Legislature(2005 - 2006)CAPITOL 124
02/09/2006 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB378 | |
| HB392 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 378 | TELECONFERENCED | |
| *+ | HB 392 | TELECONFERENCED | |
HB 392-SOLID WASTE MANAGEMENT AUTHORITIES 8:54:18 AM CO-CHAIR OLSON announced that the final order of business would be HOUSE BILL NO. 392, "An Act authorizing the establishment of regional solid waste management authorities." 8:54:19 AM REPRESENTATIVE PEGGY WILSON, Alaska State Legislature, sponsor, explained that HB 392 will allow a community or a group of communities to create a public corporation to deal with waste management. The legislation is modeled after the Port Authority statues and will authorize the formation of solid waste authorities for waste management. Representative Wilson informed the committee that each Alaskan produces 6.5-7 pounds of solid waste every day, which amounts to over 200 tons per day. In Southeast, over 250 tons of solid waste is produced every day, which amounts to over 90,000 tons per year, although many of the landfills and incinerators in Southeast have closed over the last 10 years. Therefore, some of the communities in Southeast have resorted to barging solid waste to super landfills in the Lower 48 and pay from $77 per ton to $220 per ton to do so. However, the economies of scale in Anchorage allow it to only have costs of $40 per ton for its solid waste. Collectively, the communities in Southeast that ship solid waste to the Lower 48, ship about 23,000 tons each year not including the 30,000 tons from Juneau alone. REPRESENTATIVE WILSON concluded by reiterating that HB 392 would allow communities to come together to form an authority to accomplish what one community alone cannot. Such an authority would keep money in the state. She explained that the legislation would require that voters in the municipalities interested in joining an authority approve such. Furthermore, the authority would be legally independent from the municipalities, and therefore it could issue bonds, borrow money, and enter into contracts. The board of the authority would be responsible for creating bylaws and regulations, and governing the authority. Upon creation of the authority, it would determine the location of the regional facility and the type of technology that would be used. Therefore, HB 392 provides a mechanism that will be useful throughout the state. 8:58:33 AM REPRESENTATIVE NEUMAN highlighted that the legislation prohibits the authority from levying any taxes. He then inquired as to how an authority would be funded. He also inquired as to whether an individual who doesn't want his/her garbage to be collected by the community could opt-out. REPRESENTATIVE WILSON specified that the authority has nothing to do with the rules of the municipality. The authority merely provides an option for municipalities from the dock to [the site of the waste facility]. Representative Wilson pointed out that currently Juneau has its own site for solid waste disposal and may not want to join an authority at this point, although it may in the future. 9:00:31 AM REPRESENTATIVE NEUMAN surmised then that an individual in a community that is part of an authority wouldn't be forced to be pay for that. 9:00:47 AM REPRESENTATIVE CISSNA recalled a book entitled, "The Power Broker" that detailed the authorities in New York City during the early days of the highways and the large municipal structures during which power brokers were able to gather large sums of money. Therefore, she inquired as to what safeguards are in place so that the wrong person doesn't control these authorities and veil property acquisitions. REPRESENTATIVE WILSON pointed out that such hasn't happened with Alaska's Port Authority. She reiterated that the proposed solid waste management authorities are based on the state's Port Authority. 9:02:52 AM REPRESENTATIVE NEUMAN highlighted that the fiscal notes for HB 392 are zero, and therefore he congratulated Representative Wilson. 9:03:14 AM CO-CHAIR OLSON noted that the legislation includes a provision to dissolve an entire authority, if the situation arrived at that point. He then asked if there is a means that would allow one entity to withdraw from the authority. REPRESENTATIVE WILSON answered that she wasn't sure how that works, and deferred to anyone who knows the workings of the Port Authority. CO-CHAIR OLSON said he is familiar with the Port Authority, which doesn't [allow withdrawal of an entity]. He asked if that is something that the sponsor would entertain. REPRESENTATIVE WILSON replied yes. 9:04:00 AM CINDY ROBERTS, Denali Commission, Division of Community Advocacy, Department of Commerce, Community, & Economic Development (DCCED), related support for HB 392. Although solid waste management issues aren't specifically DCCED's assignment, the department believes them to be key elements in the commercial, human, and environmental health of the state's rural communities. As the committee may be aware, solid waste funding is very difficult to obtain in this state. In fact, over the last 15 years water and sewer projects have benefited from a heightened priority and awareness. However, the rural communities are left to find their own solutions for packaging construction and household waste. Furthermore, the high investment required to establish even a small landfill results in many communities in the state operating unpermitted landfills. Therefore, DCCED believes HB 392 to be timely, appropriate, and the first step in creating site-specific solutions that are sponsored and controlled by the communities impacted. Moreover, the authority framework would allow communities to join together to acquire land, equipment, and the operational manpower to handle local waste in a fiscally sustainable and environmentally responsible manner. The authority structure will also assist communities with bonding for equipment to eliminate the bird and animal issues as well as protect the area watersheds. Ms. Roberts highlighted that the multi-community authority can help finance the match required for things such as connecting roads, and thus there may be improved economies of scale as well as improved operating procedures. Therefore, the authority option will reduce exported dollars and trash of the participating regions. In conclusion, Ms. Roberts reiterated the department's support of HB 392. 