Legislature(2007 - 2008)BARNES 124

03/12/2007 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 137 SENIOR FISHING/HUNTING/TRAPPING LICENSES TELECONFERENCED
Moved CSHB 137(RES) Out of Committee
*+ HB 149 POLLUTANT DISCHARGE PERMITS TELECONFERENCED
Heard & Held
*+ HB 165 BIG GAME GUIDES AND TRANSPORTERS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 12, 2007                                                                                         
                           1:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Carl Gatto, Co-Chair                                                                                             
Representative Craig Johnson, Co-Chair                                                                                          
Representative Bob Roses                                                                                                        
Representative Paul Seaton                                                                                                      
Representative Peggy Wilson                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Vic Kohring                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 137                                                                                                              
"An  Act amending  the requirements  for the  identification card                                                               
needed  for  sport  fishing,  hunting,  and  trapping  without  a                                                               
license by residents who are 60 years of age or more."                                                                          
                                                                                                                                
     - MOVED CSHB 137(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 149                                                                                                              
"An  Act  relating   to  the  authority  of   the  Department  of                                                               
Environmental   Conservation  to   require  certain   monitoring,                                                               
sampling,  and  reporting  and to  require  permits  for  certain                                                               
discharges  of pollutants;  relating  to  criminal penalties  for                                                               
violations of the permit program;  and providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 165                                                                                                              
"An Act relating  to providing field accommodations  for big game                                                               
hunters."                                                                                                                       
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 137                                                                                                                  
SHORT TITLE: SENIOR FISHING/HUNTING/TRAPPING LICENSES                                                                           
SPONSOR(s): FISHERIES                                                                                                           
                                                                                                                                
02/14/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/14/07       (H)       FSH, RES, FIN                                                                                          
02/19/07       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
02/19/07       (H)       -- Meeting Canceled --                                                                                 
02/23/07       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
02/23/07       (H)       Moved CSHB 137(FSH) Out of Committee                                                                   
02/23/07       (H)       MINUTE(FSH)                                                                                            
02/26/07       (H)       FSH RPT CS(FSH) 2DP 1DNP 2NR                                                                           
02/26/07       (H)       DP: WILSON, SEATON                                                                                     
02/26/07       (H)       DNP: JOHANSEN                                                                                          
02/26/07       (H)       NR: LEDOUX, HOLMES                                                                                     
02/26/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
02/26/07       (H)       <Bill Hearing Canceled>                                                                                
03/12/07       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 149                                                                                                                  
SHORT TITLE: POLLUTANT DISCHARGE PERMITS                                                                                        
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/21/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/07       (H)       RES, JUD                                                                                               
03/12/07       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 165                                                                                                                  
SHORT TITLE: BIG GAME GUIDES AND TRANSPORTERS                                                                                   
SPONSOR(s): REPRESENTATIVE(s) LEDOUX                                                                                            
                                                                                                                                
02/28/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/28/07       (H)       RES                                                                                                    
03/12/07       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KATIE SHOWS, Staff                                                                                                              
to Representative Paul Seaton                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions regarding HB 137.                                                                       
                                                                                                                                
KRISTIN WRIGHT, Accountant IV                                                                                                   
Finance/Licensing Supervisor                                                                                                    
Division of Administrative Services                                                                                             
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions regarding HB 137.                                                                       
                                                                                                                                
LYNN TOMICH KENT, Director                                                                                                      
Division of Water                                                                                                               
Department of Environmental Conservation (DEC)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Presented background information  on HB 149                                                               
and answered questions.                                                                                                         
                                                                                                                                
CAMERON LEONARD, Senior Assistant Attorney General                                                                              
Natural Resources Section                                                                                                       
Civil Division (Fairbanks)                                                                                                      
Department of Law (DOL)                                                                                                         
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Presented section-by-section information on                                                               
HB 149 and answered questions.                                                                                                  
                                                                                                                                
STEVE BORELL, Executive Director                                                                                                
Alaska Miners Association (AMA)                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 149.                                                                            
                                                                                                                                
BOB SHAVELSON, Executive Director                                                                                               
Cook Inletkeeper                                                                                                                
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Presented testimony regarding HB 149.                                                                      
                                                                                                                                
SUZANNE HANCOCK, Staff                                                                                                          
to Representative Gabrielle LeDoux                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented sponsor statement for HB 165.                                                                    
                                                                                                                                
RICK METZGER                                                                                                                    
Akhiok, Alaska                                                                                                                  
POSITION STATEMENT:   Presented information as  the private cabin                                                               
owner who  alerted Representative  LeDoux to the  issue addressed                                                               
by HB 165.                                                                                                                      
                                                                                                                                
TOM TEMPLE                                                                                                                      
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  As a private cabin owner, supported HB 165.                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CO-CHAIR  CRAIG  JOHNSON  called  the  House  Resources  Standing                                                             
Committee  meeting  to  order at  1:03:57  PM.    Representatives                                                             
Johnson,  Gatto,  Guttenberg,  Roses,  Seaton,  and  Wilson  were                                                               
present  at the  call  to order.    Representatives Kawasaki  and                                                               
Edgmon arrived as the meeting was in progress.                                                                                  
                                                                                                                                
HB 137-SENIOR FISHING/HUNTING/TRAPPING LICENSES                                                                               
                                                                                                                              
1:04:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON  announced that  the  first  order of  business                                                               
would be  HOUSE BILL NO.  137, "An Act amending  the requirements                                                               
for the  identification card needed  for sport  fishing, hunting,                                                               
and trapping without  a license by residents who are  60 years of                                                               
age or more."                                                                                                                   
                                                                                                                                
1:06:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PAUL  SEATON spoke as  chair of the  House Special                                                               
Committee on Fisheries,  sponsor of HB 137.  He  explained that a                                                               
problem  was  identified  in  Alaska  state  statutes  whereby  a                                                               
permanent identification card  (PID) is given to  any person over                                                               
60 who applies for one.  This PID serves as a lifetime free-of-                                                                 
charge  sport  fishing, hunting,  and  trapping  license.   About                                                               
46,000 PIDs  have been issued to  date.  However, the  problem is                                                               
that people move out of the state  and yet retain their PID.  The                                                               
Alaska Department  of Fish  & Game  (ADF&G) has  noticed problems                                                               
with  people  not  supporting  Alaska's  fisheries  by  buying  a                                                               
fishing license.  This bill  converts a PID into a free-of-charge                                                               
temporary identification  card (TID)  that is  good for  a three-                                                               
year period.   The  TID is  tied to  the Permanent  Fund Dividend                                                               
(PFD) for determining eligibility.   Each year the Permanent Fund                                                               
Dividend Division will  provide ADF&G with an  electronic list of                                                               
every person who  received a PFD the previous year.   By checking                                                               
the PFD list, ADF&G can  determine an applicant's eligibility for                                                               
a  TID.   Alaska  residents who  do not  participate  in the  PFD                                                               
program  for philosophical  reasons can  still receive  a TID  by                                                               
showing proof to  ADF&G that they were in the  state for 185 days                                                               
of the  previous year.   The TID  rewards the senior  citizens of                                                               
Alaska who remain residents of the state.                                                                                       
                                                                                                                                
1:10:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO stated that his  understanding of the bill is that                                                               
everyone who  currently has a PID  will get to keep  it, but that                                                               
new applicants  can keep [their  TIDs] only if they  stay [Alaska                                                               
residents].                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON stated  that this  is correct.   He  asked                                                               
that the  committee adopt the  committee substitute  (CS) because                                                               
it  incorporates changes  requested  by  ADF&G for  clarification                                                               
purposes.                                                                                                                       
                                                                                                                                
1:10:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON moved  to  adopt as  the working  document                                                               
committee substitute (CS) for HB  137, Version 25-LS0118\O, Kane,                                                               
3/7/07.                                                                                                                         
                                                                                                                                
