Legislature(1993 - 1994)
01/20/1993 08:00 AM House RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
Number 460
MS. ADAIR pointed out this Division was funded primarily
through the Oil and Hazardous Substance Response Fund (the
470 Fund), created by HB 470 in 1986. The 470 Fund received
no monies until the Exxon Valdez oil spill, and at that time
the legislature passed a nickel per barrel conservation
surcharge on all Alaska North Slope crude which went
directly into the 470 Fund. She explained that the statute
was specific and the only time the 470 Fund could be used
without specific legislative appropriation was in the event
of an eminent and substantial threat to the environment from
a release of oil or hazardous substance. Sometimes this
would be preventative and sometimes after the fact. Part of
the Underground Storage Tank Program was not eligible for
funding out of the 470 Fund.
MS. ADAIR stated an annual report by the DEC on the 470 Fund
was due to be out soon. She explained other agencies also
received monies from the 470 Fund such as the Division of
Emergency Services within the Department of Military and
Veterans Affairs, the Department of Fish and Game and the
Department of Natural Resources. The State Emergency
Response Commission (SERC) also received money out of the
470 Fund. She pointed out the SERC had its roots in federal
law and even though it was established during the same time
as the Exxon Valdez spill, it was created in response to the
Union Carbide chemical release.
MS. ADAIR pointed out in Alaska statutes, oil was sometimes
defined as a hazardous substance. She felt Title 46 which
directed the DEC's activities needed to be cleaned up. She
offered to answer any questions regarding the 470 Fund.
Number 530
MR. TREADWELL offered to brief the committee on the annual
report of the 470 Fund.
CHAIRMAN WILLIAMS noted for the record that Representative
Hudson and Carney joined the committee at 8:40 a.m.
Number 540
MR. MENGE, DIRECTOR, DIVISION OF ENVIRONMENTAL QUALITY,
explained that the programs in this Division had to do with
air, land, and water, including solid waste management, air
quality, etc., and these programs effected everyone's lives.
He said some of these programs typified the partnership with
federal programs and Congress desired that local governments
administer the programs to the maximum extent feasible. The
concept known as "primacy" was offered by the federal
government, and the state had primacy in the air arena at
present. In accepting primacy, the state accepted all the
federal mandates, however, it also afforded some opportunity
for local control.
MR. MENGE pointed out federal laws in many cases were
written for other states and would not take into
consideration Alaska situations. He felt his Division often
acted as a go-between to moderate some of the inflexible
positions the EPA might take in order to protect the Alaska
environment to the maximum extent possible. He said other
issues within the Division were drinking water, industrial
waste water, including municipalities, and industrial
discharge where the EPA issued permits and had primacy. He
explained the program of domestic waste water was in the
process of being privatized. A manual was being created,
training through the University and certification through
DEC should help complete that process, he added.
Number 610
MR. MENGE said another water issue was non-point source
pollution. He explained a point source as anything that
came out of a pipe and anything else that dealt with water,
such as rain falling on a parking lot or a stream in a
backyard. Forest practices was the major area where non-
point source pollution was a consideration. Storm water was
also a non-point source water pollution issue. He felt
after the reauthorization of the Clean Water Act and since
the issues of non-point sources which included agriculture,
irrigation, forestry and storm water run-off had not been
addressed in the last 20 years, that federal legislation
would be seen in this area in 1993.
MR. MENGE said another non-point source program was the
water quality standards program. The federal government,
through the Clean Water Act, set up requirements for each
state regarding water quality standards giving the state
flexibility relating to those standards. He said this was a
complicated issue and offered any information needed when
the issue came before the legislature. In regard to solid
and hazardous waste areas, the EPA and the DEC had formed a
long-term partnership and historically, the EPA retained
primacy in this area. Five years ago, at the direction of
the legislature, the DEC moved forward to obtain primacy of
that program. However, because of the budget restraints,
more responsibility had been left with the EPA. He felt
this issue would also come before the legislature during the
18th Legislative Session.
