic  Development,                                                               
testified  briefly.   Mr.  Abbott  concurred  with Ms.  Saddler's                                                               
testimony.                                                                                                                      
                                                                                                                                
Number 1783                                                                                                                     
                                                                                                                                
REPRESENTATIVE STEVENS  turned attention to the  fiscal notes and                                                               
he asked Mr.  Abbott if he had  an idea of what the  costs to the                                                               
state would  be and  if licensing  fees would  cover the  cost of                                                               
inspections.                                                                                                                    
                                                                                                                                
MR. ABBOTT,  in response, said  federal legislation is  silent on                                                               
whether the state will receive the  funding that now goes to FERC                                                               
for  those projects.   Currently,  he  explained, each  operating                                                               
project  pays  FERC a  charge  based  on  the kilowatts  that  it                                                               
generates.  He indicated that FERC  puts that money back into its                                                               
program to assist  with staffing costs and to keep  costs low for                                                               
future  licensees.   He questioned  how the  state would  do that                                                               
without tapping into  the general fund "a whole bunch."   He also                                                               
questioned  how the  state would  get [the  program] started  and                                                               
whether  it  would  assume   responsibility  for  existing  hydro                                                               
projects of  five megawatts  or less.   He  indicated he  did not                                                               
know whether  the state would  be receiving those funds  and that                                                               
was  one  of   the  reasons  the  [department]   wanted  time  to                                                               
communicate with FERC to try and resolve those issues.                                                                          
                                                                                                                                
Number 1878                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA  asked,  if the  legislature  gives  the                                                               
department state  authority to have licensing  fees, whether that                                                               
will that  resolve it or  whether federal authority will  also be                                                               
required.                                                                                                                       
                                                                                                                                
MR. ABBOTT  remarked, "Because it  doesn't say on there,  I would                                                               
assume that we'll get that;  maybe that's optimistically assuming                                                               
on  my part,  but  I'm assuming  because it  is  silent, that  we                                                               
will."                                                                                                                          
                                                                                                                                
REPRESENTATIVE  KERTTULA asked  for clarification  on whether  he                                                               
was referring to the state bill or the federal law.                                                                             
                                                                                                                                
MR. ABBOTT, in response, said they are both silent.                                                                             
                                                                                                                                
Number 1929                                                                                                                     
                                                                                                                                
REPRESENTATIVE  STEVENS  asked  if  giving  [management]  of  the                                                               
licensing  process   to  the  state   rather  than   the  federal                                                               
government would be less rigorous and less demanding.                                                                           
                                                                                                                                
MR. ABBOTT suggested  FERC was not going to let  the [state] "get                                                               
away  with a  whole lot,"  and that  the [objective  of a  state-                                                               
operated  program] is  not  only  to try  to  make  it an  easier                                                               
process, but  also to  get the  process back  to the  state where                                                               
[residents]  deal  with the  problems,  rather  than somebody  in                                                               
Washington  [D.C.].   He mentioned  that many  of the  permitting                                                               
functions and the  tasks done by the state  agencies will require                                                               
sending the data back to the FERC for its decision.                                                                             
                                                                                                                                
Number 2003                                                                                                                     
                                                                                                                                
CHIP DENNERLEIN,  Director, Division  of Habitat  and Restoration                                                               
Alaska  Department  of  Fish  & Game  (ADF&G),  testified.    Mr.                                                               
Dennerlein noted  he had prior  involvement with FERC in  some of                                                               
his  former  capacities.    He  said the  position  of  ADF&G  is                                                               
supportive and consistent with  the administration's position and                                                               
has   been   expressed   throughout  the   development   of   the                                                               
congressional  enabling legislation.   Mr.  Dennerlein speculated                                                               
that   [restructuring   the   program]  could   be   a   positive                                                               
contribution to energy needs, particularly,  in rural Alaska.  He                                                               
suggested that the state program  can provide at least the [same]                                                               
level of  fish and  wildlife resource  protection as  the current                                                               
FERC process.   Mr.  Dennerlein advised  the committee  that that                                                               
qualifier is very  important because most of  these projects will                                                               
be in  or adjacent  to rural Alaskan  communities, in  stream and                                                               
river  valleys that  are  close to  these  communities, and  that                                                               
local and state residents utilize  fish and wildlife resources in                                                               
these areas.                                                                                                                    
                                                                                                                                
MR.  DENNERLEIN  said  the  FERC process  allows  ADF&G  to  work                                                               
effectively with  these issues  on a watershed  basis to  get the                                                               
information needed  to make good  decisions and in  defining what                                                               
information will be  needed, both in helping to  define the scope                                                               
of information  needed from applicants  and other sources  and in                                                               
getting  FERC as  an agent  in helping  obtain that  information.                                                               
Mr. Dennerlein said  this is not unlike, in some  ways, the state                                                               
coastal  management  process  for  coastal  projects,  where  the                                                               
[department]  works  on  a  broader  scale  with  other  resource                                                               
agencies and puts a package  of standards together for a project.                                                               
He remarked, "ACMP is the way  we step out of the streambed where                                                               
Title 16 gives us clear authority bank to bank."                                                                                
                                                                                                                                
Number 2169                                                                                                                     
                                                                                                                                
MR. DENNERLEIN mentioned  that a mechanism that  would allow this                                                               
to be  done beyond an  ACMP process  in the Interior,  outside of                                                               
the coastal  zone, was unknown or  could not be foreseen  at this                                                               
time.  He  talked about an example involving  a major interchange                                                               
that  the  Department  of Transportation  and  Public  Facilities                                                               
(DOT&PF) is  building along the  Parks Highway and  Glenn Highway                                                               
and the  permitting that is  going forward the  following summer.                                                               
He mentioned  that an anadromous  fish stream exists in  the area                                                               
and it  is very  clear the [department]  has Title  16 authority,                                                               
but the  real issue is  beyond the  defined stream banks  and the                                                               
flooded wetlands;  [the issue is] that  the area in between  is a                                                               
host  to 6,000  juvenile coho  salmon per  acre that  go to  five                                                               
streams.                                                                                                                        
                                                                                                                                
