Legislature(1999 - 2000)

04/26/1999 03:10 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                    SENATE RESOURCES COMMITTEE                                                                                
                          April 26, 1999                                                                                        
                             3:10 p.m.                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Rick Halford, Chairman                                                                                                  
Senator Pete Kelly                                                                                                              
Senator Lyda Green                                                                                                              
Senator Sean Parnell                                                                                                            
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Robin Taylor, Vice Chairman                                                                                             
Senator Jerry Mackie                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 140                                                                                                             
"An Act  relating  to the  powers and  duties of  the Department  of                                                            
Natural Resources and to the Alaska coastal management program."                                                                
                                                                                                                                
     -MOVED CSSB 140(RES) OUT OF COMMITTEE                                                                                      
                                                                                                                                
SENATE BILL NO. 133                                                                                                             
"An Act creating  and providing for  the Alaska Energy Conservation                                                             
Commission  and transferring  to  it the  powers and  duties of  the                                                            
Alaska  Public  Utilities  Commission and  the  Alaska  Oil and  Gas                                                            
Conservation  Commission;  repealing  the  Alaska  Public  Utilities                                                            
Commission  and the  Alaska  Oil and  Gas  Conservation Commission;                                                             
relating to  regulation of waste collection  and disposal;  relating                                                            
to  the powers  of  the  chair of  the  Alaska  Energy Conservation                                                             
Commission;  relating  to the  appellate  procedures  of the  Alaska                                                            
Energy  Conservation  Commission;  and providing  for  an  effective                                                            
date."                                                                                                                          
                                                                                                                                
     -MOVED CSSB 133(RES) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                              
                                                                                                                                
SB 140 - See Resources Committee minutes dated 4/19/99.                                                                         
                                                                                                                                
SB 133 - See Resources committee minutes dated 4/12/99.                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Mr. Bruce Campbell                                                                                                              
Staff to Senator Randy Phillips                                                                                                 
State Capitol Bldg.                                                                                                             
Juneau, AK 99811-1182                                                                                                           
POSITION STATEMENT: Commented on SB 140.                                                                                      
                                                                                                                                
Ms. Gabrielle LaRoche                                                                                                           
Alaska Coastal Management Program (ACMP)                                                                                        
Division of Governmental Coordination (DGC)                                                                                     
Office of the Governor                                                                                                          
P.O. Box 110030                                                                                                                 
Juneau, AK 99811-0030                                                                                                           
POSITION STATEMENT: Opposed SB 140.                                                                                           
                                                                                                                                
Ms. Jane Angvik, Director                                                                                                       
Division of Lands                                                                                                               
3601 C St. Ste 1122                                                                                                             
Anchorage, AK 99503-5947                                                                                                        
POSITION STATEMENT: Opposed SB 140.                                                                                           
                                                                                                                                
Mr. Patrick Galvin                                                                                                              
701 W 8th, #1200                                                                                                                
Anchorage, AK 99501                                                                                                             
POSITION STATEMENT: Opposed SB 140.                                                                                           
                                                                                                                                
Mr. Jon Dunham, Deputy Director                                                                                                 
North Slope Borough Planning Department                                                                                         
P.O. Box 69                                                                                                                     
Barrow, AK 99723                                                                                                                
POSITION STATEMENT: Opposed SB 140.                                                                                           
                                                                                                                                
Mr. John Easton, Program Director                                                                                               
Bristol Bay SCRA Coastal Management Program                                                                                     
P.O. Box 849                                                                                                                    
Dillingham, AK 99576                                                                                                            
POSITION STATEMENT: Opposed SB 140.                                                                                           
                                                                                                                                
Ms. Linda Freed, Community Development Director                                                                                 
Kodiak Island Borough                                                                                                           
710 Mill Bay Rd.                                                                                                                
Kodiak, AK 99615                                                                                                                
POSITION STATEMENT: Opposed SB 140.                                                                                           
                                                                                                                                
Mr. Robert Fagerstrom, Co-chairman                                                                                              
Alaska Coastal Policy Council                                                                                                   
P.O. Box 1064                                                                                                                   
Nome, AK 99762                                                                                                                  
POSITION STATEMENT: Opposed SB 140                                                                                            
                                                                                                                                
