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SB 361: "An Act relating to coordination of the application, review, decision, and appeal process for certain project permits, leases, plans, notices, disposals, licenses, preferences, grants, reservations, approvals, and sales; relating to the Alaska Coastal Policy Council and the Alaska Coastal Management Program; relocating certain functions of the office of management and budget to a statutorily created division of project assistance in the Office of the Governor; repealing the Environmental Procedures Coordination Act; and providing for an effective date."

00 SENATE BILL NO. 361 01 "An Act relating to coordination of the application, review, decision, and appeal process 02 for certain project permits, leases, plans, notices, disposals, licenses, preferences, grants, 03 reservations, approvals, and sales; relating to the Alaska Coastal Policy Council and the 04 Alaska Coastal Management Program; relocating certain functions of the office of 05 management and budget to a statutorily created division of project assistance in the 06 Office of the Governor; repealing the Environmental Procedures Coordination Act; and 07 providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 PURPOSE. It is the purpose of this Act to 12 (1) assist those who, to satisfy the requirements of state law, must obtain a 13 permit from one or more state agencies by establishing a procedure to coordinate the

01 administrative decision-making process; 02 (2) provide to the members of the public the opportunity to present their views 03 on proposed uses of the state's natural resources and related environmental concerns before 04 state agencies decide on applications for permits; 05 (3) provide a greater degree of certainty on permit requirements of the state 06 government to applicants for the use of the natural resources of the state; 07 (4) increase the coordination and efficiency of state agencies in their 08 administration of programs affecting the state's natural resources; and 09 (5) establish an opportunity for members of the public to obtain information 10 pertaining to requirements of state law that must be satisfied before undertaking a project in 11 this state. 12 * Sec. 2. AS 46 is amended by adding a new chapter to read: 13 Chapter 41. Permit Coordination and Appeals. 14 Sec. 46.41.010. Applicability. (a) Notwithstanding any other provisions of 15 regulation or statute relating to the processing of applications for licenses, permits, and 16 other authorizations described in (d) of this section, the procedures set out in this 17 chapter and in regulations adopted under this chapter are exclusive for the processing 18 of an application for one of those licenses, permits, and other authorizations, including 19 an application for the renewal or modification of one of those authorizations. 20 AS 46.41.050 - 46.41.090 do not apply to a modification that does not significantly 21 change the scope of a project or the effect of the project on coastal resources or uses or 22 on public resources, as determined by the permitting agency. 23 (b) If a proposed project, other than one described in (a) of this section, 24 requires a consistency review under AS 46.40.096(a)(1) or (3), the procedures set out 25 in this chapter and regulations adopted under this chapter are exclusive for making the 26 consistency review. 27 (c) Each state agency having jurisdiction to approve or deny an application for 28 a license, permit, or other authorization has the authority vested in it by law to make 29 that determination. Nothing in this chapter reduces that authority; the provisions of 30 this chapter modify only the procedures to be followed in the carrying out of that 31 authority.

01 (d) This chapter applies to licenses, permits, and other authorizations under 02 the following sections or provisions required to be obtained from a state agency before 03 constructing or operating a project in the state: 04 (1) AS 16.05.840; 05 (2) AS 16.05.870; 06 (3) AS 16.10.400; 07 (4) AS 16.20.010 - 16.20.162; 08 (5) AS 16.20.520 - 16.20.530; 09 (6) AS 16.40.100; 10 (7) AS 19.05.020; 11 (8) AS 19.25.010; 12 (9) AS 19.25.200; 13 (10) AS 27.19.030; 14 (11) AS 27.20.010; 15 (12) AS 27.21.060; 16 (13) AS 27.21.190; 17 (14) AS 27.21.200; 18 (15) AS 31.05.030; 19 (16) AS 38.05.020; 20 (17) AS 38.05.850; 21 (18) AS 38.05.035(b)(2), (3), (5), and (9); 22 (19) AS 38.05.068; 23 (20) AS 38.05.070; 24 (21) AS 38.05.073; 25 (22) AS 38.05.075; 26 (23) AS 38.05.082; 27 (24) AS 38.05.083; 28 (25) AS 38.05.087; 29 (26) AS 38.05.102; 30 (27) AS 38.05.110 - 38.05.115; 31 (28) AS 38.05.135 - 38.05.181;

01 (29) AS 38.05.205; 02 (30) AS 38.05.250; 03 (31) AS 38.05.255; 04 (32) AS 38.05.600; 05 (33) AS 38.05.810; 06 (34) AS 38.05.820; 07 (35) AS 38.05.825; 08 (36) AS 38.05.850; 09 (37) AS 38.05.870; 10 (38) AS 38.05.872; 11 (39) AS 38.35; 12 (40) AS 38.95.075 - 38.95.080; 13 (41) AS 41.15.050; 14 (42) AS 41.21.020; 15 (43) AS 45.50.235; 16 (44) AS 46.03.020; 17 (45) AS 46.03.100; 18 (46) AS 46.03.320; 19 (47) AS 46.03.740; 20 (48) AS 46.04.030; 21 (49) AS 46.14.130; 22 (50) AS 46.15.035 - 46.15.040; 23 (51) AS 46.15.120; 24 (52) AS 46.17.010 - 46.17.070. 25 Sec. 46.41.020. Expedited review. (a) If a project, or all of the state and 26 federal permits required by a project, appear on a list adopted by the division by 27 regulation under (b) of this section, and if the project can meet any conditions 28 specified in the list for the project or for the permits required for the project, that 29 project is exempt from AS 46.41.050 - 46.41.090 and from the need for further review, 30 including a consistency review under AS 46.40.096(a)(1) or (3). A permit application 31 for an exempt project shall be submitted to the appropriate permitting agency. A