MR. DENNERLEIN  said this is  one of the highest  producing coho-                                                               
rearing  areas in  Upper  Cook  Inlet and  is  a major  resource-                                                               
protection  interest and  major  public interest.    He said  the                                                               
department  works on  that issue  through the  ACMP; in  the FERC                                                               
process,  the department  is also  able  to work  on a  watershed                                                               
basis without  a statutory basis.   He noted that  the department                                                               
is unsure how to  do that in this legislation and  that it is one                                                               
of  the things  that needs  to be  investigated.   Mr. Dennerlein                                                               
mentioned an  example of a  project that  was built in  Kodiak in                                                               
which the  major wildlife concern was  brown bears.  He  said the                                                               
project is operational but did require some creative solutions.                                                                 
                                                                                                                                
Number 2291                                                                                                                     
                                                                                                                                
MR. DENNERLEIN  cited False Creek  as an example because  it fits                                                               
in this range  as a 3.5 megawatt [project] and  is unique because                                                               
it is  a project that  is proposed  in Glacier Bay  National Park                                                               
and Preserve, in congressionally  designated wilderness.  He said                                                               
it  may  well   receive  a  license  because   of  some  creative                                                               
solutions, including a land exchange.   He noted that False Creek                                                               
is  similar  and  that  it   involved  locals,  property  owners,                                                               
spawning  fish,  subsistence,  and  so  forth.    Mr.  Dennerlein                                                               
offered  support  for the  concept  but  expressed concern  about                                                               
statutory authority,  the front-end  ability of funding,  and the                                                               
follow-through and re-licensing of these  projects.  He said this                                                               
is why  there is such strong  support for the report  back to the                                                               
legislature so  the legislature  has a clear  chance to  see what                                                               
exactly this  takes for the job  to be done right,  because if it                                                               
goes wrong, it will go wrong for a lot of people.                                                                               
                                                                                                                                
Number 2394                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK, upon  determining no one else  wished to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
CO-CHAIR SCALZI  noted his belief  that this  is a good  bill and                                                               
should be moved  forward.  He said after  listening to testimony,                                                               
he felt the amendment would be unnecessary.                                                                                     
                                                                                                                                
Number 2453                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA   asked  if   the  commission   has  the                                                               
authority to charge a fee for licensing.                                                                                        
                                                                                                                                
MR. PETERSON, in response, said  it is his understanding that the                                                               
intent of the federal enabling  legislation is that the RCA would                                                               
charge user fees  in the same manner it does  currently.  He said                                                               
there will  be some startup  costs to  get the program  under the                                                               
state's  jurisdiction, but  eventually the  program will  be paid                                                               
for by the fees from the hydro projects.                                                                                        
                                                                                                                                
REPRESENTATIVE  KERTTULA  asked  if   the  bill  has  to  contain                                                               
specific language that allows the agency to receive funds.                                                                      
                                                                                                                                
MR. PETERSON  said he didn't believe  so and that it  is going to                                                               
be part  of the  discussion between  the RCA  and FERC  when this                                                               
program is  established.  He  suggested that the bill  only needs                                                               
to  [contain language]  giving  the  administration authority  to                                                               
develop the  regulations for this  project because FERC  is going                                                               
to have  the ultimate veto on  whether [the state] is  able to do                                                               
it.   Mr.  Peterson  suggested that  the RCA  would  ask for  the                                                               
authority to charge those fees and  use those fees to pay for the                                                               
project, which is  what FERC currently does.   He said hopefully,                                                               
[it would  be approved] as  long as  it's not in  direct conflict                                                               
with the way FERC currently manages the program in the state.                                                                   
                                                                                                                                
Number 2572                                                                                                                     
                                                                                                                                
CO-CHAIR SCALZI  moved to report  CSSB 140(FIN) out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There  being no  objection, CSSB  140(FIN) was  reported                                                               
from the House Resources Standing Committee.                                                                                    
                                                                                                                                
SB 356-GENERAL PERMIT FOR WATER/WASTE DISPOSAL                                                                                
                                                                                                                                
CO-CHAIR MASEK  announced that the  next order of  business would                                                               
be SENATE BILL  NO. 356 am, "An Act relating  to the authority of                                                               
the  Department of  Environmental Conservation  to issue  general                                                               
and individual permits  for waste disposal; and  providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
Number 2634                                                                                                                     
                                                                                                                                
JOE  BALASH,  Staff  to Senator  Gene  Therriault,  Alaska  State                                                               
Legislature,  presented SB  356  on behalf  of  the Senate  State                                                               
Affairs  Standing Committee,  sponsor,  which Senator  Therriault                                                               
chairs.    Mr.  Balash  characterized  SB  356  as  a  bill  that                                                               
establishes  procedures   for  developing  and   issuing  general                                                               
permits in the Department  of Environmental Conservation's (DEC),                                                               
Division of  Air & Water  Quality.   He explained that  a general                                                               
permit is  used to regulate a  class of operation that  is fairly                                                               
standard  and similar  throughout (indisc.)  achieved across  the                                                               
industry.  He remarked:                                                                                                         
                                                                                                                                
     A  very handy  example ...  is  the washing  down of  a                                                                    
     cement truck.   If you  own a cement truck,  there's no                                                                    
     way you're  going to let  the cement harden  inside the                                                                    
     container.   It  needs  to  be washed  out  on a  daily                                                                    
     basis.                                                                                                                     
                                                                                                                                
     However, in  order to  wash that  truck out,  you don't                                                                    
     want the  dirty water ...  to go  into a stream  or any                                                                    
     other  environmentally  sensitive  area, and  so  there                                                                    
     would be some general  considerations given to how that                                                                    
     is done.                                                                                                                   
                                                                                                                                
     A  general permit  would be  issued  by the  department                                                                    
     that would  say anybody washing out  their cement truck                                                                    
     would have to avoid doing it  next to a stream.  That's                                                                    
     a   fairly   simplistic    example   but   useful   for                                                                    
     illustration purposes.                                                                                                     
                                                                                                                                
MR. BALASH turned  attention to page 2, line 26,  and he said the                                                               
word "cumulatively" replaced the  original proposed language.  He                                                               
explained that the  change was made at the request  of the Alaska                                                               
Conservation  Voters (ACV),  but was  done with  a little  bit of                                                               
concern  because the  word "cumulative"  is  a somewhat  "loaded"                                                               
term in  the regulatory  community.  He  said in  connection with                                                               
NEPA  [National Environmental  Policy Act  of 1969],  there is  a                                                               
cumulative  impact analysis  statement  in which  a given  action                                                               
calls for the  determination of the cumulative impacts.   He said                                                               
that's not at all what this  [language] is intended to imply, and                                                               
in  no  way  is  the  sponsor asking  that  a  cumulative  impact                                                               
analysis be done.                                                                                                               
                                                                                                                                
