Legislature(2007 - 2008)BELTZ 211

01/29/2008 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS


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03:41:11 PM Start
03:41:59 PM SB161
05:10:35 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 161 COASTAL MANAGEMENT PROGRAM TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
               SB 161-COASTAL MANAGEMENT PROGRAM                                                                              
                                                                                                                                
CHAIR OLSON announced the consideration of SB 161.                                                                              
                                                                                                                                
3:41:59 PM                                                                                                                    
GINNY AUSTERMAN, Staff to Chair  Olson, Alaska State Legislature,                                                               
said  in  2003, HB  191  instituted  significant changes  to  the                                                               
Alaska Coastal Management Program  (ACMP). The bill was sponsored                                                               
by governor  Murkowski, and it restricted  participation by local                                                               
communities  in  coastal  activities,  including  the  review  of                                                               
permitted activities. The Alaska  Department of Natural Resources                                                               
(DNR) then adopted regulations that  severely limited the ability                                                               
of  coastal  districts  to   establish  enforceable  policies  to                                                               
address impacts  of projects on coastal  resources. Those changes                                                               
stimulated a  formal review by  the federal Office of  Oceans and                                                               
Coastal Resource Management (OCRM) as  to its compliance with the                                                               
National Environment  Policy Act (NEPA). Final  acceptance of the                                                               
new  ACMP  did  not  occur  until  December,  2005.  Since  then,                                                               
Alaska's coastal districts have  faced continuous controversy and                                                               
confrontation  with   the  Office   of  Program   Management  and                                                               
Permitting  (OPMP) in  the DNR  in achieving  suitable management                                                               
plans. The  DNR regulations go beyond  the intent of HB  191. The                                                               
OPMP interpretations  have inhibited some coastal  districts from                                                               
getting approval  of their  plans. Disputes  used to  be amicably                                                               
resolved by the  Coastal Policy Council, a body made  up of state                                                               
and  coastal  district  representatives.  HB  191  disbanded  the                                                               
council and now all decision-making  powers are concentrated in a                                                               
single agency. SB  161 is an attempt to  correct the inadequacies                                                               
of the  sweeping changes. "I do  not wish to turn  back the clock                                                               
to what was before; instead this  bill retains the program in the                                                               
DNR while resolving  some of the major problems  with the changes                                                               
to the coastal  program." It will achieve a better  balance and a                                                               
better relationship between coastal communities and the state.                                                                  
                                                                                                                                
3:44:15 PM                                                                                                                    
SENATOR STEVENS moved to adopt  the committee substitute (CS) for                                                               
SB  161, version  25-LS0883\C, Bullock,  as  a working  document.                                                               
Hearing no objections, Version C was before the committee.                                                                      
                                                                                                                                
3:45:22 PM                                                                                                                    
SENATOR STEVENS said  he was a fan of the  Coastal Policy Council                                                               
that was disbanded by HB 191. How does SB 161 resolve that?                                                                     
                                                                                                                                
MS. AUSTERMAN  said SB 161 will  bring back the council.  It is a                                                               
starting  point to  repair some  of what  has happened  since the                                                               
council was disbanded.                                                                                                          
                                                                                                                                
SENATOR STEVENS asked if the council will be like it was before.                                                                
                                                                                                                                
MS. AUSTERMAN said it remains to be seen.                                                                                       
                                                                                                                                
3:47:02 PM                                                                                                                    
RANDY BATES,  Director, Division of Coastal  and Ocean Management                                                               
(DCOM), Department of Natural Resources  (DNR), said his division                                                               
is newly established.                                                                                                           
                                                                                                                                
The committee took a short recess.                                                                                              
                                                                                                                                
3:48:37 PM                                                                                                                    
MR. BATES  said he  has worked  ten years  in the  Alaska Coastal                                                               
Management  Program (ACMP)  and was  the deputy  director of  the                                                               
agency implementing the  ACMP for over four  years. He referenced                                                               
a  letter to  Chair Olson  from DNR  Commissioner Tom  Irwin. Mr.                                                               
Bates will  discuss the challenges of  implementing ACMP changes;                                                               
ways to improve the program; and DNR comments on Version C.                                                                     
                                                                                                                                
MR. BATES  said in February  2003, Governor  Murkowski introduced                                                               
Executive Order 106,  which moved the ACMP out  of the Governor's                                                               
office  and  into  the  DNR,  and  it  created  problems.  Exempt                                                               
employees were  reclassified into  the unionized system.  "We had                                                               
to interview  for our own  positions; in  many cases those  of us                                                               
had been in those jobs for 4, 5,  10, 15 years. We had to compete                                                               
with  everybody  else for  our  jobs.  Interestingly, we  had  to                                                               
integrate into  DNR." He said it  was a very good  move. There is                                                               
synergy created through the ACMP  and the divisional structure of                                                               
DNR. "We  are pleased  to be  there, but  it certainly  took some                                                               
happening -  new letterhead for  example." HB 191 was  enacted in                                                               
May of 2003,  SB 102 in 2005,  and SB 46 in 2007.  All called for                                                               
some form  of reform of the  ACMP. In a very  short timeframe the                                                               
statutes  and three  chapters of  regulations  were revised.  The                                                               
revisions mandated  district plan  revisions and  amendments. Two                                                               
of  the  bills  gave  extensions  for  district  plan  deadlines.                                                               
Revisions  to  the ABC  list  were  mandated  and a  2011  sunset                                                               
provision for  the ACMP  was included. Amongst  all of  that, the                                                               
federal  granting  agency,  the   Office  of  Ocean  and  Coastal                                                               
Resource Management (OCRM)  in NOAA, had final  approval over any                                                               
changes  in  the  program.  That   review  and  approval  process                                                               
included  an  environmental   impact  statement.  Amazingly,  the                                                               
federal agency  was able  to do  it in six  months. It  moved the                                                               
program forward at that point.                                                                                                  
                                                                                                                                
