Legislature(2021 - 2022)SENATE FINANCE 532

03/14/2022 09:00 AM Senate FINANCE

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Audio Topic
09:03:43 AM Start
09:04:50 AM SB80
09:10:26 AM SB168
09:17:05 AM Presentation: Department of Environmental Conservation
10:59:56 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 80 PUBLIC SCHOOLS: MENTAL HEALTH EDUCATION TELECONFERENCED
Moved CSSB 80(HSS) Out of Committee
+= SB 168 DONATIONS/GIFTS FOR DOT&PF SIGNAGE TELECONFERENCED
Moved SB 168 Out of Committee
+ Presentation: Clean Water Act Section 404 Primacy TELECONFERENCED
/ Resource Conservation and Recovery Act
by the Department of Environmental
Conservation
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 14, 2022                                                                                            
                         9:03 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:03:43 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Bishop called the Senate Finance Committee meeting                                                                     
to order at 9:03 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Co-Chair                                                                                                  
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Elvi Gray-Jackson,  Sponsor; Senator  Robert Myers,                                                                    
Sponsor;   Christina   Carpenter,  Director,   Division   of                                                                    
Environmental    Health,    Department   of    Environmental                                                                    
Conservation;  Randy  Bates,  Director, Division  of  Water,                                                                    
Department of Environmental Conservation.                                                                                       
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 80     PUBLIC SCHOOLS: MENTAL HEALTH EDUCATION                                                                               
                                                                                                                                
          SB 80 was REPORTED out  of committee with five "do                                                                    
          pass"  recommendations  and  with one  new  fiscal                                                                    
          impact note  from the Department  of Environmental                                                                    
          Conservation.                                                                                                         
                                                                                                                                
SB 168    DONATIONS/GIFTS FOR DOTandPF SIGNAGE                                                                                  
                                                                                                                                
          SB 168 was REPORTED out of committee with three                                                                       
          "do   pass"    recommendations,   and    two   "no                                                                    
          recommendation" recommendations and with one                                                                          
          previously published fiscal impact note: FN 1:                                                                        
          DOT.                                                                                                                  
                                                                                                                                
PRESENTATION: DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                          
                                                                                                                                
SENATE BILL NO. 80                                                                                                            
                                                                                                                                
     "An Act relating to mental health education."                                                                              
                                                                                                                                
9:04:50 AM                                                                                                                    
                                                                                                                                
SENATOR  ELVI  GRAY-JACKSON,  SPONSOR,   spoke  to  a  brief                                                                    
reintroduction  of the  legislation.  The  bill would  amend                                                                    
existing   health  curriculum   to  include   mental  health                                                                    
curriculum  in  all  K-12  heath  classrooms  to  adequately                                                                    
educate students  on vital information pertaining  to mental                                                                    
health, symptoms  resources, and  treatment. She  noted that                                                                    
the Senate Health and Social  Services committee had amended                                                                    
the  bill   to  include   parental  consent  to   teach  the                                                                    
curriculum to students.                                                                                                         
                                                                                                                                
9:05:42 AM                                                                                                                    
                                                                                                                                
Senator  von  Imhof wondered  how  the  curriculum would  be                                                                    
developed and incorporated into the school districts.                                                                           
                                                                                                                                
9:06:15 AM                                                                                                                    
                                                                                                                                
Senator Gray-Jackson cited page 2 of the legislation:                                                                           
                                                                                                                                
     Guidelines for  developmentally appropriate instruction                                                                    
     in  mental health  shall be  developed in  consultation                                                                    
     with  the Department  of  Health  and Social  Services,                                                                    
     regional     tribal    health     organizations,    and                                                                    
     representatives  of national  and  state mental  health                                                                    
     organizations.                                                                                                             
                                                                                                                                
9:06:44 AM                                                                                                                    
                                                                                                                                
Senator von Imhof remarked that  the fiscal note was $71,000                                                                    
for development of the curriculum.                                                                                              
                                                                                                                                
9:06:53 AM                                                                                                                    
                                                                                                                                
Senator Gray-Jackson replied in the affirmative.                                                                                
9:07:03 AM                                                                                                                    
                                                                                                                                
Senator  Wielechowski addressed  the  fiscal  note from  the                                                                    
Department of  Education and  Early Development  (DEED), OMB                                                                    
component 2796. He read from the analysis:                                                                                      
                                                                                                                                
     This  fiscal note  contains  three one-time, multi-year                                                                
     expenses:  1) $30.0  for $1.5  stipends for  20 parents                                                                    
     and  qualified  stake  holders   for  their  year  long                                                                    
     participation  in the  research  and  authoring of  the                                                                    
     standards,  2) $35.0  contract  for  a national  Mental                                                                    
     Health  Education expert  to  facilitate the  standards                                                                    
     process and professional  development materials, and 3)                                                                    
     $6.0  for   legal  fees  to  implement   the  necessary                                                                    
     regulation changes.                                                                                                        
                                                                                                                                
9:08:08 AM                                                                                                                    
                                                                                                                                
Senator Wielechowski  MOVED to  REPORT CS  SB 80  (HSS) from                                                                    
committee  with  individual   recommendations  and  attached                                                                    
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
SB  80 was  REPORTED out  of committee  with five  "do pass"                                                                    
recommendations  and with  one new  fiscal impact  note from                                                                    
the Department of Education and Early Development.                                                                              
                                                                                                                                
9:08:40 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:10:21 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 168                                                                                                           
                                                                                                                                
     "An Act  relating to program receipts;  and relating to                                                                    
     the acceptance of gifts, donations,  and grants for the                                                                    
     purpose  of  providing  signage for  assets  under  the                                                                    
     control of the Department  of Transportation and Public                                                                    
     Facilities."                                                                                                               
                                                                                                                                
9:10:26 AM                                                                                                                    
                                                                                                                                
SENATOR ROBERT  MYERS, SPONSOR, gave a  brief reintroduction                                                                    
of  the  legislation.  He  remarked that  the  bill  was  in                                                                    
response to a  bill in the previous  legislative session. He                                                                    
explained   the   limitations   that   the   Department   of                                                                    
Transportation  and  Public  Facilities (DOT&PF)  face  when                                                                    
excepting donations for signage.  He explained that the bill                                                                    
was about process and timing.  He spoke to previous concerns                                                                    
raised about the  naming of trails and said  trails were not                                                                    
included due  to differences in statutory  authority between                                                                    
DOT&PF and the Department of Natural Resources (DNR).                                                                           
                                                                                                                                
9:13:36 AM                                                                                                                    
                                                                                                                                
Co-Chair  Bishop  addressed  the  zero fiscal  note  1,  OMB                                                                    
Component number 530. He read from the analysis:                                                                                
                                                                                                                                
     This  proposal would  codify a  process in  statute for                                                                    
     third-parties to  provide donations, grants,  and gifts                                                                    
     to provide  signage for assets under  the Department of                                                                    
     Transportation  &  Public Facilities  (DOTPF)  control,                                                                    
     notably   infrastructure   signage  passed   by   other                                                                    
     legislature under AS 35.40 such as roads and bridges.                                                                      
                                                                                                                                
9:14:00 AM                                                                                                                    
                                                                                                                                
Senator  von  Imhof felt  that  the  comments clarified  the                                                                    
intent  of the  bill  and appreciated  the flexibility  from                                                                    
DOT&PF.                                                                                                                         
                                                                                                                                
9:14:31 AM                                                                                                                    
                                                                                                                                
Senator  von Imhof  MOVED to  REPORT SB  168 from  committee                                                                    
with  individual recommendations  and  attached zero  fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SB 168  was REPORTED out  of committee with three  "do pass"                                                                    
recommendations,     and     two     "no     recommendation"                                                                    
recommendations  and with  one  previously published  fiscal                                                                    
impact note: FN 1: DOT.                                                                                                         
                                                                                                                                
9:15:04 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:16:41 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Bishop handed the gavel to Co-Chair Stedman.                                                                           
                                                                                                                                
