03/21/2002 09:13 AM Senate FIN

     CS FOR SENATE BILL NO. 308(RES)                                                                                            
     "An Act relating to the Alaska coastal management program and                                                              
     the responsibilities of the Alaska Coastal Policy Council; and                                                             
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Donley  moved to adopt CS SB 308, 22-LS1516\J  as a working                                                            
draft.                                                                                                                          
                                                                                                                                
SENATOR  GENE  THERRIAULT,  sponsor  of  the  bill,  explained  this                                                            
committee  substitute  eliminates  the  petition  process  that  was                                                            
included  in  the  original   bill  as  it  is addressed   in  other                                                            
legislation; "prohibits  the adoption by reference of state statutes                                                            
and  regulations   by  coastal  district;"  and  allows   permitting                                                            
agencies to make  consistency determinations in separate  phases for                                                            
a North  Slope natural  gas pipeline project  paralleling the  Trans                                                            
Alaska Pipeline  System and the Alaska Highway or  a route that runs                                                            
to Alaska tidewater."                                                                                                           
                                                                                                                                
There being no objections, the committee substitute was ADOPTED.                                                                
                                                                                                                                
Senator  Therriault noted  the bill  title is  purposefully  "rather                                                            
broad" because a title  change is anticipated as a result of related                                                            
legislation under consideration.                                                                                                
                                                                                                                                
JOHN SHIVELY, Representative,  Foothills Pipeline Company, testified                                                            
via teleconference  from Anchorage  to voice support for  this bill.                                                            
He stressed that improving  the consistency determination permitting                                                            
process  to  allow   agencies  to  phase  projects  "makes   sense,"                                                            
especially when dealing with large projects.                                                                                    
                                                                                                                                
DANA OLSON,  testified via  teleconference  from Mat Su, and  voiced                                                            
concern that  this bill is moving  through the process too  quickly.                                                            
She suggested  the formation of a  subcommittee to include  citizens                                                            
to address concerns  and frustrations on the current  Alaska Coastal                                                            
Management Program (ACMP)  and subsequently offer recommendations to                                                            
the Committee.  She opined  that the Committee  is not aware  of all                                                            
the issues  involved, and she voiced  opposition to the elimination                                                             
of the petition process.                                                                                                        
                                                                                                                                
Senator Therriault,  in response  to a question  from Senator  Ward,                                                            
stated that concerns  of people in South Anchorage  are addressed in                                                            
the committee substitute  by the elimination of the petition process                                                            
language. He  reiterated that other  legislation would address  this                                                            
process.                                                                                                                        
                                                                                                                                
Senator Austerman  asked if  the gas pipeline  language included  in                                                            
the bill weakens the State's position in the permitting process.                                                                
                                                                                                                                
Senator  Therriault  stated the  language  "is project  neutral  but                                                            
route  specific,"  and  eliminates  the  concern  that  the  State's                                                            
current  permitting  process  is too  rigid  and  a deterrent  to  a                                                            
project's forward movement.                                                                                                     
                                                                                                                                
PATRICK  GALVIN, Director,  Division of  Governmental Coordination,                                                             
Office of the  Governor, informed  the Committee the Department  has                                                            
no objections to the bill.                                                                                                      
                                                                                                                                
Senator Leman  offered a motion to  report the committee  substitute                                                            
from Committee with accompanying fiscal note.                                                                                   
                                                                                                                                
There  being  no objections,   CS SB  308  (FIN)  was MOVED  out  of                                                            
Committee with the accompanying  zero fiscal note from the Office of                                                            
the Governor, dated 3/05/02.