1:11:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  objected for discussion purposes  and asked for                                                               
confirmation on  whether only new  applicants will be  subject to                                                               
the [TID] system.                                                                                                               
                                                                                                                                
REPRESENTATIVE SEATON advised that this  is correct.  He directed                                                               
attention to  a 2/27/07  opinion from  Brian Kane  of Legislative                                                               
Legal Services that confirms that this change is legal.                                                                         
                                                                                                                                
[The  committee treated  Co-Chair  Johnson's  objection as  being                                                               
withdrawn.   There  being  no further  objection,  Version O  was                                                               
treated as before the committee.]                                                                                               
                                                                                                                                
1:12:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO  asked whether  non-resident seniors  returning to                                                               
Alaska to  fish are taking  a disproportionate amount of  fish so                                                               
as to make the bill's provisions worth the effort.                                                                              
                                                                                                                                
REPRESENTATIVE SEATON responded that  the program has developed a                                                               
bad name and it should not be  this way.  He explained that there                                                               
is no requirement  to prove anything, an applicant  does not even                                                               
have to submit  a driver's license.  Cardholders  are required to                                                               
maintain residency,  yet there is  no way  for an officer  in the                                                               
field to verify the person's  residency.  He expressed his belief                                                               
that many  people who are  no longer residents will  still return                                                               
to Alaska to  fish even if they must pay  for nonresident fishing                                                               
licenses.   Additionally, even if  a person leaves the  state, he                                                               
or she  will still have a  3-year license.  He  stressed that the                                                               
current program  is unenforceable  and that  HB 137  will correct                                                               
this  problem.   He also  pointed out  that the  state relies  on                                                               
fishing  licenses for  funding the  monitoring and  management of                                                               
fisheries by the Division of Sport Fish.                                                                                        
                                                                                                                                
1:15:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  inquired about  the results of  the 3/7/07                                                               
arraignment of  the out-of-state couple  who was cited  in Hoonah                                                               
for unlawful sport fishing.                                                                                                     
                                                                                                                                
KATIE SHOWS, Staff  to Representative Paul Seaton,  said that she                                                               
thinks the couple was reprimanded for this one particular case.                                                                 
                                                                                                                                
REPRESENTATIVE  WILSON  asked whether  it  was  correct that  the                                                               
couple had been fishing unlawfully  since 2000 and was the couple                                                               
fined.                                                                                                                          
                                                                                                                                
MS. SHOWS responded that she will ask ADF&G.                                                                                    
                                                                                                                                
1:16:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO  commented that this  is an attack on  seniors and                                                               
questioned whether  it is an  issue that needs fixing  because it                                                               
generates so little revenue.                                                                                                    
                                                                                                                                
MS. SHOWS referred  to a fact sheet in the  committee packet with                                                               
ADF&G's "best guess"  estimate that the revenue lost  due to this                                                               
problem is $137,827.   She agreed that this is not  a huge sum of                                                               
money, but that it is something.                                                                                                
                                                                                                                                
CO-CHAIR GATTO  inquired whether  this assumes that  everyone who                                                               
would qualify  would still  want to fish  even though  they would                                                               
now have to pay.                                                                                                                
                                                                                                                                
MS. SHOWS deferred to Kristin Wright of ADF&G.                                                                                  
                                                                                                                                
1:18:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  expressed  his  opinion that  this  is  an                                                               
equitability issue,  not an economic  issue, because  the benefit                                                               
of residency  for senior citizens  is diluted by  allowing former                                                               
residents to [fish for free].                                                                                                   
                                                                                                                                
1:21:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG asked  whether  thought  was given  to                                                               
other ways  of determining eligibility  rather than receipt  of a                                                               
PFD.                                                                                                                            
                                                                                                                                
REPRESENTATIVE SEATON pointed out that  using the PFD database to                                                               
verify  eligibility is  easy  and simple,  plus  the database  is                                                               
updated  every  year.    If  someone   did  not  get  a  PFD  for                                                               
philosophical  reasons there  are still  ways for  them to  get a                                                               
TID.  He explained that  using a driver's license for eligibility                                                               
is  difficult because  some states  mandate that  a person  get a                                                               
driver's license  for that state if  he or she lives  there for a                                                               
certain  length of  time  during  the year,  even  if the  person                                                               
maintains residency in another state.                                                                                           
                                                                                                                                
1:24:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG stated  that it  is his  understanding                                                               
that the PFD  database is no longer available to  the public.  He                                                               
asked how stores selling the licenses access the database will.                                                                 
                                                                                                                                
KRISTIN  WRIGHT,  Accountant  IV,  Finance/Licensing  Supervisor,                                                               
Division of Administrative Services,  Alaska Department of Fish &                                                               
Game (ADF&G), explained that the  license database will be housed                                                               
at ADF&G  and will  not be public.   She said  that PIDs  are not                                                               
currently available through  stores.  Applicants must  come to an                                                               
ADF&G office  or field office and  the PFD database will  then be                                                               
accessed by ADF&G through the  Internet.  If the applicant's name                                                               
is not on  the PFD database, he  or she will be  required to fill                                                               
out a form.  In response  to a further question, Ms. Wright noted                                                               
that there are many field  offices located throughout the state -                                                               
Bethel, Tok,  Dillingham, Nome, Kotzebue,  and Barrow, to  name a                                                               
few.  She  said that more than 75 percent  of current cardholders                                                               
applied for their PIDs by mail.                                                                                                 
                                                                                                                                
1:26:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   EDGMON  said   he   agreed  that   this  is   an                                                               
equitability   issue  and   that  it   is  good   public  policy.                                                               
Nonetheless,  he  said   that  he  is  concerned   this  will  be                                                               
problematic for  elderly Alaska  natives living  in the  Bush who                                                               
will now have to get a new license every three years.                                                                           
                                                                                                                                
MS. WRIGHT advised that she put  in a fiscal note to enable ADF&G                                                               
to notify cardholders  well in advance of when  their three years                                                               
is up.  A form will be  included in the notice for cardholders to                                                               
fill out  and return.   In  response to  a further  question, she                                                               
noted  that  it  is  currently   too  difficult  to  conduct  the                                                               
application and  renewal process over  the Internet, but  that it                                                               
might become available in the  future.  In response to additional                                                               
questions,  Ms. Wright  pointed out  that a  first-time applicant                                                               
can  choose to  apply either  by  mail or  in person  at a  field                                                               
office or at her [Juneau] office.   She noted that renewals could                                                               
also be  done either by mail  or in person, and  that ADF&G would                                                               
again  verify  whether the  person  had  received  a PFD  or  had                                                               
completed a form with all of the boxes checked off.                                                                             
                                                                                                                                
1:29:50 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO  asked  whether  an  Alaska  "snowbird"  with  an                                                               
Arizona  driver's  license would  be  precluded  from getting  an                                                               
identification card under either the current or new system.                                                                     
                                                                                                                                
MS. WRIGHT said that, currently,  identification does not have to                                                               
be presented  to receive a  PID - an  applicant only fills  out a                                                               
form that  also includes  information about  his or  her driver's                                                               
license.   While an Arizona  license would  be a red  flag, ADF&G                                                               
would still issue the card and  then send the applicant's name to                                                               
the Alaska  Bureau of Wildlife  Enforcement for  further checking                                                               
since ADF&G is  not an enforcement agency.   This procedure would                                                               
also  apply to  the TID  program  proposed by  HB 137.   The  new                                                               
system would be  more foolproof than the  current program because                                                               
a person  must qualify for  the PFD and  cannot just walk  in off                                                               
the street  to avoid paying  the [out-of-state] license fee.   In                                                               
response to a  further question, Ms. Wright  clarified that under                                                               
the  new  system, ADF&G  would  not  issue  a TID  without  first                                                               
looking  for the  applicant's  name  in the  PFD  database.   The                                                               
current system  does not  require any  proof of  residence except                                                               
for the applicant's signature on a line.                                                                                        
                                                                                                                                