01 permit issued by a permitting agency for an exempt project is subject to the conditions 02 specified in the list adopted by regulation. 03 (b) State agencies shall propose to the division for adoption in regulation a list 04 of projects and permits that are to be exempt under this section, and the conditions that 05 must be met in order for the project or permit to be exempt. A project or permit may 06 be placed on the list if the project or the activity authorized by the permit, as limited 07 by any specified conditions, is 08 (1) unlikely to have a significant effect on coastal resources or uses or 09 on public resources; or 10 (2) of a type that is routinely approved by the permitting agency and 11 found to be consistent with applicable coastal management requirements. 12 Sec. 46.41.030. Permit information centers. The division shall establish 13 permit information centers in its regional locations and may enter into agreements 14 with other organizations and state agencies to establish and maintain permit 15 information centers in other locations to provide information to the public, in readily 16 understandable form, regarding the requirements of permits for projects in the state. 17 The division shall advise a permit applicant as to the proper coordinating agency under 18 AS 46.41.040. 19 Sec. 46.41.040. Coordinating agency. (a) Each proposed project subject to 20 this chapter has a coordinating agency as provided in (c) of this section. 21 (b) The coordinating agency shall facilitate the permit process. In carrying out 22 its coordination role, the coordinating agency shall seek to minimize delays and costs 23 to the permitting agencies and the applicant and to provide the public with a 24 meaningful opportunity to participate. Except as provided in (c) of this section, a state 25 agency acting as the coordinating agency under this chapter may not make a permit 26 decision. A state agency acting as a permitting agency shall make the decisions 27 relevant to its individual jurisdiction. 28 (c) The division is the coordinating agency under this chapter except that 29 (1) at the request of the head of a permitting agency, and with the 30 concurrence of the division, that permitting agency shall act as the coordinating 31 agency for a specific project or category of project;

01 (2) if a project requires one or more permits from only a single 02 permitting agency, that permitting agency shall act as the coordinating agency; 03 (3) for matters subject to AS 27.05.010, the Department of Natural 04 Resources shall act as the coordinating agency. 05 (d) The coordinating agency shall provide a project application to any person 06 requesting one. The coordinating agency shall provide information, forms, 07 instructions, and assistance in the completion of a project application under this 08 chapter to a person requesting assistance. 09 (e) The coordinating agency shall act as the public point of contact for the 10 processing of applications under this chapter and, with the concurrence of the 11 permitting agencies and in consultation with the applicant, shall establish a target 12 timeline for review of a project for which a project application is submitted under 13 AS 46.41.050. 14 Sec. 46.41.050. Project application. (a) A person proposing a project that 15 requires the issuance of a state permit or a consistency review under 16 AS 46.40.096(a)(1) or (3) shall submit a project application to the coordinating 17 agency. The project application must be on a form established by the division or in 18 another format agreed upon by the applicant and the permitting agencies. The project 19 application must contain sufficient information as to the location and the nature of the 20 project to enable a permitting agency to make its determination. 21 (b) Upon receipt of a completed project application, the coordinating agency 22 shall immediately forward a copy of the completed application to 23 (1) the permitting agencies; 24 (2) the resource agencies; 25 (3) the division; 26 (4) affected coastal resource districts if the project is subject to a 27 consistency review under AS 46.40.096(a)(1) or (3); and 28 (5) at the discretion of the coordinating agency, other governmental 29 entities with independent decision-making authority over the project. 30 (c) Upon receipt of a project application under (b) of this section, a permitting 31 agency shall determine whether adequate information has been submitted to initiate

01 review and shall inform the applicant, through the coordinating agency, if more 02 information is needed to initiate review of the application. 03 Sec. 46.41.060. Withholding final permit. If it appears that the applicant 04 does not own or control the land or water necessary for siting the project that is the 05 subject of the project application and if an application for ownership or control of the 06 land or water is not part of the project application, the permitting agencies may 07 proceed with review of the application under this chapter but may withhold any final 08 permit until the applicant has obtained ownership or control of the land or water 09 necessary for siting the project. In deciding whether to continue to process a project 10 application under this section, the permitting agencies shall determine whether 11 continuation would serve the fair and efficient administration of government. 12 Sec. 46.41.070. Public notice and comment. (a) When the permitting 13 agencies determine that a project application is adequate to initiate review, the 14 coordinating agency shall arrange for a consolidated public notice of the project. The 15 timing and manner of public notice and comment shall be reasonable, considering the 16 circumstances of the project application, and consistent with regulations adopted by 17 the division. 18 (b) The notice must 19 (1) contain a brief, general description of the proposed subject of 20 agency action; 21 (2) explain how more detailed information may be obtained; 22 (3) provide the name of the contact person for the coordinating agency; 23 (4) explain how the public may comment on the proposed project; and 24 (5) state the deadline for receipt of public comments. 25 Sec. 46.41.080. Public meeting or hearing. The coordinating agency or a 26 permitting agency designated by the coordinating agency may hold a public meeting 27 or hearing if considered appropriate by the coordinating agency or a permitting 28 agency. The public meeting or hearing shall be held jointly with local and federal 29 permitting entities with independent decision-making authority over the project. The 30 coordinating agency or designated permitting agency shall structure the meeting or 31 hearing in a manner that would facilitate meaningful public comment. The meeting or