3:52:57 PM                                                                                                                    
MR. BATES  said that magnitude  of programmatic changes  caused a                                                               
variety of problems. The turmoil  caused a 95 percent turnover in                                                               
staff since  2003. There were  more than 100 recruitments  for 30                                                               
staff. For  three years,  every third desk  and workload  had two                                                               
employees.  It was  difficult to  recruit and  retain people  and                                                               
have them  embrace the revisions  while working with  the coastal                                                               
districts and  federal government. He  is pleased with  his staff                                                               
because it was a herculean effort.                                                                                              
                                                                                                                                
3:54:24 PM                                                                                                                    
SENATOR  STEVENS asked  for an  organization chart.  He asked  if                                                               
OPMP is part of his group.                                                                                                      
                                                                                                                                
MR. BATES said he will provide  charts. The challenge that SB 161                                                               
addresses  are the  district  plan revisions.  There  was a  very                                                               
short  timeframe  to  write  the   guiding  regulations  for  the                                                               
districts.  The regulations  had to  be overhauled  while helping                                                               
the  districts  in preparing  the  mandated  amendments to  their                                                               
programs. The ACMP regulations ended  up more stringent than what                                                               
was  intended under  HB 191.  Coastal districts  were limited  in                                                               
their ability to craft enforceable  policies that address coastal                                                               
uses and  resources that were  important to the  local residents.                                                               
This   limitation  manifested   itself  into   severely  strained                                                               
relationships  between OPMP  [Office  of  Project Management  and                                                               
Permitting],  DCOM, and  many districts.  This  also resulted  in                                                               
district  apathy  toward  the  program.  The  revisions  were  an                                                               
enormous  workload for  him.  "It was  done to  the  best of  our                                                               
ability given  the staff that we  had at the time."  There are 28                                                               
coastal districts  participating in coastal management,  and that                                                               
means  that 28  complied under  HB  191 to  submit revisions.  Of                                                               
those, 16 have been through the  DNR and OCRM review and approval                                                               
process  and  are  in  effect. Activities  that  occur  in  those                                                               
municipalities of  coastal districts  must be compliant  with the                                                               
district enforceable policies.                                                                                                  
                                                                                                                                
3:57:25 PM                                                                                                                    
MR. BATES said there are four  plans that should have approval by                                                               
early February. There are five  plans pending submission to OCRM,                                                               
and there are three outstanding  plans whereby the districts have                                                               
elected to mediate the commissioner's decision on their plans.                                                                  
                                                                                                                                
3:58:28 PM                                                                                                                    
MR.  BATES said  he has  four suggestions.  With the  approval of                                                               
Governor Palin, Commissioner  Irwin split the OPMP  into two. One                                                               
became the  Division of Coastal  and Ocean Management  (DCOM) and                                                               
the other  division remains the  OPMP. Within the  original OPMP,                                                               
there were two  budgetary components. One was  for large resource                                                               
development projects. The other component  was the ACMP, and that                                                               
was  moved  into  its  own  division  called  Coastal  and  Ocean                                                               
Management (DCOM).  DCOM implements the ACMP,  the Coastal Impact                                                               
Assistance program (a  $3 or $4 million grant to  the state), the                                                               
coastal and estuarine land  conservation acquisition program that                                                               
is  run through  NOAA, and  it tracks  and addresses  initiatives                                                               
that affect Alaska's oceans.                                                                                                    
                                                                                                                                
4:00:48 PM                                                                                                                    
MR.  BATES  said  the  ACMP is  elevated  within  the  divisional                                                               
structure to its level of  importance. Coastal districts can talk                                                               
directly  to the  director, and  it provides  an easier  chain of                                                               
command  to  the  commissioner.  Mr. Bates  said  his  office  is                                                               
working  on stabilizing  staffing and  the workloads.  Out of  35                                                               
positions, 32 are  filled. Many staff are brand  new, so training                                                               
is ongoing. He  is working with other state agencies  so that the                                                               
ACMP is implemented uniformly and consistently.                                                                                 
                                                                                                                                
4:02:46 PM                                                                                                                    
MR.  BATES  said relationships  with  the  coastal districts  are                                                               
improving  and not  as conflicted.  The  third way  of trying  to                                                               
improve  the program  is the  legislatively mandated  revision of                                                               
the  ABC list.  It is  a  list of  expedited consistency  reviews                                                               
under the  ACMP. It houses  routine and de minimus  projects that                                                               
qualify  based on  standard  "stips." It  allows  the program  to                                                               
focus on  more complex, controversial projects.  The quicker that                                                               
is done, the better off everyone is.                                                                                            
                                                                                                                                
