Legislature(2007 - 2008)BARNES 124

03/07/2007 01:00 PM House RESOURCES


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01:02:28 PM Start
01:02:40 PM Confirmation Hearing: Commissioner, Department of Environmental Conservation - Acting Commissioner Hartig
01:56:26 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearing: TELECONFERENCED
Commissioner, Department of Environmental
Conservation - Larry Hartig
+ Presentation by Mayor Jim Whitaker, TELECONFERENCED
Alaska Gasline Port Authority
<Above Item CANCELED>
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 7, 2007                                                                                          
                           1:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Carl Gatto, Co-Chair                                                                                             
Representative Craig Johnson, Co-Chair                                                                                          
Representative Paul Seaton                                                                                                      
Representative Peggy Wilson                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative David Guttenberg                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Vic Kohring                                                                                                      
Representative Bob Roses                                                                                                        
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S)                                                                                                         
                                                                                                                                
Commissioner, Department of Environmental Conservation                                                                        
                                                                                                                                
     ACTING COMMISSIONER LARRY HARTIG - Anchorage                                                                               
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
PRESENTATION:  ALASKA GASLINE PORT AUTHORITY                                                                                    
                                                                                                                                
     - PRESENTATION CANCELED                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ACTING COMMISSIONER HARTIG, Acting Commissioner                                                                                 
Department of Environmental Conservation                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as the appointed commissioner of                                                                 
the Department of Environmental Conservation.                                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CO-CHAIR  CRAIG  JOHNSON  called  the  House  Resources  Standing                                                             
Committee  meeting  to  order at  1:02:28  PM.    Representatives                                                             
Johnson, Gatto,  and Wilson  were present at  the call  to order.                                                               
Representatives  Seaton, Edgmon,  and Guttenberg  arrived as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
^CONFIRMATION    HEARING:       COMMISSIONER,    DEPARTMENT    OF                                                             
ENVIRONMENTAL CONSERVATION - ACTING COMMISSIONER HARTIG                                                                       
                                                                                                                                
1:02:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON announced that the  only order of business would                                                               
be  the   confirmation  hearing   of  the  commissioner   of  the                                                               
Department  of   Environmental  Conservation  (DEC).     Co-Chair                                                               
Johnson began  the hearing by  asking Acting  Commissioner Hartig                                                               
why he's interested in being the commissioner of DEC.                                                                           
                                                                                                                                
1:03:08 PM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER HARTIG,  Acting Commissioner,  Department of                                                               
Environmental Conservation, related that  he hadn't expected this                                                               
appointment, but when the opportunity  arose there was no problem                                                               
deciding to accept  the appointment.  He explained  that for many                                                               
years he  has worked  on environmental  issues around  the state,                                                               
which he  has enjoyed.   He  mentioned that  he has  also enjoyed                                                               
working with the  scientists, engineers, and other  staff at DEC.                                                               
He  characterized  DEC  as  an  interesting  department  with  an                                                               
interesting and  rewarding time ahead  with the gas  pipeline and                                                               
other issues on the forefront.   Furthermore, Acting Commissioner                                                               
Hartig  opined  that Governor  Palin  is  bringing new  ideas  to                                                               
government, such as open government  and government closer to the                                                               
people.                                                                                                                         
                                                                                                                                
1:04:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON, referring  to Acting Commissioner Hartig's                                                               
work experience  in environmental  and natural  resource matters,                                                               
inquired as to whether he specialized in any area.                                                                              
                                                                                                                                
ACTING  COMMISSIONER  HARTIG  related  that  as  an  attorney  in                                                               
private  practice in  Anchorage  for  23 years,  he  worked on  a                                                               
variety of environmental issues.   He specified that initially in                                                               
his private practice  he focused on contaminated  site issues and                                                               
his  clients included  the  Public  Employees' Retirement  System                                                               
(PERS) and Teachers'  Retirement System (TRS).   He recalled that                                                               
he  worked on  situations  that  arose after  the  change in  law                                                               
requiring businesses to upgrade  or close out underground storage                                                               
tanks.   He further  recalled performing  a lot  of investigative                                                               
work  regarding  whether property  was  contaminated  and how  to                                                               
allocate responsibility  when it was contaminated.   However, for                                                               
the  last 10  years, he  said that  he has  been more  focused on                                                               
natural resource  development in which he  assisted those seeking                                                               
permits  for   mines,  oil  and  gas   operations,  and  resource                                                               
development and assisted them with environmental compliance.                                                                    
                                                                                                                                