MR. MENGE stated the State's Resource Conservation Recovery
Act Program was designed to permit and inspect facilities to
ensure their compliance with state and federal laws. He
explained that at the beginning of the year, the DEC and the
EPA negotiated which activities would be performed by each
organization. After a spill, the DEC's Division of Spill
Prevention and Response would have jurisdiction. He said
solid waste management, primarily municipal solid waste, was
in his Division's jurisdiction, and also included large
volume waste associated with mining and oil and gas
activities. Major new federal laws were being passed and
the state was in the process of adopting regulations in
order to retain primacy in this area.
Number 675
MR. MENGE explained the EPA had offered significant
incentives to allow the State to approach the resolution of
problems in permafrost and remote areas that lacked
transportation. He pointed out the entire law regarding
solid waste was written for areas that had roads, and in
Alaska, a road was not always a part of the picture. He
said the organic chemical laboratory was used when a
substance analysis was needed immediately, as well as
certified private labs around the state. In order to
certify private labs, the laboratory must be able to not
only do the testing needed, but also judge the quality of
the work in private labs.
MR. MENGE said work was being done to form partnerships with
the University system, the Department of Health and Human
Services, and the Forest Service, for better utilization of
the laboratory facility and equipment, which could help
offset the cost of maintaining the facility.
Tape 93-4, Side B
Number 000
MR. MENGE said the state's coastal zone interactions came
under the jurisdiction of the Division of Environmental
Quality. The Division also was responsible for the quality
of community agreements as referred to by Mead Treadwell.
He hoped the agreements were being used as tools so
communities and the DEC could work together more
successfully. He said the pollution prevention aspect was
being integrated into the everyday permitting process.
Number 074
MS. ADAIR pointed out the DEC was very important to the
economic development of the state because a permitting
requirement would be needed for such businesses as seafood
processors, restaurants, bars, and hotels, or industrial
businesses. She assured members that the DEC was striving
to process permits in a timely fashion and the conditions
regarding the permit were reasonable. Lastly, she said the
Division of Information and Administrative Services provided
financial services, reviewed grant applications, provided
public information, personnel, supply and data processing.
Number 117
MS. ADAIR stated the DEC expected a variety of activities in
Washington, D.C., this year that would impact the DEC. One
of the most important issues might be a national seafood
inspection program. She pointed out the DEC's Division of
Environmental Health seafood inspection program was
considered a model for the United States and had been used
as the basis for past federal bills, and could be used again
in 1993 as a model. Other issues that would affect Alaska
were the Clean Water Act and the Resource Conservation and
Recovery Act which were up for reauthorization in 1993.
MS. ADAIR pointed out that both the governor's office in
Washington, D.C., and a contract lobbyist working for the
EPA helped keep the DEC informed on pending issues in
Washington. She said the DEC staff in some cases traveled
to Washington, D.C., in order to bring information about
Alaska's unusual circumstances such as the lack of roads in
rural Alaska.
Number 160
MR. TREADWELL informed the committee that the DEC's
Commissioner, John Sandor, served as one of three state
trustees on the Exxon Settlement Trust Council. He said
that many issues, including Kachemak Bay, were being
considered by these trustees and probably would be brought
before the legislature. Secondly, he said radiation threats
affecting Alaska was an issue being worked on with the
Department of Energy. He also felt the committee would want
a briefing on a study requested by the governor on radiation
threats affecting Alaskans.
Thirdly, MR. TREADWELL pointed out wetlands were Alaska's
most important issue under the Clean Water Act. Much of the
state was wetlands and the federal government was the local
zoning authority. He stated that the DEC was drafting a
state wetlands control program that would enable the state
to receive a statewide general permit from the Corps of
Engineers for a better wetlands management scheme. The
fourth issue he wanted the committee to be aware of was
international issues. He said the state was affected in the
Arctic by what was put into the air and water by neighbors
across the sea.