9:08:20 AM REPRESENTATIVE CISSNA noted her agreement with Ms. Roberts regarding the importance of this matter for Southeast Alaska as well as the state as a whole. However, she expressed concern with regard to the accountability of the authority, although she noticed the provisions related to the fidelity bonds of the authority. She inquired as to the state requirements for authorities and how the public is protected in relation to the authority and its actions. MS. ROBERTS noted that she was pleased to see the fidelity bond clause in the legislation. However, she said that she isn't very familiar with the Port Authority structure. She explained that she was involved due to her assignment with the Denali Commission, which helped the Southeast Conference perform the research regarding which structure would best suit the state. With regard to Representative Cissna's concerns related to the situation in New York City with power brokers, she didn't believe that is of concern in Alaska due to the state's fairly active democracy. 9:11:05 AM MARLENE CLARKE informed the committee that she tries to recycle as much as possible. She said although the legislation is long overdue, she is concerned that the proposed commission may choose the quickest and easiest solution, which would be to incinerate waste. Incinerating waste, she said, would place many toxins in the atmosphere that would ultimately end up in the drinking water and soil. Ms. Clarke emphasized that there needs to be a strong educational format with regard to the safest and most logical way to address [solid waste]. She suggested that perhaps there should be some monetary incentives to offer communities that join the authority and perform recycling. Ms. Clarke suggested contacting communities that already have recycling efforts. 9:14:08 AM VALERY MCCANDLESS, Mayor, City of Wrangell, related that the City of Wrangell supports, in concept, the formation of a solid waste authority. It's important for the state to be proactive in dealing with its own waste. She noted her agreement with earlier comments relating the need to have a mechanism to allow participation or withdrawal. 9:15:41 AM CO-CHAIR THOMAS inquired as to how many regional [solid waste] authorities would Mayor McCandless envision. MAYOR MCCANDLESS opined that although many communities would be interested in being a site location, the location will be dependent upon those who join and the type of recycling chosen. She informed the committee that Wrangell, Petersburg, and Thorne Bay have expressed interest in being part of the solution. 9:16:39 AM CO-CHAIR THOMAS expressed concern that there would be more [solid waste authorities] than necessary. MAYOR MCCANDLESS said she envisioned that many communities would form one authority [in order to capture] an economy of scale. Therefore, she suggested that it's likely that a solid waste authority would be addressed as a regional issue. 9:17:23 AM JOHN BOLLING, City Administrator, City of Craig; Member, Southeast Conference, related that the City of Craig supports HB 392, which essentially provides communities with an opportunity to deal with solid waste disposal. This legislation allows communities to voluntarily band together to address uncertainties faced when solid waste is shipped down South. He identified cost as an uncertainty with shipping. In Craig, it costs $200 per ton to properly dispose of the City of Craig's solid waste, which is a substantial increase over the $40 per ton charged only five years ago. Therefore, the City of Craig is interested in finding a mechanism to control those costs and make them more predictable over the long term. This legislation, he opined, can lead to that end. 9:19:22 AM KATHIE WASSERMAN, Alaska Municipal League (AML), began by relating AML's full support of HB 392. Drawing upon her experience as a grant writer, Ms. Wasserman related that any request for funds requires the attempt to be regional. She opined that it's in the state's best interest to support HB 392. With regard to Representative Cissna's concern regarding authorities, Ms. Wasserman suggested that whether the entity formed is labeled an authority or something else, it would require attention in order to avoid the perils of concern for Representative Cissna. With regard to keeping the state's air and water clean, Ms. Wasserman informed the committee that as it stands now smaller communities don't have the ability to maintain clean air and water. Therefore, only through regional means will those communities be able to do better than they are currently doing and thus she viewed HB 392 as a way to improve the situation in rural communities. 9:21:36 AM DUFF MITCHELL, Chief Operating Officer, Kake Tribal Corporation, informed the committee that Kake Tribal Corporation has been working on solid waste management issues since 1999 as there seem possible benefits to the corporation as well as the region. He explained that currently Kake produces compost by using fish and timber waste. Although the aforementioned isn't as successful as the corporation would like, it's continuing to work on it [because it believes that] trash is not waste but rather is energy. Mr. Mitchell characterized the current situation in Southeast as a boat without oars because those in the region want to do something but there are no synergies between groups. Therefore, the proposed authority provides a mechanism to provide direction. He noted his agreement with Ms. Wasserman that small communities currently don't have funds to produce a recycling facility, let alone a permitted waste facility and thus HB 392 might provide economies of scale to address waste in state and allow Alaskans to take control and help themselves because sending waste out of state results in the loss of jobs and money for Alaska. 