1:06:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO reminded  everyone of  the cruise  ship tax  that                                                               
includes  a  $4  tax  for  the ocean  ranger  program,  which  is                                                               
operated under DEC.  He inquired as  to how that $4 would be used                                                               
by DEC.   He further inquired as to how  the ocean ranger program                                                               
will be set up to  monitor environmental conditions on the cruise                                                               
ships.                                                                                                                          
                                                                                                                                
ACTING COMMISSIONER HARTIG said that  the department has had some                                                               
difficulty and  has approached the  sponsors regarding  the clear                                                               
goals of the  program in order to comply with  the law.  However,                                                               
he  said the  department  isn't  sure that  the  sponsors of  the                                                               
initiative   fully  understood   the  logistical   and  practical                                                               
concerns   that  would   arise   when  trying   to  achieve   the                                                               
initiative's goal and  whether the initiative is the  best way to                                                               
actually achieve the goal.   He acknowledged that the legislature                                                               
is  also   reviewing  and  debating   whether  there   should  be                                                               
amendments to  the initiative.   Therefore, he said he  has asked                                                               
the department  to review the  initiative, what it  requires, and                                                               
what DEC  can best  do to implement  the aforementioned  when the                                                               
first  large  cruise  ships  arrive.    The  department  is  also                                                               
planning  to track  what the  legislature  is doing  in terms  of                                                               
amending the  initiative and  anticipate what may  need to  be in                                                               
place in  response.  If  logistics are  an obstacle, he  said the                                                               
department will do the best it  can and provide an explanation as                                                               
to  why  it  doesn't  have a  program  that  provides  everything                                                               
specified on  the first  day.  With  the aforementioned  in mind,                                                               
it's difficult  to specify how  the funds  will be used.   Acting                                                               
Commissioner Hartig  stated that  it's DEC's intent  to implement                                                               
the law  as fully  as possible,  once the  department is  sure of                                                               
what the law is.                                                                                                                
                                                                                                                                
1:10:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO  pointed out  that  an  average ship  with  2,000                                                               
passengers  would generate  $8,000/week  to  implement the  ocean                                                               
ranger  program.   He  related his  understanding  that an  ocean                                                               
ranger needs  to be certified by  DEC rather than the  U.S. Coast                                                               
Guard.                                                                                                                          
                                                                                                                                
MR.  HARTIG   related  his  understanding  that   the  initiative                                                               
requires a  U.S. Coast Guard-certified marine  engineer, although                                                               
that's  not  the  person  who  would need  to  perform  the  work                                                               
contemplated  by the  initiative.   One of  the problems  is that                                                               
[U.S.  Coast  Guard-certified  marine engineers]  aren't  readily                                                               
available  in Alaska  and aren't  necessary to  do the  specified                                                               
job.    A U.S.  Coast  Guard-certified  marine engineer  is  more                                                               
experienced and  trained on  the propulsion  system for  the boat                                                               
versus  air emissions.    Therefore, using  a  U.S. Coast  Guard-                                                               
certified  marine  engineer  would   require  a  fair  amount  of                                                               
training for someone who may not  be the best person for the job.                                                               
Furthermore,  there are  logistical  concerns with  regard to  an                                                               
ocean ranger's interaction with other  people on the boat so that                                                               
there is  no disruption  for the crew  or passengers.   Moreover,                                                               
there are safety concerns.                                                                                                      
                                                                                                                                
1:11:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO suggested that Acting  Commissioner Hartig put out                                                               
a  request for  proposals (RFP)  for an  entity that  can provide                                                               
training and supply the personnel for the specified training.                                                                   
                                                                                                                                