01 hearing shall be conducted for the purpose of obtaining information for the assistance 02 of the state agencies in their review of the project and not as a trial or adversarial 03 proceeding. 04 Sec 46.41.090. Decision. (a) A permitting agency, in the performance of its 05 responsibilities related to decision-making under this chapter, may request or receive 06 additional information from an applicant and others before the public hearing and may 07 request or receive additional information from an applicant after the public hearing. 08 (b) Each permitting agency shall review the project application and public 09 comments concerning the agency's permits and shall forward a draft decision 10 regarding the agency's permits, as described under AS 46.40.010(d) and 11 46.40.096(a)(3), that are requested in or related to the application to the coordinating 12 agency. The draft permit decision must include a copy of any draft permits and 13 related stipulations and a brief justification for the agency's draft decision. 14 (c) Each affected coastal resource district shall forward its opinion as to 15 whether the project is consistent with applicable Alaska coastal management program 16 requirements to the coordinating agency. The opinions of consistency may be based 17 on adoption of specific stipulations, which must be contained in one or more of the 18 draft permit decisions and must include a brief justification for the stipulation. 19 (d) The coordinating agency shall provide copies of all draft permit decisions 20 and opinions of consistency to each resource agency, permitting agency, and affected 21 coastal resource district. The permitting agencies that are also resource agencies shall 22 determine whether the project is consistent with applicable Alaska coastal 23 management program requirements. The coordinating agency shall facilitate the 24 agencies' determination as necessary. 25 (e) Each permitting agency shall prepare and shall forward to the coordinating 26 agency the permitting agency's final permit decision. The final permit decision shall 27 include a copy of any draft permits and related stipulations and a brief justification for 28 the agency's final permit decision. 29 (f) The coordinating agency shall issue the final project decision of the 30 permitting agencies in one document that contains 31 (1) a statement of intent to deny or issue the permits requested in the

01 application; 02 (2) copies of the final permit decisions; 03 (3) a statement as to whether the proposed project is consistent or 04 inconsistent with the Alaska coastal management program, if applicable; if the Alaska 05 coastal management program consistency statement is based on a stipulation, that 06 stipulation must be specifically described in the consistency statement by reference to 07 the related permit for a proposed project described in AS 46.40.096(a)(1) or (3); 08 (4) a statement of reasons for the denial if the application is denied; 09 (5) an explanation of how to file an appeal and the deadline for filing 10 the appeal. 11 (g) The coordinating agency shall send a summary of the final project decision 12 to each person who participated in the process and shall post a notice of the final 13 project decision on the Alaska Online Public Notice System (AS 44.62.175). The 14 summary of the final project decision must indicate where a complete copy of the 15 decision may be reviewed and explain how to file an appeal and the deadline for filing 16 the appeal. 17 (h) If applicable, a permit or consistency statement requested in the project 18 application shall be issued not less than five working days after the notice of the final 19 project decision is posted on the Alaska Online Public Notice System. 20 (i) An aggrieved person may make a request in writing for a stay pending 21 appeal of the issuance of a 22 (1) permit from the head of the permitting agency; or 23 (2) consistency statement from the heads of the permitting agencies 24 that are also resource agencies. 25 Sec. 46.41.100. Administrative appeal. (a) A person, including an affected 26 coastal resource district, aggrieved by a final project decision under AS 46.41.090 or 27 by a final agency decision may appeal the decision by filing a notice of appeal with 28 the coordinating agency within 30 days after the later of (1) posting of the notice of 29 the final project decision on the Alaska Online Public Notice System, or (2) issuance 30 of the final agency decision. Failure to timely file a notice of appeal constitutes a 31 waiver of the person's right to a review of the final project decision or final agency

01 decision. 02 (b) The notice of appeal must specify the decision being appealed, contain a 03 clear and concise statement of the basis for the appeal, including the specific 04 provisions of the permits or consistency statement being challenged, and contain the 05 name and mailing address of the appellant. 06 (c) The coordinating agency shall distribute the notice of appeal to the 07 appropriate agency representatives as determined under (g) of this section. The 08 agency representatives for each point on appeal shall decide within five working days 09 of receiving the notice of appeal whether the point raises a reasonable issue of fact or 10 law material to the final project decision or final agency decision. If a timely notice of 11 appeal raises an issue of fact or law material to the final project decision or final 12 agency decision, the agency representatives shall notify the coordinating agency, and 13 the coordinating agency shall accept the appeal for consideration. 14 (d) The appellant, permittee, permitting agency staff and, if the appeal 15 involves a consistency review, an affected coastal resource district and the staff of a 16 permitting agency that is also a resource agency, are parties as of right in the appeal. 17 Other persons may seek to intervene by motion to the coordinating agency. 18 (e) Notwithstanding AS 44.62.330, procedures for an appeal under this 19 chapter need not conform to AS 44.62.330 - 44.62.630 (Administrative Procedure 20 Act). The agency representatives for an appeal shall structure the proceedings in a 21 manner that facilitates fair and efficient decision making and that is consistent with 22 general appeal procedures adopted by the division in regulation. 23 (f) The coordinating agency shall, with the assistance of the permitting 24 agencies whose decisions are being appealed, prepare the record on appeal. The 25 record on appeal must consist of 26 (1) the project application or permit application; 27 (2) public comments; 28 (3) material supplied to the coordinating, permitting, and resource 29 agencies by the applicant; 30 (4) other information used by the permitting agency as a basis for its 31 decision; and