^PRESENTATION: DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                       
                                                                                                                                
9:17:05 AM                                                                                                                    
Co-Chair Stedman discussed housekeeping  for the reminder of                                                                    
the meeting.                                                                                                                    
                                                                                                                                
9:17:38 AM                                                                                                                    
                                                                                                                                
CHRISTINA  CARPENTER,  DIRECTOR, DIVISION  OF  ENVIRONMENTAL                                                                    
HEALTH,    DEPARTMENT    OF   ENVIRONMENTAL    CONSERVATION,                                                                    
introduced herself.                                                                                                             
                                                                                                                                
9:17:57 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman requested that  the presenter avoid the use                                                                    
of acronyms.                                                                                                                    
                                                                                                                                
9:18:12 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter discussed  the  presentation, "Department  of                                                                    
Environmental Conservation  Senate Finance  Committee" (copy                                                                    
on file). She looked at slide 2, "DEC Primacy Programs":                                                                        
                                                                                                                                
     Primacy refers to the state assuming authority to                                                                          
     implement a federal program                                                                                                
                                                                                                                                
     Federal laws for which DEC assumed primacy:                                                                                
          Clean Air Act: Alaska assumed in 1972                                                                                 
          Safe Drinking Water Act: Alaska assumed in 1978                                                                       
          Clean Water Act National Pollutant Discharge                                                                          
          Elimination System: Alaska assumed in 2012                                                                            
                                                                                                                                
     Federal laws for which DEC has statutory authority,                                                                        
     granted by the legislature, to assume primacy but has                                                                      
     not yet done so:                                                                                                           
          Resource Conservation and Recovery Act (RCRA):                                                                        
          Legislature authorized in 1981-AS46.03.299 (c)                                                                        
          Clean   Water   Act   Section   404:   Legislature                                                                    
          authorized in 2013 -AS 46.03.020 (14)                                                                                 
                                                                                                                                
9:20:45 AM                                                                                                                    
                                                                                                                                
Senator  von   Imhof  surmised  that  Ms.   Carpenter  would                                                                    
describe the process for the state beyond the statute.                                                                          
                                                                                                                                
Ms. Carpenter replied in the affirmative.                                                                                       
                                                                                                                                
Senator  Wielechowski wondered  why  the state  had not  yet                                                                    
assumed primacy under the Clean Water Act.                                                                                      
RANDY  BATES, DIRECTOR,  DIVISION  OF  WATER, DEPARTMENT  OF                                                                    
ENVIRONMENTAL  CONSERVATION, replied  that  the statute  was                                                                    
passed  in 2013  and the  department had  full authority  to                                                                    
develop  and implement  a 404  program, which  would be  the                                                                    
Dredge  and  Fill  program.  He   added  that  in  2014  the                                                                    
legislature  removed   funding  for  the  program   and  the                                                                    
department  now  hoped  to  pick the  program  back  up  and                                                                    
continue with the progress that had been previously made.                                                                       
                                                                                                                                
9:21:56 AM                                                                                                                    
                                                                                                                                
Senator Hoffman queried the fiscal  impact of the program in                                                                    
2013.                                                                                                                           
                                                                                                                                
Mr. Bates replied that he did  not have the exact number but                                                                    
thought  it was  similar to  the current  request. He  added                                                                    
that there was a proposal of  32 staff as a baseline funding                                                                    
allocation, with a $5.3 million ask going forward.                                                                              
                                                                                                                                
9:22:40 AM                                                                                                                    
                                                                                                                                
Senator Hoffman thought  that the past request  had been the                                                                    
reason that  the legislature had  not funded the  program in                                                                    
the past.                                                                                                                       
                                                                                                                                
9:23:08 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman announced  that the  previous fiscal  note                                                                    
would be located for committee reference.                                                                                       
                                                                                                                                
9:23:26 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter explained  that DEC  had retained  primacy of                                                                    
the  Safe Drinking  Water Act  and the  Clean Air  Act since                                                                    
1971.                                                                                                                           
                                                                                                                                
9:23:56 AM                                                                                                                    
                                                                                                                                
Ms. Carpenter addressed slide  3, "Resource Conservation and                                                                    
Recovery Act (RCRA)":                                                                                                           
                                                                                                                                
     Management of Solid Waste                                                                                                  
                                                                                                                                
     DEC has approval for oversight of non-hazardous waste                                                                      
     under Subtitle D                                                                                                           
                                                                                                                                
     Subtitle C covers management of hazardous waste                                                                            
     DEC is one of two states that does not have primacy                                                                        
     over Subtitle C                                                                                                            
                                                                                                                                
9:26:57 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  understood that  the state  did not  have a                                                                    
designated   hazardous  waste   depository,  and   therefore                                                                    
shipped the waste out of  state. He asked whether this would                                                                    
continue to be the practice under Subtitle C.                                                                                   
                                                                                                                                
Ms. Carpenter replied in the affirmative.                                                                                       
                                                                                                                                
9:27:17 AM                                                                                                                    
                                                                                                                                
Co-Chair  Bishop asked  whether  the  department planned  to                                                                    
develop a storage facility in-state.                                                                                            
                                                                                                                                
Ms. Carpenter  replied that the question  would be addressed                                                                    
in  future  slides. She  added  that  there were  4  storage                                                                    
facilitates  in  the state  but  not  treatment or  disposal                                                                    
facilitates.  She  said  that   if  there  was  interest  in                                                                    
establishing a hazardous waste  landfill, that was something                                                                    
that DEC  could permit under the  primacy program. Currently                                                                    
a project of  that nature would need to be  permitted by the                                                                    
Environmental Protection Agency (EPA).                                                                                          
                                                                                                                                
9:27:54 AM                                                                                                                    
                                                                                                                                
Senator von  Imhof relayed  that she  had recently  net with                                                                    
the  owner  and  operator  of  a   dirty  dirt   machine  in                                                                    
Fairbanks.  She asked  whether DEC  would fully  control the                                                                    
program, or  would they outsource to  private companies that                                                                    
handled PFAS dirt, spilled diesel, and the like.                                                                                
                                                                                                                                
9:28:56 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter  replied  that  PFAS  was  not  considered  a                                                                    
hazardous waste and would not fall under RCRA Subtitle C.                                                                       
                                                                                                                                
9:29:16 AM                                                                                                                    
                                                                                                                                
Senator von Imhof wondered whether  it would be economically                                                                    
sensible  for the  state to  outsource to  private companies                                                                    
rather than fund 30 new positions within the department.                                                                        
                                                                                                                                
9:29:47 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter replied  that  the  position increment  under                                                                    
RCRA would be 6 positions and not 30.                                                                                           
                                                                                                                                
9:30:12 AM                                                                                                                    
                                                                                                                                
Senator von  Imhof wondered whether the  DEC would entertain                                                                    
outsourcing some of the work to the private sector.                                                                             
                                                                                                                                
9:30:20 AM                                                                                                                    
                                                                                                                                
Ms. Carpenter queried the definition of outsourcing.                                                                            
                                                                                                                                
9:30:43 AM                                                                                                                    
                                                                                                                                
Senator   Hoffman  noted   that  Subtitle   C  covered   the                                                                    
management of  hazardous waste. He  asked for  a description                                                                    
of the management  in rural areas of the  state. He wondered                                                                    
who currently paid  for the shipping of  hazardous waste out                                                                    
of state and who would assume that liability under RCRA.                                                                        
                                                                                                                                
9:31:37 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter replied  that current  DEC activity  in rural                                                                    
Alaska  landfills was  for  non-hazardous  wastes. She  said                                                                    
that the EPA  and the Solid Waste Alaska  Taskforce had been                                                                    
working  on a  program called  Backhaul Alaska,  which would                                                                    
get household  hazardous waste out of  communities. She said                                                                    
that DEC had several staff participating in the effort.                                                                         
                                                                                                                                