MR.  BATES  said the  reevaluation  of  the ACMP  regulations  is                                                               
substantive to  this hearing. There  have been challenges  and he                                                               
recognizes that  the regulations are  more stringent than  HB 191                                                               
intended.  DNR  will  look  at  what  was  done  to  see  if  the                                                               
promulgation  of the  regulations  governing  district plans  was                                                               
appropriate  and  what  can  be  done  to  improve  the  program.                                                               
Commissioner Irwin intends to formally  and openly reevaluate the                                                               
regulations, and  he will include the  coastal districts, public,                                                               
industry, agency, and applicants. There  will be an open dialogue                                                               
to re-craft the regulations and improve the program.                                                                            
                                                                                                                                
4:05:34 PM                                                                                                                    
MR. BATES said, "We have recognized  this as a high priority." It                                                               
is built into a five-year document  in order to have funding. "We                                                               
are  committed  to  this"  so   that  the  regulations  work  for                                                               
everyone. Regarding  SB 161,  much of it  was recommended  by the                                                               
coastal districts.  These issues  that the districts  have raised                                                               
are legitimate  and important, and  DNR is taking  them seriously                                                               
and addressing many of them.  "We look forward to making progress                                                               
with  the coastal  districts to  improve the  ACMP." SB  161 will                                                               
address  issues by  amending  statutes, but  some  of the  issues                                                               
should be dealt  with through regulation revisions -  that DNR is                                                               
contemplating -- and through dialogue with the districts.                                                                       
                                                                                                                                
4:07:34 PM                                                                                                                    
MR.  BATES said  he  is concerned  that parts  of  the bill  will                                                               
"derail   the  progress   that   we're   making."  He   generally                                                               
understands  what  is proposed  in  the  bill,  but he  wants  to                                                               
understand the sponsor's  intent for each section.  "I would also                                                               
appreciate a  specific example  that led to  the crafting  of the                                                               
amendment." He asked for the logic behind it.                                                                                   
                                                                                                                                
CHAIR OLSON asked what amendment he is speaking to.                                                                             
                                                                                                                                
MR. BATES said  any of the proposed changes within  the CS. There                                                               
are no amendments on the table;  he is talking about the proposed                                                               
changes in the bill.                                                                                                            
                                                                                                                                
4:09:02 PM                                                                                                                    
CHAIR OLSON said the bill was  put forward because it was evident                                                               
that  after  HB  191  people   had  no  say.  Progress  from  the                                                               
department  was  lacking.  It  was not  just  his  district,  but                                                               
throughout the  state. People  say the  rules keep  changing. "If                                                               
that is not clear to you, I  will state it again." He asked about                                                               
the 28 districts and the 16 that have been approved.                                                                            
                                                                                                                                
MR. BATES  said 16 are approved  through DNR and OCRM.  Three are                                                               
under mediation.  Once a district  got through the  submission of                                                               
their district plan amendment, DNR  evaluated its compliance with                                                               
the  ACMP standards  and district  enforceable  policy rules.  He                                                               
developed  a   recommendation  for  the  commissioner,   and  the                                                               
commissioner  signed off  on the  DCOM recommendation.  For these                                                               
three districts,  DNR approved some  of the  enforceable policies                                                               
in designated  areas and disapproved  others. At that  time, each                                                               
coastal  district   has  the   regulatory  option   of  selecting                                                               
mediation  to  resolve the  issue  with  a mutually  agreed  upon                                                               
mediator. He  gave examples of two  successful mediations: Juneau                                                               
and Bristol Bay Coastal Resource Service Area.                                                                                  
                                                                                                                                
MR. BATES  said the  mediator sets  the ground  rules. It  is not                                                               
typical mediation as  under a labor dispute. They  talk about the                                                               
requirements under the ACMP and  what the coastal district wants.                                                               
For  Juneau  and  Bristol  Bay,  a  compromise  was  reached.  He                                                               
explained   that   districts   have  to   comply   with   certain                                                               
requirements and gave  the example of mapping issues  and how big                                                               
a  legend  needs  to  be  or  what  colors  are  used.  Regarding                                                               
enforceable  policies, if  a policy  was adequately  addressed by                                                               
another  law,  a coastal  district  cannot  write a  policy.  For                                                               
example,  the coastal  districts cannot  manage wetlands  because                                                               
the Army Corps of Engineers does.                                                                                               
                                                                                                                                
4:13:59 PM                                                                                                                    
MR.  BATES  said, "To  the  extent  we were  able  to  come to  a                                                               
compromise for the coastal districts  on their mapping issues and                                                               
their district  policies, we  craft that  compromise, come  to an                                                               
agreement, and we finalize their plan,  and then we both sign off                                                               
on it."  That happened in  Juneau and  Bristol Bay, he  said. The                                                               
state viewed the  mediation a success, and  the coastal districts                                                               
certainly got  more than what  they originally had. He  hopes the                                                               
coastal districts  found it to  be successful as well.  There are                                                               
three districts:  North Slope Borough, Northwest  Arctic Borough,                                                               
and the  Bering Straits Coastal  Resource Service Area  that have                                                               
requested  mediation.  As  soon  as everyone  can  get  together,                                                               
"we'll make progress."                                                                                                          
                                                                                                                                