Mr. John Bolling                                                                                                                
Coastal Coordinator                                                                                                             
Craig, AK 99921                                                                                                                 
POSITION STATEMENT: Opposed SB 140.                                                                                           
                                                                                                                                
Senator Drue Pearce                                                                                                             
State Capitol Bldg.                                                                                                             
Juneau, AK 99811-1182                                                                                                           
POSITION STATEMENT: Sponsor of SB 133.                                                                                        
                                                                                                                                
Ms. Judy Brady, Executive Director                                                                                              
Alaska Oil and Gas Association                                                                                                  
121 W. Fireweed                                                                                                                 
Anchorage, AK 99501                                                                                                             
POSITION STATEMENT: Commented on SB 133.                                                                                      
                                                                                                                                
Ms. Mary Hughes                                                                                                                 
Municipality of Anchorage                                                                                                       
3601 C St.                                                                                                                      
Anchorage, Ak 99501                                                                                                             
POSITION STATEMENT: Commented on SB 133.                                                                                      
                                                                                                                                
Ms. Sharon Daniel                                                                                                               
Copper Basin Sanitation                                                                                                         
Glennallen, AK 99588                                                                                                            
POSITION STATEMENT: Commented on SB 133.                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 99-27, SIDE A                                                                                                            
Number 001                                                                                                                      
                                                                                                                                
               SB 140-COASTAL ZONE MANAGEMENT TO DNR                                                                        
                                                                                                                                
CHAIRMAN HALFORD  called the Senate  Resources Committee  meeting to                                                            
order at 3:10 p.m. and  announced SB 140 to be up for consideration.                                                            
                                                                                                                                
MR. BRUCE CAMPBELL, aide  to Senator Randy Phillips, said SB 140 was                                                            
initiated  as a  mission alignment  topic  from the  Senate  Finance                                                            
Committee.  This CS includes additional  language regarding  Hatcher                                                            
Pass that everyone agrees  with.  The principal task is to bring the                                                            
Alaska Coastal  Policy Council out  of the Office of Management  and                                                            
Budget and into the Department of Natural Resources (DNR).                                                                      
                                                                                                                                
The Division of Governmental  Coordination currently has no director                                                            
so this would  be a consolidation  efficiency without having  to lay                                                            
anyone off.   He said the Division  of Land deals with land  permits                                                            
on state land,  but it also deals  with a broad host of issues  from                                                            
offshore  leases to onshore  leases.  The  Division of Governmental                                                             
Coordination  is generally Alaska's  "one stop shop" for  permits on                                                            
state, federal,  and private  lands. Bringing  the two together  may                                                            
achieve some additional efficiencies.                                                                                           
                                                                                                                                
MR.  CAMPBELL  explained  they are  not  necessarily  talking  about                                                            
physically  moving people from one  building to another which  would                                                            
incur  moving  costs,  but  they  are  talking  strictly  about  the                                                            
reassignment   of  where  they  fit   in  the  hierarchy   of  state                                                            
government.                                                                                                                     
                                                                                                                                
SENATOR  PARNELL  moved  to  adopt  the  CS to  SB  140  (version  M                                                            
4/26/99). There were no objections and it was so ordered.                                                                       
                                                                                                                                
Number 60                                                                                                                       
                                                                                                                                
SENATOR LINCOLN  asked if the fiscal note is the same  for the CS as                                                            
it was for the original bill.                                                                                                   
                                                                                                                                
CHAIRMAN  HALFORD replied  that there shouldn't  be any change,  but                                                            
the committee  couldn't get  a fiscal note  without adopting  the CS                                                            
first.                                                                                                                          
                                                                                                                                
MS. GABRIELLE  LAROCHE, Office of  Governmental Coordination  (DGC),                                                            
said  DGC opposes  SB  140.   She  said the  Alaska  Coastal  Policy                                                            
Council passed Resolution  99-1 opposing SB 140.  She warned against                                                            
trying to fix something  that isn't broken.   No real savings to the                                                            
State general fund can  be identified by this consolidation.  DGC is                                                            
the  most  appropriate  agency   to  administer  the  ACMP.    DGC's                                                            
functions are distinct from DNR.                                                                                                
                                                                                                                                