01 (5) the final project decision or final agency decision. 02 (g) An appeal of a final project decision or final agency decision shall be 03 heard and decided by agency representatives as follows: 04 (1) regarding a permit, by the head of the relevant permitting agency; 05 and 06 (2) regarding a consistency statement, by the heads of the relevant 07 permitting agencies that are also resource agencies. 08 (h) An agency representative for an appeal may appoint a hearing officer as 09 the agency representative's designee. The hearing officer may be an independent 10 hearing officer, a subordinate of the agency representative within the relevant agency, 11 or, with the approval of the head of another state agency, an employee of that other 12 state agency. A hearing officer may be appointed under this section to serve as the 13 designee for more than one agency representative. 14 (i) The costs of an independent hearing officer shall be borne by the state 15 agency whose head designated the hearing officer. The state agency may recover the 16 costs from an appellant if the appellant does not prevail regarding that agency's permit 17 decision or consistency statement. 18 (j) To facilitate joint appeal hearings, the coordinating agency may enter into a 19 cooperative agreement with another governmental entity that has independent 20 decision-making authority over the project that is the subject of the appeal. 21 (k) Each agency representative, or hearing officer if one is appointed, for an 22 appeal shall rule on the admission of evidence or other procedural matters relating to 23 the point on appeal heard by that individual. 24 (l) The final decision on the merits of an appeal shall be made by the agency 25 representative or representatives for the appeal. If a hearing officer is appointed under 26 (h) of this section, the hearing officer shall make a recommendation to the agency 27 representative. 28 (m) The coordinating agency shall consolidate all of the decisions of the 29 agency representatives for the appeal into one final decision. The coordinating agency 30 shall distribute a copy of the final decision on appeal to each party to the appeal and, if 31 the appeal resulted in a change to an original final project decision or final agency

01 decision, post a notice and summary of the final decision on appeal on the Alaska 02 Online Public Notice System. Permits or consistency statements resulting from the 03 appeal shall be issued within five working days after distribution of the final decision 04 on appeal under this subsection. 05 (n) A final decision on appeal under this section is a final administrative order 06 subject to AS 44.62.560 and 44.62.570. 07 (o) In this section, "final agency decision" means a permitting agency's 08 decision regarding a permit for a project exempted under AS 46.41.020. 09 Sec. 46.41.110. Fees. An applicant for a permit other than a permit for a 10 project exempted under AS 46.41.020 shall pay any fees established in accordance 11 with AS 37.10.050 - 37.10.058 that are applicable to the application for or issuance of 12 the permit to the coordinating agency. The coordinating agency shall collect the fees, 13 account for and deposit the revenue, and forward all related records to the appropriate 14 state agency. 15 Sec. 46.41.120. Conflicts and compliance with federal requirements. (a) 16 If, regarding a project application, a provision of this chapter is found to be in conflict 17 with an applicable federal requirement regarding the allocation of federal money to the 18 state, the federal requirement controls, to the extent of the conflict, regarding that 19 application. 20 (b) To the extent necessary to comply with procedural requirements of federal 21 law relating to permit systems operated by the state, the coordinating agency, with the 22 concurrence of the affected permitting agencies, may modify the notice, timing, 23 hearing, and related procedural matters provided in this chapter. 24 (c) If necessary to comply with federal requirements regarding federal 25 consistency determinations or certifications under 16 U.S.C. 1456(c), the division 26 shall serve as the point of contact for federal consistency determinations or 27 certifications for a particular proposed project. The coordinating agency, as 28 determined under AS 46.41.040, remains responsible for all other aspects of the 29 project's coordination. 30 Sec. 46.41.130. Regulations. The division shall adopt regulations to 31 implement the provisions of this chapter, including regulations that provide various

01 general appeal procedures that allow the agency representatives for an appeal under 02 this chapter to select and apply procedures appropriate to the particular appeal. 03 Sec. 46.41.140. Consistency determinations for phased uses and activities. 04 (a) The provisions of this section apply to a use or activity for which a consistency 05 determination is required if 06 (1) at the time the proposed use or activity is initiated, there is 07 insufficient information to evaluate and render a consistency determination for the 08 entirety of the proposed use or activity; 09 (2) the proposed use or activity is capable of proceeding in discrete 10 phases based on developing information obtained in the course of a phase; and 11 (3) each subsequent phase of the proposed use or activity is subject to 12 discretion to implement alternative decisions based on the developing information. 13 (b) If a use or activity is authorized or developed in discrete phases and each 14 phase will require decisions relating to a permit, lease, or authorization for that 15 particular phase, the agency responsible for the consistency determination for the 16 particular phase 17 (1) may, in its discretion, limit the consistency review to that particular 18 phase if 19 (A) the agency or another state agency must carry out a 20 subsequent consistency review and make a consistency determination before a 21 later phase may proceed; and 22 (B) the responsible agency conditions its consistency 23 determination for that phase on a requirement that a use or activity authorized 24 in a subsequent phase be consistent with the Alaska coastal management 25 program; 26 (2) shall, when the consistency review is limited under (1) of this 27 subsection, conduct the consistency review for the particular phase and make the 28 consistency determination based on 29 (A) applicable statutes and regulations; 30 (B) the facts pertaining to a use or activity for which the 31 consistency determination is sought that are