CHAIR OLSON asked how long until a final outcome.                                                                               
                                                                                                                                
MR. BATES said,  by regulation, the mediation can  last no longer                                                               
than 90  days, and  that will  start from  the date  the mediator                                                               
convenes the first session. The  mediator has a busy schedule, so                                                               
everyone needs to find the right time.                                                                                          
                                                                                                                                
4:15:51 PM                                                                                                                    
MR. BATES said it doesn't have to take as long as 90 days.                                                                      
                                                                                                                                
SENATOR STEVENS asked if OPMP has been divided in two.                                                                          
                                                                                                                                
MR. BATES said yes, both OPMP and DCOM are divisions.                                                                           
                                                                                                                                
SENATOR  STEVENS asked  about the  Coastal  Policy Council  being                                                               
reinstated.                                                                                                                     
                                                                                                                                
MR. BATES  said DNR doesn't  have a  position on that.  There are                                                               
some provisions in  the CS that concern  him, including technical                                                               
flaws. He  doesn't know  why the sponsor  wants to  reconvene the                                                               
council.                                                                                                                        
                                                                                                                                
4:17:44 PM                                                                                                                    
SENATOR THOMAS said the Interior  doesn't have these problems. He                                                               
asked  what criteria  are used  to  rate projects  to lessen  the                                                               
workload.                                                                                                                       
                                                                                                                                
MR. BATES  said Fairbanks  has a watershed  that drains  into the                                                               
coastal zone.  There are two  types of  projects that are  on the                                                               
ABC list. One  is the A list, which are  projects with no coastal                                                               
impacts, like burning  garbage in a certain sized  drum. The next                                                               
set  of  projects   includes  routine  ones  that   can  be  made                                                               
consistent  with standard  alternative measures  or stipulations.                                                               
Ice roads  in the  Arctic, for example,  are routine  even though                                                               
they have  coastal effects. Certain  stipulations can  be applied                                                               
so  that  the  projects  don't  have to  go  through  the  50-day                                                               
consistency review.  They can get  it done  the day they  walk in                                                               
the door; the ACMP process is streamlined.                                                                                      
                                                                                                                                
4:20:21 PM                                                                                                                    
SENATOR STEVENS  asked what regulations  are more  stringent than                                                               
HB 191 called for.                                                                                                              
                                                                                                                                
MR.  BATES  agreed  the  regulations   are  more  stringent.  The                                                               
administration   had   testified   about   the   possibility   of                                                               
enforceable  policies with  regard to  subsistence, habitat,  and                                                               
other  issues  important  to the  coastal  districts.  DNR  fully                                                               
expected  that  these  types of  enforceable  policies  could  be                                                               
written  by the  coastal  districts.  The regulations  themselves                                                               
became  tighter, such  that those  enforceable  policies were  no                                                               
longer allowed.  "They did  not comply with  the rules  that were                                                               
written   guiding  the   development   of  district   enforceable                                                               
policies. So,  particularly, the  chapter of  regulation 11AAC114                                                               
is  the chapter  that tightened  up the  district policies."  DNR                                                               
wants to  reevaluate the state standards  to see if they  can let                                                               
the districts  write more policies, without  duplicating state or                                                               
federal law.  HB 191 was designed  to get rid of  duplication and                                                               
overlap  between district  policies and  agency policies.  Who do                                                               
you  give  deference to?  It  is  probably  the agency  with  the                                                               
authority. [The regulations] got rid  of the duplication that was                                                               
out there. He  wants the districts to be able  to address what is                                                               
important to them,  but it needs to "be considerate  of what some                                                               
of the important issues were under 191."                                                                                        
                                                                                                                                
4:23:41 PM                                                                                                                    
CHAIR OLSON asked when the regulations will be rewritten.                                                                       
                                                                                                                                
MR. BATES said the sooner  the better, but the commissioner wants                                                               
experience with implementing  the reform of the  ACMP first. This                                                               
June,  DNR will  take a  break from  revisions and  implement the                                                               
program  for  a period  of  time  "just  to get  some  experience                                                               
implementing it  the way it  was designed  under HB 191.  We know                                                               
there's flaws,  but let's get  experience -- be able  to identify                                                               
the gaps  so that when  we come back,  we're able to  clearly and                                                               
articulately define  what we have  to do to change  the program."                                                               
He referred to the letter from Chair Olson to the commissioner.                                                                 
                                                                                                                                
4:24:58 PM                                                                                                                    
MR. BATES noted  that Chair Olson doesn't want to  wait that long                                                               
for  the reevaluation.  Mr.  Bates doesn't  have  a timeframe  in                                                               
mind, but he  wants to finish the  ABC list, and that  will be in                                                               
June. Staffing is  a problem for coordinating  with the districts                                                               
and getting  their input. He wants  to dedicate them as  he needs                                                               
to in  order to be successful.  Waiting a year after  June is not                                                               
good enough,  but it is workload  dictated. "We have a  good plan                                                               
in place."  The CS and the  creation of a Coastal  Policy Council                                                               
will take his focus away from what he is working on.                                                                            
                                                                                                                                