ACTING COMMISSIONER HARTIG answered that  such has been done to a                                                               
degree when  the department  had a consultant,  who was  a former                                                               
DEC  employee  and  U.S.  Coast Guard  member,  review  what  the                                                               
initiative appeared  to require  and how the  logistical concerns                                                               
would be  addressed.  The  aforementioned knowledge  is necessary                                                               
before  the department  can put  out  a contract.   However,  the                                                               
department recognizes  that the initiative  is in flux  and could                                                               
be  amended.   If there  is no  amendment to  the initiative,  he                                                               
opined that it  will be an accelerated situation  in which people                                                               
who  could  be  trained  would  be placed  on  the  cruise  ships                                                               
immediately and others would follow.                                                                                            
                                                                                                                                
1:13:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  requested  that  Acting  Commissioner                                                               
Hartig  describe  what  he  believes   to  be  the  function  and                                                               
responsibilities of the ocean rangers.                                                                                          
                                                                                                                                
ACTING COMMISSIONER  HARTIG emphasized  that the  department will                                                               
start with what  the law is, adding that this  position isn't the                                                               
creation of  DEC.  He  then related his basic  understanding that                                                               
the  initiative sponsors  want there  to be  a watch  dog on  the                                                               
cruise ships  to track what  is being  done on the  cruise ships.                                                               
The initiative sponsors  are concerned, he opined,  that there is                                                               
no one really  tracking what the cruise ships do  while in Alaska                                                               
waters; the sponsors  want to know that there  is compliance with                                                               
state environmental laws  and provide a manner in  which to track                                                               
that.  The  department is attempting to determine  the full gamut                                                               
of compliance issues and how one person can track all of those.                                                                 
                                                                                                                                
1:16:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  if  the  department has  considered                                                               
using  "able-bodied  seamen"  rather  than  a  "marine  engineer"                                                               
since [the department will provide] training.                                                                                   
                                                                                                                                
ACTING  COMMISSIONER  HARTIG  said that  the  department  doesn't                                                               
believe a marine  engineer is necessary, and  noted his agreement                                                               
that  there are  other qualified  people who  would be  easier to                                                               
find and  perhaps even  less expensive  and able  to do  a better                                                               
job.   He noted that  whether an  able-bodied seaman or  a marine                                                               
engineer is used, a fair amount of training would be required.                                                                  
                                                                                                                                
1:17:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  if any  thought has  been given  to                                                               
using  an individual  other than  an individual  licensed by  the                                                               
U.S. Coast Guard.                                                                                                               
                                                                                                                                
ACTING  COMMISSIONER HARTIG  answered, "Not  that I'm  aware of."                                                               
He reiterated  that the department  would track  the requirements                                                               
of the initiative or any amendment passed by the legislature.                                                                   
                                                                                                                                
CO-CHAIR  JOHNSON highlighted  that  the initiative  calls for  a                                                               
licensed Coast Guard marine engineer.   However, he remarked that                                                               
he wasn't sure such an individual existed.                                                                                      
                                                                                                                                
1:17:48 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO related  his understanding  that  the U.S.  Coast                                                               
Guard's main  contribution is  to ensure  that whoever  fills the                                                               
position is licensed.  If  the individual is licensed, "the Coast                                                               
Guard is now out  of it and that person now  has an obligation to                                                               
you and the  rest of us here,"  he said.  Co-Chair  Gatto said he                                                               
envisioned  that   person  would   read  dials  and   record  any                                                               
discrepancies, which  would be  brought to  the attention  of the                                                               
environmental engineer  on board to certify,  verify, or explain.                                                               
He asked if such monitoring requires a marine engineer.                                                                         
                                                                                                                                
ACTING COMMISSIONER HARTIG  responded, "I don't believe  so."  He                                                               
noted that  the [department] performs inspections  throughout the                                                               
state of a wide variety  of facilities and the department doesn't                                                               
have (indisc.) in those instances.                                                                                              
                                                                                                                                