01 (i) known to the responsible state agency or made a part 02 of the record during the consistency review; and 03 (ii) material to the consistency determination; and 04 (C) the reasonably foreseeable, significant effects of the use or 05 activity for which the consistency determination is sought; 06 (3) shall, when the consistency review is limited under (1) of this 07 subsection, describe in the consistency determination the reasons for its decision to 08 make the consistency determination for the use or activity in phases. 09 (c) In this section, "agency responsible for the consistency determination" 10 means the coordinating agency under AS 46.41.040. 11 Sec. 46.41.990. Definitions. Unless provided otherwise, in this chapter, 12 (1) "affected coastal resource district" means a coastal resource 13 district, as defined in AS 46.40.210, 14 (A) in which a project is proposed to be located; or 15 (B) that may experience a direct and significant effect from a 16 proposed project; 17 (2) "appeal" means a request for appeal or reconsideration of an 18 agency permitting decision or consistency statement; 19 (3) "consistency review" has the meaning given in AS 46.40.210; 20 (4) "consistency statement" means 21 (A) the findings of the permitting agency after a consistency 22 review, together with any necessary stipulations, conditions, or modifications 23 to the proposed project specifically described by reference to the related permit 24 as defined in this section or described in AS 46.40.096(a)(3); 25 (B) a response to a federal consistency certification or 26 determination authorized under 16 U.S.C. 1456(c) (Coastal Zone Management 27 Act of 1972); 28 (5) "coordinating agency" means the agency designated under 29 AS 46.41.040; 30 (6) "division" means the division of project assistance in the Office of 31 the Governor (AS 44.19.153);

01 (7) "local government" means a city or borough, including a unified 02 municipality; 03 (8) "permit" means a license, permit, or other authorization described 04 in AS 46.41.010(d); 05 (9) "permitting agency" means a state agency with responsibility for 06 (A) issuance of a permit, as defined in this section, sought for a 07 particular proposed project; 08 (B) issuance of a permit described in AS 46.40.096(a)(3) 09 sought for a particular proposed project; or 10 (C) coordinating the review of a federal consistency 11 determination or certification under AS 46.40.096(a)(1) for a particular 12 proposed project; 13 (10) "person" means an individual, a municipal, public, or private 14 corporation, or other entity, and includes a state agency, a local government, and a 15 department, agency, or instrumentality of the executive, legislative, or judicial 16 branches of the federal government; 17 (11) "process," "processing," and "processing of applications" includes 18 all steps and procedures followed in the course of reviewing and making a decision 19 regarding a project application under this chapter and includes a best interest finding 20 required for a permit under AS 38.05.035(e); 21 (12) "project" means a use or activity for which one or more permits, 22 or a consistency determination under AS 46.40.096(a)(1) or (3), are required before 23 construction or operation, and includes a use or activity that may be authorized in 24 discrete phases for purposes of consistency review under AS 46.41.140; 25 (13) "resource agency" means the 26 (A) Department of Environmental Conservation; 27 (B) Department of Fish and Game; or 28 (C) Department of Natural Resources; 29 (14) "state agency" includes a local or regional air quality control 30 authority established under AS 46.14.400; 31 (15) "working days" means all calendar days except Saturdays,

01 Sundays, and days on which state offices are closed. 02 * Sec. 3. AS 38.05.035(e) is amended to read: 03 (e) Upon a written finding that the interests of the state will be best served, the 04 director may, with the consent of the commissioner, approve contracts for the sale, 05 lease, or other disposal of available land, resources, property, or interests in them. In 06 approving a contract under this subsection, the director need only prepare a single 07 written finding. In addition to the conditions and limitations imposed by law, the 08 director may impose additional conditions or limitations in the contracts as the director 09 determines, with the consent of the commissioner, will best serve the interests of the 10 state. The preparation and issuance of the written finding by the director are subject to 11 the following: 12 (1) with the consent of the commissioner and subject to the director's 13 discretion, for a specific proposed disposal of available land, resources, or property, or 14 of an interest in them, the director, in the written finding, 15 (A) shall establish the scope of the administrative review on 16 which the director's determination is based, and the scope of the written 17 finding supporting that determination; the scope of the administrative review 18 and finding may address only reasonably foreseeable, significant effects of the 19 uses proposed to be authorized by the disposal; 20 (B) may limit the scope of an administrative review and finding 21 for a proposed disposal to 22 (i) applicable statutes and regulations; 23 (ii) the facts pertaining to the land, resources, or 24 property, or interest in them, that the director finds are material to the 25 determination and that are known to the director or knowledge of which 26 is made available to the director during the administrative review; and 27 (iii) issues that, based on the statutes and regulations 28 referred to in (i) of this subparagraph, on the facts as described in (ii) of 29 this subparagraph, and on the nature of the uses sought to be authorized 30 by the disposal, the director finds are material to the determination of 31 whether the proposed disposal will best serve the interests of the state;

01 and 02 (C) may, if the project for which the proposed disposal is 03 sought is a multiphased development, limit the scope of an administrative 04 review and finding for the proposed disposal to the applicable statutes and 05 regulations, facts, and issues identified in (B)(i) - (iii) of this paragraph that 06 pertain solely to the disposal phase of the project when 07 (i) the only uses to be authorized by the proposed 08 disposal are part of that phase; 09 (ii) the disposal is an oil and gas disposal and, before 10 the next phase of the project may proceed, public notice and the 11 opportunity to comment are provided under regulations adopted by the 12 department unless the project is subject to a consistency review under 13 AS 46.40 and public notice and the opportunity to comment are 14 provided under AS 46.41.070 [AS 46.40.096(c)]; 15 (iii) the department's approval is required before the 16 next phase of the project may proceed; and 17 (iv) the department describes its reasons for a decision 18 to phase; 19 (2) the director shall discuss in the written finding prepared and issued 20 under this subsection the reasons that each of the following was not material to the 21 director's determination that the interests of the state will be best served: 22 (A) facts pertaining to the land, resources, or property, or an 23 interest in them other than those that the director finds material under (1)(B)(ii) 24 of this subsection; and 25 (B) issues based on the statutes and regulations referred to in 26 (1)(B)(i) of this subsection and on the facts described in (1)(B)(ii) of this 27 subsection; 28 (3) a written finding for an oil and gas lease sale under AS 38.05.180 is 29 subject to (g) of this section; 30 (4) a contract for the sale, lease, or other disposal of available land or 31 an interest in land is not legally binding on the state until the commissioner approves

