CS FOR SENATE BILL NO. 139(RES) "An Act relating to fees for certain uses of state water and to the accounting and appropriation of those fees; relating to authorizations for the temporary use of state water; making other amendments to the Alaska Water Use Act; and providing for an effective date." This was the second hearing for this bill in the Senate Finance Committee. AT EASE 7:03 PM / 7:04 PM Senator Leman moved to adopt CS SB 139, 22-GS1087\P as a working draft. The committee substitute was ADOPTED without objection. Amendment #1: This amendment makes the following changes to the committee substitute. Page 3, lines 23- 27: Delete all material. Insert a new bill section to read: Sec. 4. AS 46.15.020(b) is amended to read: (b) The commissioner shall (1) adopt procedural and substantive regulations to carry out the provisions of this chapter, taking into consideration the responsibilities of the Department of Environmental Conservation under AS 46.03 and the Department of Fish and Game under AS 16; (2) keep a public record of all applications for permits and certificates and other documents filed in the commissioner's office; and shall record all permits and certificates and amendments and orders affecting them and shall index them in accordance with the source of the water and the name of the applicant or appropriator; (3) cooperate with, assist, advise, and coordinate plans with the federal, state, and local agencies, including local soil and water conservation districts, in matters relating to the appropriation, use, conservation, quality, disposal, or control of waters and activities related thereto; (4) prescribe fees or service charges for any public service rendered consistent with AS 37.10.050 - 37.10.058, except that the department may charge under regulations adopted by the department an annual $50 administrative service fee to maintain the water mana2ement program (5) before February 1 of each year, prepare a report describing the activities of the commissioner under AS 46.15.035 and 46.15.037; the commissioner shall notify the legislature that the report is available; the report must include (A) information on the number of applications and appropriations for the removal of water from one hydrological unit to another that were requested and that were granted and on the amounts of water involved; (B) information on the number and location of sales of water conducted by the commissioner and on the volume of water sold; (C) recommendations of the commissioner for changes in state water law; and (D) a description of state revenue and expenses related to activities under AS 46.15.035 and 46.15.037." Senator Green moved for adoption and referenced earlier discussion regarding water rights and the involved parties in the state. She shared that in communities with a large agricultural presence, the local soil and water conservation districts are involved in the process. The intent of this amendment, she explained, is to ensure their remaining involvement. AT EASE 7:06 PM / 7:07 PM Senator Leman detailed the four changes made in the committee substitute. The first, he said, is a technical change of "relating" to "related" in the Section 2 title, "FINDINGS, POLICY, AND PURPOSE RELATED TO AUTHORIZATIONS FOR CERTAIN TERMPORARY USES OF STATE WATER." on page 2, line 21. He informed that language deleted from page 4, following line 7, and on line 21, allowed the commissioner to extend authorization for temporary use of water for an additional five years. He noted this provision was removed in response to concerns raised by Senator Wilken during the previous hearing. He concluded with the replacement of "public health" with "human health" on line 25. This, he said, is to make the terminology consistent with that used by the United States Environmental Protection Agency flood page, as well as the National Institute of Health. He clarified that public health relates to epidemiology and diseases whereas human health is related to the effects of human activities and is more appropriate for this legislation. Senator Green explained that Amendment #1 replaces certain language from a previous committee substitute, 22-GS1087\J, which the Committee did not adopt, and provides that the commissioner shall adopt procedural and substantive regulations to carry out the provisions in the legislation. Senator Green stated that additional language was recommended by the bill drafter that requires the Department of Environmental Conservation to submit an annual report to the legislature. She was unsure how this relates to the current Version "P". BOB LOEFFLER, Director, Division of Mining, Land and Water, Department of Natural Resources, testified via teleconference from Anchorage to the amendment. He stated the proposed language is acceptable. There was no objection and the amendment was ADOPTED. Amendment #2: This amendment inserts language into Section 1 (c) on page 2, line 17 of the committee substitute. The amended subsection reads as follows. (c) It is the policy of the legislature that the Department of Natural Resources minimize: (1) the required costs, including application fees, on individuals and businesses withdrawing less than a significant amount of water; (2) consider providing a partial fee reduction for water rights holders and applicants who have approved irrigation management plans. Senator Green moved for adoption. Co-Chair Kelly objected for the purpose of discussion. Senator Green noted this amendment was also prepared to the Version J committee substitute. She read the inserted language of Section 1 (c)(2) and explained approval of irrigation management plans is the current practice in the soil and water conservation districts, and this provision allows the districts to obtain for credit for the work already completed. Mr. Loeffler commented there are a number of industries in addition to agricultural activities that conserve water in a variety of ways. He did not oppose the amendment. Co-Chair Kelly removed his objection and the amendment was ADOPTED without further objection. Senator Green offered a motion to report the committee substitute as amended from Committee. Co-Chair Donley moved to amend the motion in order to amend the fiscal note. Without objection, Senator Green WITHDREW her motion. Co-Chair Donley moved to amend the Department of Natural Resources fiscal note dated April 12, 2001 to delete the addition of five full-time positions in FY 02. There was no objection and the fiscal note was AMENDED. Senator Green again offered a motion to move from Committee, CS SB 139, 22-GS1087\P, as amended, with forthcoming zero fiscal note from the Department of Natural Resources. The bill MOVED from Committee without objection. AT EASE 7:16 PM / 7:17 PM