The Alaska Coastal Management  Program is a well established program                                                            
that has  been located  in the Office  of the  Governor since  1979.                                                            
DGC's  implementation has  been evaluated  several  times in  recent                                                            
years  and  a 1994  legislative  audit  report  concluded  that  DGC                                                            
appears  to be the  most appropriate  agency  for administering  the                                                            
ACMP.  It further  states that DGC's placement in  the Office of the                                                            
Governor  provides  a  more  objective,  centralized  oversight  and                                                            
coordination  function  for all state  agencies.   In addition,  DGC                                                            
receives a  triennial evaluation from  the federal granting  agency,                                                            
the Office  of Ocean and  Coastal Resource  Management within  NOAA,                                                            
and it has  received several very  complimentary evaluations  of the                                                            
administration of the program.                                                                                                  
                                                                                                                                
The  proposed bill  does  not result  in any  savings  to the  state                                                            
general fund and  may, in fact, result in increases  associated with                                                            
start up  of the program  in a  new agency.   Although the  director                                                            
position would  be directly eliminated,  other costs are  associated                                                            
with  the  transfer.  First,  DGC  employees  are  all  exempt;  DNR                                                            
employees are  all classified. Administrative  costs are  associated                                                            
with  reclassifying  positions   and  hiring  or with  transferring                                                             
functions   among   employees   currently   at  DNR.      Short-term                                                            
inefficiencies  are also  anticipated  as a result  of changing  the                                                            
lead agency.   The federal dollars go to the Office  of the Governor                                                            
and a program  amendment  would have to be  submitted to NOAA  which                                                            
would have costs associated  with it.  In the interim there could be                                                            
delays or decreases  in federal funding  to the program as  a result                                                            
of  having to  do  that with  NOAA's  Office  of Ocean  and  Coastal                                                            
Resource  Management.  Delays  or decreases  in federal funds  could                                                            
not only  impact agency functions,  but also  the almost $1  million                                                            
provided to coastal districts and communities around the State.                                                                 
                                                                                                                                
That DGC is the  most appropriate agency to administer  the ACMP was                                                            
the conclusion  of the 1994  legislative audit  report.  Many  years                                                            
ago the State  of Alaska chose to  have a networked program  relying                                                            
on existing  authorities instead of  a coastal permit issued  by one                                                            
single agency.   As such, DGC provides  a coordination, information                                                             
dissemination,   and  mediation  function.   The  coordination   and                                                            
mediation among  agencies and 35 coastal districts  that participate                                                            
in the program is best  located under the umbrella of the Governor's                                                            
Office rather  than in a line agency which would not  have oversight                                                            
over the other agencies with permitting authority.                                                                              
                                                                                                                                
DGC's function  is distinct  from DNR.  While  the sponsor  suggests                                                            
that  the ACMP  could be  moved to DNR  because  both agencies  have                                                            
similar  planning  and permitting  functions,  not  only are  agency                                                            
mandates different,  but DGC has other  responsibilities  with which                                                            
DNR staff are not familiar,  including developing state positions on                                                            
coastal resource  issues and providing conflict resolution  which is                                                            
needed during  planning and permitting.   In addition, although  DNR                                                            
manages  activities on  state land,  the scope of  the ACMP  is much                                                            
broader  in that  it includes  activities  across  the landscape  of                                                            
Alaska whether on state federal or private land.                                                                                
                                                                                                                                
Number 236                                                                                                                      
                                                                                                                                
MS. JANE ANGVIK,  Director, Division  of Land, DNR, said  she wanted                                                            
to underscore  the fourth  point made by Ms.  LaRoche that  the area                                                            
plans prepared by the Division  of Lands are very different from the                                                            
Coastal  Management Plans  or the  Coastal Management  Program.  The                                                            
Division of  Land area plans are designed  to tell Alaskans  what we                                                            
should do with  our land, providing  an opportunity to evaluate  the                                                            
resources  we have for  sales, leases,  disposals, harvesting,  etc.                                                            
This is substantially different  from the Coastal Management Program                                                            
which looks at  whether a proposed project is on state,  federal, or                                                            
private land and decides  its affect on coastal and marine resources                                                            
according to specific criteria.                                                                                                 
                                                                                                                                