9:32:15 AM                                                                                                                    
                                                                                                                                
Senator Hoffman understood that  DEC was assisting the pilot                                                                    
program to manage  hazardous waste and wondered  how DEC was                                                                    
assisting  communities  presently,  how  that  would  change                                                                    
under  the proposed  program, and  how  the hazardous  waste                                                                    
removal would be paid for.                                                                                                      
                                                                                                                                
9:32:55 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  interjected that  a clearer  definition of                                                                    
 potential costs  to local governments  would  be helpful to                                                                    
the  conversation.  He  specified  that  the  committee  was                                                                    
curious  to know  the  difference in  costs  to rural  local                                                                    
governments versus urban.                                                                                                       
                                                                                                                                
9:33:20 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter replied  that under  a state  primacy program                                                                    
technical  support  and  assistance  would  be  provided  to                                                                    
communities  for  properly  managing  hazardous  waste.  She                                                                    
stated that  the fiscal note  did not include money  to help                                                                    
communities with  the removal of  hazardous waste.  She said                                                                    
that  DEC  could assist  with  the  management of  hazardous                                                                    
waste and potentially help coordinate across communities.                                                                       
                                                                                                                                
9:34:34 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman pointed  out that  DEC could  currently aid                                                                    
with  hazardous waste  management in  rural communities.  He                                                                    
failed to understand  how the state assuming  primacy of the                                                                    
program would  help with the  removal of hazardous  waste in                                                                    
rural Alaska. He felt that  he could not support the expense                                                                    
to the  state reflected  on the fiscal  note if  the program                                                                    
would only benefit  the removal of hazardous  waste in urban                                                                    
parts of the state.                                                                                                             
                                                                                                                                
9:35:22 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  inquired about how the  department handled                                                                    
the  removal   of  fuel   contaminated  soil   and  creosote                                                                    
impregnated timber and pilings from communities.                                                                                
                                                                                                                                
9:36:27 AM                                                                                                                    
                                                                                                                                
Ms. Carpenter agreed to provide that information.                                                                               
                                                                                                                                
9:36:35 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  thought that some of  the hazardous gravel                                                                    
could  be treated  and not  removed  entirely. He  expressed                                                                    
concern that shipping would be expensive.                                                                                       
                                                                                                                                
9:36:52 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  asked for the  current price of  shipping a                                                                    
full 55-gallon drum from Alaska to Washington State.                                                                            
                                                                                                                                
9:37:19 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman interjected that  the prices should reflect                                                                    
shipping from  Bethel, Nome,  Kodiak, and  other communities                                                                    
in Southeast Alaska.                                                                                                            
                                                                                                                                
Ms. Carpenter agreed to provide that information.                                                                               
9:37:55 AM                                                                                                                    
                                                                                                                                
Senator  Wielechowski asked  whether PFAS  was considered  a                                                                    
hazardous waste on other states or countries.                                                                                   
                                                                                                                                
9:38:00 AM                                                                                                                    
                                                                                                                                
Ms. Carpenter did not know  about the consideration in other                                                                    
states. She noted  that PFAS was not  considered a hazardous                                                                    
waste on the federal level.                                                                                                     
                                                                                                                                
9:38:20 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  interjected that  he would not  drink PFAS                                                                    
contaminated  water.  He  believed that  the  substance  was                                                                    
 pretty hazardous.                                                                                                              
                                                                                                                                
9:38:31 AM                                                                                                                    
                                                                                                                                
Senator Wielechowski  wondered whether the  state considered                                                                    
PFAS in drinking water a problem for the population.                                                                            
                                                                                                                                
9:38:41 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter  responded  that  DEC  and  DOT&PF  had  been                                                                    
working to assess various communities  water sources and had                                                                    
taken  action to  provide  alternative  waster sources  when                                                                    
community  water sources  exceeded Lifetime  Health Advisory                                                                    
amounts established by the EPA.                                                                                                 
                                                                                                                                
9:39:19 AM                                                                                                                    
                                                                                                                                
Senator  Wielechowski  was  curious   how  PFAS  was  not  a                                                                    
hazardous  substance   but  could  exceed   Lifetime  Health                                                                    
Advisory  amounts.  He  understood  that  the  EPA  had  not                                                                    
technically declared PFAS a hazardous  substance but did set                                                                    
limits on  allowable amounts in drinking  water. He wondered                                                                    
whether Alaskans should be concerned  if PFAS was present in                                                                    
their drinking water.                                                                                                           
                                                                                                                                
9:39:49 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter  reiterated  that   PFAS  was  not  federally                                                                    
defined as  a hazardous  substance under RCRA.  She asserted                                                                    
that  the state  was taking  action to  test drinking  water                                                                    
systems and provide alternative  water sources when PFAS was                                                                    
found in water systems.                                                                                                         
9:40:19 AM                                                                                                                    
                                                                                                                                
Co-Chair  Bishop  asked  for   a  brief  background  of  the                                                                    
presenters professional qualifications.                                                                                         
                                                                                                                                
9:40:45 AM                                                                                                                    
                                                                                                                                
Ms. Carpenter  replied that  she had  worked with  DEC since                                                                    
2012   and  currently   oversaw  the   Environmental  Health                                                                    
Division. She  felt that some  of the  committees  questions                                                                    
could  be   better  answered  by  the   directors  of  Spill                                                                    
Prevention and  Response or Air  Quality Division.  She said                                                                    
that she was not the primary lead on the PFAS response.                                                                         
                                                                                                                                
9:41:48 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman suggested  that  if a  question was  asked                                                                    
that was out  of Ms. Carpenters  per view,  she should defer                                                                    
to the  appropriate channel. He requested  further detail of                                                                    
her professional background.                                                                                                    
                                                                                                                                
9:42:31 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter  replied that  she  had  a bachelors   and  a                                                                    
masters  degree in Business Administration  and had been the                                                                    
Environmental Health Division Director since 2016.                                                                              
                                                                                                                                
9:42:51 AM                                                                                                                    
                                                                                                                                
Senator Hoffman asked about Subtitle  C and wondered whether                                                                    
the state  would address existing hazardous  waste sites, or                                                                    
would those  sites fall  under the per  view of  the federal                                                                    
government. He cited specifically  the numerous sites on the                                                                    
North Slope.                                                                                                                    
                                                                                                                                
9:43:25 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter said  no decision  had  been made  concerning                                                                    
those sites. She said she  would provide further information                                                                    
to the committee.                                                                                                               
                                                                                                                                
9:43:55 AM                                                                                                                    
                                                                                                                                
Ms. Carpenter  pointed to slide  4, "RCRA Primacy  Costs (in                                                                    
thousands)":                                                                                                                    
                                                                                                                                
     Increment Request                                                                                                          
                                                                                                                                
        • $830.0 UGF                                                                                                            
                                                                                                                                
        • 6 FT Positions                                                                                                        
                                                                                                                                
        • Training, equipment, and travel                                                                                       
                                                                                                                                
        • Develop regulations and documentation                                                                                 
                                                                                                                                
     Two-year application process                                                                                               
                                                                                                                                
     Federal funds are available after primacy assumed                                                                          
     which would replace $400.0 of G                                                                                            
                                                                                                                                
9:44:49 AM                                                                                                                    
                                                                                                                                
Senator von Imhof  asked about the equipment  needed for the                                                                    
program.                                                                                                                        
                                                                                                                                
9:45:00 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter replied  that it  would be  for new  employee                                                                    
start  up and  would include  computers, furniture,  and the                                                                    
like.                                                                                                                           
                                                                                                                                
9:45:10 AM                                                                                                                    
                                                                                                                                
Senator von  Imhof asked for  a scenario detailing  what the                                                                    
RCRA  program DEC  employees  would  do in  the  event of  a                                                                    
hazardous waste spill.                                                                                                          
                                                                                                                                
9:45:57 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter  replied  deferred to  Spill  Prevention  and                                                                    
Response group. She said that  the Solid Waste Program under                                                                    
Environmental  Health would  be  regulating the  generation,                                                                    
transports, and  disposal of hazardous  waste that  might be                                                                    
generated. She  said those things included  old computers or                                                                    
batteries,   which  had   to  be   documented  through   the                                                                    
transportation and disposal process before ground storage.                                                                      
                                                                                                                                