1:33:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG inquired  as to  how Ms.  Wright built                                                               
her assumptions  regarding who  is and who  is not  eligible, and                                                               
how many bad licenses were issued each year.                                                                                    
                                                                                                                                
MS. WRIGHT stated  that she did not have  an assumption regarding                                                               
how many  bad licenses  have been issued  because ADF&G  does not                                                               
believe the  abuse is rampant,  only that it  is a problem.   She                                                               
commented  that ADF&G  would like  to use  this license  file for                                                               
sport fishing  surveys and would  therefore like this file  to be                                                               
accurate for statistical reasons.   She said that she included in                                                               
her  analysis the  number of  licenses issued  annually and  then                                                               
assumed that 50  percent of those people would continue  to get a                                                               
fishing license and 25 percent would  get a hunting license.  She                                                               
used  this  assumption because  that  is  what  the rest  of  the                                                               
population  does.    In  response  to  a  further  question,  she                                                               
confirmed that  [the percentages] are only  an assumption because                                                               
there is no way to know for sure.                                                                                               
                                                                                                                                
1:35:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON   asked  what  Ms.  Wright   thinks  about                                                               
implementing a five year period instead of a three year period.                                                                 
                                                                                                                                
MS. WRIGHT  advised that five  years would  give a bit  more time                                                               
for people  to continue using the  TID and that it  would be less                                                               
of an  administrative burden.  There  would be a few  more abuses                                                               
by going with five years, but not a lot.                                                                                        
                                                                                                                                
REPRESENTATIVE  EDGMON   stated  his  opinion  that   this  is  a                                                               
sensitive issue  for senior citizens  who already have  this card                                                               
in  place.    He  requested  that a  five  year  time  period  be                                                               
considered.                                                                                                                     
                                                                                                                                
REPRESENTATIVE   SEATON  explained   that   any  person   already                                                               
possessing  a PID  is  grandfathered into  the  program and  will                                                               
never  need to  re-apply.   It  is only  those seniors  receiving                                                               
cards under  the new program who  will be affected by  the three-                                                               
year time period.                                                                                                               
                                                                                                                                
1:38:08 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON closed public  testimony after ascertaining that                                                               
no one else wished to speak.                                                                                                    
                                                                                                                                
1:38:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  commented  that  she did  not  think  any                                                               
senior citizen can  complain because for the price of  a stamp he                                                               
or she can fish for free for three years.                                                                                       
                                                                                                                                
1:38:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO asked whether the  Association for the Advancement                                                               
of Retired Persons (AARP) has commented on the bill.                                                                            
                                                                                                                                
MS.  SHOWS reported  that Representative  Seaton did  not contact                                                               
AARP, nor has he heard from them.   She said that only two public                                                               
comments have  been received and  that they are in  the committee                                                               
packet  -  one  is  the e-mail  cited  by  Representative  Wilson                                                               
regarding  the  Hoonah couple  and  the  other  is an  e-mail  in                                                               
opposition to the bill from a senior in District 35.                                                                            
                                                                                                                                
1:41:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO  pointed  out  that the  fiscal  note  for  ADF&G                                                               
constitutes only a couple of thousand dollars in the out years.                                                                 
                                                                                                                                
1:41:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON moved to report  the CS for HB 137, Version                                                               
25-LS0118\O,  out of  committee  with individual  recommendations                                                               
and the  accompanying fiscal  notes.   There being  no objection,                                                               
CSHB  137(RES) was  reported from  the  House Resources  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
HB 149-POLLUTANT DISCHARGE PERMITS                                                                                            
                                                                                                                                
1:41:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON announced that the  next order of business would                                                               
be HOUSE BILL  NO. 149, "An Act relating to  the authority of the                                                               
Department  of  Environmental  Conservation  to  require  certain                                                               
monitoring, sampling,  and reporting  and to require  permits for                                                               
certain discharges of pollutants;  relating to criminal penalties                                                               
for  violations  of the  permit  program;  and providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
1:42:18 PM                                                                                                                    
                                                                                                                                
LYNN  TOMICH KENT,  Director, Division  of  Water, Department  of                                                               
Environmental  Conservation (DEC),  presented  background for  HB
149.   She  explained  that  the federal  Clean  Water Act  (CWA)                                                               
requires  that all  wastewater discharges  to  surface waters  be                                                               
permitted  under  the  National Pollutant  Discharge  Elimination                                                               
System (NPDES)  Permitting Program.   The CWA intends  for states                                                               
to  implement or  to  have  primacy for  this  program, with  the                                                               
Environmental  Protection Agency  (EPA) serving  in an  oversight                                                               
role  over the  states that  implement  the program.   There  are                                                               
presently 45 states that have primacy  for the NPDES program.  In                                                               
Alaska, the EPA  is currently the NPDES  permitting authority and                                                               
DEC  plays a  secondary role  whereby DEC  certifies that  all of                                                               
EPA's permits will comply with  Alaska's water quality standards.                                                               
The DEC  also issues  permits for  those smaller  discharges that                                                               
EPA does not "get around" to issuing permits for.                                                                               
                                                                                                                                
MS. KENT  informed the  committee that in  2005 the  Alaska State                                                               
Legislature, through  Senate Bill 110,  directed DEC to  take all                                                               
actions  necessary to  assume authority  for the  NPDES discharge                                                               
permitting  authority, including  responsibility for  issuing the                                                               
permits and  for ensuring compliance  with the permits.   As part                                                               
of DEC's work with EPA to  transfer primacy to the state, EPA has                                                               
identified several areas where changes  to the state statutes are                                                               
required  in  order  for  DEC  to have  the  full  complement  of                                                               
statutory authorities that are needed  for DEC to assume primacy.                                                               
Those  state authorities  are adjusted  by  HB 149  to match  the                                                               
federal authorities.   Each change  addresses a  specific concern                                                               
that is raised by EPA as something that must be fixed.                                                                          
                                                                                                                                
1:44:13 PM                                                                                                                    
                                                                                                                                
CAMERON  LEONARD,  Senior  Assistant  Attorney  General,  Natural                                                               
Resources Section, Civil Division  (Fairbanks), Department of Law                                                               
(DOL),  pointed out  that  all  of the  sections  of  HB 149  are                                                               
designed to respond to comments  that the state has received from                                                               
EPA and they  are put together into a statutory  package that EPA                                                               
can approve.   Therefore, each  section of  the bill has  its own                                                               
background of negotiation between the state and EPA.                                                                            
                                                                                                                                
MR. LEONARD explained  that Sections 1 and 5 are  linked and that                                                               
both address  where monitoring and reporting  requirements can be                                                               
placed  -  either within  a  discharge  permit  or outside  of  a                                                               
discharge  permit.   Conditions  of  permits  are enforceable  by                                                               
third party  lawsuits, and  some members of  the work  group were                                                               
concerned  that  certain  monitoring and  reporting  requirements                                                               
that were  not tied to compliance  had been placed in  permits by                                                               
EPA,  thus  exposing  the permittees  to  third  party  lawsuits.                                                               
Therefore, DOL  collaborated with the  work group to  determine a                                                               
way to require monitoring and  reporting outside of permits.  The                                                               
language in Section 1 clarifies that DEC has this power.                                                                        
                                                                                                                                
1:46:18 PM                                                                                                                    
                                                                                                                                
MR. LEONARD  noted that  Section 2  deals only  with terminology.                                                               
He explained that the CWA, the  federal law under which the state                                                               
is  trying  to  assume  the permitting  program,  uses  different                                                               
terminology than that used in  Alaska statutes.  For example, the                                                               
federal  term  for the  placement  of  pollutants into  water  is                                                               
"discharge,"  whereas Alaska  statute uses  the term  "disposal."                                                               
Adding  the  phrase "or  discharge"  and  cleaning up  the  other                                                           
language makes it clear that DEC  has the same range of authority                                                               
over activities that EPA has under the federal law.                                                                             
                                                                                                                                