Significant  cuts have  been made  to the  Division  of Land in  the                                                            
proposed budget  and if this bill is an attempt to  provide DNR with                                                            
the ability  to provide planning,  it does  not because the  federal                                                            
program is  funded by federal money  with federal rules.   The state                                                            
money used  for planning  is simply to determine  how Alaskans  will                                                            
take care of  our lands.  The boundaries  of the area plans  and the                                                            
coastal management plans are also different.                                                                                    
                                                                                                                                
Number 282                                                                                                                      
                                                                                                                                
SENATOR  LINCOLN  asked if  the  coastal  zone areas  are  federally                                                            
funded.                                                                                                                         
                                                                                                                                
MS. ANGVIK answered  that the Coastal Management Program  is largely                                                            
funded by  the federal government  but she  didn't know exactly  how                                                            
much.  It is a  federal program that the State of  Alaska chooses to                                                            
participate in  in an effort to protect the coastal  regional areas.                                                            
                                                                                                                                
SENATOR LINCOLN  asked if she meant this program would  not supplant                                                            
the DNR dollars  that are being cut  in the proposed budget  because                                                            
the two can't be mixed.                                                                                                         
                                                                                                                                
MS. ANGVIK  replied that's true except  for the last part.   It will                                                            
not supplant state  functions, because the money is  for a different                                                            
program.                                                                                                                        
                                                                                                                                
Number 308                                                                                                                      
                                                                                                                                
MR. PATRICK  GALVIN,  Anchorage Attorney,  said he  works with  most                                                            
coastal districts and with  developers who are applicants. The local                                                            
government  component   in a  system  built   around  a cooperative                                                             
relationship  between  the  federal, state,  and  local governments                                                             
should be in the Office  of the Governor because it acts as a buffer                                                            
between the  local government and  the state permitting agency  that                                                            
operates  a separate permitting  system that  is networked  into the                                                            
Coastal Management  Program.  The  oversight of the way the  Coastal                                                            
Management  plans  are  developed  and  the  way  the  projects  are                                                            
reviewed  by the  ACMP is seen  as a  valuable part  of the  program                                                            
because the Office of the  Governor is more politically sensitive to                                                            
the needs  of the communities.   The individual  resources  agencies                                                            
are professional permitters  or land managers, but have separate and                                                            
distinct  strengths that are  not related to  the overall review  of                                                            
the projects from a local perspective.                                                                                          
                                                                                                                                
The other troubling part  of the bill from a district perspective is                                                            
that  the Department  of  Community  and  Regional  Affairs'  (DCRA)                                                            
grants administrator position  is eliminated with that duty going to                                                            
DNR as well.   The federal money passes through this  Program to the                                                            
local governments  to do their part.   DCRA plays an important  role                                                            
in  determining  where  the  money  should  go and  what  plans  and                                                            
projects will  get funded.  It is alarming to think  that role would                                                            
be eliminated  and put in  an agency that  has no history of  or any                                                            
authority to do grant work.                                                                                                     
                                                                                                                                
The developers  view  DGC as  a buffer  between  themselves and  the                                                            
individual  requirements of the resource  agencies. Its location  in                                                            
the Governor's  Office is  seen as a benefit  because of it  has the                                                            
ability  to coordinate  the agencies  while  keeping an  eye on  the                                                            
developers of the State to get projects through.                                                                                
                                                                                                                                
Also, from the  developers' perspective, the ACMP  is a program that                                                            
has an impact  on all projects taking place in the  state on public,                                                            
private,  and  federal  lands.    While  DNR has  a  great  deal  of                                                            
experience managing  projects on state lands, it's  unknown how that                                                            
experience  would  carry  over  to  a  program  that  oversees  many                                                            
projects on private lands.                                                                                                      
                                                                                                                                