1:19:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO returned  to the cost of $8,000 a  day.  He opined                                                               
that it isn't  necessary to [monitor] this daily  because much of                                                               
the information  is automatically recorded.   Therefore, Co-Chair                                                               
Gatto  related  his  belief  that   this  [monitoring]  could  be                                                               
performed for $1,000  a day.  He then asked  what the $8,000 will                                                               
be utilized for and could the program cost more than that a day.                                                                
                                                                                                                                
ACTING COMMISSIONER  HARTIG said that  he doesn't have  the exact                                                               
figures on  the budget, but offered  to provide those.   He noted                                                               
that  the [estimates/program]  is  scaled back  from the  initial                                                               
point at  which the [monitoring] had  to be performed 24  hours a                                                               
day  every  day.    The  department  doesn't  believe  that  such                                                               
monitoring is necessary to verify environmental compliance.                                                                     
                                                                                                                                
1:21:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO pointed  out that the cruise ships  will be coming                                                               
in a  little over two  months and  are coming [whether  the ocean                                                               
ranger program is ready or not].                                                                                                
                                                                                                                                
ACTING COMMISSIONER HARTIG said that  has been a concern for him,                                                               
which has resulted in the  department reviewing alternatives.  He                                                               
reiterated  that  his instructions  to  department  staff are  to                                                               
follow the law  as closely as possible.  The  reality, he opined,                                                               
is that there won't be an ocean  ranger on each boat on the first                                                               
day.                                                                                                                            
                                                                                                                                
1:23:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO  asked  if  there's  a  definition  of  a  marine                                                               
engineer.                                                                                                                       
                                                                                                                                
CO-CHAIR   JOHNSON  commented   that   the  initiative   requires                                                               
something that's relatively undeliverable.                                                                                      
                                                                                                                                
REPRESENTATIVE  SEATON  interjected   that  there  are  different                                                               
levels of certification of marine  engineers.  He opined that the                                                               
person being  licensed is necessary,  "but I don't think  that we                                                               
need the ... Coast Guard licensing  of an engineer.  But we don't                                                               
want to put  someone on a vessel in the  areas that they're going                                                               
to be  when the ship is  underway that doesn't at  least have ...                                                               
an able-bodied seaman card ...."                                                                                                
                                                                                                                                
1:25:23 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO  pointed out that  the crew on these  cruise ships                                                               
are typically  foreign nationals  and will need  to work  with an                                                               
English speaker.  He asked if that's a significant issue.                                                                       
                                                                                                                                
ACTING  COMMISSIONER HARTIG  said  that's a  level  of detail  to                                                               
which he  can't speak.   He reiterated  that the  department went                                                               
out  for a  contract  to  try to  work  out  what the  logistical                                                               
concerns would be.                                                                                                              
                                                                                                                                
1:26:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO  recalled that  after  an  accidental dumping  of                                                               
[waste] three  years ago he boarded  a cruise ship and  was taken                                                               
through all the  procedures.  After going  through the procedures                                                               
required  [to  dump  waste],  Co-Chair   Gatto  opined  that  the                                                               
[dumping]  was no  accident.   He further  opined that  the ocean                                                               
ranger  program   is  important,   especially  since   these  are                                                               
people/entities  who  have  had   convictions.    Co-Chair  Gatto                                                               
specified  that   this  [program]  is  simply   a  safeguard  for                                                               
preventing  the  contamination  of   halibut  beds  and  throwing                                                               
plastic bags  off the  back of the  boat.  The  only way  to know                                                               
that things  are being done properly  is to put someone  on board                                                               
to verify it.  Co-Chair Gatto said  that he would be very wary of                                                               
objections stating that people didn't  know what they were voting                                                               
for because the voters asked for the ocean rangers.                                                                             
                                                                                                                                
ACTING COMMISSIONER  HARTIG noted his appreciation  of the input,                                                               
and reiterated  that the department  wants to follow the  law and                                                               
the initiative.                                                                                                                 
                                                                                                                                
1:30:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO related  his  understanding  that the  department                                                               
will spend  money before collecting  it.  Therefore,  he inquired                                                               
as to how much funding the department has requested.                                                                            
                                                                                                                                
