2001-03-13                     Senate Journal                      Page 0639
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Natural Resources                                                 
                                                                                                    
Governor's transmittal letter dated March 9:                                                        
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
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                                
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