01 the contract, but if the appraised value is not greater than $50,000 in the case of the 02 sale of land or an interest in land, or $5,000 in the case of the annual rental of land or 03 interest in land, the director may execute the contract without the approval of the 04 commissioner; 05 (5) public notice requirements relating to the sale, lease, or other 06 disposal of available land or an interest in land for oil and gas proposed to be 07 scheduled in the five-year oil and gas leasing program under AS 38.05.180(b), except 08 for a sale under (6)(F) of this subsection, are as follows: 09 (A) before a public hearing, if held, or in any case not less than 10 180 days before the sale, lease, or other disposal of available land or an interest 11 in land, the director shall make available to the public a preliminary written 12 finding that states the scope of the review established under (1)(A) of this 13 subsection and includes the applicable statutes and regulations, the material 14 facts and issues in accordance with (1)(B) of this subsection, and information 15 required by (g) of this section, upon which the determination that the sale, 16 lease, or other disposal will serve the best interests of the state will be based; 17 the director shall provide opportunity for public comment on the preliminary 18 written finding for a period of not less than 60 days; 19 (B) after the public comment period for the preliminary written 20 finding and not less than 90 days before the sale, lease, or other disposal of 21 available land or an interest in land for oil and gas, the director shall make 22 available to the public a final written finding that states the scope of the review 23 established under (1)(A) of this subsection and includes the applicable statutes 24 and regulations, the material facts and issues in accordance with (1) of this 25 subsection, and information required by (g) of this section, upon which the 26 determination that the sale, lease, or other disposal will serve the best interests 27 of the state is based; 28 (6) before a public hearing, if held, or in any case not less than 21 days 29 before the sale, lease, or other disposal of available land, property, resources, or 30 interests in them other than a sale, lease, or other disposal of available land or an 31 interest in land for oil and gas under (5) of this subsection, the director shall make

01 available to the public a written finding that, in accordance with (1) of this subsection, 02 sets out the material facts and applicable statutes and regulations and any other 03 information required by statute or regulation to be considered upon which the 04 determination that the sale, lease, or other disposal will best serve the interests of the 05 state was based; however, a written finding is not required before the approval of 06 (A) a contract for a negotiated sale authorized under 07 AS 38.05.115; 08 (B) a lease of land for a shore fishery site under AS 38.05.082; 09 (C) a permit or other authorization revocable by the 10 commissioner; 11 (D) a mineral claim located under AS 38.05.195; 12 (E) a mineral lease issued under AS 38.05.205; 13 (F) an exempt oil and gas lease sale under AS 38.05.180(d) of 14 acreage subject to a best interest finding issued within the previous 10 years or 15 a reoffer oil and gas lease sale under AS 38.05.180(w) of acreage subject to a 16 best interest finding issued within the previous 10 years, unless the 17 commissioner determines that substantial new information has become 18 available that justifies a supplement to the most recent best interest finding for 19 the exempt oil and gas lease sale acreage and for the reoffer oil and gas lease 20 sale acreage; however, for each oil and gas lease sale described in this 21 subparagraph, the director shall call for comments from the public; the 22 director's call for public comments must provide opportunity for public 23 comment for a period of not less than 30 days; if the director determines that a 24 supplement to the most recent best interest finding for the acreage is required 25 under this subparagraph, 26 (i) the director shall issue the supplement to the best 27 interest finding not later than 90 days before the sale; 28 (ii) not later than 45 days before the sale, the director 29 shall issue a notice describing the interests to be offered, the location 30 and time of the sale, and the terms and conditions of the sale; and 31 (iii) the supplement has the status of a final written best

01 interest finding for purposes of (i) and ( l ) of this section; 02 (G) a shallow gas lease authorized under AS 38.05.177 in an 03 area for which leasing is authorized under AS 38.05.177; 04 (H) a surface use lease under AS 38.05.255; 05 (I) a permit, right-of-way, or easement under AS 38.05.850; 06 (7) the director shall include in 07 (A) a preliminary written finding, if required, a summary of 08 agency and public comments, if any, obtained as a result of contacts with other 09 agencies concerning a proposed disposal or as a result of informal efforts 10 undertaken by the department to solicit public response to a proposed disposal, 11 and the department's preliminary responses to those comments; and 12 (B) the final written finding a summary of agency and public 13 comments received and the department's responses to those comments. 14 * Sec. 4. AS 41.17.085(a) is amended to read: 15 (a) An operator may apply through the commissioner for permits required by 16 other state agencies to operate on forest land, which applications may be forwarded to 17 the commissioner of environmental conservation for procedures under AS 46.35 or 18 AS 46.41. The commissioner shall notify the operator of the action taken. 19 * Sec. 5. AS 41.21.492(b) is amended to read: 20 (b) Nothing in AS 41.21.491 - 41.21.495 affects the responsibilities of 21 (1) the Department of Fish and Game, the Board of Fisheries, or the 22 Board of Game under AS 16 and AS 41.99.010; 23 (2) the Department of Environmental Conservation under AS 46.03; or 24 (3) state agencies and municipalities under AS 46.40.096 and 25 46.40.100 [AS 44.19.145(a)(11) AND AS 46.40.100]. 26 * Sec. 6. AS 41.21.504(b) is amended to read: 27 (b) Nothing in AS 41.21.500 - 41.21.514 affects the applicability of 28 (1) AS 41.99.010 and AS 16 regarding the responsibilities of the 29 Department of Fish and Game or the Board of Fisheries or the Board of Game; 30 (2) AS 46.03 regarding the responsibilities of the Department of 31 Environmental Conservation; or