4:26:41 PM                                                                                                                    
CHAIR  OLSON  said  he  can  empathize,  but  there  are  coastal                                                               
districts  that are  confused. He  noted that  Mr. Bates  said he                                                               
didn't have a  timeframe, but Chair Olson understands it  to be a                                                               
year after  June 30, and that  is unworkable. That is  one reason                                                               
for SB 161. [The timeframe] is uncalled for.                                                                                    
                                                                                                                                
SENATOR WAGONER said  this seems like a  recurring nightmare. All                                                               
the districts  agreed that if  they were given an  extension they                                                               
could all have the plans in.                                                                                                    
                                                                                                                                
4:27:55 PM                                                                                                                    
MR. BATES  said SB 102 and  SB 46 were sponsored  by Chair Olson,                                                               
and  they extended  the district  deadlines. It  is important  to                                                               
know the deadline  was the submission of the plan,  not the final                                                               
approval,  which is  where we  are  now. Most  districts met  the                                                               
deadline. The remaining three did not meet it.                                                                                  
                                                                                                                                
SENATOR  WAGONER said  that he  is  being asked  to make  changes                                                               
again. "I've never been one to  put something in place and before                                                               
it gets finalized, want to start changing it again."                                                                            
                                                                                                                                
4:29:25 PM                                                                                                                    
TERI CAMERY,  Planner, City and  Borough of Juneau, said  she has                                                               
been involved  in the  coastal plan since  2000. There  have been                                                               
changes and drama in the last  few years. She supports HB 161 and                                                               
appreciates  Senator  Olson's  work  on it.  The  changes  are  a                                                               
positive  step  in solving  a  lot  of  problems created  by  the                                                               
Murkowski administration. The Palin  administration is willing to                                                               
work  with  local  governments.  The coastal  program  is  a  key                                                               
element   in  providing   a   coordinated   review  process   and                                                               
facilitating  involvement among  all the  reviewing entities.  It                                                               
puts the  permitting processes  in one  package and  reduces time                                                               
for everyone. It  is of great value. The major  changes in SB 161                                                               
make  a lot  of  sense.  Putting DEC  back  into  the process  is                                                               
foremost. Taking DEC out in  2003 mystified her. Removing air and                                                               
water quality from the review  creates a whole range of problems.                                                               
A person can't  even determine the scope of the  project. "If you                                                               
can't  include air  and water  quality  issues how  can you  tell                                                               
what's under review in the first place?"                                                                                        
                                                                                                                                
4:32:22 PM                                                                                                                    
MS. CAMERY  said it  is confusing for  coastal districts  and DNR                                                               
staff  in determining  what is  under review.  How are  the other                                                               
reviewing entities  able to  separate out  air and  water quality                                                               
from  their review?  There  are  no habitat  issues  that do  not                                                               
affect water  quality in some  form or  another. She said  it has                                                               
screwed up  the review process.  Juneau has five  impaired salmon                                                               
streams,  and DEC  is  required  to put  together  a TMDL  [total                                                               
maximum  daily  load] document  to  determine  how that  impaired                                                               
water  body is  managed.  Development along  that stream  clearly                                                               
requires  the TMDL  document for  the  ACMP review.  There was  a                                                               
recent case about a controversial  project that was going to have                                                               
a direct impact on such a  salmon stream. It was approved through                                                               
the full ACMP process, and then  DEC denied the project with good                                                               
reason. It threw  a wrench into the process and  did no favors to                                                               
the applicant. She sees that problem on a regular basis.                                                                        
                                                                                                                                
MS. CAMERY  said the Coastal  Policy Council is  critical because                                                               
it provides  broader representation in  the program. If  there is                                                               
controversy, it  doesn't make sense to  consolidate all authority                                                               
in  a  single  agency.  The Murkowski  administration  wanted  to                                                               
consolidate  that  power and  authority,  but  Governor Palin  is                                                               
taking a  very different perspective. Reinstating  the council is                                                               
an  important  part  of  that.  SB 161  will  give  it  the  same                                                               
representation   as  the   former  council,   including  district                                                               
representation,  agency members,  and  the  DNR commissioner.  It                                                               
will give a much more  balanced view on controversial topics, but                                                               
it won't change the day-to-day  implementation of the ACMP, which                                                               
should stay  in the  hands of the  agency. The  changes regarding                                                               
district   policy  approval   are   important.  Clarifying   that                                                               
districts  can have  policies that  don't specifically  duplicate                                                               
state and  federal law  is in  the current plan,  but there  is a                                                               
whole bunch of other language that muddies that.                                                                                
                                                                                                                                
4:36:21 PM                                                                                                                    
MS. CAMERY said  DNR had a bad bill followed  by bad regulations,                                                               
and they  were charged  with implementation. It  is very  hard to                                                               
come up  with consistent interpretations,  but the changes  in SB
161  go  a  long  way  toward  clarity.  In  Juneau,  the  simple                                                               
statement of  "districts may have  policies that  don't duplicate                                                               
state or federal law" in  combination with illuminating the very,                                                               
very  strict requirements  on designations  would have  taken two                                                               
years off  of the  plan approval process.  Juneau did  go through                                                               
mediation successfully,  but it was  a difficult process.  It was                                                               
unnecessary because the  case was there from  the very beginning,                                                               
but everyone  was suffering  from a badly  written law  and badly                                                               
written regulations. These  changes are too important  to be left                                                               
for regulations and  need to be put into  statute immediately for                                                               
the benefit of the applicant, reviewing agencies, and districts.                                                                
                                                                                                                                
