Legislature(2007 - 2008)CAPITOL 124

02/12/2007 08:30 AM House FISHERIES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 74 BAN MIXING ZONES IN SPAWNING AREAS TELECONFERENCED
Heard & Held
+= HB 41 TRANSFER HABITAT DIV FROM DNR TO F&G TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 74-BAN MIXING ZONES IN SPAWNING AREAS                                                                                      
                                                                                                                                
8:35:28 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the first order of  business would be                                                              
HOUSE  BILL   NO.  74,  "An   Act  prohibiting  mixing   zones  in                                                              
freshwater spawning  waters."  [Before  the committee is  CSHB 74,                                                              
Version LS0337\M, Bullock, 2/6/07, adopted on February 7, 2007.]                                                                
                                                                                                                                
8:36:54 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON directed  the committee's attention  to a generalized                                                              
discussion  of the  definition of  "placer  mine" and  "mechanical                                                              
dredging"  as well as  the covers  of three  fact sheets  from the                                                              
Environmental   Protection   Agency   (EPA)   that   discuss   the                                                              
aforementioned.                                                                                                                 
                                                                                                                                
8:38:19 AM                                                                                                                    
                                                                                                                                
LYNN  TOMICH KENT,  Director,  Division  of Water,  Department  of                                                              
Environmental   Conservation   (DEC),    provided   testimony   in                                                              
opposition  of HB 74.   Ms.  Kent paraphrased  from the  following                                                              
written statement [original punctuation provided]:                                                                              
                                                                                                                                
     The  Department  is  opposed  to CSHB  74(FSH)  for  the                                                                   
     following reasons:                                                                                                         
                                                                                                                                
     1. CSHB 74(FSH)  is not necessary to  protect anadromous                                                                 
     salmon from either a scientific or a perception basis.                                                                   
                                                                                                                              
     The   Department    of   Environmental    Conservation's                                                                   
     regulations prohibit  mixing zones in  anadromous salmon                                                                   
     spawning areas.  CSHB 74(FSH)  would put in  statute the                                                                   
     same  protections for  the  five species  of  anadromous                                                                   
     salmon that  have been part  of DEC's regulations  since                                                                   
     1995.                                                                                                                      
                                                                                                                                
     While  these  protections   are  not  necessary  from  a                                                                   
     scientific  perspective,  they   go  beyond  science  to                                                                   
     address  the need to  protect salmon  marketing and  the                                                                   
     public  perception that  Alaska's salmon  are clean  and                                                                   
     healthy.                                                                                                                   
                                                                                                                                
     2. There is  no justification for extending  the current                                                                 
     mixing zone  prohibition designed to protect  the salmon                                                                 
     marketing effort to protect "non-salmon" fish species.                                                                   
                                                                                                                              
     CSHB  74(FSH)  would  prevent  DEC  from  authorizing  a                                                                   
     mixing zone  in a non-salmon fish spawning  area even in                                                                   
     cases where  science can show the mixing zone  will have                                                                   
     no   adverse   effect   on   spawning.   There   is   no                                                                   
     justification    for   extending    the   mixing    zone                                                                   
     prohibition   which  is  intended   to  protect   salmon                                                                   
     marketing  efforts to  non-salmon  fish species.  Alaska                                                                   
     needs  to encourage  and support  responsible  community                                                                   
     growth and development of its natural resources.                                                                           
                                                                                                                                
     DEC's  regulations allow exceptions  to the  prohibition                                                                   
     of a  mixing zone  in "non-salmon"  spawning areas  when                                                                   
     site  specific conditions  show  that  the fish  species                                                                   
     will  be  protected  or  any  adverse  impacts  will  be                                                                   
     mitigated  as   determined  by  habitat   and  fisheries                                                                   
     biologists  with the Departments  of Fish and  Game, and                                                                   
     Natural     Resources,    under     their     mitigation                                                                   
     requirements,  just  as  they do  for  other  activities                                                                   
     that occur in waterbodies.                                                                                                 
                                                                                                                                
     Alaska's  communities and businesses  should be  allowed                                                                   
     to use mixing  zones if fish are protected.  There is no                                                                   
     justification  for  restricting   responsible  community                                                                   
     growth  and resource  development that  can comply  with                                                                   
     the   state's   requirements    for   the   growth   and                                                                   
     propagation of fish.                                                                                                       
                                                                                                                                
     3.  CSHB   74(FSH)  would   prohibit  mixing  zones   in                                                                 
     spawning areas for lampreys and smelts.                                                                                  
                                                                                                                              