MR.  BALASH  said  the  word  is  only  speaking  to  discharges,                                                               
including discharges  that are currently ongoing,  in addition to                                                               
the discharges proposed  to be added by this general  permit.  He                                                               
said Senator  Therriault asked him  to inform the committee  of a                                                               
number  of amendments  that have  come to  light in  the last  48                                                               
hours, including  one to be brought  [forward] by the Army.   Mr.                                                               
Balash said while Senator Therriault  is not unsympathetic to the                                                               
concerns of the  Army or its interests, the balance  in this bill                                                               
has been  struck by a  working group of industry,  the regulating                                                               
community, and  the regulating bodies  in state government.   The                                                               
balance is a fine  one, he said, and it is  preferred that it not                                                               
be upset by any amendments at this time.                                                                                        
                                                                                                                                
Number 2876                                                                                                                     
                                                                                                                                
COLONEL  FRED  LEHMAN,  U.S.   Army  Alaska  Garrison  Commander,                                                               
testified.  Colonel  Lehman reported that on 04/12/02  a group of                                                               
national  and local  environmental  organizations  sued the  U.S.                                                               
Army and  the U.S. Department of  Defense in an attempt  to close                                                               
down  Fort  Richardson's only  artillery  training  range in  the                                                               
Eagle River Flats.   The Eagle River Flats, he  explained, is the                                                               
only location  south of the  Alaska Range where  soldiers conduct                                                               
live-fire  heavy-artillery training,  and that  the military  has                                                               
used this  range as  an artillery  range for  the last  50 years.                                                               
Colonel Lehman said  proper training is essential  to the success                                                               
of military  operation and is  a matter  of troop readiness.   He                                                               
remarked about  the young men and  women who risk their  lives to                                                               
uphold the  values that [U.S.  citizens] so strongly  cherish and                                                               
how before  sending soldiers into life-and-death  situations [the                                                               
military has] a  legal and moral obligation to  provide them with                                                               
full training  required to achieve the  military's objectives and                                                               
also  minimize the  risk  of [harm]  to  themselves and  innocent                                                               
civilians.                                                                                                                      
                                                                                                                                
COLONEL  LEHMAN talked  about  having half  a  dozen soldiers  in                                                               
Afghanistan in  harm's way and  how they trained on  those ranges                                                               
at Fort  Richardson in regular  training exercises  that included                                                               
the use  of live  ammunition, artillery  explosives, high-caliber                                                               
weaponry,  et cetera.   He  said it  also means  that large  land                                                               
areas such  as Eagle River  Flats must remain available  for such                                                               
exercises  and  that the  Army's  ability  to continue  live-fire                                                               
training  is  critical  to  Fort  Richardson's  national  defense                                                               
mission.     Colonel   Lehman   explained   that  because   [Fort                                                               
Richardson] is the only location  south of the Alaska Range where                                                               
soldiers conduct live-fire training,  its reason for existence is                                                               
to  train  soldiers  for  wartime   operations.    He  said  Fort                                                               
Richardson's future  is at risk and  that the Army is  engaging a                                                               
new  round  of  BRAC  [Base  Realignment  and  Closure]  closures                                                               
starting in 2005.                                                                                                               
                                                                                                                                
TAPE 02-39, SIDE B                                                                                                              
Number 2995                                                                                                                     
                                                                                                                                
COLONEL  LEHMAN  explained that  the  plaintiffs  in the  lawsuit                                                               
argue that the federal courts should  force the Army to close the                                                               
Eagle River Flats  range because the Army has not  obtained a DEC                                                               
solid waste disposal permit under  AS 46.03.100 for the firing of                                                               
artillery munitions on the Eagle  River Flats.  He explained that                                                               
DEC has never required a  permit under AS 46.03.100 for munitions                                                               
fired on active military ranges.   He said the artillery that the                                                               
Army  is  firing are  explosive  rounds,  not  solid waste.    He                                                               
suggested this  has been done  in the  U.S. for about  240 years.                                                               
and  he talked  about activities  that meet  AS 46.03.100  permit                                                               
requirements, such  as wastewater  discharge or  the construction                                                               
of solid waste landfills.                                                                                                       
                                                                                                                                
COLONEL LEHMAN  suggested that the  plaintiff's attempt  to force                                                               
DEC to regulate live-fire military  training activities on active                                                               
military ranges  sets an unacceptable  precedent.  If  the effort                                                               
succeeds, he said,  DEC may well be pressured  into attempting to                                                               
regulate other  critical aspects  of training exercises,  such as                                                               
the type of munitions fired,  firing locations, firing times, and                                                               
other parameters.   He suggested that  DEC is not equipped  to do                                                               
so and that the Army has no  reason to believe that DEC wishes to                                                               
assume this role.  It's a bad  idea all around, he commented.  He                                                               
noted  that  this  bill  deals  with  DEC's  authority  to  issue                                                               
disposal permits  under AS  46.03.100 and  that the  bill already                                                               
contains a list of exceptions.                                                                                                  
                                                                                                                                
Number 2919                                                                                                                     
                                                                                                                                
COLONEL  LEHMAN brought  attention  to a  written amendment  that                                                               
read [original punctuation provided]:                                                                                           
                                                                                                                                
      SB 356 am shall be amended to add a new section that                                                                      
     reads as follows:                                                                                                          
                                                                                                                                
     Sec._. AS 46.03.100(d) is amended to read:                                                                               
          (d) This section does not apply to                                                                                    
           (1) disposals subject to regulation under                                                                            
     AS  31.05.030(e)(2);[OR]                                                                                                   
           (2) injection projects permitted under AS                                                                            
     31.05.030(h)[.]; or                                                                                                    
               (3) discharges resulting from the firing or                                                                  
     other   use  of   munitions   in  training   activities                                                                
     conducted  on  active  ranges operated  by  the  United                                                                
        States Department of Defense or a United States                                                                     
     military agency.                                                                                                       
                                                                                                                                
COLONEL  LEHMAN  explained  that   the  Army  is  requesting  the                                                               
legislature to  adopt a  short, simple  amendment that  would add                                                               
solid  waste disposal  activities  resulting from  the firing  of                                                               
munitions  in training  activities conducted  on active  military                                                               
ranges  to  the list  of  activities  exempted from  this  permit                                                               
requirement.   He said by  enacting a  straightforward amendment,                                                               
the legislature  will help  ensure that  the Army  Alaska remains                                                               
able to properly train those people  in the armed forces and that                                                               
Fort  Richardson  retains  an  important  role  in  the  nation's                                                               
defense strategy.                                                                                                               
                                                                                                                                