4:37:58 PM                                                                                                                    
CHAIR OLSON  asked her  opinion on  the mediation  process, other                                                               
than her view that parts of  it were unnecessary. He asked if she                                                               
understands what is happening with the other three districts.                                                                   
                                                                                                                                
MS. CAMERY said  it was challenging and took a  long time just to                                                               
get the  mediation set  up in  the first  place. She  was pleased                                                               
with  the mediator,  but  there  was a  lot  of frustration.  The                                                               
changing   interpretations   continued  through   the   mediation                                                               
process. The  issues that  Juneau started out  with were  not the                                                               
issues  they debated  at  the  end. "We  did  not  have the  same                                                               
reasons for denial  of our policies that we started  out with. So                                                               
it was difficult and frustrating." It  worked out in the end. She                                                               
is  not  familiar  with  the other  districts.  Juneau  was  very                                                               
specific on focusing on the Juneau wetland plan.                                                                                
                                                                                                                                
4:39:49 PM                                                                                                                    
SENATOR  STEVENS said  the  policy council  seems  critical as  a                                                               
forum and  not a power over  DNR. If it were  reinstated would it                                                               
be a threat to DNR or just be more of a forum?                                                                                  
                                                                                                                                
MS. CAMERY  said she believes  the council would have  a critical                                                               
role  in  plan  approval,  but  the  DNR  commissioner  is  still                                                               
involved, so it  is not taking away  the commissioner's authority                                                               
so  much as  having  broader democratic  representation on  areas                                                               
that may become controversial.                                                                                                  
                                                                                                                                
SENATOR STEVENS said  he looks forward to hearing  more about the                                                               
council, and he would not see it as a threat to DNR.                                                                            
                                                                                                                                
4:41:43 PM                                                                                                                    
JOHNNY  AIKEN,  Director,  North  Slope  Borough,  Department  of                                                               
Planning and Community Services, provided the following:                                                                        
                                                                                                                                
     The North Slope Borough supports  this draft of SB 161.                                                                    
     It  would solve  many  of the  problems  we have  faced                                                                    
     during   the   past   few  years   as   the   Murkowski                                                                    
     Administration  implemented   changes  to   the  Alaska                                                                    
     Coastal Management  Program. While  it may  not restore                                                                    
     everything in  the original  program, this  draft fixes                                                                    
     some aspects  of the  ACMP that fall  far short  of the                                                                    
     program's intent.                                                                                                          
                                                                                                                                
     The Borough supports  responsible resource development,                                                                    
     and for over  20 years, the ACMP helped  to establish a                                                                    
     balance between  development and protection  of coastal                                                                    
     resources.  The program  was  useful  in gaining  local                                                                    
     support  for  development  projects,  because  it  gave                                                                    
     local  communities a  forum  for  their concerns  about                                                                    
     potential impacts.                                                                                                         
                                                                                                                                
     Since the  changes were implemented, the  ACMP has lost                                                                    
     its balance and its  ability to generate local support.                                                                    
     Almost all  of our  proposed enforceable  policies have                                                                    
     been denied  by the  State, so we  have been  forced to                                                                    
     rely  on our  Title 19  planning and  zoning processes.                                                                    
     While this permitting process is  an effective tool, it                                                                    
     does  not  allow us  the  opportunities  in the  former                                                                    
     coastal management  program to work  cooperatively with                                                                    
     the   state   and   federal  agencies   in   developing                                                                    
     compatible permit stipulations.                                                                                            
                                                                                                                                
     The work draft before  the committee would help restore                                                                    
     a  meaningful ACMP.  Most  importantly,  it would  make                                                                    
     clear that  coastal districts can  establish meaningful                                                                    
     enforceable  policies. We  believe  HB  191, passed  in                                                                    
     2003,   would  have   made  this   possible,  but   the                                                                    
     regulations  adopted  by  the  previous  administration                                                                    
     eliminated this possibility. Only  4 of the 37 policies                                                                    
     we  proposed   for  our  coastal  plan   revision  were                                                                    
     approved,  and we  were  told  that remaining  policies                                                                    
     must  be changed  significantly  before  they could  be                                                                    
     approved.                                                                                                                  
                                                                                                                                
4:46:15 PM                                                                                                                    
     The work draft also puts  air and water quality permits                                                                    
     back   into  the   ACMP  process.   Since  the   Alaska                                                                    
     Department of  Environmental Conservation  permits have                                                                    
     been  removed  from  the  consistency  review  process,                                                                    
     there has been a lot  of confusion. I appreciate Teri's                                                                    
     comments on this.  For example, we have  been told that                                                                    
     we can no longer comment  on the effects of a potential                                                                    
     oil spill on habitat or subsistence.                                                                                       
                                                                                                                                
     The  Borough also  supports the  provision in  the work                                                                    
     draft to  reestablish the  Coastal Policy  Council. The                                                                    
     former council played a big  role in achieving a policy                                                                    
     balance,  because   it  was  composed  of   both  state                                                                    
     government staff and locally elected officials.                                                                            
                                                                                                                                