     DEC would  be prevented from  authorizing a  mixing zone                                                                   
     in  all anadromous  fish  spawning areas.  Lampreys  and                                                                   
     smelts are  fish species included  in the definition  of                                                                   
     anadromous  fish. Unlike  the  importance  of salmon  to                                                                   
     Alaska's  social and  economic wellbeing,  DEC does  not                                                                   
     believe  non-salmon anadromous  fish species justify  an                                                                   
     absolute  prohibition on  mixing zones  that can  comply                                                                   
     with the  scientifically based  water quality  standards                                                                   
     for growth and propagation of fish.                                                                                        
                                                                                                                                
     4.  CSHB  74(FSH)  would  prohibit   reauthorization  of                                                                 
     mixing  zones  that have  become  a fish  spawning  area                                                                 
     unless  the discharge  was from  a municipal  wastewater                                                                 
     facility,   or   the  waterbody   is   an   artificially                                                                 
     constructed facility.                                                                                                    
                                                                                                                              
     It  is possible  for  mixing  zones to  become  spawning                                                                   
     areas even  though spawning  was not occurring  when the                                                                   
     mixing  zone was  first authorized.  DFG has  discovered                                                                   
     fish  spawning in  a mixing  zone previously  authorized                                                                   
     for  a drinking  water utility,  and in  some cases  for                                                                   
     domestic   wastewater   facilities.    Successful   fish                                                                   
     spawning in  a mixing zone is at least  partial evidence                                                                   
     that  the  water  quality  in the  mixing  zone  is  not                                                                   
     harmful  to fish. Allowing  mixing zones  in areas  that                                                                   
     have   become  successful   spawning  areas  should   be                                                                   
     allowed  for  any  facility  type,  not  just  municipal                                                                   
     wastewater   facilities  or   artificially   constructed                                                                   
     facilities. Businesses  and communities should  not lose                                                                   
     their mixing  zones just because  they are doing  such a                                                                   
     good  job  treating  their wastewater  that  fish  start                                                                   
     spawning in them.                                                                                                          
                                                                                                                                
     5. CSHB  74(FSH) includes  a definition  of "area"  that                                                                 
     is counter  to both  past and  current practices  by the                                                                 
     Departments  of  Fish  and Game  and  Natural  Resources                                                                 
     when determining  spawning areas  on both a  spatial and                                                                 
     temporal basis.                                                                                                          
                                                                                                                              
     The relative  sensitivity of Alaska's fish  resources is                                                                   
     seasonal.   Impacts  from   responsible  community   and                                                                   
     resource  development can  be avoided  by limiting  uses                                                                   
     and  activities  to times  of  the  year when  the  fish                                                                   
     resources  are not  there or  other seasonal  conditions                                                                   
     eliminate  adverse   impacts  to  the   fish  resources.                                                                   
     Alaska's resource  agencies have traditionally  employed                                                                   
     "seasonal restrictions"  to control development  impacts                                                                   
     to the environment.                                                                                                        
                                                                                                                                
     There  are  dozens  of  currently  permitted  facilities                                                                   
     with discharges  that do not  have an adverse  effect on                                                                   
     fish,  in part  due to  timing  restrictions imposed  on                                                                   
     their   discharge    via   permit   conditions.    DEC's                                                                   
     regulations  also  prohibit   mixing  zones  that  would                                                                   
     adversely affect  the capability of the area  to support                                                                   
     future  spawning,  incubation, and  rearing  activities.                                                                   
     CSHB  74(FSH) would  require  the Department  to  cancel                                                                   
     those permits  (other than  for placer mines)  and limit                                                                   
     future  permitting  in similar  situations  without  any                                                                   
     net environmental benefit to the fish.                                                                                     
                                                                                                                                
     6.  CSHB  74(FSH)  will  create   a  temporary  inequity                                                                 
     between existing placer miners and new placer miners.                                                                    
                                                                                                                                
     Placer mines  with mixing zone authorizations  under the                                                                   
     current general  permit do not  have to comply  with the                                                                   
     proposed  CSHB 74(FSH) restrictions  of AS  46.03.065(c)                                                                   
     until  the general  permit is  reauthorized -  currently                                                                   
     scheduled  for the fall  of 2010.  Any new placer  mines                                                                   
     seeking permit  coverage would  have to comply  with the                                                                   
     new  restrictions  of  CSHB  74(FSH)  immediately.  This                                                                   
     would  set up  a double-standard  for  existing vs.  new                                                                   
     placer mines during the next few mining seasons.                                                                           
                                                                                                                                