Number 2879                                                                                                                     
                                                                                                                                
REPRESENTATIVE STEVENS said  he was surprised to  learn that Army                                                               
bases have  to comply with state  regulations.  He asked  if that                                                               
is the case throughout the country.                                                                                             
                                                                                                                                
COLONEL LEHMAN said  no; this is the first lawsuit  of this type.                                                               
He explained that on [04/25/02] the  Army filed a Clean Water Act                                                               
permit  with  the  EPA [Environmental  Protection  Agency].    He                                                               
reported that he  had been in consultation with  the EPA region's                                                               
head  environment  chief   for  the  past  six   months,  and  he                                                               
indicated  that  the EPA  is  uncertain  about  both it  and  the                                                               
state's involvement in  the issue.  However, he  said, this issue                                                               
has to be addressed because a  lawsuit has been filed against the                                                               
military.                                                                                                                       
                                                                                                                                
Number 2836                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA  asked   whether  permits  are  normally                                                               
required  under these  kinds of  circumstances or  if this  is an                                                               
unusual situation.   She asked for more information  on the court                                                               
case.                                                                                                                           
                                                                                                                                
Number 2817                                                                                                                     
                                                                                                                                
JOHN   McDONAGH,  Environmental   Counsel,   U.S.  Army   Alaska,                                                               
testified.  Mr.  McDonagh explained that the  lawsuit against the                                                               
U.S.  Army,  the  Department of  Defense,  and  Secretary  Donald                                                               
Rumsfeld in his official capacity  was filed in the U.S. District                                                               
Court,  District of  Alaska,  on April  12, 2002.    He said  the                                                               
plaintiffs  in the  lawsuit are  the Alaska  Community Action  on                                                               
Toxics  (ACAT),   Cook  Inlet  Keeper;  the   Chickaloon  Village                                                               
Traditional  Council; two  individual  plaintiffs, Janet  Daniels                                                               
and Richard Martin;  and the Military Toxics Project,  which is a                                                               
national  environmental  group  that  has  filed  other  lawsuits                                                               
against the military's  use of ranges at  other places throughout                                                               
the country.   He explained  that the lawsuit has  three separate                                                               
primary claims:  The first  deals with the Army's alleged failure                                                               
to have  a Clean  Water Act  permit.  The  second deals  with the                                                               
failure to  have a AS  46.03.100 solid waste disposal  permit for                                                               
the firing  of munitions into the  Eagle River Flats.   The third                                                               
is a  claim under  CERCLA [Comprehensive  Environmental Response,                                                               
Compensation, and  Liability Act],  commonly known  as Superfund,                                                               
alleging that the Army needs  to have a remedial investigation or                                                               
feasibility study (RI/FS)  done for Fort Richardson  on the Eagle                                                               
River Flats.                                                                                                                    
                                                                                                                                
MR.  McDONAGH said  this  is very  interesting  because a  CERCLA                                                               
RI/FS  was conducted  on Eagle  River  Flats and  found only  one                                                               
contaminant  of   concern  -  white  phosphorus,   which  affects                                                               
waterfowl.   That  was  addressed through  a  record of  decision                                                               
signed by the  EPA and DEC, and that remedy  for white phosphorus                                                               
was implemented  beginning a couple  of years ago,  he explained.                                                               
Mr. McDonagh reported that the  record on decision also concluded                                                               
that  no other  contaminants  of concern  exist  with respect  to                                                               
Eagle River  Flats.   He said that's  not the  Army's conclusion;                                                               
that's  EPA  and  DEC's  conclusion   as  set  forth  in  CERCLA.                                                               
Needless to say, the Army is  very concerned about the ability to                                                               
continue to train for the  reasons that Colonel Lehman stated, he                                                               
said.   Mr.  McDonagh said  this is  one of  the highest  profile                                                               
lawsuits that the Army has,  and that the military has nationwide                                                               
implications  on an  issue  it  refers to  as  encroachment.   He                                                               
explained that this is a major  issue that impacts the ability to                                                               
train;  impacts the  future  viability of  Fort  Richardson as  a                                                               
training   facility;   it   does  potentially   impact   training                                                               
facilities at Fort  Greely and Fort Wainwright, which  is why the                                                               
Army is asking for the legislature's help.                                                                                      
                                                                                                                                
Number 2669                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA  asked Mr. McDonagh  if the Army  had any                                                               
type of restraining  order in place or if training  is allowed to                                                               
continue until the lawsuit is decided.                                                                                          
                                                                                                                                
MR.  McDONAGH,  in response,  explained  that  the complaint,  as                                                               
filed, requests  an injunctive relief  prohibiting the  Army from                                                               
continuing to  conduct the activities  at the Eagle  River Flats.                                                               
However,  he  said,  there has  been  no  preliminary  injunction                                                               
motion filed, so currently there is  no injunction in place.  Mr.                                                               
McDonagh  clarified that  because of  concerns over  wildlife and                                                               
the environment,  the Army never  fires at the Eagle  River Flats                                                               
over the  summer months,  so there  would be no  need to  seek an                                                               
injunction at the present period of time.                                                                                       
                                                                                                                                
COLONEL LEHMAN said correct; the  Army's SOPs [standard operating                                                               
procedures] require that  there must be six inches  of ice before                                                               
firing commences.                                                                                                               
                                                                                                                                
Number 2617                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked how long  the arsenal had been used in                                                               
that area.                                                                                                                      
                                                                                                                                
MR.  McDONAGH, in  response, said  the  Army has  used the  Eagle                                                               
River Flats  since the 1940s  and it was  a major range  in World                                                               
War II; it  was also used throughout the Korean  War and right up                                                               
to  the present.   Mr.  McDonagh said  the Army  discovered white                                                               
phosphorus in the  early 1980s, and when it was  discovered to be                                                               
a problem,  the Army ceased using  it in 1990, but  has continued                                                               
to use artillery at the range for practice.                                                                                     
                                                                                                                                
CO-CHAIR MASEK  asked if the  Army has  ever applied for  a solid                                                               
waste permit.                                                                                                                   
                                                                                                                                