     Finally, the work  draft makes it clear  that all Outer                                                                    
     Continental   Shelf    activities   affecting   coastal                                                                    
     resources or uses would be  considered in ACMP reviews.                                                                    
     As a result of changes  to the program in recent years,                                                                    
     some effects of offshore oil  and gas activities are no                                                                    
     longer considered.                                                                                                         
                                                                                                                                
     I am  very encouraged  by this work  draft, and  I hope                                                                    
     the  committee  will look  favorably  on  it. Again,  I                                                                    
     appreciate the  chance to speak  with you  today. Thank                                                                    
     you,  Mister Chairman.  I look  forward to  a fair  and                                                                    
     positive change.                                                                                                           
                                                                                                                                
4:48:00 PM                                                                                                                    
CHAIR OLSON  asked if Mr. Aiken  knows that DNR intends  to start                                                               
its formal evaluations of ACMP a year after June 2008.                                                                          
                                                                                                                                
GORDON BROWER, Land Management  Regulations Manager, Planning and                                                               
Community  Services, North  Slope Borough,  said it  doesn't make                                                               
sense to  test what DNR has  done already. He said  Mr. Bates has                                                               
been  steering  this  "since  back   then,"  and  the  bar  keeps                                                               
changing. "It  changed the regulations  on us." He said  he would                                                               
really  frown on  waiting, and  he  suggested making  legislative                                                               
changes that DNR will have to  act on. From his experience, if it                                                               
is left up to regulations, it is easily altered.                                                                                
                                                                                                                                
4:50:40 PM                                                                                                                    
TOM  OKLEASIK,   Planning  Director,  Northwest   Arctic  Borough                                                               
(NWAB), Kotzebue, said  the NWAB supports SB 161  because it will                                                               
resolve  most of  the problems  the  borough has  had in  getting                                                               
approval of its  coastal management plan. The  NWAB submitted its                                                               
draft in  September 2006, but  only 1 of 51  proposed enforceable                                                               
policies  were  approved, and  all  areas  proposed for  historic                                                               
designations  were denied.  Only one  small subsistence  use area                                                               
was approved. The borough is  supportive of resource development,                                                               
but it needs  to be in due consideration of  issues and standards                                                               
of subsistence  as well as  other uses and resources.  The people                                                               
are dependent on  subsistence, and most of  the subsistence areas                                                               
were denied,  so the NWAB  felt it had no  choice but to  ask for                                                               
mediation, which  has not  been approved.  "We have  been waiting                                                               
for two years."  The bill will also fix  three important problems                                                               
related to the implementation of the  ACMP. It will make it clear                                                               
that  the  coastal  districts  can  make  meaningful  enforceable                                                               
policies. The bill will also  reinstate the formal Coastal Policy                                                               
Council  and bring  air and  water quality  issues back  into the                                                               
ACMP consistency review process.                                                                                                
                                                                                                                                
4:53:51 PM                                                                                                                    
CHAIR OLSON  asked about mediation  being the only way  to appeal                                                               
some of these decisions.                                                                                                        
                                                                                                                                
MR. OKLEASIK said  it is the first time the  mediation process is                                                               
being  used, "and  that should  tell you  about the  changes that                                                               
happened to  the program  under the  last administration  - there                                                               
was never  a mediation  before." The  process is  new, and  it is                                                               
very time consuming. Consistency reviews  don't wait and the work                                                               
piles up despite this additional process that is very slow.                                                                     
                                                                                                                                
4:55:02 PM                                                                                                                    
BUD CASSIDY,  Planning Director, Kodiak Island  Borough, said the                                                               
borough  would support  any bill  that  tries to  achieve a  more                                                               
balanced and  cooperative relationship between the  state and the                                                               
borough, which is rare now. Our  role under the current plan will                                                               
be limited.  Kodiak will have a  seat at the table  but will have                                                               
very   little  say   except  to   quote  state   regulations  and                                                               
regulations interpreted  by the state,  not the borough.  He said                                                               
the local planning  and zoning codes will serve  better. The ACMP                                                               
program   has  become   centralized.  There   are  administrative                                                               
advantages for  a one-size-fits-all program, but  there are miles                                                               
of diverse  coastline with diverse  communities in Alaska,  so it                                                               
does not work.  "We want an opportunity to  comment on projects."                                                               
The borough has  local experts like Natives and  fishers who need                                                               
to be consulted.  He said Mr. Bate's  comments about reevaluating                                                               
the program are heartening, but  a timeline is needed. Kodiak has                                                               
a plan  on its  way to OCRM,  but it is  concerned about  what is                                                               
really in the plan. "Our goal was to have a seat at the table."                                                                 
                                                                                                                                
4:57:24 PM                                                                                                                    
SENATOR  STEVENS  asked  if  the Coastal  Policy  Council  is  an                                                               
efficient way to get local input and to find balance.                                                                           
                                                                                                                                
MR. CASSIDY said  the council will consist of a  diverse group of                                                               
individuals that  would mediate  conflicts. The  less centralized                                                               
the  program is,  the better.  That is  where the  Coastal Policy                                                               
Council fits in.                                                                                                                
                                                                                                                                