1:47:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked for  an explanation of  any possible                                                               
consequences that could result from  the removal of the exemption                                                               
for domestic sewage in Section 2.                                                                                               
                                                                                                                                
MR.  LEONARD  related  that  this issue  is  being  removed  from                                                               
Section 2  because it is covered  under Section 4.   He explained                                                               
that under current law this issue  is dealt with in two different                                                               
places  and  is stated  differently,  and  that this  results  in                                                               
confusion.                                                                                                                      
                                                                                                                                
1:48:18 PM                                                                                                                    
                                                                                                                                
MR. LEONARD described the amendments  embodied in Section 3(b) of                                                               
the bill which  lists the different kinds  of authorizations that                                                               
DEC can  use to  allow a  discharge.  One  of EPA's  comments, he                                                               
said, was that  it was unclear to EPA that  it was DEC's decision                                                               
as  to which  one  to require  for a  given  circumstance.   This                                                               
change clarifies  that it is  indeed up to DEC  which requirement                                                               
applies to any given circumstance.                                                                                              
                                                                                                                                
1:49:08 PM                                                                                                                    
                                                                                                                                
MR.  LEONARD noted  that Section  4(e) addresses  seven different                                                               
exemptions,  or exclusions,  from  the  current requirements  for                                                               
getting a permit from DEC,  and the exemption that Representative                                                               
Seaton  inquired about  is covered  by Subsection  (e)(1).   This                                                               
change tracks  federal law which  contains an exclusion  from the                                                               
requirement  of  getting  an NPDES  permit  for  domestic  sewage                                                               
discharged  to  a publicly  owned  treatment  works (POTW).    He                                                               
explained  that   the  work  group  tried   writing  the  state's                                                               
exemption more  broadly to deal  with any treatment  work whether                                                               
publicly  or privately  owned.   However, EPA  required that  the                                                               
state's  program be  just as  inclusive  as EPA's,  and EPA  only                                                               
excludes discharges of  domestic sewage to POTWs.   Thus, Section                                                               
4(e)(1) makes state law the same as federal law.                                                                                
                                                                                                                                
MR.  LEONARD  pointed  out  that,  currently,  any  discharge  of                                                               
domestic sewage  into surface waters that  is not via a  POTW, is                                                               
subject  to  the  requirement  of  getting  a  federal  discharge                                                               
permit.  There is no  exemption from the NPDES permit requirement                                                               
for  discharges made  into  surface  waters -  whether  or not  a                                                               
person knows of this requirement and  whether or not a person has                                                               
a permit.   Therefore, state law will be the  same as federal law                                                               
on  this point.    What  this means  in  practice  is probably  a                                                               
question that should  be asked of DEC.  However,  he said that he                                                               
thought  there are  tools available  under the  program, such  as                                                               
general  permits, where  DEC will  be able  to authorize  a whole                                                               
category of discharges without having to do individual permits.                                                                 
                                                                                                                                
1:51:56 PM                                                                                                                    
                                                                                                                                
MR. LEONARD  proceeded to Section 4(e)(4)  relating to incidental                                                               
discharges, such as discharge of  water from trenching, drilling,                                                               
or  other  types  of  construction activities.    He  noted  that                                                               
current state law uses the term  "surface water of the state" and                                                               
federal law uses  "waters of the United States," a  term that may                                                               
not  mean exactly  the  same  thing as  surface  water.   Section                                                               
4(e)(4) aligns the state's terminology with EPA's.                                                                              
                                                                                                                                
1:53:04 PM                                                                                                                    
                                                                                                                                
MR.  LEONARD   next  discussed  Section  4(e)(7)   regarding  the                                                               
discharge of munitions.  He  explained that the exemption for the                                                               
discharge of  munitions remains in  place but that  the exemption                                                               
does not  apply if it results  in a discharge into  waters of the                                                               
United  States.    Munitions  are  specifically  covered  in  the                                                               
definition of  pollutants under the  CWA, therefore  discharge of                                                               
munitions  to  waters of  the  United  States requires  an  NPDES                                                               
permit.   In  response to  a  question, Mr.  Leonard stated  that                                                               
under current law,  a shooting range that projects  over water is                                                               
required  to get  a  discharge permit  from EPA.    Once the  new                                                               
program is approved, permit applications  will instead be made to                                                               
DEC.                                                                                                                            
                                                                                                                                
1:54:45 PM                                                                                                                    
                                                                                                                                
MR.  LEONARD moved  to Section  5(h) and  reminded the  committee                                                               
that this  section is linked with  Section 1.  He  said that this                                                               
section  is related  to protecting  permittees  from third  party                                                               
suits  for monitoring  and reporting  requirements  that are  not                                                               
tied  to compliance,  either  with permit  limits  or with  water                                                               
quality  standards.   If  HB 149  passes with  Sections  1 and  5                                                               
remaining as  they are written, DEC  will be given the  choice to                                                               
put those sorts  of requirements either in permits  or outside of                                                               
permits.  He said that this  will satisfy EPA because this is the                                                               
authority that EPA has now.                                                                                                     
                                                                                                                                
1:56:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   WILSON  asked   whether   she   is  correct   in                                                               
understanding  that currently  at the  federal level  there is  a                                                               
choice of putting  a requirement either in the  permit or outside                                                               
the permit,  and that  this bill  will give  the state  that same                                                               
choice.                                                                                                                         
                                                                                                                                
MR. LEONARD confirmed that this is exactly what he is saying.                                                                   
                                                                                                                                
1:56:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG asked  for an  explanation of  Section                                                               
5(h) in regard to changing the word "mandated" to "authorized."                                                             
                                                                                                                                
MR. LEONARD  noted that  this refers  to Section  308 of  the CWA                                                               
which gives EPA  broad discretion for the kind  of monitoring and                                                               
reporting that a permittee is required  to do.  Changing the word                                                               
"mandated" to "authorized" gives DEC this same broad discretion.                                                            
                                                                                                                                
1:58:16 PM                                                                                                                    
                                                                                                                                
MR. LEONARD then  addressed Sections 6 and 7.   He explained that                                                               
terminology is again  the issue, and that  these sections clarify                                                               
that  the  state's use  of  the  term "waste  material"  includes                                                               
"pollutants" as defined by the U.S. Congress in the CWA.                                                                        
                                                                                                                                
1:59:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  why  not use  the same  terminology                                                               
that is found in federal law if  the point is for the state to be                                                               
able to take over enforcement of the CWA.                                                                                       
                                                                                                                                
MR. LEONARD explained that AS  46.03.100 deals with subjects that                                                               
go  beyond  the  Alaska Pollutant  Discharge  Elimination  System                                                               
(APDES)  program.   For  example,  it  deals with  discharges  of                                                               
materials to land,  such as the permitting of land  fills.  While                                                               
developing the APDES  program, the state faced the  choice of how                                                               
much  to do  by changes  to the  statute and  how much  to do  by                                                               
regulations.   The state tried  to create the  regulatory program                                                               
to  satisfy   EPA  within  the  broader   umbrella  of  authority                                                               
represented by  AS 46.03.100 even  though it led to  these issues                                                               
of  terminology.   Numerous programs  are  run by  DEC under  the                                                               
authority of AS 46.03.100, and  changing all the language in that                                                               
statute would cause problems in other areas.                                                                                    
                                                                                                                                
2:00:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked whether  the term  "pollutants" will                                                               
be used  by the state  when dealing  with NPDES permits,  or will                                                               
the state now substitute the  term "waste material" because it is                                                               
more expansive than "pollutants."                                                                                               
                                                                                                                                
