Legislature(2001 - 2002)
2001-03-14 House Journal
Full Journal pdf2001-03-14 House Journal Page 0591 HB 185 HOUSE BILL NO. 185 by the House Rules Committee by request of the Governor, entitled: "An Act relating to fees for certain uses of state water and 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." was read the first time and referred to the Resources and Finance Committees. The following fiscal note(s) apply: 1. Fiscal, Dept. of Natural Resources The Governor's transmittal letter dated March 9, 2001, appears below: "Dear Speaker Porter: This bill I transmit today creates a logical source of funding for Alaska's water use program, bringing much needed efficiency to the program for commercial and residential users. The program has suffered continued underfunding for several years, causing a serious 2001-03-14 House Journal Page 0592 backlog in permits. This inability to issue permits in a timely manner stalls development and frustrates water users. This bill also clearly authorizes the Department of Natural Resources (DNR) to allow a streamlined approval process for temporary water uses as another way to optimize program efficiency. Funding for implementation of the Alaska Water Use Act, commonly known as the water rights program, has seen a more than 50% reduction in funding over the past 10 years, leading to two- thirds reduction in staff. The remaining four staff positions can no longer carry out the requirements of the Act. This legislation is part of a three-part solution to provide adequate funding and staffing for the water rights program. First, DNR is promulgating regulations that make implementation of the program less costly. Second, the FY 2002 budget includes a $300,000 budget increment to fund the program adequately. This proposed legislation provides the third part of the solution: a water use fee. Under this bill, the natural resources commissioner would establish a sliding fee for water use based on the quantity intended for use. That money would be separately accounted for within the general fund and available for appropriation to program operation. The bill affirms DNR's authority to allow temporary water uses for construction, development, commercial and private activities in cases where a long-term water right is not appropriate or necessary. The department has been authorizing these temporary uses for several years and many industries, such as oil development and road construction, find them crucial to their ability to proceed with their projects in a timely manner. Losing this program option would needlessly exacerbate the current backlog in water permits. The bill confirms that the temporary water use authorizations are revocable and do not create a property right. Because of the revocable nature and finite duration of these authorizations, DNR would not be required to provide prior public notice or conduct an administrative review under the criteria applicable to permits for water rights. However, the commissioner will continue to provide notice to the Alaska Departments of Fish and Game and Environmental 2001-03-14 House Journal Page 0593 Conservation and be authorized to impose reasonable conditions or limitations on these temporary uses. Finally, a transitional provision of the bill would provide that temporary water use permits issued before the effective date of the bill may not be invalidated on the grounds that DNR did not provide public notice under AS 46.15.133 or review a permit application under the criteria set out in AS 46.15.080. A recent decision by the superior court in Greenpeace, Inc. v. Alaska Department of Natural Resources, concluded that DNR should have provided public notice of a temporary water use permit application and conducted a detailed review of the application before issuing the permit. This decision could cause serious delays in development projects and DNR's water use processing. In the interest of promoting efficiency for project development across the state, I urge your prompt and favorable consideration of this measure. Sincerely, /s/ Tony Knowles Governor"