MR.  JON DUNHAM,  Deputy  Director,  North  Slope  Borough  Planning                                                            
Department,  opposed SB 140.  They  coordinate their permit  reviews                                                            
with DGC  on a regular  basis.  They also  coordinate comments  with                                                            
DNR  on oil  and  gas lease  sales.   Both  agencies  perform  their                                                            
functions  in a professional  manner and they  believe DGC  does the                                                            
best job of efficiently,  effectively and fairly evaluating  all the                                                            
concerns  expressed  by the  commenting  agencies  and individuals.                                                             
They question the logic  and soundness of giving DGC to DNR when DNR                                                            
has so much  to do with oil and gas  permitting in the state.   This                                                            
could  make  the  agencies   susceptible  to  loss  of  independent                                                             
judgement critical to administer  the Coastal Management Program. He                                                            
thought the Office of Governor was the best place for DGC.                                                                      
                                                                                                                                
MR.  JOHN  EASTON,  Program  Director,   Bristol  Bay  CRSA  Coastal                                                            
Management  Program,  was  testifying  on behalf  of  their  elected                                                            
Board.  The majority  of land in their coastal district  is owned by                                                            
the  State  and  managed  by  DNR.    The  ACMP   was  developed  in                                                            
recognition that the coastal  communities should play a central role                                                            
in development  decisions that affect them.  DGC's  participation in                                                            
coastal  management  is invaluable  providing  a neutral  forum  for                                                            
interested  citizens to voice ideas  about shaping the future  while                                                            
protecting  important   resources.    SB  140  will  alienate  local                                                            
residents.   A neutral agency  needs to coordinate  the review.   If                                                            
DNR is responsible  for funding, managing, and implementing  coastal                                                            
management, it would narrow  the scope of the public review process.                                                            
                                                                                                                                
Several positions  are slated  to be cut within  DNR and its  biased                                                            
permitting  systems has CRSA  concerned about  how state  management                                                            
will  be  compromised.   Developing  legislation   to  increase  the                                                            
efficiency  of state resource  agencies is  a difficult path,  but a                                                            
cost savings will not result.  He opposed SB 140.                                                                               
                                                                                                                                
Number 422                                                                                                                      
                                                                                                                                
MS.  LINDA FREED,  Community  Development  Director,  Kodiak  Island                                                            
Borough,  said  that coastal  management  is  a  small part  of  the                                                            
activities the Community  Development department is responsible for.                                                            
They have  a full  range of  planning activities  including  zoning,                                                            
subdivision and land management  regulations. They have incorporated                                                            
the CMP into  those programs.  They  oppose SB 140 and have  opposed                                                            
similar bills  in the past.  They  have a good working relationship                                                             
with DNR, but  DNR doesn't have the staff to do tasks  they would be                                                            
required to  do under SB 140.  There  is no state land use  plan for                                                            
Kodiak, neither  are there  any stated efficiencies  for moving  the                                                            
program.   The  bill appears  to be  an effort  to  gut the  Coastal                                                            
Management  Program.   If there is  support for  it, it should  stay                                                            
where it  is.  It is an  efficient and effective  program for  rural                                                            
communities.                                                                                                                    
                                                                                                                                
MR. ROBERT  FAGERSTROM, Co-chairman,  Alaska Coastal Council,  noted                                                            
the Council  unanimously  adopted  Resolution 99-01  at the  Coastal                                                            
Policy meeting  on April 14.  That  resolution opposes SB  140. This                                                            
bill will not create any  savings.  He reiterated previous testimony                                                            
regarding  the audit  recommendations  and  endorsed  all the  other                                                            
comments made by the others opposed to SB 140.                                                                                  
                                                                                                                                
MR.  JOHN BOLLING,  Coastal  Coordinator,  Craig,  opposed  SB  140.                                                            
DGC's job is to  act as a clearinghouse for state  agencies involved                                                            
in the Alaska Coastal Management  Program which would not improve by                                                            
locating  it within  the DNR.   To  keep all  agencies  on an  equal                                                            
footing,  DGC  should   be  kept  apart  from  DNR   and  the  other                                                            
departments.   This action  would not result  in saving any  general                                                            
fund dollars  and would,  in fact, increase  costs.  There  would be                                                            
short  term  inefficiencies   which  would  be  detrimental  to  the                                                            
districts that participate in the program.                                                                                      
                                                                                                                                