ACTING  COMMISSIONER HARTIG  specified that  supplemental funding                                                               
in the amount  of $811,000 has been requested.   The supplemental                                                               
funding  is necessary  due  to  the delay  between  the time  the                                                               
department will  have to  implement the  program and  actually be                                                               
able to collect the funds to pay for it.                                                                                        
                                                                                                                                
CO-CHAIR  GATTO estimated  that  1 million  passengers paying  $4                                                               
each will result in the collection  of $4 million over the course                                                               
of the season.                                                                                                                  
                                                                                                                                
1:31:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG reminded the  members of the transition                                                               
from   the    Lease   Monitoring   and    Engineering   Integrity                                                               
Coordinator's Office (LMEICO) to  the Petroleum Systems Integrity                                                               
Office (PSIO).  He inquired  as to how Acting Commissioner Hartig                                                               
views the department's  role with the oil industry  and its aging                                                               
infrastructure.                                                                                                                 
                                                                                                                                
ACTING  COMMISSIONER  HARTIG  informed the  committee  that  even                                                               
before he was  officially on board, he told those  at DEC that he                                                               
didn't want another  pipeline corrosion issue on his  watch.  The                                                               
department is  developing a  gap analysis  in which  the in-house                                                               
resources of  the agency will  be used  in order to  identify any                                                               
gaps  with regard  to regulation  with  DEC and  between DEC  and                                                               
other agencies.   He reminded  the committee that the  Alaska Oil                                                               
and  Gas  Conservation Commission  (AOGCC)  regulates  up to  the                                                               
wellhead, then  DEC [regulates] the  flow lines traveling  to the                                                               
Trans-Alaska  Pipeline System  (TAPS),  and from  there the  U.S.                                                               
Department of  Transportation is in charge.   Acting Commissioner                                                               
Hartig noted  that there was  a gap in  that the flow  lines were                                                               
not actually  covered, which resulted  in DEC creating  a package                                                               
of  regulations  that  will  cover  the  flow  lines  and  become                                                               
effective  this fall.    He said  that he  wanted  to review  the                                                               
situation  internally and  perhaps even  bring in  a third  party                                                               
contractor  to ensure  that there  are  no gaps  and overlap  for                                                               
risky areas.  The department  is going through the aforementioned                                                               
now.  Furthermore,  some of the other  commissioners are thinking                                                               
along the same lines and  are [reviewing] whether there are risks                                                               
that are  present that aren't  being addressed that should  be of                                                               
concern.   The effort  with the  liaison position  doesn't dilute                                                               
the effort,  but rather will take  everyone's collective efforts,                                                               
put  them   together,  review  them   collectively  as   well  as                                                               
individually and  develop a budget  that directly  addresses what                                                               
the [department] will be doing.   At this point the department is                                                               
building  on  what  it  saw  and determining  what  is  the  most                                                               
logical, efficient, and workable system that can be implemented.                                                                
                                                                                                                                
1:37:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG highlighted that  the legislature has a                                                               
vested  interest to  ensure  that  the gaps  are  addressed.   He                                                               
recalled  a conversation  with  Department  of Natural  Resources                                                               
(DNR) in  which department staff  said that their leases  had the                                                               
ability  to go  anywhere  that was  covered under  a  lease.   In                                                               
response to  whether that provided  DEC with the  same authority,                                                               
DNR didn't  know.  Representative  Guttenberg questioned  who has                                                               
authority on the sump after AOGCC leaves.                                                                                       
                                                                                                                                
ACTING  COMMISSIONER  HARTIG  confirmed that  the  department  is                                                               
reviewing that  issue.   With regard  to whether  DNR's authority                                                               
under the  lease and  DEC's authority  are co-extensive,  he said                                                               
that DEC's authority  is broader.  He explained that  DNR has the                                                               
lease arrangement  and can  include terms in  the lease  that the                                                               
lessee has to meet.   Therefore, DNR has that additional leverage                                                               
that goes outside  its environmental regulations or  those of DEC                                                               
such that DNR can address any  of the concerns brought forth with                                                               
the gap/risk  analysis in the  terms of the lease.   Furthermore,                                                               
DNR can incorporate DEC's requirements  into the lease.  He noted                                                               
that  besides the  gap  analysis each  department  would do,  the                                                               
lessee should have  to put forth a plan that  says what they plan                                                               
to do  to deal  with this aging  infrastructure.   Therefore, the                                                               
departments  can  review  that  together and  concerns  could  be                                                               
addressed under the terms of  the lease.  The aforementioned only                                                               
addresses leases  on state land.   For leases not on  state land,                                                               
one has  to review  DEC's authority.   Therefore, he  opined that                                                               
DEC's task  is a  bit different  and perhaps  a bit  broader than                                                               
that of DNR.                                                                                                                    
                                                                                                                                