4:58:52 PM                                                                                                                    
GARY  WILLIAMS,  Coordinator,  Kenai  Peninsula  Borough  Coastal                                                               
District, said he supports SB  161. He appreciates the challenges                                                               
that the division director and his  staff faced with HB 191, "but                                                               
it was a product of HB 191, which  we are here to try and correct                                                               
in its  essence and in  its unanticipated consequences."  Any set                                                               
of  policies  that have  not  been  revised  for 15  years,  like                                                               
Kenai's coastal program,  needs to be reconsidered.  For that, HB
191  was good,  but what  was not  good was  how it  dictated the                                                               
process. "Leaving  aside the  issue of  the reasons  the governor                                                               
and key  legislators set  out to eviscerate  the ACMP,  I'll just                                                               
focus  on a  couple  of  issues I  found  most  difficult in  the                                                               
process." The legislation  gave the staff too  little guidance on                                                               
what  is precise  and enforceable  language.  It is  particularly                                                               
one-sided   when  the   terms   are  not   negotiable  and   more                                                               
particularly problematic when the  language was more precise than                                                               
DNR  would allow.  HB  191 doesn't  allow a  district  to have  a                                                               
policy that is adequately addressed  in state or federal law, and                                                               
"adequately" is the key word.                                                                                                   
                                                                                                                                
5:01:42 PM                                                                                                                    
MR. WILLIAMS said what someone in  the DNR thinks is adequate may                                                               
differ  from someone  who  is  trying to  write  a  policy for  a                                                               
specific  issue of  local concern.  "The word  'adequately' meant                                                               
only what DNR said it meant." Anyone  who thinks HB 191 was a fix                                                               
for problems,  needs to  consider that  the ACMP  revisions still                                                               
haven't  taken  place.  Despite   having  submitted  the  Kenai's                                                               
amendment  in  September of  2006,  there  is still  no  approved                                                               
program.  It  is  pending  at  OCRM.  The  bill  addresses  these                                                               
problems and would create a  Coastal Policy Council to manage the                                                               
ACMP.  He  said  he  supports   the  sponsor  statement  and  the                                                               
statement  of   the  Alaska   Coastal  District   Association  on                                                               
September 2007.                                                                                                                 
                                                                                                                                
5:02:57 PM                                                                                                                    
LINDSAY WOLTER,  Assistant Attorney  General, Department  of Law,                                                               
Anchorage, said her  read of the bill is that  the duties of DCOM                                                               
are moved to  the Coastal Policy Council. It is  composed of nine                                                               
members  of the  public and  five from  state government,  but it                                                               
doesn't  say  anything about  the  staff.  Previously "the  staff                                                               
would be what DCOM does. They  were the ones that did the reviews                                                               
and wrote regulations,  and it would be sort  of filtered through                                                               
the council."  The bill doesn't set  it up that way  but says the                                                               
commissioner  will appoint  the  public members  to the  council.                                                               
"The council's going  to be writing regulations and  that sort of                                                               
thing, as  currently written under the  draft. Those appointments                                                               
need to  be made by  the governor  not a commissioner."  She said                                                               
there's never been  any board or council that  has public members                                                               
writing regulations unless they were appointed by a governor.                                                                   
                                                                                                                                
5:04:59 PM                                                                                                                    
CHAIR  OLSON said  he will  look at  that. People  should realize                                                               
that Mr. Bates  has superiors giving him directions, so  he is in                                                               
a precarious position.                                                                                                          
                                                                                                                                
MR.  BATES  said he  appreciates  the  testimony by  the  coastal                                                               
districts. He  has heard  it before  and he  has heard  the pain.                                                               
What they  address and  what is  being addressed  in the  bill is                                                               
real, but  the agency is  committed to  looking at them.  He said                                                               
there are challenges in the bill  and unless he can work with the                                                               
committee, DNR can't have a  position. He applauded the chair for                                                               
representing his  constituents, creating  this bill,  and staying                                                               
interested.                                                                                                                     
                                                                                                                                
5:07:09 PM                                                                                                                    
CHAIR OLSON said there will be staff time to fine tune it.                                                                      
                                                                                                                                
SENATOR STEVENS said he really  likes the Coastal Policy Council;                                                               
it is  a great  forum to  get communities  involved. He  wants to                                                               
make  sure  the bill  accomplishes  that  because is  a  critical                                                               
element. It is  a forum and is  not meant to be a  threat to DNR.                                                               
It is not his intention that  the council would take over the job                                                               
of  DNR, but  it should  play an  important role.  It allows  for                                                               
balance  and  gives the  communities  a  seat  at the  table.  It                                                               
provides  local  knowledge and  expertise.  He  doesn't want  the                                                               
council picking up the duties of  the staff, and he asked for Mr.                                                               
Bates to look at a way the council can return.                                                                                  
                                                                                                                                
5:09:05 PM                                                                                                                    
MR. BATES said he will look at  it, but Ms. Wolter brought up two                                                               
important points.  There was a  provision in the old  statutes to                                                               
identify the former Division of  Governmental Coordination as the                                                               
staff to the council, and without  that, the council will meet to                                                               
decide the fate of each and  every project. "I don't think that's                                                               
your intent." He said he knows  how the councils did work and how                                                               
successful they were. He will look at it.                                                                                       
                                                                                                                                
CHAIR OLSON held SB 161 in committee.                                                                                           
                                                                                                                                

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