MR. McDONAGH, in  response, said no, the position  taken by [DEC]                                                               
is that it has never requested  the Army to [apply for a permit],                                                               
and the  Army's position has always  been that this is  not solid                                                               
waste and is not subject to  the permitting requirement.  He said                                                               
he was  informed that consistent  with past practice, DEC  has no                                                               
desire to  regulate in this  area and the  Army has no  desire to                                                               
have DEC regulate in this area.   Mr. McDonagh remarked, "So, all                                                               
we're asking for  is the status quo (indisc.)."   The only reason                                                               
this  is  an  issue  before  this committee  is  not  because  of                                                               
anything  anyone in  the Army  is doing  differently or  anything                                                               
that the agency  is doing differently; it is because  it has been                                                               
raised  as a  claim  by  the plaintiffs  in  this  lawsuit in  an                                                               
attempt to  shut [the  Army's use  of the  Eagle River  Flats for                                                               
training] down, he said.                                                                                                        
                                                                                                                                
Number 2544                                                                                                                     
                                                                                                                                
REPRESENTATIVE STEVENS  remarked, "I  think of  World War  II and                                                               
when the Japanese  had taken Attu and Kiska and  we attacked them                                                               
to take  them back, if  these people  had been around,  you would                                                               
have been required  to have ... permission before  you could have                                                               
launched the  attack; ... the whole  thing is just bizarre."   He                                                               
said it  seems to  him that  Alaska's currently  at the  front on                                                               
this issue,  and he  suggested that  there are  a lot  more bases                                                               
around the  United States that use  a lot more artillery  than is                                                               
used in  Alaska.   He speculated  that there must  be a  lot more                                                               
sites that are in worse condition than Alaska.                                                                                  
                                                                                                                                
COLONEL LEHMAN, in response, said this will be a test case.                                                                     
                                                                                                                                
MR. McDONAGH  said correct; this  is an issue around  the country                                                               
in many different ways.  He  mentioned a briefing he had attended                                                               
in the  previous week in  which some Marines from  Camp Pendleton                                                               
explained what  it's like to have  23 miles of beach  and only be                                                               
able  to use  about a  half  mile of  that  beach.   He said  the                                                               
Marines  can't even  do a  beach-to-beach  diversion anymore  and                                                               
that when  they do  hit the beach,  instead of  digging foxholes,                                                               
they have  to lay  out tape  to mark where  the foxhole  would be                                                               
because they're  not allowed to dig  on that beach; then  they go                                                               
back to the barracks and practice  digging.  He said if the issue                                                               
is called encroachment,  it's one of the largest  issues that the                                                               
U.S. military  has facing it  now.  Mr. McDonagh  remarked, "It's                                                               
come home  to rest here in  our little case in  our military base                                                               
here in Alaska, and that's why we're here."                                                                                     
                                                                                                                                
Number 2467                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA asked  what  the problem  is with  white                                                               
phosphorus.                                                                                                                     
                                                                                                                                
COLONEL LEHMAN,  in response, said it  is used for a  burning and                                                               
smoke agent and  requires air for it  to oxidize and go  off.  If                                                               
it stays  under the water,  it will stay  in pellet form,  but it                                                               
will oxidize and  kill waterfowl if ingested.   He explained that                                                               
the Army recognized the issue  and subsequently spent millions of                                                               
dollars  remediating it  in a  very public  way such  as inviting                                                               
groups   out  and   asking   for   participation  for   quarterly                                                               
restoration advisory boards, et cetera.                                                                                         
                                                                                                                                
REPRESENTATIVE KERTTULA  asked whether local shooting  ranges are                                                               
required  to obtain  permits  to  be able  to  use munitions  for                                                               
shooting.                                                                                                                       
                                                                                                                                
MR. McDONAGH said to his  knowledge, solid waste disposal permits                                                               
are not required in Alaska for any other municipal ranges.                                                                      
                                                                                                                                
COLONEL  LEHMAN clarified  that  this [lawsuit]  has a  community                                                               
impact  that affects  others that  use  or train  on this  range,                                                               
including:  the  U.S. National Guard, the  Alaska State Troopers,                                                               
the   Anchorage  Police   Department,  the   Federal  Bureau   of                                                               
Investigation, and private citizens.                                                                                            
                                                                                                                                
REPRESENTATIVE KERTTULA  said the  court case should  decide this                                                               
issue, and  she talked  about the  possibility of  an injunction.                                                               
She  asked how  onerous  it is  to go  through  a DEC  permitting                                                               
process to get a permit.                                                                                                        
                                                                                                                                
MR. McDONAGH  said the Army may  be facing an injunction,  but is                                                               
not facing  one at this particular  moment in time.   He said the                                                               
notion  that  AS  46.03.100  would be  expanded  to  cover  these                                                               
activities  and  therefore   potentially  subject  very  detailed                                                               
military issues to  the purview of an agency  that admittedly has                                                               
no  background  or  interest  in this  particular  area  is  both                                                               
dangerous and unwise, in the Army's view.                                                                                       
                                                                                                                                
COLONEL LEHMAN said when the  military starts unexpected training                                                               
with high  artillery ammunition,  there is a  reason for  it, and                                                               
[the military] doesn't  normally want to disclose  why it's being                                                               
done, who is being trained, or what the purposes are.                                                                           
                                                                                                                                
Number 2298                                                                                                                     
                                                                                                                                
REPRESENTATIVE STEVENS asked  whether it would be  in the purview                                                               
of  Congress  to exempt  national  defense  exercises from  state                                                               
management and control.                                                                                                         
                                                                                                                                
COLONEL LEHMAN  said the  issue is  currently being  addressed at                                                               
the executive level.   He said this is a  three-part [issue], and                                                               
one part is at the state level.                                                                                                 
                                                                                                                                
MR.  McDONAGH said  the  Army is  here  [before the  legislature]                                                               
because it  has a specific state  issue before it and  a specific                                                               
lawsuit brought  against a  facility within the  state.   He said                                                               
this broader issue of encroachment  is receiving very significant                                                               
attention at  the national level.   Unfortunately, he  said, none                                                               
of  that attention  will come  in time  to help  the Army  at the                                                               
Eagle River Flats.                                                                                                              
                                                                                                                                
Number 2254                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  suggested  that  it is  ironic  that  this                                                               
activity has been done for over  60 years and it seems incredible                                                               
that millions  of dollars  are being  spent on  national defense,                                                               
but  there  is a  concern  that  maybe  our troops  shouldn't  be                                                               
training to  utilize arsenal.  He  said it doesn't make  sense to                                                               
him.                                                                                                                            
                                                                                                                                