1:41:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG turned  to  clean air  standards.   He                                                               
related his  understanding that the  industry is willing  to sell                                                               
some of its  hybrid cars in states that  adopt standards allowing                                                               
that.    He  pointed  out  that DEC  has  the  ability  to  adopt                                                               
standards allowing the sale of such  cars in Alaska.  He asked if                                                               
Acting Commissioner Hartig has had any discussion on that.                                                                      
                                                                                                                                
ACTING COMMISSIONER HARTIG replied no,  but offered to follow up.                                                               
He said he didn't know why  the department would stand in the way                                                               
of  anything that's  environmentally  beneficial.   He  mentioned                                                               
that  one of  his [goals]  is to  do what's  available to  reduce                                                               
pollution.                                                                                                                      
                                                                                                                                
1:42:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO inquired as to what the standards would say.                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  said   the  standards  would  utilize                                                               
permissive language.                                                                                                            
                                                                                                                                
1:42:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked if the  department is proceeding with                                                               
the National Pollutant Discharge Elimination System (NPDES).                                                                    
                                                                                                                                
ACTING  COMMISSIONER HARTIG  related that  pursuing primacy  from                                                               
the Environmental  Protection Agency (EPA)  is a priority  of the                                                               
department.   Currently,  EPA issues  the NPDES  under the  Clean                                                               
Water Act in Alaska.  Alaska is  one of five states that does not                                                               
have primacy.  The 45 states  that have primacy have received the                                                               
authority from the  EPA to issue the permits,  albeit under EPA's                                                               
regulations and oversight.   Acting Commissioner Hartig explained                                                               
that Alaska  is pursuing primacy  because utilizing  local people                                                               
could be  more responsive to  local concerns and  perhaps provide                                                               
quicker turnaround.   He pointed  out that permits coming  out of                                                               
Region  10 in  Seattle  compete against  Oregon, Washington,  and                                                               
Idaho for prioritization.  Furthermore,  there were some problems                                                               
obtaining  modifications  to permits  since  that  wasn't a  high                                                               
priority with  EPA.  Therefore, there  are a variety of  pros and                                                               
cons to  state primacy.   However, the state is  pursuing primacy                                                               
and put  forth its  draft application July  1, 2006,  after which                                                               
EPA identified about 199 concerns.   There are about two concerns                                                               
left.    He  recalled  that  EPA  brought  forward  some  changes                                                               
requiring legislative  changes, which  is encompassed in  HB 149.                                                               
The  aforementioned legislation  uses more  technical changes  to                                                               
place Alaska law in compliance  with EPA requirements for a state                                                               
to take  primacy.  He  noted that no new  permitting requirements                                                               
are added, it  merely gives the state some of  the same authority                                                               
the EPA  has in Alaska  regarding the issuance of  NPDES permits.                                                               
The  department will  provide another  draft  application to  EPA                                                               
July  1st and  the EPA  will provide  any additional  comments by                                                               
September  1st.   A final  application will  be provided  to EPA,                                                               
which  will attempt  to  have  a final  decision  on the  state's                                                               
application by  March 31,  2008.  If  the decision  is favorable,                                                               
the  state would  then have  the  NPDES program,  which would  be                                                               
phased  in over  three years.   Over  that three-year  period the                                                               
state  would work  with EPA  to  put together  permits and  train                                                               
department personnel.   At the  end of the three-year  period the                                                               
state should be fully running the program.                                                                                      
                                                                                                                                