9:46:50 AM                                                                                                                    
                                                                                                                                
Senator  von   Imhof  assumed  old  computer   tracking  and                                                                    
disposal was  currently paid for  by the  federal government                                                                    
and  under  the  program  the 6  full-time  positions  would                                                                    
assume those responsibilities for the state.                                                                                    
9:47:07 AM                                                                                                                    
                                                                                                                                
Ms. Carpenter replied in the affirmative.                                                                                       
                                                                                                                                
9:47:14 AM                                                                                                                    
                                                                                                                                
Senator  von Imhof  noted  that the  process  whether it  be                                                                    
cleaning  dirty dirt  or spills    these  6 state  positions                                                                    
would  track  and  chart where  the  hazardous  waste  would                                                                    
ultimately end up.                                                                                                              
                                                                                                                                
9:47:38 AM                                                                                                                    
                                                                                                                                
Ms. Carpenter replied that DEC  would be providing technical                                                                    
support and  compliance assistance  through the  issuance of                                                                    
permits and performing inspections.                                                                                             
                                                                                                                                
9:47:48 AM                                                                                                                    
                                                                                                                                
Senator  von Imhof  surmised that  the process  remained the                                                                    
same  as  to  how  contaminated dirt  would  be  cleaned  or                                                                    
computers disposed of.                                                                                                          
                                                                                                                                
9:47:56 AM                                                                                                                    
                                                                                                                                
Ms. Carpenter replied in the affirmative.                                                                                       
                                                                                                                                
9:48:05 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman wondered  the difference  between who  was                                                                    
shouldering  the cost  now and  who would  be liable  if the                                                                    
state assumed primacy under RCRA.                                                                                               
                                                                                                                                
9:48:12 AM                                                                                                                    
                                                                                                                                
Ms. Carpenter  replied that she  would address  that further                                                                    
in the presentation.                                                                                                            
                                                                                                                                
9:48:25 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  shared that he  had taught  Hazardous Waste                                                                    
and Emergency Response for 20  years and thought that if the                                                                    
state was  going to  assume the duties  under RCRA  the cost                                                                    
was  going to  be  more  than the  current  UGF request  for                                                                    
training.                                                                                                                       
                                                                                                                                
9:49:11 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman noted  that Senator  Olson had  joined the                                                                    
meeting.  He asked  what that  benefit was  to the  state in                                                                    
assuming primacy.                                                                                                               
                                                                                                                                
9:49:21 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter  replied that  she  would  address the  issue                                                                    
further in the presentation.                                                                                                    
                                                                                                                                
9:49:24 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman remarked  that the  6 requested  positions                                                                    
would  add $830,000  in  UGF. He  thought  that the  current                                                                    
administration request was for  220 employees, some of which                                                                    
were not  currently funded in  the budget. He  asked whether                                                                    
the  6 positions  were  included in  the  220 employees  and                                                                    
whether those 6 positions were  funded in the current budget                                                                    
request.                                                                                                                        
                                                                                                                                
9:50:09 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter  replied that  she  could  not speak  to  the                                                                    
overall budget. She  believed that the 6  positions had been                                                                    
identified as being funded by UGF.                                                                                              
                                                                                                                                
9:50:20 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman posed to the question to Mr. Bates.                                                                            
                                                                                                                                
9:50:34 AM                                                                                                                    
                                                                                                                                
Mr. Bates  replied that  he positions  were included  in the                                                                    
budget.                                                                                                                         
                                                                                                                                
Co-Chair  Stedman  asked whether  they  were  funded in  the                                                                    
governors proposed FY 23 budget.                                                                                                
                                                                                                                                
Mr. Bates said that the  positions for both programs were in                                                                    
the proposed budget to be funded strictly be general funds.                                                                     
                                                                                                                                
9:51:16 AM                                                                                                                    
                                                                                                                                
Senator  von  Imhof understood  the  positions  were in  the                                                                    
current  budget  under UGF  and  had  not been  included  in                                                                    
amendments  released   since  the  budget  was   release  on                                                                    
December 15, 2021.                                                                                                              
                                                                                                                                
Mr. Bates  said that  there had been  an FY  22 supplemental                                                                    
submitted  in  addition  for three  positions  for  the  404                                                                    
program. He  said that the  issue would be addressed  in the                                                                    
presentation.                                                                                                                   
                                                                                                                                
9:52:29 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman requested moving on to slide 5.                                                                                
                                                                                                                                
9:52:39 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter  addressed  slide  5,  "Regulated  Activities                                                                    
Under RCRA Subtitle C":                                                                                                         
                                                                                                                                
     Generators                                                                                                                 
                                                                                                                                
          Military                                                                                                              
          AK DOT                                                                                                                
          Seafood Facilities                                                                                                    
          Mining                                                                                                                
          Oil and Gas Facilities                                                                                                
                                                                                                                                
     Transporters                                                                                                               
                                                                                                                                
          Trucking                                                                                                              
          Barge Lines                                                                                                           
                                                                                                                                
    Treatment, Storage, and Disposal Facilities (TSDF)                                                                          
                                                                                                                                
Ms.  Carpenter  said  that  the  slide  was  meant  to  show                                                                    
facilities that  transported hazardous  waste in  the state.                                                                    
She said that  when generators created solid  waste a record                                                                    
was  created  that  traveled  with   the  waste  through  to                                                                    
disposal.                                                                                                                       
                                                                                                                                
9:54:38 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  noted that Senator  Wilson had  joined the                                                                    
meeting.                                                                                                                        
                                                                                                                                
9:54:42 AM                                                                                                                    
                                                                                                                                
Ms.  Carpenter  pointed  to  slide   6,  "Benefits  of  RCRA                                                                    
Primacy". The  slide showed a  chart that listed  the focus,                                                                    
location, and regulatory flexibility  that would result from                                                                    
state primacy. The EPA would  focus on enforcement, would be                                                                    
in  Seattle,   and  would  have  little   to  no  regulatory                                                                    
flexibility.   The  DEC   would  focus   on  technical   and                                                                    
compliance assistance,  would be  in Alaska, and  would have                                                                    
much greater regulatory flexibility  under the state managed                                                                    
program.                                                                                                                        
                                                                                                                                
9:56:12 AM                                                                                                                    
                                                                                                                                
Senator  von Imhof  asked whether  an hourly  rate would  be                                                                    
charged by DEC for an inspection.                                                                                               
                                                                                                                                
Ms.   Carpenter  said   that   there  was   no  charge   for                                                                    
inspections.  She added  that the  compliance and  technical                                                                    
support  assistance  would  be   covered  under  the  budget                                                                    
request.                                                                                                                        
                                                                                                                                
9:56:50 AM                                                                                                                    
                                                                                                                                
Senator  Wielechowski  asked  how  many staff  the  EPA  had                                                                    
devoted to Alaska.                                                                                                              
                                                                                                                                
Ms.  Carpenter  did  not  know.   She  knew  there  was  one                                                                    
dedicated  person located  in Anchorage.  She said  that the                                                                    
department had 10  inspectors overseeing non-hazardous waste                                                                    
facilities in the state.                                                                                                        
                                                                                                                                
Senator Wielechowski asked whether  DEC would still be doing                                                                    
enforcement under the legislation.                                                                                              
                                                                                                                                
Ms. Carpenter replied in the affirmative.                                                                                       
                                                                                                                                
Senator   Wielechowski  asked   whether  the   EPA  provided                                                                    
technical and compliance support.                                                                                               
                                                                                                                                
Ms. Carpenter  replied in the  negative. She added  that the                                                                    
EPA  did not  have the  technical staff  to support  DEC and                                                                    
that their focus was on detection and enforcement.                                                                              
                                                                                                                                
9:58:52 AM                                                                                                                    
                                                                                                                                
Senator von  Imhof had questions about  the technical staff.                                                                    
She wondered where they would  be located and how they would                                                                    
communicate with companies.                                                                                                     
                                                                                                                                