9:25:12 AM CO-CHAIR THOMAS asked if HB 392 will allow a village corporation to seek bonding or does it require working through the municipality. MR. MITCHELL said that he had concerns with regard to that as well. He related his understanding that authorities are only set up for municipalities. However, the Kake Tribal Corporation is a private village corporation, an Alaska Native Claims Settlement Act (ANCSA) corporation, that could use this waste energy on private land. Although he said he didn't know exactly how it would work, he related his understanding that the waste authority would be comprised of municipalities that could contract or work with [an organization such as Kake Tribal Corporation] as the private entrepreneurial entity. Therefore, the legislation doesn't seem to eliminate [village corporations], although it doesn't allow them to sit at the table as a waste authority member. 9:26:28 AM MR. MITCHELL, in response to Representative Cissna, related that he views the authority as an avenue to create economies of scale. After reviewing the analysis, Mr. Mitchell opined that if all the other communities in Southeast Alaska, save Juneau, banded together, there wouldn't be enough volume to make something happen. Therefore, [all] the communities in the region would have to band together to achieve an economy of scale, which he opined will force consensus building within the region. 9:30:03 AM DAN EASTON, Deputy Commissioner, Office of the Commissioner, Department of Environmental Conservation (DEC), began by relating support for HB 392. He then pointed out that Alaska's solid waste situation is unique due to the state's low population that is spread across a large area. Mr. Easton informed the committee that the department supports anything that would allow or foster the development of regional systems in Alaska, where they make sense. In general, when dealing with solid waste, bigger is better because the larger systems can take advantage of economies of scale. Therefore, DEC views, he said, HB 392 as an important step because it provides an option that will hopefully result in regional organizations. For that reason, DEC would urge the committee's support of HB 392, he said. 9:32:34 AM REPRESENTATIVE CISSNA turned attention to page 10 of HB 392, which she indicated may address her concerns regarding the safeguards for authorities. She asked if the language relating to public records and open meetings laws, an annual report, and audits would provide sufficient safeguards. 9:33:17 AM RUTH HAMILTON HEESE, Assistant Attorney General, Environmental Section, Civil Division (Juneau), Department of Law, answered that she believes so as that language was included, in part, to provide oversight. 9:34:02 AM JOHN WATERHOUSE, drawing on his experience as a Solid Waste Manager for the Yukon Inter-Tribal Watershed Council, opined that HB 392 moves in the right direction. He agreed with earlier testimony regarding that everyone needs to work together to increase capacity to address and solve solid waste issues in a region. He mentioned that there has been some success with St. Mary's, Pitcus Point (ph), and Mountain Village banding together to build a common landfill. Therefore, HB 392 will help such efforts with regard to bonding efforts and the like. In conclusion, he urged the committee to pass HB 392. 9:36:14 AM ROLLO POOL, Executive Director, Southeast Conference, informed the committee that about two years ago Southeast Conference pitched an idea to the Denali Commission regarding the concept of using a regional approach to address solid waste. He related that the Denali Commission liked the idea and granted the Southeast Conference funds to hire consultants to review what other places are doing. The typical entity found was an authority, which are typically an open public body operating as a corporation and thus it's subject to the will of the voters. Mr. Pool envisioned that the authority would seek funding and the authority would be a separate entity from the communities themselves, although they would be subject to the [will] of the voters in the communities involved. With regard to the question as to whether an individual can opt-out, Mr. Pool said that the individual many not have an opportunity to opt-out. Mr. Pool then informed the committee that Southeast Conference is also working on a grant to establish a regional plan to review the options. He related that the Southeast Conference envisions that in Southeast there would probably only be one or two authorities. In conclusion, Mr. Pool urged passage of HB 392. 9:41:08 AM CO-CHAIR THOMAS related his understanding that a major stumbling block is infrastructure. Therefore, he suggested including language specifying that the ferry terminals can be used to transfer trash. MR. POOL related his understanding that most towns have barge service and currently one-third of the trash in Southeast is being shipped out of state. Therefore, those communities have the infrastructure to deliver the trash to the dock and place it on the barges. Therefore, the first step would be to determine what facilities exist and what is necessary to achieve the goal. 9:42:58 AM CO-CHAIR THOMAS pointed out that often the facilities [to which Mr. Pool referred] are owned by Alaska Marine Lines or other companies, and therefore it may actually cost more to use the local facility. MR. POOL opined that the Alaska Marine Highway would be receptive to the idea and willing to work on this as are other agencies. Furthermore, five communities have already come forward to be considered for a site as has a private company as well. At this point, a legal entity is necessary to move forward, and therefore HB 392 allows communities to work on this in a cooperative fashion such that the risks, rewards, and costs are shared. 9:44:53 AM REPRESENTATIVE NEUMAN expressed concern with regard to an individual not being able to opt-out. He posed an example of a senior who only has small amount of trash, but is being charged $40 a month. REPRESENTATIVE WILSON reminded the committee that each municipality has different rules, and she didn't want to take away local control. In further response to Representative Neuman, Representative Wilson clarified that the authority would only address the part of the process from the dock outward. 9:47:14 AM CO-CHAIR OLSON announced that HB 392 would be held over.
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