     7.  CSHB  74(FSH)  would  prohibit  re-authorization  of                                                                 
     mixing zones  for placer mines that cannot  operate with                                                                 
     a mixing zone limited to 500 feet.                                                                                       
                                                                                                                                
     There  are approximately  28 placer  mines that have  an                                                                   
     authorized mixing  zone greater than 500 feet  in length                                                                   
     -  the  proposed  limitation   in  CSHB  74(FSH).  These                                                                   
     facilities,   under  current  regulatory   requirements,                                                                   
     have already  done everything they can do  to ensure the                                                                   
     mixing  zone is as  small as  practicable. It is  likely                                                                   
     that many of  these facilities could not  be re-permited                                                                   
     under  the proposed  500  foot mixing  zone  limitation,                                                                   
     even  though they  are  currently operating  without  an                                                                   
     adverse impact to spawning.                                                                                                
                                                                                                                              
     8.  CSHB  74(FSH)  relies upon  a  new  undefined  term,                                                                 
     "useful  life" when  referring  to renewal  of a  mixing                                                                 
     zone   authorization   for    a   municipal   wastewater                                                                 
     facility.                                                                                                                
                                                                                                                                
     As many  facilities  age, they are  upgraded to  varying                                                                   
     degrees  from  minor modifications  to  almost  complete                                                                   
     reconstruction.  DEC knows  of no  standard or  criteria                                                                   
     for    determining   a    facility's   "useful    life."                                                                   
     Introduction  of the concept  of a "useful life"  raises                                                                   
     questions  about  what  constitutes  a  modification  or                                                                   
     upgrade to a  facility vs. reconstruction at  the end of                                                                   
     a facility's "useful life."                                                                                                
                                                                                                                                
     The "useful  life" of a  facility is also irrelevant  to                                                                   
     the  properties and  effects  of a  mixing  zone or  the                                                                   
     methods necessary to protect fish.                                                                                         
                                                                                                                                
     9.  CSHB  74(FSH)  is  inconsistent   with  the  current                                                                 
     statute   for   protection   of  fish   and   game   (AS                                                                 
     41.14.870),  interference with  salmon spawning  streams                                                                 
     and waters  (AS 16.10.010),  or submission of  plans and                                                                 
     specifications (AS 16.20.060).                                                                                           
                                                                                                                                
     Alaska's  legislature  has  enacted a  protective  legal                                                                   
     framework  for   all  waters  important  to   fish  with                                                                   
     additional  protections for  rivers,  lakes and  streams                                                                   
     that  are important  for  salmon spawning,  rearing,  or                                                                   
     migration.  State approval  must be  received from  DEC,                                                                   
     DNR,  or DFG prior  to the  construction  in, or use  of                                                                   
     waters   important   to  fish   spawning,   rearing   or                                                                   
     migration.                                                                                                                 
                                                                                                                                
     CSHB  74(FSH)   prohibits  all   mixing  zones   in  all                                                                   
     anadromous  fish  and  other  specifically  listed  fish                                                                   
     spawning  areas. However,  CSHB 74(FSH)  does not  amend                                                                   
     or  repeal  the  provisions  in  other  state  law  that                                                                   
     permit the  use of fish spawning  areas if there  are no                                                                   
     adverse impacts  from that  use. CSHB 74(FSH)  conflicts                                                                   
     with   current  legislative   policy  not   specifically                                                                   
     amended or repealed by CSHB 74(FSH).                                                                                       
                                                                                                                                
     10.  CSHB 74(FSH)  will impact  Alaska's  municipalities                                                                 
     and villages.                                                                                                            
                                                                                                                                
     CSHB  74(FSH) provides  for renewal  of existing  mixing                                                                   
     zones   for   municipal  or   village   treated   sewage                                                                   
     discharges when  spawning begins to occur in  the mixing                                                                   
     zone  after  one  is authorized.  In  all  other  cases,                                                                   
     though, the  bill prohibits mixing zones  for discharges                                                                   
     of  treated municipal  sewage  to anadromous  and  other                                                                   
     fish   spawning  areas.   Some   fish  species,   Arctic                                                                   
     grayling   for  example,   are   ubiquitous  and   spawn                                                                   
     throughout  Alaska's river  systems. CSHB 74(FSH)  would                                                                   
     preclude  the  use  of mixing  zones  to  authorize  the                                                                   
     discharge  of  treated sewage  from  a large  number  of                                                                   
     village  sewage  treatment  lagoons  that  discharge  to                                                                   
     interior  river  systems where  Arctic  grayling  spawn.                                                                   
     The alternative  of treating  sewage from villages  to a                                                                   
     level  where  no mixing  zone  would be  required  would                                                                   
     involve exorbitant costs and is simply not feasible.                                                                       
                                                                                                                                
