04/22/2004 09:03 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 378                                                                                                        
     "An Act relating  to regulation of the discharge  of pollutants                                                            
     from  timber-related  activities under  the National  Pollutant                                                            
     Discharge  Elimination System; relating to waste  treatment and                                                            
     disposal  permits; making conforming amendments;  and providing                                                            
     for an effective date."                                                                                                    
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken stated  this bill,  sponsored by  the Senate  Rules                                                            
Committee   at  the  request  of   the  Governor,  "authorizes   the                                                            
Department of Environmental  Conservation to administer the National                                                            
Pollutant Discharge Elimination Permit for the timber industry."                                                                
                                                                                                                                
ERNESTA   BALLARD,   Commissioner,   Department   of  Environmental                                                             
Conservation, informed  that 21 years ago she served as the Regional                                                            
Administrator   for   the  federal   Department   of  Environmental                                                             
Protection  Agency  (EPA)  and  traveled  to  Alaska  to  meet  with                                                            
Governor  Sheffield  and  the  commissioner  of  the  Department  of                                                            
Environmental  Conservation.  She reported  that she recommended  at                                                            
that time  that to protect  its waters and  also allow for  resource                                                            
development,  the State should  assume primacy  on waters.  However,                                                            
she remarked  that the State did not  and since that date,  45 other                                                            
states have done so, leaving  Alaska as one of five that do not have                                                            
primacy. She told of the  advantages to the states that have assumed                                                            
primacy  in  streamlining  and  establishment  of  state  standards,                                                            
administrative  procedures  and appeal procedures.  She stated  that                                                            
because Alaska  does not have primacy, the EPA writes  permits and a                                                            
second process for State approval is required.                                                                                  
                                                                                                                                
Ms. Ballard explained  that this legislation would  apply to timber-                                                            
related activities as a  pilot project, with the intention to expand                                                            
to other development activities in the future.                                                                                  
                                                                                                                                
JON  TILLINGHAST,   Attorney,  Sealaska  Corporation   testified  in                                                            
support  of the  bill.  He commented  that it  is  "no secret"  that                                                            
Alaska's  timber industry  was  "on the  ropes" and  expressed  this                                                            
legislation  would assist the industry  and other industries  in the                                                            
future.                                                                                                                         
                                                                                                                                
Senator Olson  surmised the  witness' assertion  is to the  "best of                                                            
your knowledge".                                                                                                                
                                                                                                                                
Mr. Tillinghast affirmed, noting his knowledge is first hand.                                                                   
                                                                                                                                
ADRIAN  LECORNU, Administrator,  Hydaburg  Cooperative Association,                                                             
testified via teleconference  from an offnet location, asked whether                                                            
the  assumption  of partial  primacy  for  the timber  sector  would                                                            
stipulate  that the State  would require Klukwan,  Inc. to  obtain a                                                            
National Pollution Discharge Elimination System (NPDES) permit.                                                                 
                                                                                                                                
                                                                                                                                
SFC 04 # 90, Side B 09:50 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Mr.  LeCornu  continued  that  a  Ninth  Circuit  Court  of  Appeals                                                            
opinion, issued  in November 2002 relating to a case  brought by the                                                            
League of Wilderness  Defenders clarifies that the  NPDES permitting                                                            
is  required for  aerial  spraying  of pesticides.  He  relayed  the                                                            
Association's  concerns that the consumption  of partial  primacy by                                                            
the State would  further erode the community's "voice"  as an Alaska                                                            
Native  Tribe. He  opined that  the State  has not  "demonstrated  a                                                            
willingness  to listen"  to  the concerns  of tribal  members  about                                                            
proposed pesticide spraying on Long Island.                                                                                     
                                                                                                                                
Mr.   LeCornu  asserted   this   legislation  would   limit   public                                                            
participation  by eliminating public notice of proposed  permits. He                                                            
stated that permits could  be issued for spraying near Hydaburg with                                                            
no notice or  opportunity for comment  given to residents.  He added                                                            
that public hearings  located in Ketchikan, for activities  proposed                                                            
for Prince  of Wales Island, would  present a hardship for  Hydaburg                                                            
residents wishing to participate.                                                                                               
                                                                                                                                
Co-Chair  Wilken requested  the Department  respond to the  concerns                                                            
voiced by the witness.                                                                                                          
                                                                                                                                
Ms. Ballard responded  the matter to which the witness  testified is                                                            
a different,  pesticide  program,  rather than  the water  discharge                                                            
program  addressed  in this  legislation.  She understood  that  the                                                            
concerns  relate  to  the  public  hearing   process  for  a  permit                                                            
application   submitted  by  the   Klukwan  Corporation   requesting                                                            
authority  for aerial  pesticide application  on  Long Island,  near                                                            
Hydaburg.   She   informed   that   Department    of  Environmental                                                             
Conservation regulations  require that the Klukwan  Corporation must                                                            
hold public  hearings, which  have not been  scheduled and  location                                                            
has  not been  determined.  She also  noted  that questions  of  the                                                            
Department  of  Environmental  Conservation  and the  Department  of                                                            
Natural Resources  must be answered before the application  could be                                                            
accepted.                                                                                                                       
                                                                                                                                
Co-Chair Wilken requested  witness contact the Department to resolve                                                            
this issue.                                                                                                                     
                                                                                                                                
Mr. LeCornu agreed to do so.                                                                                                    
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in Committee.