04/14/2010 03:19 PM Senate FIN

SENATE BILL NO. 4                                                                                                             
                                                                                                                                
     "An Act relating to the Alaska coastal management                                                                          
     program; and establishing the Alaska Coastal Policy                                                                        
     Board."                                                                                                                    
                                                                                                                                
3:19:43 PM                                                                                                                    
                                                                                                                                
LARRY  HARTIG,  COMMISSIONER,  DEPARTMENT  OF  ENVIRONMENTAL                                                                    
CONSERVATION,  stated  that the  bill  is  important to  the                                                                    
committee, as  well as  to the  sponsors. The  Department of                                                                    
Environmental  Conservation  works   with  the  North  Slope                                                                    
Borough  and   other  communities  on  Village   Safe  Water                                                                    
Projects. He  stressed that  the department  understands how                                                                    
important  this bill  is  to rural  communities  and to  all                                                                    
Alaskans.  He   related  that  the   bill  provides   for  a                                                                    
fundamental  change  in  state   policy  to  allow  for  the                                                                    
transfer of  Alaskan resource  projects from  state agencies                                                                    
to  local boards.  He expressed  respect  for the  community                                                                    
leaders  in coastal  communities,  but  maintained that  the                                                                    
department has a fundamental difference in policy.                                                                              
                                                                                                                                
Commissioner Hartig emphasized that  the state believes that                                                                    
the decisions  on major  projects, like  oil, gas,  and port                                                                    
projects, must  reside with state  agencies. One  reason for                                                                    
this  belief  is fairness  throughout  the  state. The  same                                                                    
rules  should apply  to every  community.  Every Alaskan  is                                                                    
entitled to  the same level of  environmental protection and                                                                    
each community  should have the  same standards in  order to                                                                    
be  assured  of  protection  from the  consequences  from  a                                                                    
project.  He stated  that the  department  has research  and                                                                    
studies available  to them. He  noted that the  projects are                                                                    
not  easy and  come  with  a lot  of  pressure and  opposing                                                                    
interests.  He maintained  that  fair,  open, and  impartial                                                                    
decisions would be  difficult to make at  a community level.                                                                    
Mr. Hartig concluded  that the bottom line, with  a shift in                                                                    
policy  that SB  4  represents, is  that the  administration                                                                    
does  not support  transferring the  authority and  creating                                                                    
the risk just described.                                                                                                        
                                                                                                                                
3:24:45 PM                                                                                                                    
                                                                                                                                
Mr.   Hartig   reported   that    the   governor   and   the                                                                    
administration  would like  to  see communication  continue,                                                                    
but does not  see the legislation as the  vehicle toward the                                                                    
objective  because of  the differences  in philosophy  as to                                                                    
how decisions  are made.  The department  could not  come to                                                                    
terms  with the  language in  the  bill. He  wished to  keep                                                                    
communication open. He spoke of respect for local issues.                                                                       
                                                                                                                                
Co-Chair  Hoffman took  issue with  the words  "continue the                                                                    
dialogue"  saying that  he had  requested dialogue  with the                                                                    
governor's  office, as  has  the mayor  of  the North  Slope                                                                    
Borough, and no dialogue has  taken place. He suggested that                                                                    
the  dialogue  needs to  begin.  He  asked what  changes  in                                                                    
Version S need to be addressed.                                                                                                 
                                                                                                                                
3:27:15 PM                                                                                                                    
                                                                                                                                
Mr.  Hartig maintained  that the  governor's door  is always                                                                    
open.  He  thought  there  was  a  misunderstanding  and  he                                                                    
apologized.  As far  as  changes,  until the  administration                                                                    
comes  to   terms  with  the   philosophical  underpinnings,                                                                    
especially  regarding large  resource  projects that  affect                                                                    
the whole  state, not much  can be accomplished. He  did not                                                                    
want to close the door on communication.                                                                                        
                                                                                                                                
Senator  Olson  thanked  the  commissioner  for  coming.  He                                                                    
thought   it   was   not   a    good   indication   of   the                                                                    
administration's good  will to not have  a representative in                                                                    
the  discussion. He  stressed that  prior to  2003 when  the                                                                    
Coastal  Management Plan  was gutted,  there  was plenty  of                                                                    
development money.  He wanted  to get  back to  the previous                                                                    
model. He talked about the  issue of fairness. He emphasized                                                                    
the level of frustration felt by his district.                                                                                  
                                                                                                                                
3:30:47 PM                                                                                                                    
                                                                                                                                
Senator Olson MOVED to report  CSSB 4 (FIN) out of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
Senator  Huggins   OBJECTED  for  discussion   purposes.  He                                                                    
commented   on  the   extreme  frustration   regarding  this                                                                    
legislation.                                                                                                                    
                                                                                                                                
Senator Huggins WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
                                                                                                                                
CSSB 4  (FIN) was REPORTED out  of Committee with a  "do not                                                                    
pass"  recommendation and  with  a new  fiscal  note by  the                                                                    
Department  of  Revenue  and  a   new  fiscal  note  by  the                                                                    
Department of Environmental Conservation.                                                                                       
                                                                                                                                
RECESSED            3:33:14 PM                                                                                                
RECONVENED          5:16:58 PM