     11. Mixing  zones are  already strictly regulated  under                                                                 
     existing regulations.                                                                                                    
                                                                                                                                
     Before  authorizing  any  mixing   zone  in  any  waters                                                                   
     (fresh  or   marine,  with  or  without   spawning  area                                                                   
     considerations),   the  Department   must  consider   19                                                                   
     specific  regulatory   provisions.  Many  of   them  are                                                                   
     designed  specifically  to  protect  aquatic  life.  For                                                                   
     example,  the Department must  find that the  designated                                                                   
     and  existing   uses  of  the  waterbody  as   a  whole,                                                                   
     including growth  and propagation of aquatic  life, will                                                                   
     be   maintained   and  protected,   and   that   overall                                                                   
     biological  integrity  of  the  waterbody  will  not  be                                                                   
     impaired.   In  addition,  a   mixing  zone  cannot   be                                                                   
     authorized  if it  will result  in an  acute or  chronic                                                                   
     toxic effect  in the water  column, sediments,  or biota                                                                   
     outside the  boundaries of the mixing zone;  result in a                                                                   
     reduction  in  fish  or  shellfish   population  levels;                                                                   
     result  in  permanent  or  irreparable  displacement  of                                                                   
     indigenous  organisms;  adversely affect  threatened  or                                                                   
     endangered   species;  form   a  barrier  to   migratory                                                                   
     species  or   fish  passage;  contain   pollutants  that                                                                   
     bioaccumulate,   bioconcentrate,    or   persist   above                                                                   
     natural levels  in sediments, water, or biota;  or cause                                                                   
     lethality to passing organisms.                                                                                            
                                                                                                                                
     In summary,  mixing zones are not a blanket  approval to                                                                   
     discharge  pollutants into water.  Their size and  shape                                                                   
     are calculated  by engineers  using mathematical  models                                                                   
     and    site   specific    information   including    the                                                                   
     concentration  of  pollutants,  water volumes  and  flow                                                                   
     rates.                                                                                                                     
                                                                                                                                
     Once authorized,  many permits require the  permittee to                                                                   
     monitor   the  concentration   of   pollutants  in   the                                                                   
     discharge and  to monitor the  waterbody at the  edge of                                                                   
     the  mixing  zone  to  ensure  that  all  water  quality                                                                   
     standards  are  being met  at  the  edge of  the  mixing                                                                   
     zone.  DEC  also conducts  independent  inspections  and                                                                   
     independent monitoring of permittees.                                                                                      
                                                                                                                                
8:48:35 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked if,  prior to 2006  and the implementation  of                                                              
the new  regulations [which are  mirrored in HB 74],  the division                                                              
denied villages  mixing zones  for municipal wastewater  treatment                                                              
plants.                                                                                                                         
                                                                                                                                
MS.  KENT explained  that many  villages have  lagoon systems  and                                                              
the  lagoons are  nondischarging  for  most of  the  year.   Those                                                              
lagoons  and  facilities  have  been  permitted  to  discharge  at                                                              
certain  times of  the  year in  order  to avoid  spawning  times.                                                              
Therefore, if  the seasonal restrictions  aren't available  to the                                                              
village, the village won't be able to discharge its lagoons.                                                                    
                                                                                                                                
8:49:42 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked, "Under the  current regulations,  as written,                                                              
that define  spawning areas, you had  not denied any permits.   Is                                                              
that  correct?"    He  also  asked if  that  was  correct  in  the                                                              
previous decade.                                                                                                                
                                                                                                                                
MS.   KENT   answered,  "I'm   not   sure."     In   response   to                                                              
Representative  LeDoux,  Ms.  Kent  agreed  to  find  out  whether                                                              
permits had been  denied under the current regulations.   She then                                                              
related that  the mixing  zone authorization  for the  Pogo Mine's                                                              
domestic  wastewater discharge  from  its mining  man camp  wasn't                                                              
denied.   However, the company  was required to  perform extensive                                                              
studies of  the Good Paster River  in order to find a  small place                                                              
in the  river that  was underlain  by bedrock  and unsuitable  for                                                              
fish spawning,  which would  be used  for its domestic  wastewater                                                              
discharge  outfall.  In  response to  Representative Johnson,  Ms.                                                              
Kent   agreed  to   inform  the   committee  of   the  number   of                                                              
applications.                                                                                                                   
                                                                                                                                