Ms.  Carpenter  replied  that   the  technical  staff  would                                                                    
consist of  local people who  could be reached with  a phone                                                                    
call.  She  said that  DEC  already  had relationships  with                                                                    
waste generators  in the  state. She said  that part  of the                                                                    
two-year timeline  was to hire  and train support  staff for                                                                    
those generators.                                                                                                               
                                                                                                                                
10:00:01 AM                                                                                                                   
                                                                                                                                
Co-Chair  Bishop  asked for  an  example  of  much  greater                                                                     
regulatory flexibility noted on  slide 6. He understood that                                                                    
the EPA was  looking to lower the  threshold for particulate                                                                    
matter  from  PM2.5  and  wondered  how  the  assumption  of                                                                    
primacy   would  affect   air  quality   for  residents   of                                                                    
Fairbanks.                                                                                                                      
                                                                                                                                
10:00:48 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop  explained particulate  matter was  an issue                                                                    
for all areas  of the state. He shared that  on cold days in                                                                    
Fairbanks the particulate matter hung in the air.                                                                               
                                                                                                                                
Co-Chair Stedman understood that  the threshold was going to                                                                    
be lowered on the federal level.                                                                                                
                                                                                                                                
Ms. Carpenter replied that she  was not prepared to speak on                                                                    
the matter.                                                                                                                     
                                                                                                                                
Co-Chair Bishop  requested that the  department get  back to                                                                    
the committee on the matter.                                                                                                    
                                                                                                                                
10:02:06 AM                                                                                                                   
                                                                                                                                
Senator  Hoffman   asked  about  assistance   for  technical                                                                    
compliance  and  the  disposal of  car  batteries  in  rural                                                                    
Alaska.                                                                                                                         
                                                                                                                                
Ms. Carpenter  said that the  issue would be addressed  in a                                                                    
future slide.                                                                                                                   
                                                                                                                                
Senator  Hoffman wanted  the cost  related  to shipping  and                                                                    
disposal in rural versus urban areas of the state.                                                                              
                                                                                                                                
10:03:09 AM                                                                                                                   
                                                                                                                                
Senator   Wielechowski   asked   for  examples   where   the                                                                    
department thought it needed grater regulatory flexibility.                                                                     
                                                                                                                                
Ms. Carpenter  said that the  issue would be addressed  on a                                                                    
future slide.                                                                                                                   
                                                                                                                                
10:03:45 AM                                                                                                                   
                                                                                                                                
Ms. Carpenter  addressed slide 7,  "Recent RCRA  Activity in                                                                    
Alaska by EPA":                                                                                                                 
                                                                                                                                
     Education and compliance support from DEC will prevent                                                                     
     violations,     proactively     protecting     Alaska's                                                                    
    environment instead of just levying punitive fines                                                                          
                                                                                                                                
The  slide  listed the  inspections,  number  of fines,  and                                                                    
monies collected from the fines from 2018 through 2021.                                                                         
                                                                                                                                
10:04:46 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski asked for examples of fines.                                                                               
                                                                                                                                
Ms. Carpenter said  that some of the  fines were implemented                                                                    
to certain state agencies for various violations.                                                                               
                                                                                                                                
Co-Chair Stedman required further information.                                                                                  
                                                                                                                                
Ms. Carpenter said she would follow up with the committee.                                                                      
                                                                                                                                
10:05:22 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop  asked about education outreach  and whether                                                                    
DEC  planned   to  set  up  program   where  Alaskans  could                                                                    
volunteer their property to be assessed for compliance.                                                                         
                                                                                                                                
Ms. Carpenter responded in the affirmative.                                                                                     
                                                                                                                                
10:06:35 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski  spoke to  the conclusory  statement on                                                                    
the slide. He noted $45,000 in  total fines for 2021. He did                                                                    
not feel that the number was punitive.                                                                                          
                                                                                                                                
Ms. Carpenter said that the  department would like to engage                                                                    
with hazardous  waste generator before the  point of levying                                                                    
a fine.                                                                                                                         
                                                                                                                                
Senator Wielechowski  continued his line of  questioning. He                                                                    
wondered  what  would  have been  done  differently  in  the                                                                    
instances in 2021  that would have resulted in  a lower fine                                                                    
figure.                                                                                                                         
                                                                                                                                
10:07:57 AM                                                                                                                   
                                                                                                                                
Senator von Imhof asked for  the background requirements for                                                                    
technical employees.                                                                                                            
                                                                                                                                
Co-Chair Stedman  wanted to  know whether  current employees                                                                    
could  be trained  to provide  the technical  support, which                                                                    
could negate the need for new positions.                                                                                        
                                                                                                                                
Ms.  Carpenter   offered  to  provide  the   committee  with                                                                    
specific employment  requirements. She  said that  the staff                                                                    
was already at capacity  with non-hazardous waste landfills,                                                                    
which necessitated the 6 additional positions.                                                                                  
                                                                                                                                
Senator  von   Imhof  queried   the  solid   waste  disposal                                                                    
caseload.                                                                                                                       
                                                                                                                                
Ms.  Carpenter  replied  that   existing  staff  oversaw  27                                                                    
complex  facilitates that  required  annual inspections  and                                                                    
routine  monitoring. She  said that  14 facilities  would be                                                                    
considered complex under the Subtitle C program.                                                                                
                                                                                                                                
10:11:04 AM                                                                                                                   
                                                                                                                                
Ms.  Carpenter said  that  current  employees were  engaging                                                                    
with communities  and were  constantly dealing  with helping                                                                    
facilities in a way that was beyond annual inspections.                                                                         
                                                                                                                                
10:11:40 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski  wondered which fines on  slide 7 would                                                                    
be considered punitive.                                                                                                         
                                                                                                                                
10:11:54 AM                                                                                                                   
                                                                                                                                
Ms. Carpenter agreed to provide that information.                                                                               
                                                                                                                                
10:12:06 AM                                                                                                                   
                                                                                                                                
Senator Hoffman  asked which sections  of the bill  would be                                                                    
implemented to proactively protect Alaskans.                                                                                    
                                                                                                                                
10:12:47 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  asked  that the  department  add  Senator                                                                    
Hoffmans question to the list of forthcoming responses.                                                                         
                                                                                                                                
10:12:53 AM                                                                                                                   
Senator Wielechowski looked  at slide 6 and  remarked that a                                                                    
former employee  of the  EPA had called  his office  and had                                                                    
revealed that  the EPA did,  in fact, provide  technical and                                                                    
compliance support.                                                                                                             
                                                                                                                                
10:13:10 AM                                                                                                                   
                                                                                                                                
Ms.  Carpenter  believed  that   DEC  could  provide  better                                                                    
support with local staff and local knowledge.                                                                                   
                                                                                                                                
10:13:28 AM                                                                                                                   
                                                                                                                                
Senator  Wielechowski surmised  that  the EPA  did not  have                                                                    
employees working within the state.                                                                                             
                                                                                                                                
10:13:35 AM                                                                                                                   
                                                                                                                                
Ms. Carpenter  reiterated that the  EPA had one  employee in                                                                    
in the state dedicated to RCRA.                                                                                                 
                                                                                                                                
10:13:55 AM                                                                                                                   
                                                                                                                                
Co-Chair   Stedman  recalled   that   in  previous   primacy                                                                    
discussions, state primacy did  not alleviate the state from                                                                    
following federal  rules. He said  that the thought  at that                                                                    
time was that Dec would be  able to respond more quickly and                                                                    
on a personal level.                                                                                                            
                                                                                                                                
10:14:39 AM                                                                                                                   
                                                                                                                                
Senator  Wielechowski asked  for specific  examples of  when                                                                    
the EPA failed to  provide adequate technical and compliance                                                                    
assistance.                                                                                                                     
                                                                                                                                