Number 2186                                                                                                                     
                                                                                                                                
SUSAN  SCHRADER,  Alaska  Conservation Voters  (ACV),  testified.                                                               
Ms. Schrader  said ACV  does appreciate and  agree with  DEC that                                                               
there are certain activities that  are very appropriately managed                                                               
with a general permit, and ACV  does not have a problem with most                                                               
of the  general permits that  the department currently has.   She                                                               
said  ACV's  understanding  is  that   the  bill  will  put  some                                                               
clarifying language  into statute that addresses  DEC's authority                                                               
to issue  general permits.   She expressed concern that  the bill                                                               
is ambiguous  and overly broad, and  because of that, is  open to                                                               
abuse.                                                                                                                          
                                                                                                                                
MS. SCHRADER said  this bill goes far beyond  what the department                                                               
needs to  address for the  washing out  of cement trucks  or high                                                               
school carwashes,  which are not activities  that are necessarily                                                               
of  concern.    She  suggested  having  a  bill  that  puts  some                                                               
sidebars,  structure, and  limits on  what  can be  covered by  a                                                               
general permit.                                                                                                                 
                                                                                                                                
MS. SCHRADER  indicated that ACV  is opposed to the  bill because                                                               
of  previously expressed  concerns.   Ms. Schrader  said she  was                                                               
just made aware of the military  situation and is not prepared to                                                               
speak  on  the lawsuit,  but  that  it  is her  observation  that                                                               
[Colonel Lehman and  Mr. McDonagh] are asking  the legislature to                                                               
try this  case right now in  the form of this  amendment and that                                                               
she thought  that is totally  unfair and truly the  antithesis of                                                               
the  government process.   Ms.  Schrader  suggested that  perhaps                                                               
members of the committee would  like the opportunity to hear from                                                               
those other parties  involved in this litigation  and the reasons                                                               
this litigation was brought forward  and some of the efforts that                                                               
the  environmental groups  have  gone through  to  work with  the                                                               
military to address  the issues before they were  forced to bring                                                               
litigation  forward.    She  remarked,   "I  truly  think  it  is                                                               
inappropriate for the  committee to sit here as the  judge of the                                                               
merits of litigation that I doubt any  of us have had a chance to                                                               
look at ...."                                                                                                                   
                                                                                                                                
CO-CHAIR  MASEK  reminded  Ms. Schrader  that  the  committee  is                                                               
deliberating a bill, not acting as judges.                                                                                      
                                                                                                                                
MS. SCHRADER  suggested it  is much  more appropriate  to address                                                               
the  concerns  through  litigation  and  let  the  legal  process                                                               
determine the merits of the plaintiff's  case.  She said in 1994,                                                               
Fort Richardson was  listed as a Superfund site  and that because                                                               
of  military  activities,  there  are 27,000  toxic  "hot  spots"                                                               
around the country.   Ms. Schrader noted the  Chickaloon tribe as                                                               
having  concerns  for  their  health   and  well-being,  and  she                                                               
suggested she  herself would be  concerned if she  owned property                                                               
near one  of these  sites.   She suggested  the committee  take a                                                               
look  at the  sincere  concerns  of folks  who  don't want  their                                                               
ground water  contaminated and  don't want to  have to  depend on                                                               
living in an area that  has potentially been polluted by military                                                               
activities.                                                                                                                     
                                                                                                                                
Number 1915                                                                                                                     
                                                                                                                                
MS. SCHRADER mentioned  her sincere concerns about  what has gone                                                               
on  in  the country  and  around  the  world and  about  military                                                               
issues, but she  suggested that giving the  military an exemption                                                               
from  all environmental  laws  that are  here  to protect  public                                                               
health is not in anybody's best  interest.  She said she finds it                                                               
a little  ironic that  the military is  doing these  exercises to                                                               
train  its personnel  to protect  the resources  and at  the same                                                               
time, through its  very activities - the  request through federal                                                               
legislation and  this amendment  - [wishes  to] be  exempted from                                                               
those very laws that protect the water quality.                                                                                 
                                                                                                                                
CO-CHAIR  SCALZI  talked  about   his  experience  at  the  local                                                               
shooting range and  he said he wondered why the  U.S. military is                                                               
targeted as the  environmental "test spot" of  such activity when                                                               
it  is occurring  in local  communities throughout  the U.S.   He                                                               
suggested if the environmental community  had real concerns about                                                               
pollutants, the  issue would  initially be  addressed at  a local                                                               
level.                                                                                                                          
                                                                                                                                
Number 1780                                                                                                                     
                                                                                                                                
MS.  SCHRADER  brought  attention  to the  fact  that  there  are                                                               
hundreds   of  environmental   groups,  from   local  groups   to                                                               
international groups, that  do their work at all  levels, and she                                                               
said she cannot  speak to the plaintiffs in this  case or whether                                                               
they have worked on other local  issues.  Ms. Schrader noted that                                                               
she  personally  had  the  experience  of  working  on  an  issue                                                               
surrounding  the  local  gun  range at  Montana  Creek,  and  she                                                               
suggested  the potential  contamination of  that soil  and ground                                                               
water  with lead  and other  heavy metals  from years  of use  is                                                               
quite high.   She also mentioned that DEC had  indicated it would                                                               
be ideal  to regulate those  sites "in  the perfect world."   She                                                               
suggested that  in that scenario,  DEC would have the  ability to                                                               
regulate those  sites and work  to ensure that those  toxic areas                                                               
are cleaned up.  Ms.  Schrader suggested housing developments are                                                               
encroaching  on the  gun  range  at Montana  Creek  and that  the                                                               
ground water may be contaminated.                                                                                               
                                                                                                                                
CO-CHAIR  SCALZI  suggested  that   large  targets  such  as  the                                                               
military or factory  trawlers are "picked on,"  rather than local                                                               
targets, and  have the potential  to impact national  security or                                                               
have large economic impacts to Alaska.   He said he was amazed at                                                               
what the  Cook Inlet Keeper  was involved  in with regard  to the                                                               
lawsuit.  He spoke to Ms.  Schrader's suggestion that the Army is                                                               
asking the  legislature to  try the  case, and  he asked  why the                                                               
environmental community  didn't come to the  legislature first to                                                               
get  help.   Going right  to  the courts  is the  "first line  of                                                               
attack"   rather  than   settling  the   [issue]  through   local                                                               
legislation, he suggested.  He  asked Ms. Schrader if she thought                                                               
that would have  been a better method rather than  going right to                                                               
the military and filing a lawsuit.                                                                                              
                                                                                                                                