8:51:50 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  inquired as  to why Ms.  Kent believes  the language                                                              
"useful life," which  is used throughout statute,  is different in                                                              
this case.  He  requested that Ms. Kent update  her testimony with                                                              
regard to that distinction.                                                                                                     
                                                                                                                                
MS.  KENT  said  that  she  hasn't  reviewed  the  other  statutes                                                              
referring to  "useful life."   However, she  said that  she's well                                                              
aware of  the facility  upgrades occurring in  rural Alaska.   She                                                              
noted that she would review that language.                                                                                      
                                                                                                                                
8:53:04 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON related  his understanding  that there  may be  some                                                              
inordinate discrimination  between new placer miners  and existing                                                              
placer  miners.     He   recalled  the   practice  of   provisions                                                              
grandfathering  in  existing  facilities  until  new  permits  are                                                              
available, such  as the  general permit that  will be  reissued in                                                              
2010.                                                                                                                           
                                                                                                                                
MS.  KENT explained  that  the legislation  is  written such  that                                                              
anyone  who  isn't  currently  placer  mining  but  wishes  to  be                                                              
covered  this summer  will need  to apply for  coverage under  the                                                              
existing  general   permit  and   comply  with  the   restrictions                                                              
specified in  HB 74.   For instance, any  new placer  miners would                                                              
have to  comply with the  limitation on  the length of  the mixing                                                              
zone.   In further response  to Chair Seaton,  Ms. Kent  said that                                                              
the only difference  is that HB  74 is drafted such that  it would                                                              
apply  differently  to the  existing  permitted placer  mines  and                                                              
those  seeking a  permit between  now and  the reauthorization  of                                                              
the general permit.                                                                                                             
                                                                                                                                
8:55:06 AM                                                                                                                    
                                                                                                                                
KRISTIN  SMITH,  Copper  River  Watershed  Project,  informed  the                                                              
committee   that  the  Copper   River  Watershed   Project   is  a                                                              
membership  nonprofit  that focuses  on  the entire  Copper  River                                                              
region.   The  project  represents  the  salmon economies  of  the                                                              
Copper  River region.   She  further informed  the committee  that                                                              
the Copper River  watershed relies on a commercial  salmon fishing                                                              
economy, subsistence  salmon economy,  and a growing  sportfishing                                                              
salmon  economy.   She  related  that  the Copper  River  region's                                                              
salmon economy amounts  to about $20 million annually  on average.                                                              
Therefore, [the  Copper River Watershed Project]  supports banning                                                              
mixing zones  in spawning areas.   She emphasized that  fish are a                                                              
public  resource and  should be  managed for  the public  benefit.                                                              
Allowing mixing  zone pollution in  public waters benefits  a few,                                                              
not the  general public.   Furthermore,  mixing  zones need  to be                                                              
banned  from spawning  areas  at  all times  because  of the  harm                                                              
caused by residual  pollutants.  Public waters have  to be managed                                                              
for all forms of  pollution in order to be effective  and spawning                                                              
areas have  to be treated as  such rather than a  particular point                                                              
in time.   Ms. Smith related  that water quality treatment  in the                                                              
Copper   River  region   has   illustrated   that  the   long-term                                                              
polycyclic   aromatic   hydrocarbons  bioaccumulate   and   micro-                                                              
organisms  can accumulate  in their  tissue.   However, the  state                                                              
water quality standards  don't take bioaccumulation  into account,                                                              
but  rather  only  measure  acute episodes  of  pollution.    It's                                                              
critical  to move HB  74 through,  she said.   She then  expressed                                                              
her outrage at having to testify on this subject again.                                                                         
                                                                                                                                
8:58:54 AM                                                                                                                    
                                                                                                                                
STEVE  BORRELL,  Executive Director,  Alaska  Miners  Association,                                                              
provided testimony  in opposition to HB  74 as well as  Version M,                                                              
which  he  characterized   as  more  onerous  than   the  original                                                              
legislation.  Mr. Borrell provided the following testimony:                                                                     
                                                                                                                                