MR. LEONARD  said that the  state will use the  term "pollutants"                                                               
because   that  is   the  definition   that   has  already   been                                                               
incorporated into  the regulations  promulgated to  implement the                                                               
program.  This proposed change in  Sections 6 and 7 just makes it                                                               
clearer that this is what the state legislature intended.                                                                       
                                                                                                                                
2:01:49 PM                                                                                                                    
                                                                                                                                
MR.  LEONARD lastly  explained  Section  8(i) regarding  criminal                                                               
penalties  for violations  of the  program.   Under the  CWA, the                                                               
mens rea, or "state of mind,"  that must be proven when seeking a                                                               
criminal  sanction  for  violation  of the  program  is  "simple"                                                               
negligence.  However, current state  law requires that "criminal"                                                               
negligence be proven,  which is a slightly higher  state of mind.                                                               
For  the state  program to  be  approved, EPA  is requiring  that                                                               
state  statutes  be  revised  so that  violations  of  the  APDES                                                               
program  only have  to be  proven with  "simple" negligence,  and                                                               
this is what Section 8(i) does.                                                                                                 
                                                                                                                                
2:03:19 P1M                                                                                                                   
                                                                                                                                
CO-CHAIR GATTO  inquired whether dumping  water from a  cooler of                                                               
beer constitutes  simple negligence  under the  terms of  HB 149,                                                               
page 1, lines 13 and 14.                                                                                                        
                                                                                                                                
MR.  LEONARD remarked  that  it is  absurd that  there  is no  de                                                               
minimis  exception  to  CWA  requirements.   In  theory,  if  the                                                               
discharge from a person's cooler  was to surface waters, a purist                                                               
could argue  that it requires an  NPDES permit.  No  one in their                                                               
right mind  would actually say that,  but there is case  law that                                                               
says there is  no generally acknowledged de  minimis exemption to                                                               
the NPDES  permit program.   Therefore,  he said,  it is  easy to                                                               
come up with absurd hypotheticals  about the theoretical reach of                                                               
the  program.   In response  to a  further question,  Mr. Leonard                                                               
stated  that  he  did  not  think anyone  would  argue  that  the                                                               
drainage  from  a  cooler  would  constitute  waste  material  or                                                               
pollutants.   In  response to  another example  regarding hunters                                                               
camping  out, he  explained that  in the  real world  there is  a                                                               
functional  de   minimis  doctrine   whether  the   courts  would                                                               
recognize  it or  not, the  only question  is where  is the  line                                                               
drawn between  truly de minimis  activities and what needs  to be                                                               
permitted.                                                                                                                      
                                                                                                                                
CO-CHAIR GATTO remarked that this is  his point and he is looking                                                               
for the  line that  determines whether  or not  a situation  is a                                                               
violation.                                                                                                                      
                                                                                                                                
MR.  LEONARD related  his belief  that  one of  the reasons  that                                                               
industry supports the State of  Alaska taking over the program is                                                               
the hope that  state regulators will be more  responsive and more                                                               
realistic than  EPA's Region  10 office located  in Seattle.   He                                                               
said he  did not know  if this would  make the problem  any worse                                                               
than  it  is  now,  but  that  the  state  is  not  adopting  any                                                               
requirements that  are not already  there under federal law.   If                                                               
HB 149 goes through, then the state will be running the program.                                                                
                                                                                                                                
2:08:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  requested Mr. Leonard to  expand on an                                                               
earlier  comment that  the  type of  permits,  or conditions  for                                                               
permits, could  be tailored more  tightly if the  term "mandated"                                                               
is changed to "authorized" under Section 5 of the bill.                                                                     
                                                                                                                                
MR. LEONARD  explained that he  initially insisted that  the word                                                               
"mandated" was  fine, but  that ultimately  the state  went along                                                               
with  EPA's  desires  and  changed  it.   He  remarked  that  the                                                               
difference between the  terms is a bit elusive, but  that the way                                                               
he thinks  the law would be  implemented in practice is  that DEC                                                               
would  still  exercise  its discretion  and  put  monitoring  and                                                               
reporting requirements in permits  that deal with compliance, for                                                               
example permit limits  and water quality standards.   Mr. Leonard                                                               
related  his belief  that DEC  intends to  keep requirements  for                                                               
informational types  of monitoring  and reporting outside  of the                                                               
permits,  and  that  this  information will  be  used  in  future                                                               
decisions regarding whether  there ought to be  permits for other                                                               
parameters.   He noted that  this is the  plan even though  it is                                                               
not found in the language of  the bill.  The bill is specifically                                                               
only  for satisfying  EPA's concerns.    He stated  that this  is                                                               
where  the line  is drawn  -  if it  is tied  to compliance  with                                                               
permit  limits  and  with  water   quality  standards,  then  the                                                               
requirements will go in the permits.                                                                                            
                                                                                                                                
2:10:25 PM                                                                                                                    
                                                                                                                                
MR.  LEONARD,  in  response to  a  question  from  Representative                                                               
Seaton, reiterated that EPA has  the ability to choose whether it                                                               
wants  to put  the  requirements  in a  permit  or  outside of  a                                                               
permit.    In  practice,  he  explained, EPA  puts  many  of  the                                                               
monitoring  and  reporting  requirements into  permits  that  DEC                                                               
intends to keep  outside the permits.  It is  because of that and                                                               
because of some of the  third party suits against permittees that                                                               
the work  group was concerned  about this  point.  He  noted that                                                               
EPA sometimes implements what is  known as "308 orders" where the                                                               
monitoring and reporting  to EPA are done outside  of the permit.                                                               
He said that historically EPA  has put more requirements into the                                                               
permits themselves than DEC plans to do.                                                                                        
                                                                                                                                
2:11:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked whether this  move to primacy  is to                                                               
preclude  enforcement of  pollutant  discharge  permits by  third                                                               
party   action,  and   whether  the   state  will   increase  its                                                               
enforcement to  cover situations that are  currently being looked                                                               
after by the public.                                                                                                            
                                                                                                                                
MR. LEONARD  stated that all  of the requirements of  the permits                                                               
issued by DEC will still  be enforceable by citizen suits because                                                               
they are  conditions of NPDES  permits.  For example,  the permit                                                               
limits that  control how  much pollutants  can be  discharged are                                                               
still enforceable.   The question is whether to  put a particular                                                               
monitoring requirement into  a permit or do it  separately via an                                                               
order.   By placing the requirement  into the permit, it  is made                                                               
enforceable by the citizen suit  mechanism.  The intent of taking                                                               
over  the program  is not  to get  rid of  citizen suits,  but is                                                               
narrowly focused on  monitoring and reporting that  does not have                                                               
to do with compliance.                                                                                                          
                                                                                                                                
2:12:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  requested that  the committee  be provided                                                               
with examples  of cases that will  now be outside of  the permits                                                               
and will not  be enforceable by third parties.   He surmised that                                                               
DEC's budget will need to be  increased in order for the state to                                                               
enforce the requirements outside of a permit.                                                                                   
                                                                                                                                
2:13:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO  referred  to the  third  paragraph  of  Governor                                                               
Palin's  February 20,  2007, letter  to Speaker  Harris regarding                                                               
treatment  of sewage.   He  asked whether  domestic septic  tanks                                                               
will now fall under requirements for treated sewage.                                                                            
                                                                                                                                
MR. LEONARD  explained that the  homeowner with a  typical septic                                                               
tank will  not be  subject to the  program because  the discharge                                                               
will not  be to a  surface water.   Only those homeowners  with a                                                               
[sewage] pipe  that goes to surface  waters, such as a  stream or                                                               
coastal waters, would be affected by this program.                                                                              
                                                                                                                                
2:14:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO asked whether a  hole for an outhouse that happens                                                               
to  go  into an  aquifer  which  drains  into  a river  would  be                                                               
considered a violation of the program.                                                                                          
                                                                                                                                