10:14:59 AM                                                                                                                   
                                                                                                                                
Senator  Olson  wondered  what had  happened  in  2019  that                                                                    
resulted in the  $219,019 in fines. The number  of fines had                                                                    
been the  same as the  two previous  years yet the  fine was                                                                    
more than double.                                                                                                               
                                                                                                                                
10:15:30 AM                                                                                                                   
                                                                                                                                
Ms. Carpenter  replied that  it was  referring to  the fines                                                                    
implemented by the  EPA. She said she would get  back to the                                                                    
committee with the information.                                                                                                 
                                                                                                                                
10:15:48 AM                                                                                                                   
                                                                                                                                
Senator  Olson wondered  whether the  fine was  levied on  a                                                                    
state entity.                                                                                                                   
                                                                                                                                
10:15:59 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman said  that the  committee would  determine                                                                    
whether the  fine was levied  on a state entity  and whether                                                                    
the  fine  was paid  through  Settlements  and Judgments  or                                                                    
absorbed into the entities budget.                                                                                              
                                                                                                                                
10:16:16 AM                                                                                                                   
                                                                                                                                
Senator Hoffman wondered  whether any of the  fines were for                                                                    
exploration specifically related to Pebble Mine.                                                                                
                                                                                                                                
10:16:39 AM                                                                                                                   
                                                                                                                                
Ms.   Carpenter  discussed   slide   8,  "DEC's   Regulatory                                                                    
Approach":                                                                                                                      
                                                                                                                                
     EPA's rules were drafted to meet the needs of all                                                                          
     states. DEC will be able to draft regulations that                                                                         
     meet the needs of Alaska.                                                                                                  
                                                                                                                                
     Opportunity    to   develop    a   "universal    waste"                                                                    
     classification.                                                                                                            
                                                                                                                                
    Small and Very Small Generators overlooked by EPA.                                                                          
                                                                                                                                
          41 large, 1028 small/very small generators in                                                                         
          Alaska                                                                                                                
                                                                                                                                
          Pre pandemic example of 2018 and 2019 a combined                                                                      
          total of only 6 inspections were conducted                                                                            
                                                                                                                                
          DEC focus on outreach, education, and technical                                                                       
          assistance                                                                                                            
                                                                                                                                
Ms.  Carpenter relayed  that one  of the  ways DEC  would be                                                                    
able  to draft  regulations  specific to  the  state was  to                                                                    
develop  a  universal  waste  classification.  She explained                                                                    
that  universal  waste  was   waste  commonly  generated  by                                                                    
households   or  commercial   entities  and   included  non-                                                                    
hazardous waste such as spend  batteries or old electronics.                                                                    
The state  would have the  ability to develop  regulation to                                                                    
deal with  the specific  waste streams.  She said  she would                                                                    
follow up  with transportation costs for  all communities in                                                                    
the  state.  She said  that  DEC  efforts would  focus  more                                                                    
closely  on small  and very  small generators  overlooked by                                                                    
the EPA.                                                                                                                        
                                                                                                                                
10:20:12 AM                                                                                                                   
                                                                                                                                
Senator  Hoffman queried  the  changes  in battery  disposal                                                                    
under the EPA versus  DEC assuming primacy. Additionally, he                                                                    
asked  about waste  oil disposal  from  small generators  in                                                                    
rural Alaska.                                                                                                                   
                                                                                                                                
10:20:40 AM                                                                                                                   
                                                                                                                                
Ms. Carpenter  replied that the  question would  be explored                                                                    
under a state  program. She said that those  issues could be                                                                    
pursued.                                                                                                                        
                                                                                                                                
10:21:07 AM                                                                                                                   
                                                                                                                                
Senator  Hoffman stressed  that the  need must  be evaluated                                                                    
soon. He  wondered why the  state would go forward  with the                                                                    
program without  details of  the benefits  to the  state. He                                                                    
expressed  disappointment  that  the  presentation  did  not                                                                    
offer  concrete solutions  or benefits  to  the support  the                                                                    
expense of assuming primacy.                                                                                                    
                                                                                                                                
10:22:29 AM                                                                                                                   
                                                                                                                                
Senator  Wielechowski spoke  of  the EPA  only inspecting  6                                                                    
small  generators between  2018  and 2019.  He wondered  how                                                                    
many inspections  the department  believed should  have been                                                                    
conducted during that timeframe.                                                                                                
                                                                                                                                
10:22:51 AM                                                                                                                   
                                                                                                                                
Ms.  Carpenter replied  that she  did not  have the  numbers                                                                    
offhand. She asserted that assuming  primacy would allow for                                                                    
more   local  assistance   to   communities   and  for   the                                                                    
performance of more regular inspections.                                                                                        
                                                                                                                                
10:23:21 AM                                                                                                                   
                                                                                                                                
Senator  Wielechowski asked  for  a rough  estimate of  what                                                                    
would be an appropriate number of inspections per year.                                                                         
                                                                                                                                
Ms. Carpenter thought that the  number of inspections should                                                                    
be commensurate  with faciality counts. She  thought smaller                                                                    
generators  should  be  inspected as  frequently  as  larger                                                                    
generators.                                                                                                                     
                                                                                                                                
10:23:52 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman   queried  the  definition  of   a   small                                                                    
generator and a very small generator.                                                                                           
                                                                                                                                
10:24:16 AM                                                                                                                   
                                                                                                                                
Ms. Carpenter replied that a  large quantity generator would                                                                    
produce more than  2,200lbs of hazardous waste  per month. A                                                                    
very  small generator  would produce  less  than 220lbs  per                                                                    
months. A  small quantity generator produced  between 220lbs                                                                    
and  2,200lbs  per  month.  She   clarified  that  this  was                                                                    
dependent on they type of waste being generated.                                                                                
                                                                                                                                
10:25:23 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop wondered whether  the regulations drafted by                                                                    
DEC would have to be approved by the EPA.                                                                                       
                                                                                                                                
10:25:32 AM                                                                                                                   
                                                                                                                                
Ms. Carpenter replied in the affirmative.                                                                                       
                                                                                                                                
10:25:40 AM                                                                                                                   
                                                                                                                                
Senator   Hoffman   requested    information   about   which                                                                    
communities fell under the definitions  of large, small, and                                                                    
very small generators.                                                                                                          
                                                                                                                                
10:26:05 AM                                                                                                                   
                                                                                                                                
Senator  von Imhof  spoke of  infrastructure legislation  on                                                                    
the  federal   level.  She  thought  the   bill  would  fund                                                                    
alternative energy  sources that  would require  the storage                                                                    
of  batteries. She  wondered whether  DEC was  preparing for                                                                    
the  increase  in  generator  activity  due  to  alternative                                                                    
energy methods.                                                                                                                 
                                                                                                                                
10:27:06 AM                                                                                                                   
                                                                                                                                
Ms. Carpenter agreed to follow up with the committee.                                                                           
                                                                                                                                
10:27:17 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski returned to the  issue of the number of                                                                    
inspections  per year.  He thought  that if  the inspections                                                                    
were to  be commensurate with  the number of small  and very                                                                    
small generators there would  be several hundred inspections                                                                    
per year.  He wondered  whether the department  was planning                                                                    
for the increased inspections.                                                                                                  
                                                                                                                                
10:28:02 AM                                                                                                                   
                                                                                                                                
Ms. Carpenter replied in the affirmative.                                                                                       
                                                                                                                                
10:28:20 AM                                                                                                                   
                                                                                                                                
Mr.  Bates pointed  to slide  9, "Overseeing  and protecting                                                                    
Alaska's wetlands":                                                                                                             
                                                                                                                                
     Alaska's wetlands cover approximately 174 million                                                                          
    acres, or about 43 percent of Alaska's surface area                                                                         
                                                                                                                                
          May include tundra, permafrost, marshes, and bogs                                                                     
                                                                                                                                
     Contiguous U.S. used to have 200 million acres of                                                                          
     wetlands, less than half remain                                                                                            
                                                                                                                                
Co-Chair  Stedman  assumed  that Southeast  Alaska  was  not                                                                    
excluded in the wetland acreage reflected on the slide.                                                                         
                                                                                                                                