1:47:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  recalled that permits are  backlogged with                                                               
EPA because they have Washington and  Oregon permits as well.  He                                                               
related  his  understanding  that   Washington  and  Oregon  have                                                               
primacy,  and surmised  that there  would still  be a  backlog if                                                               
Alaska takes primacy.                                                                                                           
                                                                                                                                
ACTING  COMMISSIONER  HARTIG  clarified that  [those  EPA  staff]                                                               
working  on  permits  get  pulled  in  different  directions  and                                                               
permits just  aren't a priority for  the region.  He  opined that                                                               
it's difficult for  a small facility in Alaska to  amend a permit                                                               
because those  require the same  process as the  original permit.                                                               
The  aforementioned is  problematic, especially  when the  permit                                                               
modification doesn't have direct  environmental impacts and other                                                               
priorities for staff  and funding exist and result  in a shifting                                                               
of the priorities.                                                                                                              
                                                                                                                                
1:49:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON related  his understanding  from DEC  that                                                               
there  would be  20 fewer  people working  on NPDES  permits than                                                               
currently.  Therefore,  he expressed concern that  this will slow                                                               
the process.   He opined that the [permitting  process] will cost                                                               
money, and  therefore more money  will have to be  collected from                                                               
permittees  since  the  [program]   will  be  self-sustaining  in                                                               
Alaska.   Representative Seaton urged Acting  Commissioner Hartig                                                               
to review  the situation  carefully in order  to ensure  that the                                                               
former  administration's   ideas  related  to   streamlining  the                                                               
process are consistent with the ideas of the new administration.                                                                
                                                                                                                                
ACTING  COMMISSIONER HARTIG  noted his  agreement that  the state                                                               
has to have a program in  which everyone has confidence, and thus                                                               
corners can't be cut.                                                                                                           
                                                                                                                                
1:50:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON related  his observation  that there's  no                                                               
question  that Acting  Commissioner Hartig  is qualified  and has                                                               
the integrity  and background for  the position  of commissioner.                                                               
However, he  highlighted Acting Commissioner  Hartig's membership                                                               
in  professional and  community  organizations and  asked if  the                                                               
position of commissioner is a very different position.                                                                          
                                                                                                                                
ACTING COMMISSIONER HARTIG replied yes and  no.  He noted that he                                                               
filled the  recreation seat  on the Board  of Forestry,  which he                                                               
characterized as a  position fairly analogous to  what he's doing                                                               
now.   That  board  is somewhat  unique in  that  it consists  of                                                               
representatives from  key stakeholders,  including environmental,                                                               
fishing,  biological, Native,  recreation, and  timber interests.                                                               
Furthermore, decisions had  to be unanimous less one  and thus it                                                               
resulted in people working together  in a cooperative manner.  He                                                               
expressed hope that  he could bring that to this  job.  He opined                                                               
that if he had a bias he wouldn't take the position.                                                                            
                                                                                                                                
1:53:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  inquired  as to  Acting  Commissioner                                                               
Hartig's interest in  holding the recreational seat  on the Board                                                               
of Forestry.                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER HARTIG  related  that he  has  always had  a                                                               
strong  interest in  state  parks  and was  a  member of  various                                                               
recreational groups.   He noted that he sat on  the Chugach State                                                               
Park Regional  Advisory Board  and was head  of the  Alaska State                                                               
Park Foundation.                                                                                                                
                                                                                                                                
1:54:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON   said  she   was  glad  to   hear  Acting                                                               
Commissioner Hartig  liked how the  Board of Forestry was  set up                                                               
and  recalled her  time working  in  such a  process that  caused                                                               
everyone to work together.                                                                                                      
                                                                                                                                
1:55:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  moved that the committee  forward the name                                                               
of  Larry  Hartig   to  the  position  of   commissioner  of  the                                                               
Department  of Environmental  Conservation to  the full  body for                                                               
consideration.  There being no objection, it was so ordered.                                                                    
                                                                                                                                
1:56:24 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources  Standing Committee  meeting was  adjourned at  1:56:26                                                             
PM.                                                                                                                           

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