MR.  LEONARD stated  that  this would  not be  a  violation.   He                                                               
related that there is some case  law that talks about when ground                                                               
water has a connection to a  surface water body, but that the few                                                               
cases   that  are   reported  have   much  stronger   facts  that                                                               
demonstrate measurable impacts to adjacent surface waters.                                                                      
                                                                                                                                
2:15:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO asked  whether draining a 500 gallon  hot tub onto                                                               
the surface is a violation.                                                                                                     
                                                                                                                                
MR. LEONARD responded  that it would not be a  violation if it is                                                               
not to a surface  water.  If it is to a  surface water, in theory                                                               
someone could say that is  thermal pollution because it is heated                                                               
water going to  a surface water.  In practice  in the real world,                                                               
nobody permits  it and  nobody tries  to sue  because it  was not                                                               
permitted.   He said that  there is  currently a defacto  rule of                                                               
reason in place that he does not think will change.                                                                             
                                                                                                                                
2:16:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON   pointed  out  a  qualifier   related  to                                                               
discharge from a point source in  Section 4, page 2, lines 29-31,                                                               
that may address Representative Gatto's hypothetical examples.                                                                  
                                                                                                                                
2:16:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  asked whether  the state's  current regulations                                                               
are more restrictive  than are EPA's, and whether there  is a net                                                               
gain  or net  loss to  the environmental  impact by  passing this                                                               
bill.                                                                                                                           
                                                                                                                                
MR. LEONARD said no.  The  changes tighten the state's program by                                                               
bringing more  activities within  the scope of  DEC's regulation.                                                               
He explained that  EPA will only approve a state  program that is                                                               
as stringent  and inclusive as  the federal program that  it will                                                               
be  replacing.   These changes  will make  DEC's program  just as                                                               
inclusive as EPA's.                                                                                                             
                                                                                                                                
2:18:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON  inquired  as  to whether  the  term  "any                                                               
waters of the United States" includes subsurface waters.                                                                        
                                                                                                                                
MR. LEONARD replied  no.  The term "waters of  the United States"                                                               
is defined  in the CWA and  is tied to navigability;  it does not                                                               
include subsurface or ground water.                                                                                             
                                                                                                                                
REPRESENTATIVE  EDGMON asked  whether  this is  addressed in  the                                                               
bill, perhaps through reference to Title 31.                                                                                    
                                                                                                                                
MR. LEONARD said  that the definition is not addressed  in HB 149                                                               
because it is included in  the regulations that have been adopted                                                               
and the regulations follow the federal definition from the CWA.                                                                 
                                                                                                                                
2:19:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG offered  his understanding  that there                                                               
is a legal  problem relating to the definition of  "waters of the                                                               
United States" and  that this is one of the  reasons the state is                                                               
dealing with this issue.                                                                                                        
                                                                                                                                
MR. LEONARD  remarked that  this is  a very  active issue  at the                                                               
federal level,  including recent  decisions by the  Supreme Court                                                               
of the United States.  He noted  that the scope of "waters of the                                                               
United States"  is dynamic and  evolving, and also  affects other                                                               
programs  such  as the  U.S.  Army  Corps of  Engineers'  (USACE)                                                               
"dredge  and fill"  permit  program.   He  acknowledged that  the                                                               
State of Alaska  will inherit some of that  uncertainty by taking                                                               
over the program.  As the scope  of the term evolves, he said, it                                                               
will be reflected in what EPA requires states to do.                                                                            
                                                                                                                                
2:19:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  referenced a court case  involving the                                                               
Red Dog Mine  and inquired whether the state is  going far enough                                                               
towards meeting  EPA standards  and goals, and  can the  state be                                                               
taken  to  court   if  it  does  not  follow   through  with  its                                                               
obligations.                                                                                                                    
                                                                                                                                
MR. LEONARD explained that should  changes be made at the federal                                                               
level to  the doctrine of  waters of  the U.S., [DEC]  can change                                                               
the  regulatory definition  without  coming  to the  legislature.                                                               
The state's program will be  subject to ongoing federal oversight                                                               
and  EPA  can  take  the  program back  if  the  state  does  not                                                               
implement  it in  a  way that  complies with  federal  law.   All                                                               
programs   that   are   assumable   by   states   under   federal                                                               
environmental laws are subject to this kind of oversight.                                                                       
                                                                                                                                
REPRESENTATIVE GUTTENBERG  commented that  the state has  a clear                                                               
interest in "Alaskanizing" as much of this as it can.                                                                           
                                                                                                                                
2:21:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  requested  Mr. Leonard's  opinion  as  to                                                               
whether  defining  "waters  of the  United  States"  in  Alaska's                                                               
statutes could be detrimental, given  that the federal definition                                                               
is subject to change.                                                                                                           
                                                                                                                                
MR.  LEONARD  commented that  this  is  a good  question  because                                                               
determining which definition  should be in the  statute was quite                                                               
a struggle.   He said  that the work  group tried to  create this                                                               
program in the regulations because it  wanted to keep the bill as                                                               
simple as possible  and because adding a  statutory definition of                                                               
"waters  of  the  U.S."  might  cause  confusion.    The  current                                                               
definition  of  "waters  of  the state"  is  different  than  the                                                               
definition for  "waters of the  U.S."  One  particular difference                                                               
is that the state does not  include wetlands in its definition of                                                               
"waters of the  state," whereas EPA does include  wetlands in the                                                               
definition of "waters of the  U.S."  To prevent confusion between                                                               
these definitions,  it was decided  to put the definition  in the                                                               
regulations that  were promulgated  to implement  this particular                                                               
program.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  SEATON  commented  that  he  is  concerned  about                                                               
making  changes  in  regulation without  full  knowledge  of  the                                                               
issues that might be affected, such as wetlands.                                                                                
                                                                                                                                
2:24:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  reviewed his understanding that  this is to                                                               
bring the  permitting process  and DEC's  compliance requirements                                                               
in line with what EPA wants.   He asked whether it is anticipated                                                               
that DEC  will take over  any of the enforcement  requirements or                                                               
other actions currently being done by EPA.                                                                                      
                                                                                                                                
MR. LEONARD reported  that DEC will take over  the enforcement at                                                               
the same time that it takes over the writing of the permits.                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES questioned  why there  is then  a 0  fiscal                                                               
note.                                                                                                                           
                                                                                                                                
MR. LEONARD deferred to DEC.                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON commented  that this is one of  his questions as                                                               
well.                                                                                                                           
                                                                                                                                
REPRESENTATIVE ROSES stated that he  is concerned over the fiscal                                                               
note and the wetlands issue.                                                                                                    
                                                                                                                                
2:25:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  asked whether  the state is  assuming liability                                                               
and becoming the  subject of lawsuits - rather than  the EPA - by                                                               
taking over this program.                                                                                                       
                                                                                                                                
2:25:48 PM                                                                                                                    
                                                                                                                                
MR. LEONARD  referred to the Red  Dog Mine court case  that he is                                                               
familiar  with and  that is  probably the  court case  referenced                                                               
earlier by  Representative Guttenberg.   He  pointed out  that in                                                               
this court case, the state  and EPA were at loggerheads regarding                                                               
the Clean  Air Act  - therefore  the case  is irrelevant  to this                                                               
issue.  He confirmed that  by taking over NPDES responsibilities,                                                               
DEC will  become responsible  for enforcing  the permits  that it                                                               
issues.  He said that beyond  this, he did not see large exposure                                                               
to  liability from  running the  program  and that  he could  not                                                               
speculate on  the kinds of lawsuits  that people may file  in the                                                               
future.                                                                                                                         
                                                                                                                                
2:26:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON noted that  the discharge qualifier that he                                                               
had pointed out  earlier in Section 4 on page  2 is not mentioned                                                               
in Section  2 on page 1,  and that he  would like for this  to be                                                               
addressed.                                                                                                                      
                                                                                                                                