01 (3) AS 46.40.096 and 46.40.100 [AS 44.19.145(a)(11) AND 02 AS 46.40.100] regarding the responsibilities of state agencies and municipalities. 03 * Sec. 7. AS 41.23.420(d) is amended to read: 04 (d) The provisions of AS 41.23.400 - 41.23.510 do not affect the authority of 05 (1) the Department of Fish and Game, the Board of Fisheries, the 06 Board of Game, or the Department of Community and Economic Development under 07 AS 08.54, AS 16, or AS 41.99.010; 08 (2) the Department of Environmental Conservation under AS 46.03; or 09 (3) state agencies and municipalities under AS 46.40.096 and 10 46.40.100 [AS 44.19.145(a)(11) AND AS 46.40.100]. 11 * Sec. 8. AS 44.19 is amended by adding a new section to read: 12 Article 6A. Division of Project Assistance. 13 Sec. 44.19.153. Division of project assistance. (a) There is established in 14 the Office of the Governor the division of project assistance. 15 (b) The division of project assistance is administered by a director who is 16 appointed by, and serves at the pleasure of, the governor. 17 (c) The director of project assistance shall employ personnel as necessary to 18 carry out the relevant provisions of AS 44.19.155 - 44.19.162 and AS 46.41. 19 * Sec. 9. AS 44.19.155(a) is amended to read: 20 (a) There is created in the Office of the Governor the Alaska Coastal Policy 21 Council. The council consists of the following: 22 (1) nine public members appointed by the governor from a list 23 consisting [COMPRISED] of at least three names from each region, nominated by the 24 municipalities of each region; a nominee [THE NOMINEES] shall be a [THE] mayor, 25 a [OR] member of the assembly or council of a municipality, or a member of a 26 coastal resource service area board (AS 46.40.140); one public member shall be 27 appointed from each of the following general regions: 28 (A) northwest Alaska, including, generally, the area of the 29 North Slope Borough and the Northwest Arctic Borough; 30 (B) Bering Strait [STRAITS], including, generally, the area of 31 the Bering Strait [STRAITS] regional educational attendance area;

01 (C) southwest Alaska, including, generally, the area within the 02 Lower Yukon, Lower Kuskokwim, and Southwest regional educational 03 attendance areas and the Lake and Peninsula and Bristol Bay Boroughs; 04 (D) Kodiak-Aleutians, including the area of the Kodiak Island 05 and Aleutian East Boroughs and the Aleutian, Adak, and Pribilof regional 06 educational attendance areas; 07 (E) Upper Cook Inlet, including the Municipality of Anchorage 08 and the Matanuska-Susitna Borough; 09 (F) Lower Cook Inlet, including, generally, the area within the 10 Kenai Peninsula Borough; 11 (G) Prince William Sound, including, generally, the area east of 12 the Kenai Peninsula Borough to 141 W. longitude; 13 (H) northern Southeast Alaska, including the area southeast of 14 141 W. longitude and north of 57 N. latitude, including the entirety of the City 15 and Borough of Sitka; and 16 (I) southern Southeast Alaska, including that portion of 17 southeastern Alaska not contained within the area described in (H) of this 18 paragraph; 19 (2) each of the following: 20 (A) the director of the division of project assistance [OFFICE 21 OF MANAGEMENT AND BUDGET]; 22 (B) the commissioner of community and economic 23 development; 24 (C) the commissioner of environmental conservation; 25 (D) the commissioner of fish and game; 26 (E) the commissioner of natural resources; and 27 (F) the commissioner of transportation and public facilities. 28 * Sec. 10. AS 44.19.162 is amended to read: 29 Sec. 44.19.162. Council staff. The council shall use the staff of the division 30 of project assistance [OFFICE OF COASTAL MANAGEMENT WITHIN THE 31 OFFICE OF MANAGEMENT AND BUDGET] in discharging its powers and duties.

01 The director [COORDINATOR] of the division [OFFICE OF COASTAL 02 MANAGEMENT, UNDER THE DIRECTION OF THE COUNCIL CO-CHAIR 03 WHO IS SELECTED FROM AMONG THE MEMBERS DESIGNATED IN 04 AS 44.19.155(a)(2),] may contract with or employ personnel or consultants as [THE 05 COORDINATOR CONSIDERS] necessary to carry out the powers and duties of the 06 council. 07 * Sec. 11. AS 44.62.175(a) is amended to read: 08 (a) The lieutenant governor shall develop and supervise the Alaska Online 09 Public Notice System, to be maintained on the state's site on the Internet. The 10 lieutenant governor shall prescribe the form of notices posted on the system by state 11 agencies. The Alaska Online Public Notice System must include 12 (1) notices of proposed actions given under AS 44.62.190(a); 13 (2) notices of state agency meetings required under AS 44.62.310(e), 14 even if the meeting has been held; 15 (3) notices of solicitations to bid issued under AS 36.30.130; 16 (4) notices of state agency requests for proposals issued under 17 AS 18.55.255, 18.55.320; AS 36.30.210; AS 37.05.316; AS 38.05.120; and 18 AS 43.40.010; 19 (5) executive orders and administrative orders issued by the governor; 20 (6) written delegations of authority made by the governor or the head 21 of a principal department under AS 44.17.010; 22 (7) the text or a summary of the text of a regulation or order of repeal 23 of a regulation for which notice is given under AS 44.62.190(a), including an 24 emergency regulation or repeal regardless of whether it has taken effect; 25 (8) notices required by AS 44.62.245(b) regarding an amended version 26 of a document or other material incorporated by reference in a regulation; 27 (9) a summary of the text of recently issued formal opinions and 28 memoranda of advice of the attorney general; 29 (10) a list of vacancies on boards, commissions, and other bodies 30 whose members are appointed by the governor; [AND] 31 (11) in accordance with AS 39.52.240(h), advisory opinions of the