Mr. Bates replied that Southeast  Alaska was included in the                                                                    
figure.                                                                                                                         
                                                                                                                                
10:31:39 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop  lamented that the  Army Corps  of Engineers                                                                    
redefined   wetlands    in  1994   to  include   tundra  and                                                                    
permafrost.                                                                                                                     
                                                                                                                                
10:32:26 AM                                                                                                                   
                                                                                                                                
Mr.  Bates  discussed slide  10,  "Clean  Water Act  Section                                                                    
404":                                                                                                                           
                                                                                                                                
     Regulates the discharge of dredged or fill material                                                                        
     into waters and wetlands                                                                                                   
                                                                                                                                
     Activities that  require 404  permits include  fill for                                                                    
     resource    and    community   development    projects,                                                                    
     construction  in waters,  and placement  of riprap  and                                                                    
     fill material for roads, airports, or buildings                                                                            
                                                                                                                                
     Three states currently have State 404 Programs                                                                             
     Michigan (1984), New Jersey (1994), and Florida                                                                            
     (2020).                                                                                                                    
                                                                                                                                
Mr.  Bates  said  that  most  construction  and  development                                                                    
projects  in the  state required  a Section  404 permit.  He                                                                    
listed  the  various  projects  that  required  Section  404                                                                    
permits from small to large scale projects.                                                                                     
                                                                                                                                
10:34:23 AM                                                                                                                   
                                                                                                                                
Senator Hoffman requested  a map that showed  the 44 percent                                                                    
of the surface of the state that was covered by wetlands.                                                                       
                                                                                                                                
10:35:03 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  asked  about   the  smaller  parcels  and                                                                    
private  citizen  development.  He  wondered  what  sort  of                                                                    
mitigation might be encountered.                                                                                                
                                                                                                                                
10:35:25 AM                                                                                                                   
                                                                                                                                
Mr. Bates agreed to provide  the map for Senator Hoffman. In                                                                    
response to  Co-Chair Stedmans  question,  he said  that the                                                                    
department would have  expedited permitting arrangements via                                                                    
a letter of permission or  permit applicable to a routine or                                                                    
smaller type of project. He  said a house project would fall                                                                    
under  that arena;  if  the  impact would  be  small to  the                                                                    
wetland, then the permitting process  could be expedited. He                                                                    
said  that permitting  for larger  projects would  depend on                                                                    
location and  potential impacts. He  said that the  Corps of                                                                    
Engineers had been  implementing compensatory mitigation for                                                                    
many  years. He  noted the  expansion of  the definition  of                                                                    
wetlands  in the  1990s.  He recognized  that  the Corps  of                                                                    
Engineers and others  on the federal level  had expanded the                                                                    
definition to  control the permitting.  He wanted  the state                                                                    
to  take control  over that  aspect of  permitting and  have                                                                    
flexibility  for  applicants  that  protected  wetlands  and                                                                    
provided  reasonable site-specific  mitigation opportunities                                                                    
that would allow for responsible development.                                                                                   
                                                                                                                                
10:37:51 AM                                                                                                                   
Co-Chair   Stedman  added   that,   under   the  EPA,   when                                                                    
constituents  had   wanted  to  develop  their   lands,  the                                                                    
mitigation  was  generally  forfeiture of  a  percentage  of                                                                    
their real-estate  to gain  permitting. He  likened it  to a                                                                    
development  tax.  He shared  that  the  lands went  into  a                                                                    
mitigation  bank, which  had  prompted  concerns about  what                                                                    
happened to lands  that ended up in the  mitigation bank. He                                                                    
understood  that  under  the proposed  primacy,  the  public                                                                    
would contact lawmakers with mitigation problems.                                                                               
                                                                                                                                
10:38:45 AM                                                                                                                   
                                                                                                                                
Mr. Bates  relayed that the  issue would be  addressed later                                                                    
in the presentation. He hoped  that if members of the public                                                                    
had issues with the program they would reach out to DEC.                                                                        
                                                                                                                                
10:39:19 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman interjected that  the entirety of Southeast                                                                    
Alaska fell under the current  definition of wetlands, which                                                                    
was  frustrating to  landowners  who  would experience  land                                                                    
charges and did not have full control over their property.                                                                      
                                                                                                                                
10:40:09 AM                                                                                                                   
                                                                                                                                
Senator  Hoffman shared  that he  recently went  through the                                                                    
federal  permitting process.  He remarked  that under  state                                                                    
management of Section 404, the  definition of  wetlands  was                                                                    
fixed and wondered whether the  mitigation measures would be                                                                    
the same under DEC as under EPA.                                                                                                
                                                                                                                                
10:41:00 AM                                                                                                                   
                                                                                                                                
Mr. Bates said  that the state had to meet  federal 404B (1)                                                                    
guidelines   and  had   to  adhere   to   Clean  Water   Act                                                                    
regulations. He  believed that the implementation  of yet to                                                                    
be developed  compensatory mitigation rules would  allow for                                                                    
local  knowledge  and  flexibility  based on  the  needs  of                                                                    
Alaskan   communities.   He  contended   that   compensatory                                                                    
regulation in Alaska  under the Corps of  Engineers had been                                                                    
rigid. He  felt that having  a state-run program  would make                                                                    
DEC accountable  to both the  legislature and the  people of                                                                    
Alaska and would  give DEC the opportunity  to implement the                                                                    
plan on a local level with local knowledge.                                                                                     
                                                                                                                                
10:43:09 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop  asked about the Alaska  Gasline Development                                                                    
Corporation   (AGDC)and  the   $800   million  in   wetlands                                                                    
mitigation. He wondered whether,  under a state-run program,                                                                    
a  land  swap  form  one   state  agency  to  another  could                                                                    
substitute for a cash payment for mitigation.                                                                                   
                                                                                                                                
10:43:41 AM                                                                                                                   
                                                                                                                                
Mr. Bates said that a 1994  agreement with EPA and the Corps                                                                    
of  Engineers had  reflected that  Alaska had  wetlands that                                                                    
differed from  those of  other areas of  the state.  He said                                                                    
that at  that time  all parties involved  had agreed  on the                                                                    
matter with an MOU. In  2018 those old rules were abandoned.                                                                    
He  shared   that  in  2008   the  mitigation   banking  was                                                                    
established which  meant the developers could  write a check                                                                    
to offset  mitigated lands. He  discussed the  importance of                                                                    
compensatory mitigation.                                                                                                        
                                                                                                                                
10:45:50 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:47:10 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:47:14 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman  remarked that Section 404  was of interest                                                                    
to many Alaskans.  He announced that Mr.  Bates would return                                                                    
to   the  committee   the  following   day  to   finish  his                                                                    
presentation.                                                                                                                   
                                                                                                                                
10:48:06 AM                                                                                                                   
                                                                                                                                
Senator Wilson  spoke of Floridas  404  program and wondered                                                                    
whether they  had faced litigation due  to implementation of                                                                    
the program.                                                                                                                    
                                                                                                                                
10:48:22 AM                                                                                                                   
                                                                                                                                
Mr.  Bates   replied  that  Florida  was   not  involved  in                                                                    
litigation,  but the  EPA had  been sued  by the  Center for                                                                    
Biological Diversity, EarthJustice  and other organizations,                                                                    
which  contend  that  the  Florida  provisions  are  not  as                                                                    
stringent as the Clean Water Act.                                                                                               
                                                                                                                                
10:49:03 AM                                                                                                                   
                                                                                                                                
Senator  Hoffman requested  a  map of  ownership of  private                                                                    
lands in  Alaska. He thought  that native  corporations held                                                                    
over 90  percent of all the  private lands in the  state. He                                                                    
was  curious about  how much  of the  44 million  acres were                                                                    
wetlands  and  were owned  by  private  entities other  than                                                                    
native corporations.                                                                                                            
                                                                                                                                