CO-CHAIR JOHNSON responded  that it might be  something the House                                                               
Judiciary Standing Committee should look at.                                                                                    
                                                                                                                                
2:27:17 PM                                                                                                                    
                                                                                                                                
MS. KENT  explained that the reason  there is no fiscal  note for                                                               
HB 149 is  because a fiscal note was included  in Senate Bill 110                                                               
when it was passed in 2005.   This provided the funding necessary                                                               
for DEC to implement the program, she said.                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON  inquired  whether the  2005  fiscal  note                                                               
anticipated that DEC would be  responsible for taking enforcement                                                               
actions  for  those requirements  that  are  now outside  of  the                                                               
permit and no longer enforceable by third parties.                                                                              
                                                                                                                                
MS.  KENT  stated  that  this  was  DEC's  intention  all  along,                                                               
therefore the 2005 fiscal note does reflect that.                                                                               
                                                                                                                                
2:28:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON opened public testimony on HB 149.                                                                             
                                                                                                                                
2:28:56 PM                                                                                                                    
                                                                                                                                
STEVE  BORELL,  Executive  Director,  Alaska  Miners  Association                                                               
(AMA),  testified in  support of  HB 149.   He  related that  the                                                               
intent  of  the bill  is  to  modify  existing statute  that  was                                                               
previously  passed  to  allow state  assumption  of  EPA's  NPDES                                                               
program.  The  current bill contains a few  additional items that                                                               
are needed  for the state to  assume the program.   For the state                                                               
to obtain  primacy over NPDES,  its authorities must be  at least                                                               
as strong  as those of EPA  and this bill makes  the changes that                                                               
will ensure  that Alaska statutes  meet that test.   He commended                                                               
DEC for its work on this issue and urged passage of the bill.                                                                   
                                                                                                                                
2:30:40 PM                                                                                                                    
                                                                                                                                
BOB  SHAVELSON, Executive  Director, Cook  Inletkeeper, explained                                                               
that  his  organization  works towards  water  quality  and  fish                                                               
habitat protection  in the Cook  Inlet watershed.  He  noted that                                                               
typically  Cook  Inletkeeper  would support  "Alaskanizing"  this                                                               
permit program.  However, he said,  this was part of a permitting                                                               
package that the Murkowski  Administration put through, therefore                                                               
it is  important to look  at this in  the whole context  of other                                                               
things that have  occurred.  For example,  substantial changes to                                                               
the  Alaska  Coastal  Management Program  removed  citizens  from                                                               
decision-making  in that  program.   Biologists  were taken  away                                                               
from the Alaska Department of Fish  & Game (ADF&G) and moved to a                                                               
development  agency under  the  Department  of Natural  Resources                                                               
(DNR).   The  Murkowski Administration  lifted the  long-standing                                                               
ban on  mixing zones in  salmon spawning  areas.  He  opined that                                                               
this   assumption   of   state    primacy   occurs   within   the                                                               
aforementioned context.   He contended that  Mr. Borell's support                                                               
of the  bill is  not surprising  because AMA was  one of  the few                                                               
entities that was  allowed to participate in the work  group.  He                                                               
related  that   Native  groups,  fishing  groups,   and  ordinary                                                               
Alaskans were denied the opportunity to  sit at the table in that                                                               
work  group and  to have  substantive input  into development  of                                                               
this  policy.   The  Murkowski  Administration  chose to  have  a                                                               
closed-door  approach  to  this,  he   argued,  and  it  is  Cook                                                               
Inletkeeper's opinion that  that approach does not  result in the                                                               
best public policy.                                                                                                             
                                                                                                                                
MR. SHAVELSON warned  that this bill will result  in having fewer                                                               
people doing a very complex job  that was previously done by EPA.                                                               
It  is basically  building bigger  state government  when nothing                                                               
indicated  that the  system was  broken.   He explained  that the                                                               
state has  the authority  to weigh  in on  any federal  permit to                                                               
ensure  that   it  protects  water  quality   standards  and  the                                                               
designated uses  like fishing and  drinking.  He  maintained that                                                               
DEC   routinely,   because   of  resource   constraints,   either                                                               
affirmatively waives  that requirement  or puts  in no  time when                                                               
the  department certifies  the permit.   He  said this  makes him                                                               
question DEC's  commitment to  enforcing the  law since  they are                                                               
not already  doing so.  He  urged the committee to  hear from EPA                                                               
and  how  their  relationship  has  been  with  DEC  because  EPA                                                               
rejected the  initial proposal  that went  in from  the Murkowski                                                               
Administration.   He warned  that financially  the state  will be                                                               
taking on a large program and attempting to do more with less.                                                                  
                                                                                                                                
2:35:33 PM                                                                                                                    
                                                                                                                                
MR. SHAVELSON,  in response  to a  question, contended  that more                                                               
equitable sharing of the permitting  fees would have occurred had                                                               
citizens  and other  folks  been allowed  to  participate in  the                                                               
working group.   He said  that industry  refused to pay  more for                                                               
this program,  the result being  a larger expenditure  for Alaska                                                               
government.  Had there been  a more open and transparent process,                                                               
there  might  have  been  a more  equitable  solution  that  Cook                                                               
Inletkeeper  could have  supported.   In  response  to a  further                                                               
question, Mr.  Shavelson said  that there  will be  an additional                                                               
cost to permittees in Alaska.                                                                                                   
                                                                                                                                
2:36:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON closed public  testimony after ascertaining that                                                               
no  one else  wished to  speak.   He announced  that the  bill is                                                               
being held until the committee  receives answers to its questions                                                               
from DEC.                                                                                                                       
                                                                                                                                
HB 165-BIG GAME GUIDES AND TRANSPORTERS                                                                                       
                                                                                                                                
2:37:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON  announced that  the  final  order of  business                                                               
would be HOUSE BILL NO. 165,  "An Act relating to providing field                                                               
accommodations for big game hunters."                                                                                           
                                                                                                                                
2:38:14 PM                                                                                                                    
                                                                                                                                
SUZANNE  HANCOCK,  Staff   to  Representative  Gabrielle  LeDoux,                                                               
presented  the  sponsor  statement on  behalf  of  Representative                                                               
LeDoux.   She explained that  in 1996 legislation was  enacted to                                                               
establish definitions  and laws for licensed  guides, outfitters,                                                               
and  transporters of  big game  hunters.   However,  there is  no                                                               
provision for a cabin owner who  merely wishes to rent his or her                                                               
cabin  to people  who may  or  may not  be hunting.   Many  rural                                                               
Alaska residents  have auxiliary  cabins that  are empty  part of                                                               
the year.   She  stated that  HB 165 will  allow cabin  owners to                                                               
rent their  cabins without  falling into  any of  the regulations                                                               
established  under   the  1996  statute.     Generating  economic                                                               
development  is difficult  in rural  areas, she  noted, and  this                                                               
bill will  enable people to  provide a service and  earn revenue.                                                               
She said  that professional  guides and members  of the  Board of                                                               
Game worked with Representative LeDoux to craft the bill.                                                                       
                                                                                                                                
2:39:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON gave  an  example of  being  flown into  a                                                               
cabin for a bear hunt.  She said  that the cabin was owned by the                                                               
pilot and asked whether HB 165  disallows a pilot from flying big                                                               
game hunters into a cabin that is owned by that pilot.                                                                          
                                                                                                                                
MS. HANCOCK stated that  Representative Wilson's example probably                                                               
put  that   pilot  in   the  position   of  being   considered  a                                                               
transporter.   She  explained  that  HB 165  applies  only to  an                                                               
individual who rents a cabin  without providing any other service                                                               
but the  roof over the renter's  head.  In response  to a further                                                               
question,  she related  that Rick  Metzger, the  cabin owner  who                                                               
brought this issue to Representative  LeDoux's attention, will be                                                               
testifying.   She said  that other cabin  owners having  the same                                                               
problems also contacted Representative LeDoux.                                                                                  
                                                                                                                                