01 attorney general; and 02 (12) notices regarding project decisions under AS 46.41.090 and 03 46.41.100. 04 * Sec. 12. AS 46.03.020(11) is amended to read: 05 (11) after consultation with other state agencies and local government 06 officials, identify and propose for addition or deletion, by regulation, other licenses, 07 permits, or authorizations for which the provisions of AS 46.35 or AS 46.41 are 08 applicable; 09 * Sec. 13. AS 46.03.880 is amended to read: 10 Sec. 46.03.880. Applicability of the Administrative Procedure Act. Except 11 as otherwise specifically provided in this chapter, AS 44.62 (Administrative Procedure 12 Act) governs the activities and the proceedings of the department. Notwithstanding 13 AS 44.62.330(a)(44), adjudicatory hearing procedures to review permit decisions 14 under AS 46.03, AS 46.04, or AS 46.14 need not conform to AS 44.62.330 - 15 44.62.630. 16 * Sec. 14. AS 46.40.096 is repealed and reenacted to read: 17 Sec. 46.40.096. Consistency reviews and determinations. (a) A 18 consistency review is required for any activity or use that will be located in the coastal 19 zone or that could affect land or water uses or natural resources of the coastal zone and 20 that 21 (1) is subject to consistency review under 16 U.S.C. 1456 (sec. 307 of 22 the Coastal Zone Management Act); 23 (2) is a function performed by or on behalf of a state resource agency 24 in the exercise of its statutory responsibilities, other than those described in (1) or (3) 25 of this subsection; or 26 (3) requires one or more state resource agency permits. 27 (b) A consistency review of an activity or use subject to (a)(1) or (3) of this 28 section shall be coordinated as provided in AS 46.41. 29 (c) A consistency review of an activity or use subject to (a)(2) of this section 30 shall be conducted as part of the agency's implementation of its statutory 31 responsibilities.

01 * Sec. 15. AS 46.40.100 is repealed and reenacted to read: 02 Sec. 46.40.100. Compliance and enforcement. (a) Municipalities and state 03 agencies shall administer land and water use regulations or controls in conformity with 04 district coastal management programs approved by the council and the legislature and 05 in effect. 06 (b) In order to carry out its authority under AS 46.40.010 to review district 07 coastal management programs, the council may hear petitions brought by affected 08 persons concerning the compatibility of enforceable policies of a district coastal 09 management program with other enforceable local requirements. 10 * Sec. 16. AS 46.40.210 is amended by adding a new paragraph to read: 11 (9) "permit" means a permit, lease, or other authorization, initiated by 12 an applicant, that is necessary to conduct an activity or use that will be located in the 13 coastal zone or that could affect land or water uses or natural resources of the coastal 14 zone; "permit" does not include state-initiated lease sales, resource disposal programs, 15 planning or classification activities, or transfers of title to land or an interest in land. 16 * Sec. 17. AS 44.19.145(a)(11); 44.19.152(3); 44.19.152(4); AS 46.35.010, 46.35.020, 17 46.35.030, 46.35.040, 46.35.050, 46.35.060, 46.35.070, 46.35.080, 46.35.090, 46.35.100, 18 46.35.110, 46.35.120, 46.35.130, 46.35.140, 46.35.150, 46.35.160, 46.35.170, 46.35.200, 19 46.35.210; AS 46.40.040(6), 46.40.094, and 46.40.210(6) are repealed. 20 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITION: REGULATIONS. The division of project assistance, established by 23 sec. 8 of this Act, shall solicit a list of projects and permits described in AS 46.41.020(b), 24 enacted by sec. 2 of this Act, from state agencies. Notwithstanding sec. 21 of this Act, and 25 after consultation with the resource agencies as defined in AS 46.41.990, enacted by sec. 2 of 26 this Act, the division of project assistance may immediately proceed to adopt regulations as 27 described in AS 46.41.020 and 46.41.130, enacted by sec. 2 of this Act. The regulations take 28 effect as provided in AS 44.62 (Administrative Procedure Act). The lieutenant governor shall 29 notify the revisor of statutes of the effective date of the regulations. 30 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:

01 TRANSITION: PENDING MATTERS; RECORDS. (a) Except as provided in (b) of 02 this section, matters that would be affected by a provision of this Act and that are pending 03 completion by or before a state agency on the effective date established under sec. 21 of this 04 Act shall continue to completion as though this Act had not taken effect. 05 (b) Matters that would be affected by a provision of this Act and that are pending 06 completion by or before the office of management and budget on the effective date 07 established under sec. 21 of this Act shall be completed by the division of project assistance, 08 established by sec. 8 of this Act. Other than the change in responsible state agency, the 09 matters shall be completed in accordance with the applicable statutes and regulations as they 10 existed on the day before the effective date established under sec. 21 of this Act. In 11 completing the matters, the division of project assistance may implement and enforce 12 applicable regulations adopted by the office of management and budget. 13 (c) Records of the administrative unit of the office of management and budget 14 assigned the responsibility for functions addressed by this Act shall be transferred to the 15 division of project assistance. 16 * Sec. 20. Sections 1, 8, and 18 of this Act take effect January 1, 2003. 17 * Sec. 21. Sections 2 - 7, 9 - 17, and 19 of this Act take effect on the effective date of 18 regulations adopted under sec. 18 of this Act to implement AS 46.41.020, enacted by sec. 2 of 19 this Act.