Number 501                                                                                                                      
                                                                                                                                
SENATOR LINCOLN asked if  anyone could comment on the question posed                                                            
in NOAA's April  19 letter about whether a cost savings  would occur                                                            
and whether the federal  matching dollars would follow the transfer.                                                            
                                                                                                                                
CHAIRMAN HALFORD said that  question should be followed up on in the                                                            
Finance Committee.                                                                                                              
                                                                                                                                
SENATOR  GREEN  moved to  pass  CSSB 140(RES)  from  committee  with                                                            
individual recommendations.                                                                                                     
                                                                                                                                
SENATOR  LINCOLN   objected  because   she  thought  the   Resources                                                            
Committee could do a lot more work on the bill.                                                                                 
                                                                                                                                
CHAIRMAN HALFORD  asked all those  in favor of moving CSSB  140(RES)                                                            
from  committee to  raise  their hands.   SENATORS  GREEN,  HALFORD,                                                            
PARNELL,  and KELLY  indicated yes;  SENATOR  LINCOLN indicated  no.                                                            
The bill moved from committee with a vote of 4 to 1.                                                                            
                                                                                                                                
              SB 133-REGULATORY COMMISSION OF ALASKA                                                                        
                                                                                                                              
CHAIRMAN HALFORD  announced SB 133  to be up for consideration.   He                                                            
said since  the merger of  BP and ARCO, the  AOGCC would have  to be                                                            
better  staffed  and  stronger  and  be much  more  willing  to  get                                                            
involved to protect the  state's interest.  He explained that the CS                                                            
primarily "beefs  up" the AOGCC and  makes significant improvements                                                             
to the APUC.                                                                                                                    
                                                                                                                                
SENATOR PEARCE  said she appreciated Senator Halford's  concerns and                                                            
also wanted  to strengthen the AOGCC,  which CSSB 133 does.   SB 134                                                            
gives it the financial backing that it needs.                                                                                   
                                                                                                                                
SENATOR PEARCE explained  that SB 133 makes basic structural changes                                                            
to the APUC and asks LB&A  to work with the two Commissions to bring                                                            
back  recommendations  as  to  the best  structure  for  a  combined                                                            
regulatory  entity.  Many  other oil and  gas producing states  have                                                            
done this and  it worked well.  In  the meantime, we would  continue                                                            
to make the  changes they were making  to the APUC.  The  name would                                                            
be changed  to the Alaska Energy Conservation  Commission  (AECC) on                                                            
July 1, 1999  with the expectation  that AOGCC would become  part of                                                            
the entity  at year end 2000.  The  Administration would  look for a                                                            
place to house  the AOGCC and APUC  together so they could  begin to                                                            
benefit  from  the  efficiencies  of  combined  record  keeping  and                                                            
staffing.                                                                                                                       
                                                                                                                                
The pay  range  of the AECC  chairperson  would be  higher than  the                                                            
other commissioners.  Everyone else was left at the same rate.                                                                  
                                                                                                                                
TAPE 99-27, SIDE B                                                                                                              
                                                                                                                                
SENATOR PEARCE  said staff for pipeline  regulation and all  pending                                                            
pipeline  matters, along with  two tariff staff,  would move  to the                                                            
AOGCC on the effective  date of July 1, 1999. Space  is available in                                                            
the building  in Muldoon,  even though the  building is inadequate.                                                             
Since the  AOGCC would be  taking on the  pipeline regulation,  they                                                            
would have access  to the hearing officer being added  to the larger                                                            
group  during  the  transition  period.   She  thought  the  hearing                                                            
officer, the additional  tariff staff, and the three technical staff                                                            
(in SB 134)  would give them the staffing  backup they need  to take                                                            
on the new regulatory pipeline regulation function.                                                                             
                                                                                                                                