2:42:28 PM                                                                                                                    
                                                                                                                                
RICK   METZGER   related   his  opinion   that   the   pilot   in                                                               
Representative Wilson's example would not  be affected by HB 165.                                                               
He  surmised  that  the  pilot  in her  example  was  probably  a                                                               
licensed transporter because  a cabin owner can only  rent his or                                                               
her  cabin   to  hunters   if  he  or   she  also   provides  the                                                               
transportation to that  cabin..  He said that  under current law,                                                               
a pilot  cannot fly hunters to  a private cabin that  is owned by                                                               
someone else.                                                                                                                   
                                                                                                                                
2:43:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON asked if Mr.  Metzger is a guide wishing to                                                               
rent cabins that he owns in various locations.                                                                                  
                                                                                                                                
MR. METZGER  responded that  he is  not a  guide, only  a private                                                               
property  owner with  a couple  of cabins.   He  said that  he is                                                               
trying to develop a source  of supplemental income by renting his                                                               
cabins to hunters.                                                                                                              
                                                                                                                                
2:43:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  inquired whether  his understanding  is correct                                                               
that  under current  law a  cabin owner  cannot rent  his or  her                                                               
cabin to someone who is hunting.                                                                                                
                                                                                                                                
MR.  METZGER related  that this  is what  he has  been told.   He                                                               
explained that  when he first  set up his cabin  rental business,                                                               
he  inquired with  the Division  of  Corporations, Business,  and                                                               
Professional Licensing,  the Division  of Alaska  State Troopers,                                                               
and  the Office  of the  Attorney General  to get  information to                                                               
ensure  he was  legal  in  renting his  cabins.    He obtained  a                                                               
business license for real estate  rental because he was told that                                                               
that  was the  only thing  necessary.   In November  2006 he  was                                                               
visited  by Alaska  State Troopers  who told  him that  under the                                                               
definition of "field,"  he could not legally rent  his cabins [to                                                               
big game  hunters].  He said  that he "fell into  a trap" because                                                               
he is  neither a licensed guide  nor a transporter.   In response                                                               
to a  question, Mr. Metzger  stated that it is  his understanding                                                               
that when the legislature re-implemented  the Big Game Commercial                                                               
Services Board, changes  were made to a 1996  statute in relation                                                               
to the definition of "field."   These changes went into affect in                                                               
August  2006 and  it was  these  changes that  the troopers  were                                                               
enforcing.                                                                                                                      
                                                                                                                                
2:46:40 PM                                                                                                                    
                                                                                                                                
TOM  TEMPLE said  that  he supported  HB 165  because  he owns  a                                                               
remote cabin that he would like to  rent to big game hunters.  He                                                               
said that he  is familiar with "takings" issues  because he works                                                               
for  a  law  firm.   He  said  that  he  does not  represent  Mr.                                                               
Metzger's interests, but  he explained that Mr.  Metzger was free                                                               
to  rent  his  cabins  until August  2006  when  regulations  re-                                                               
implementing  the Big  Game Commercial  Services Board  also made                                                               
changes to  the definition of  "field."  This change  resulted in                                                               
troopers  believing they  had new  enforcement  options and  they                                                               
threatened to issue  citations.  Mr. Temple said that  he did not                                                               
think this  was the intent when  the definition was changed.   He                                                               
said  that he  would also  like to  have the  ability of  renting                                                               
cabins  from other  private property  owners for  himself without                                                               
having to use a guide.   He related that there have been numerous                                                               
opinions, but  that the  Office of the  Attorney General  has not                                                               
issued an opinion  and this is the opinion that  would matter the                                                               
most.  He pointed out that  the state and federal governments can                                                               
rent  their remote  cabins  to hunters,  but  a private  property                                                               
owner cannot.                                                                                                                   
                                                                                                                                
2:49:38 PM                                                                                                                    
                                                                                                                                
MR.  TEMPLE,  in response  to  a  question, reiterated  that  the                                                               
regulation went into  effect in August 2006.  He  said that it is                                                               
this regulation, not legislation,  that changed the definition of                                                               
"in  the  field"  so  that  a  cabin  in  the  field  is  treated                                                               
differently than  a cabin associated  with a  city or town.   The                                                               
regulation did  not affect situations  such as the  example given                                                               
by Representative Wilson where a  pilot flies big game hunters to                                                               
a cabin  that is owned  by that  pilot.  However,  the regulation                                                               
change has resulted  in various interpretations as  to whether it                                                               
is  legal for  private property  owners to  rent their  cabins to                                                               
hunters without having a transporter's  license.  Should an owner                                                               
get  a transporter's  license in  order to  rent out  his or  her                                                               
cabin,  a   different  statute  then  requires   that  the  owner                                                               
transport the hunter  to the cabin.  He said  that this situation                                                               
creates a problem  for the average cabin owner who  does not have                                                               
the ability to provide the transportation.                                                                                      
                                                                                                                                
2:51:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO asked whether the  troopers investigated because a                                                               
complaint had  been filed or  because the troopers  had unitarily                                                               
decided to enforce the issue.                                                                                                   
                                                                                                                                
MR.  TEMPLE   offered  his  understanding  that   there  were  no                                                               
complaints.   He said that  he had  personally spoken with  a big                                                               
game guide  who owns  cabins located  in the  same region  as Mr.                                                               
Metzger.  He  related that this guide would  prefer that resident                                                               
hunters be  able to  rent Mr. Metzger's  cabins because  then the                                                               
hunters would  not be  hunting in  the same  area as  the guide's                                                               
cabins.   Mr. Temple said  that he did  not think the  change was                                                               
supported  by  big  game  [guides],  but rather  that  it  is  an                                                               
unintended consequence.                                                                                                         
                                                                                                                                
2:53:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES asked  if part of the issue at  hand is that                                                               
under AS 08.64.680, guides and  transporters are required to have                                                               
$100,000 in bonds, insurance, or assets.                                                                                        
                                                                                                                                
MR. TEMPLE  remarked that he believes  this would be an  issue to                                                               
most private property owners, especially  for a person who merely                                                               
wants  to rent  his  or  her cabin  without  providing any  other                                                               
service that a guide would provide.   He explained that the cabin                                                               
owner only  needs to have  an Alaska business license  for rental                                                               
real  estate at  a cost  of $100  annually, plus  the appropriate                                                               
insurance.   However,  becoming a  transporter or  guide requires                                                               
bonds and experience  as an assistant guide for a  period of time                                                               
before qualifying to be a guide,  and this creates an onerous and                                                               
unattainable  situation  for a  cabin  owner.   Additionally,  he                                                               
said, the transporter report forms  clearly indicate that this is                                                               
not the  intent of the regulations  because there is no  place to                                                               
accurately report an owner who is  merely renting a cabin even if                                                               
he or she had a transporter's license.                                                                                          
                                                                                                                                
2:55:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  asked  whether responsibility  could  fall                                                               
onto the  transporter or  cabin owner for  a hunter  who violates                                                               
state hunting laws while renting that person's cabin.                                                                           
                                                                                                                                
MR.  TEMPLE surmised  that this  might  be a  very real  concern,                                                               
especially in cases  where the cabin owner is not  on site or has                                                               
not  met  the  renter.    He said  that  most  remote  state  and                                                               
federally owned cabins are rented  out via the Internet, and that                                                               
the Internet  is often the  method used by private  cabin owners,                                                               
as well.  A hunter who  violates laws should be held accountable,                                                               
he said, but  to say that the private property  owner should also                                                               
be accountable is not intended.                                                                                                 
                                                                                                                                
2:56:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON announced that HB  165 is being held for further                                                               
consideration at the next committee meeting.                                                                                    
                                                                                                                                
2:57:25 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 2:57 p.m.                                                                 

Document Name Date/Time Subjects