Number 1617                                                                                                                     
                                                                                                                                
MS.  SCHRADER  said  it  is her  understanding  that  the  groups                                                               
involved  in [the  lawsuit]  have worked  with  the military  for                                                               
several years  to try to  cooperatively come to  some alternative                                                               
arrangements.                                                                                                                   
                                                                                                                                
CO-CHAIR  SCALZI pointed  out that  this  is the  first that  the                                                               
legislature has heard of this issue.                                                                                            
                                                                                                                                
MS.  SCHRADER  noted  that she  had  brought  many  environmental                                                               
issues and  concerns forward to  the legislature over  the years,                                                               
and that  it is  a very frustrating  proposition.   She mentioned                                                               
the six  amendments that had  she brought forward to  the sponsor                                                               
of this bill  with the intention of helping to  clarify the bill,                                                               
and the fact  that every one of those amendments  had been turned                                                               
down.   She suggested that  ACV has  tried in sincere  honesty to                                                               
work  through the  legislative process  and that  this is  not an                                                               
"easy   game"  for   an  environmentalist   to   play  with   the                                                               
legislature.   She maintained that  there are two sides  to every                                                               
story that and only one side of the story is being heard.                                                                       
                                                                                                                                
Number 1517                                                                                                                     
                                                                                                                                
TOM  CHAPPLE,  Director,  Division  of  Air  and  Water  Quality,                                                               
Department  of   Environmental  Conservation,  testified.     Mr.                                                               
Chapple said for  about the last three and a  half years, DEC has                                                               
been  working to  rebuild its  wastewater permitting  program and                                                               
had done so after assembling  a stakeholder group composed of the                                                               
resource development  community, local  government, environmental                                                               
organizations,  citizens'  organizations  such as  the  RCA,  and                                                               
federal and other state agencies.   He said that work resulted in                                                               
10 basic recommendations from the group  and that this bill is an                                                               
outgrowth  of a  recommendation  that the  department should  use                                                               
more  general permits  in overseeing  certain  activities and  in                                                               
mitigating the impacts of discharges.                                                                                           
                                                                                                                                
MR. CHAPPLE said  the bill reflects a delicate  balance among the                                                               
varied  groups  and that  not  all  parties agreed  that  general                                                               
permits  should   be  aggressively  pursued.     There  was  some                                                               
reluctance, but a  majority of the members of the  work group did                                                               
agree,  he noted.    He  explained that  it  is the  department's                                                               
belief that general  permits are useful and  appropriate when the                                                               
risk  to  the environment  is  low  or  when  there is  a  common                                                               
treatment  practice  that  will  mitigate   that  risk.    It  is                                                               
important when general permits are  developed, he explained, that                                                               
the public  has an opportunity  to comment on the  development of                                                               
that [permit], as  well as to know what  activities are permitted                                                               
under a general permit; a general  permit could apply to a number                                                               
of  operations,   so  knowing  where  those   operations  are  is                                                               
important.  Mr.  Chapple noted that this  bill accomplishes those                                                               
two  primary  objectives  for  the   department.    He  said  the                                                               
department supports the  bill and believes it is  a positive bill                                                               
that it would like to see move forward.                                                                                         
                                                                                                                                
Number 1377                                                                                                                     
                                                                                                                                
MR. CHAPPLE  called attention to  the subject of the  Eagle River                                                               
Flats,  and he  said the  department has  never requested  that a                                                               
permit be  required for solid  waste or wastewater  discharge and                                                               
has no  intention or  desire to  impede the  training activities.                                                               
Obviously, he said, that's an  important function.  He noted that                                                               
the bill  is the result  of an ongoing lawsuit  and, paraphrasing                                                               
from  AS 46.03.900,  he explained  that the  definition of  solid                                                               
waste  basically  means  all unwanted,  abandoned,  or  discarded                                                               
material.    He said  in  regard  to  rifle ranges  or  munitions                                                               
ranges, the  department's position  is that  it is  not abandoned                                                               
waste until the  site is no longer  active.  When the  site is no                                                               
longer active and  is intended to be closed, it  could be handled                                                               
as  solid waste  if that's  appropriate, he  said.   If there  is                                                               
contamination  of the  ground  water or  [other]  water, then  it                                                               
would be  handled as a  contaminated site  cleanup.  He  said the                                                               
department has  never implemented [such permitting]  or suggested                                                               
that a permit  would be required.  It is  the department's belief                                                               
that the  operative language  the department  has used,  which is                                                               
part of the  state's precedent for making  those decisions, would                                                               
be beneficial  to the court when  this case is heard,  as well as                                                               
the definition that the department is using, he explained.                                                                      
                                                                                                                                
MR. CHAPPLE  said the  department doesn't view  that a  change in                                                               
the  law  is necessary  to  accomplish  what  the Army  might  be                                                               
looking for and  that the court will hear how  the state has made                                                               
decisions in the  past and what it rests [its  decisions on].  He                                                               
suggested to the  committee that the issue being  heard is really                                                               
a different issue  than the substance of the bill  that is before                                                               
them, even though the title change  would allow this change.  Mr.                                                               
Chapple  said  the  bill  is structured  to  talk  about  general                                                               
permits and  has been brought together  by a number of  people of                                                               
very diverse interests to strike a  balance.  He said if the bill                                                               
is amended to include the Eagle  River Flats issue, it will bring                                                               
with it  the other parties  that are a  part of that  lawsuit and                                                               
the  anxiety and  the  issues  associated with  that  suit.   Mr.                                                               
Chapple said  the department is  concerned and would  prefer that                                                               
the bill stay simple and be completed the way it is.                                                                            
                                                                                                                                
Number 1171                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked whether  an environmental review would                                                               
be required if a new rifle range were being established.                                                                        
                                                                                                                                
MR.  CHAPPLE  noted  that  he  doesn't  manage  the  solid  waste                                                               
program,  and  he  said  he   believes  the  answer  is  no,  the                                                               
department does  not permit  and would not  require a  permit for                                                               
any rifle  range, but local  zoning requirements might  come into                                                               
play.                                                                                                                           
                                                                                                                                
Number 1098                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA  asked if the Army  is currently required                                                               
to live by federal and environmental laws.                                                                                      
                                                                                                                                