10:49:50 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman surmised  that Senator  Hoffman wanted  to                                                                    
private ownership  of lands  outside of  Native Corporations                                                                    
and what percentage of that was wetlands.                                                                                       
                                                                                                                                
10:49:59 AM                                                                                                                   
                                                                                                                                
Senator Hoffman  clarified that he  would like to see  a map                                                                    
of  lands  that were  eligible  for  development by  private                                                                    
entities,  also and  down by  which were  wetlands owned  by                                                                    
Native corporations versus non-Native ownership.                                                                                
                                                                                                                                
10:50:28 AM                                                                                                                   
                                                                                                                                
Mr. Bates indicated that he would provide that information.                                                                     
                                                                                                                                
10:50:40 AM                                                                                                                   
                                                                                                                                
Mr. Bates noted that SB  27, passed in 2013, established the                                                                    
authority for  the state  to evaluate  and seek  primacy for                                                                    
administering  the  Section  404  program.  The  legislation                                                                    
provided  both  authority and  funding  for  the effort.  He                                                                    
furthered that  the funding was  cut in 2014 and  the effort                                                                    
was put on hold. He concluded  that all the authority was in                                                                    
place and all that was  needed was the financing. He offered                                                                    
to distribute the  fiscal note from January  18, 2013, which                                                                    
requested 8 staff for the  development of the program with a                                                                    
 to be determined  aspect. He  said that the current request                                                                    
was  for a  more robust  implementation of  the 404  program                                                                    
which necessitated a total increase of 32 positions.                                                                            
                                                                                                                                
10:52:24 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman  instructed Mr.  Bates to study  the record                                                                    
and history of the issue,  particularly the previous cost of                                                                    
implementation.                                                                                                                 
                                                                                                                                
10:53:07 AM                                                                                                                   
Mr. Bates replied  that there was a  document from 2014-2015                                                                    
that offered a robust view  of what the staffing should look                                                                    
like, and the current ask was based on that document.                                                                           
                                                                                                                                
10:53:55 AM                                                                                                                   
                                                                                                                                
Mr.  Bates  looked  at  slide 11,  "404  Primacy  Costs  (in                                                                    
thousands)":                                                                                                                    
                                                                                                                                
     Increment Request                                                                                                          
                                                                                                                                
          $4,904.0 UGF                                                                                                          
          28 FT Positions                                                                                                       
          Training, equipment, and travel                                                                                       
          Contractual support including legal consultation                                                                      
          Coordination with DFG and DNR                                                                                         
                                                                                                                                
     Anticipate four additional positions in FY2024                                                                             
                                                                                                                                
     Two-year application process                                                                                               
                                                                                                                                
Mr. Bates related  that the plan was to  develop the program                                                                    
and  establish  agreements  with  EPA,  the  Army  Corps  of                                                                    
Engineers,  and   other  agencies.  This  would   include  a                                                                    
workplan  timelines  responsibilities  requirements for  the                                                                    
process, both  to obtain and  implement the  program. Within                                                                    
that time a wetlands  management program would be developed,                                                                    
including  a detailed  map of  wetlands.  He furthered  that                                                                    
existing Corps  of Engineer permits  would be  reviewed, and                                                                    
the  DEC  would  explore  the  development  of  new  general                                                                    
permits. He  said that the definition  of  assumable waters                                                                     
would be  examined and  would be  a negotiated  item between                                                                    
DEC,  EPA,  and the  Army  Corps  of  Engineers. He  said  a                                                                    
complete assumption package to be  submitted to EPA would be                                                                    
developed  by 2024.  He reiterated  that the  total ask  was                                                                    
$4.9  million for  FY 22-FY  23. The  expectation thereafter                                                                    
was for  the full 32  funded positions. Mr.  Bates continued                                                                    
his remarks  pertaining to the  proposed plan  and requested                                                                    
funding.                                                                                                                        
                                                                                                                                
10:57:02 AM                                                                                                                   
                                                                                                                                
Co-Chair   Stedman  stated   that  the   presentation  would                                                                    
continue the following day.                                                                                                     
                                                                                                                                
10:57:15 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski  spoke of  the interagency  receipts in                                                                    
2013  of  $361,000, up  to  $560,000.  He assumed  that  the                                                                    
request  was for  Department of  Natural  Resources and  was                                                                    
included in the current fiscal note.                                                                                            
                                                                                                                                
10:57:33 AM                                                                                                                   
                                                                                                                                
Senator Wilson wondered  whether there was a  way to stretch                                                                    
the process  out over 4  years to assure that  all positions                                                                    
could be filled at a lower cost.                                                                                                
                                                                                                                                
10:58:01 AM                                                                                                                   
                                                                                                                                
Senator  von Imhof  looked ahead  to slides  15 and  16. She                                                                    
asked for  details on  how the DEC  would be  accountable to                                                                    
the legislature and the public.  She requested an example of                                                                    
the  significant cost  saving  for large  projects in  state                                                                    
assumed waters.                                                                                                                 
                                                                                                                                
10:58:27 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman remarked that  Mr. Bates should return with                                                                    
answers to  the question the  following day and  be prepared                                                                    
for further questioning.                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:59:56 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 11:00 a.m.                                                                                         

Document Name Date/Time Subjects
SB 80 Providence Supports SB 80 SFIN 02.22.pdf SFIN 2/8/2022 1:00:00 PM
SFIN 3/14/2022 9:00:00 AM
SB 80
SB 80 Testimony SB 80 2-8-22 CCHR Vers 2.pdf SFIN 2/8/2022 1:00:00 PM
SFIN 3/14/2022 9:00:00 AM
SB 80
SB 80 Coalition Letter of Support.pdf SFIN 2/8/2022 1:00:00 PM
SFIN 3/14/2022 9:00:00 AM
SB 80
SB 80 Supporting docs and written testimony 1.26.22.pdf SFIN 2/8/2022 1:00:00 PM
SFIN 3/14/2022 9:00:00 AM
SB 80
SB 80 Suppoting Documents.pdf SFIN 3/14/2022 9:00:00 AM
SB 80
SB 80(HSS) Sectional Analysis Version I 1.26.22 (002).pdf SFIN 2/8/2022 1:00:00 PM
SFIN 3/14/2022 9:00:00 AM
SB 80
SB 80 HSS explanation of changes B to I.pdf SFIN 2/8/2022 1:00:00 PM
SFIN 3/14/2022 9:00:00 AM
SB 80
SB80 Sponsor Statment.pdf SEDC 3/10/2021 9:00:00 AM
SFIN 2/8/2022 1:00:00 PM
SFIN 3/14/2022 9:00:00 AM
SB 80
SB 168 Senate Finance Feb 14 - Responses DOTPF (2-24-2022).pdf SFIN 2/14/2022 9:00:00 AM
SFIN 3/14/2022 9:00:00 AM
SB 168
SB 168 v. A Sectional Analysis.pdf SFIN 2/14/2022 9:00:00 AM
SFIN 3/14/2022 9:00:00 AM
STRA 2/1/2022 1:30:00 PM
SB 168
SB 168 Support Document 2.1.22.pdf SFIN 2/14/2022 9:00:00 AM
SFIN 3/14/2022 9:00:00 AM
STRA 2/1/2022 1:30:00 PM
SB 168
SB 168 v. A Sponsor Statement .pdf SFIN 2/14/2022 9:00:00 AM
SFIN 3/14/2022 9:00:00 AM
STRA 2/1/2022 1:30:00 PM
SB 168
031422 SFIN DEC RCRA 404 Primacy.pdf SFIN 3/14/2022 9:00:00 AM
SB 111 Explanation of Changes ver N to E 03.14.2022.pdf SFIN 3/14/2022 9:00:00 AM
SB 111
SB 111 work draft ver. E 03.14.2022.pdf SFIN 3/14/2022 9:00:00 AM
SB 111
031422 - DEC Response to SFC RCRA Primacy Questions.pdf SFIN 3/14/2022 9:00:00 AM
031422 - DEC Response to 404 SFC Primacy Questions.pdf SFIN 3/14/2022 9:00:00 AM