MR. TREADWELL added the Department of State had asked Alaska
to act as an observer and a participant in meetings of the
Arctic Environmental Protection Strategy. Also, the state
was involved in several programs with the Northern Forum, an
association of fourteen regional governments in the north,
to exchange environmental and clean-up information.
REPRESENTATIVE GREEN asked if a list of the funding of HB
470 would be available to the legislature.
MS. ADAIR said the report by the DEC was due to the
legislature on the fifteenth or twentieth day of the
session, and the transmittal letter and report would be on
time.
Number 036
REPRESENTATIVE DAVIES asked if the Clean Air Act bill was
considered a consensus bill by the DEC.
MS. ADAIR replied in the affirmative. She pointed out a
briefing had been held in the governor's conference room and
all members of the interim committee that worked on the
proposed legislation had voiced their support and intent to
work to ensure passage of the Clean Air Act bill. She said
certain amendments added to the bill could cause some groups
to withdraw their support.
Number 047
REPRESENTATIVE DAVIES asked for the approximate percentage
of total support from federal dollars versus state dollars
for the DEC's operation.
TRACI CRAMER, BUDGET ANALYST FOR THE DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, OFFICE OF MANAGEMENT AND BUDGET,
was unsure of the percentage, but disclosed the general fund
portion of the operating budget was $21 million.
MS. ADAIR disclosed the total operating budget to be
approximately $45 million.
MR. TREADWELL explained that on a program by program basis
the DEC received money for drinking water programs and air
programs which, after the air bill, would be self
liquidating, and have more federal mandates on solid
hazardous waste with less funding. He indicated the DEC
received federal funding in other areas as well.
REPRESENTATIVE DAVIES inquired into the percentage of
program budgets that would be funded under user fees and was
concerned that if the user fee was too high, compliance
might be a problem.
Number 118
MS. ADAIR said the DEC's goal was to privatize domestic
septic system approvals. For one year the DEC had been
working toward this goal, she added, and explained that the
DEC began septic system inspections as a favor to the
lending industry. She noted this was a very time consuming
program which, in other states, was a local responsibility.
She said the DEC was working with Alaska Housing and hoped
to charge the $250 fee only when a private engineer was not
used in such inspections.
Number 150
REPRESENTATIVE JEANNETTE JAMES asked whether the EPA office
would be located in Anchorage or Juneau.
MS. ADAIR disclosed the EPA office would be located in
Anchorage, according to the Presidential directive.
Number 160
REPRESENTATIVE PAT CARNEY asked why the DEC was spending
state money for domestic septic system inspections without
legislative regulations requiring the DEC to perform that
function.
MS. ADAIR said historically the DEC had performed domestic
septic system inspections. She noted lending institutions
wanted insurance by the health authority that the septic
system was in working order and in compliance with local
regulations. Because the Constitution said the legislature
should provide for the public health, the DEC had been made
the health authority for the state, and unless a local
government passed an ordinance to take that responsibility
upon themselves, the DEC held responsibility for this
inspection. When the DEC stopped doing these inspections in
years past, banks stopped making loans and the DEC was
forced to begin the process again, she advised.
Number 204
MR. TREADWELL pointed out although the DEC felt inspections
were needed for septic tanks, it was not mandated under the
DEC's regulations and, therefore, could be privatized.
CHAIRMAN WILLIAMS asked how the DEC would like to handle
questions from the legislature.
MS. ADAIR preferred questions come to her office from the
legislature, which she could then direct to the appropriate
Division.
Number 244
REPRESENTATIVE HUDSON asked the Committee to filter
questions through the House Resources Committee staff so all
members receive the information.
ANNOUNCEMENTS
CHAIRMAN WILLIAMS announced that at 8:00 a.m. on Friday,
January 22, 1993, there would be an overview hearing by the
Department of Fish and Game. He announced further that the
House Special Committee on Fisheries had been invited to
that meeting.
ADJOURNMENT
There being no further business to come before the
committee, Chairman Williams adjourned the meeting at 9:50
a.m.
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