MR. CHAPPLE  said he had  been doing environmental work  for over                                                               
20  years and  had  seen  a change  in  the  laws when  sovereign                                                               
immunity was asserted by the  U.S. Department of Defense a number                                                               
of years  ago and exempted  from environmental laws.   Those laws                                                               
have  changed over  the  last  15 years,  and  the Department  of                                                               
Defense  is  generally  obligated  to  meet  state  and  national                                                               
environmental laws.   He said there is currently  a discussion on                                                               
a  national  scale about  the  issue  of sovereign  immunity  and                                                               
whether certain  actions should be  exempted.  In fact,  he said,                                                               
the  commissioner of  DEC  is  currently at  a  meeting with  the                                                               
commissioners  of all  environmental agencies  of the  state, and                                                               
some of the discussion is focusing  on the various aspects of the                                                               
sovereign  immunity tasks,  what would  be exempted,  and certain                                                               
proposals that  are out.   Mr. Chapple  said this issue  has come                                                               
forth  as an  adjustment in  state  law, but  is that  adjustment                                                               
going  to be  needed  in  every other  state  law?   Mr.  Chapple                                                               
suggested  that the  issue needs  to be  addressed on  a national                                                               
scale and that  national environmental laws need to  be looked at                                                               
to try to strike the right balance.                                                                                             
                                                                                                                                
Number 0945                                                                                                                     
                                                                                                                                
MATT  GILL, Staff  to Representative  Eldon Mulder,  Alaska State                                                               
Legislature,  testified.   Mr.  Gill  said Representative  Mulder                                                               
currently represents  Fort Richardson Army base  and supports any                                                               
amendments that  would clarify the Army's  position regarding the                                                               
use of the Eagle River Flats artillery training range.                                                                          
                                                                                                                                
Number 0875                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK, upon  determining no one else  wished to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
MR.  BALASH said  he didn't  think the  sponsor's position  would                                                               
change  and that  there are  a number  of issues  surrounding the                                                               
lawsuit.  He indicated one of  the main issues is whether this is                                                               
the only place  in statute that needs to be  changed, and he said                                                               
in the idea  of good government and  evenhandedness, Ms. Schrader                                                               
pointed out  that there  are a number  of other  individuals that                                                               
would be more than happy  to provide testimony and information on                                                               
this issue if  they were given the opportunity.   Mr. Balash said                                                               
Senator Therriault  has expressed to  him that he would  be happy                                                               
to support  the introduction and  passage of a separate  piece of                                                               
legislation that  would allow this  issue to be addressed  by the                                                               
legislature, would  afford the public  an opportunity to  look at                                                               
the issue  comprehensively, and also  would allow  the department                                                               
to  perhaps take  a more  complete look  at the  position of  the                                                               
state  and where  these types  of issues  should be  addressed in                                                               
state statute.                                                                                                                  
                                                                                                                                
Number 0700                                                                                                                     
                                                                                                                                
COLONEL LEHMAN  said he  thought it  was a  paramount issue.   He                                                               
talked about  the BRAC  closures and the  need for  the artillery                                                               
range to train.   He said the  Army is poised to put  a brand new                                                               
formation called  a IBCT  [Interim Brigade  Combat Team]  that is                                                               
going  to bring  over $1  billion  in new  construction into  the                                                               
state.   He said  he didn't  think the Army  is poised  to invest                                                               
that much money if it will not  be allowed to train here and that                                                               
it will probably move that element to somewhere else.                                                                           
                                                                                                                                
COLONEL LEHMAN  said it would  help the  [Army's] cause to  get a                                                               
piece of  legislation pushed through.   He said he  was uncertain                                                               
about the  success of  the proposed amendment,  but he  wanted to                                                               
ensure that the  legislature had the opportunity  to express what                                                               
it would  like the military's  function and performance to  be in                                                               
the state of Alaska.  He  remarked, "If the lawsuit says we file,                                                               
we  will file;  it  just puts  more burdens  on  the military  to                                                               
perform their mission."   He said he can  understand the position                                                               
of Senator Therriault and his staff.                                                                                            
                                                                                                                                
COLONEL  LEHMAN said  he never  thought it  was a  requirement to                                                               
have  special  permits to  fire  normally  assigned weapons  that                                                               
Congress  bought the  military to  train and  use to  defend this                                                               
land or that  the [Army] would have to ask  to fire those weapons                                                               
on lands  that were set  aside for that purpose.   He said  he is                                                               
willing  to work  with the  legislature  and the  sponsor of  the                                                               
bill,  and he  closed by  saying that  the Army  just wanted  the                                                               
opportunity for the legislature to hear its story.                                                                              
                                                                                                                                
MR. McDONAGH said  the Army is not asking the  legislature to try                                                               
the case;  it is asking  the legislature to confirm  the present,                                                               
past, and  intended future practices of  DEC so as not  to engage                                                               
itself  in regulating  military training  exercises and  allowing                                                               
those exercises  to be precluded  at a facility  that's essential                                                               
for training its soldiers.                                                                                                      
                                                                                                                                
REPRESENTATIVE  GREEN expressed  concern  about time  constraints                                                               
that would hinder passage of  new legislation, and the urgency of                                                               
the  military  to  address  this   issue.    He  mentioned  DEC's                                                               
disinterest  in permitting  rifle ranges  and the  artillery that                                                               
the  military  uses   for  training,  and  the   fact  that  [the                                                               
artillery] explode  and don't leave  the same residue found  at a                                                               
rifle range.   He talked  about including the  proposed amendment                                                               
so  that the  military can  continue training.   He  indicated he                                                               
doesn't foresee it upsetting the delicate balance of the bill.                                                                  
                                                                                                                                
The committee took an at-ease from 3:25 p.m. to 3:28 p.m.                                                                       
                                                                                                                                
Number 0361                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK noted that the committee  would hold SB 356 am for                                                               
further review  and the opportunity  to work with the  sponsor to                                                               
try to create a workable amendment.                                                                                             
                                                                                                                                
Number 0268                                                                                                                     
                                                                                                                                
REPRESENTATIVE STEVENS mentioned other types of military                                                                        
artillery use and questioned whether it is related and should                                                                   
also be looked at.                                                                                                              
                                                                                                                                
CO-CHAIR MASEK suggested that the subject be discussed with the                                                                 
bill's sponsor and the drafter of the proposed amendment.                                                                       
[SB 356 am was held over.]                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 3:29 p.m.                                                                 

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