Number 560                                                                                                                      
                                                                                                                                
SENATOR  PARNELL noted  that the  petroleum engineer  and  geologist                                                            
were getting paid more.                                                                                                         
                                                                                                                                
SENATOR  PEARCE responded  that is  their present  level and,  under                                                            
this bill, the pay remains exactly as it is today.                                                                              
                                                                                                                                
SENATOR PARNELL  suggested that a  year later they should  all be at                                                            
the same level.                                                                                                                 
                                                                                                                                
SENATOR PEARCE said she  agrees and that she would recommend finding                                                            
the correct level of pay  for the commissioners.  She understood the                                                            
reason  AOGCC personnel  are paid more  is because  in the past  pay                                                            
levels  have caused  problems  when  trying to  find professionally                                                             
qualified personnel  for the AOGCC  positions.  The chairman  of the                                                            
AECC is being  given more responsibility and more  power than in the                                                            
past.                                                                                                                           
                                                                                                                                
CHAIRMAN HALFORD said there  was still the question of regulation of                                                            
refuse and questions regarding  the APUC and the new commission but,                                                            
as  chairman  of  the  Resources  Committee,   he  was  focusing  on                                                            
resources issues.                                                                                                               
                                                                                                                                
SENATOR  PARNELL moved  to adopt the  CS to SB 133.   There  were no                                                            
objections and it was so ordered.                                                                                               
                                                                                                                                
MS. JUDY BRADY, Executive  Director, Alaska Oil and Gas Association,                                                            
said they would  comment after seeing the changes  being proposed in                                                            
this bill.                                                                                                                      
                                                                                                                                
MS. MARY HUGHES, Attorney,  Municipality of Anchorage, said they own                                                            
four  utilities:  telephone, water  and  waste water,  electric  and                                                            
refuse.  They  have approximately $1.5 billion of  taxpayer money in                                                            
those  utilities which  provide the  municipality  with much  fiscal                                                            
stability.   The APUC  has been  a very good  organization in  their                                                            
opinion and they  feel it would be appropriate to  have it remain as                                                            
it is.                                                                                                                          
                                                                                                                                
One of  the resources  of the  Municipality of  Anchorage is  refuse                                                            
collections services and,  in the past, small refuse providers spent                                                            
a lot  of money on  economic regulation.   From  that standpoint  it                                                            
would seem  appropriate to  deregulate.   She understands that  this                                                            
bill  deregulates,   but  doesn't  do  anything  for   planning  for                                                            
management and  regulation of the refuse collection  services.  Now,                                                            
approximately  95 percent  of Alaska's refuse  collection is  in the                                                            
hands of  one carrier, Waste  Management.   It is their belief  that                                                            
when services  of 95% of Alaskans  are with one carrier,  there must                                                            
be some type of regulation of that carrier.                                                                                     
                                                                                                                                
They propose  the particular provisions,  Sections 2, 3,  9, 16, and                                                            
27 be deleted  with the idea that  participants within the  industry                                                            
could  work with  legislators  to come  up with  some  way in  which                                                            
deregulation  is  a thoughtful  process,  so  that  in the  end  the                                                            
consumer and the owners of the utility are well served.                                                                         
                                                                                                                                
Number 453                                                                                                                      
                                                                                                                                
MS. SHARON  DANIEL, Copper Basin Sanitation,  said they provide  the                                                            
refuse collection  in the  unorganized borough  in the Copper  River                                                            
basin.   Garbage  collection is  a matter  of public  health if  not                                                            
properly  disposed  of.   Deregulation  of garbage  collection  will                                                            
result in areas of the state no longer getting garbage service.                                                                 
                                                                                                                                
CHAIRMAN HALFORD thanked everyone for their testimony.                                                                          
                                                                                                                                
SENATOR  GREEN  moved to  pass  CSSB 133(RES)  from  committee  with                                                            
individual recommendations.   There were no objections and it was so                                                            
ordered.                                                                                                                        
                                                                                                                                
CHAIRMAN HALFORD adjourned the meeting at 4:20 p.m.                                                                             

Document Name Date/Time Subjects