     States are allowed  to authorize mixing zones  under the                                                                   
     Clean  Water Act  because in  some  situations no  other                                                                   
     alternative  exists  to  handle  some  discharges.    In                                                                   
     Alaska  most   of  the  mixing  zones  are   for  sewage                                                                   
     discharges   by   municipalities   and  a   few   mining                                                                   
     operations  also need  mixing zones  to comply with  the                                                                   
     very  stringent  discharge  limits that  are  in  place.                                                                   
     Mixing  zones   are  the  option  of  last   resort  and                                                                   
     authorized   by  DEC  only   after  no  other   feasible                                                                   
     alternative  is  determined.   Mixing  zones  are  sized                                                                   
     based  on the  flow of the  receiving water  and by  law                                                                   
     must be  "as small as  practicable".  That  term appears                                                                   
     in law  throughout EPA regulations,  in statute,  and in                                                                   
     state.    Mixing  zones  are  not  allowed  when  salmon                                                                   
     spawning  is occurring;  timing  restrictions  currently                                                                   
     placed  on mixing  zones  so they  cannot  be used  when                                                                   
     salmon are spawning.   The CS to House Bill  74 adds the                                                                   
     words "at  any time" and  would eliminate use  of mixing                                                                   
     zones even when  spawning was not occurring.   DEC would                                                                   
     not  be able  to issue  mixing  zones "at  any time"  if                                                                   
     spawning ever occurs in that area.                                                                                         
                                                                                                                                
     The second change  made ... by the committee  substitute                                                                   
     adds the  term "a  turbidity mixing zone".   There  is a                                                                   
     hidden  problem  within  this   addition  of  the  term.                                                                   
     Turbidity  modifications   are  currently   allowed  for                                                                   
     placer and  dredge miners and  this is, in  essence, the                                                                   
     mixing  zone.    However, EPA  and  DEC,  after  several                                                                   
     years   of   study  and   multiple   legal   challenges,                                                                   
     determined  that turbidity  was  a reasonable  surrogate                                                                   
     for naturally  occurring arsenic and that if  a very low                                                                   
     limit  was placed  on  turbidity,  the permit  would  be                                                                   
     protected for  arsenic in the discharged water  as well.                                                                   
     Therefore, with  the change made  by the CS, the  use of                                                                   
     turbidity as  a surrogate would  likely not  be allowed.                                                                   
     The  bill  appears to  grandfather  municipalities  that                                                                   
     currently  have  mixing  zones that  become  a  spawning                                                                   
     area after  the mixing  zone is  approved.  However,  if                                                                   
     the  municipality needs  to expand,  to modify, or  make                                                                   
     some  change to  the sewage  plant, it  would require  a                                                                   
     different  permit and  it would  no  longer qualify  and                                                                   
     could  no  longer  have  the same  mixing  zone  or  any                                                                   
     mixing zone.   It is my  understanding that this  is the                                                                   
     situation  for the  City of  Palmer  where changes  have                                                                   
     occurred  in the Matanuska  River since  the permit  was                                                                   
     issued and the  discharge area for the Palmer  sewage is                                                                   
     now a spawning  bed for salmon.  This bill  is likely to                                                                   
     contribute to  the demise and closure of  some villages.                                                                   
     By  not being  able to obtain  a mixing  zone, the  bill                                                                   
     will add  one more huge  costly hurdle to villages  that                                                                   
     are already  struggling to survive.   The bill  makes no                                                                   
     provisions  for  the many  villages  and  municipalities                                                                   
     that do not  now have a discharge permit,  and therefore                                                                   
     do  not  have  a  mixing  zone.     These  villages  ...                                                                   
     typically  have a  sewage lagoon  and  each spring  when                                                                   
     water  is  either pumped  or  drained  off the  top  and                                                                   
     pumped  into  an  adjacent  stream  or river.    In  the                                                                   
     spring of  the year,  the river is  high and provides  a                                                                   
     mixing zone for the discharge from the lagoon.                                                                             
                                                                                                                                
     A  cursory  view  of discharge  permits  now  in  effect                                                                   
     provides  some  interesting  results.    First  off,  it                                                                   
     appears  that  every  fish processing  plant  in  either                                                                   
     fresh or  salt water already  has a mixing zone.   These                                                                   
     mixing zones  vary from a few meters to  several hundred                                                                   
     meters in size.                                                                                                            
                                                                                                                                
MR. BORRELL  then reviewed  the specifics of  mixing zones  in the                                                              
following  areas:     Palmer,   Point  Barrow,  Soldotna,   Kenai,                                                              
Dillingham, King Salmon,  and Homer.  He mentioned  that there are                                                              
various fish processing  plants on the Kenai River,  but he didn't                                                              
have the details of the permits.  Mr. Borrell opined:                                                                           
                                                                                                                                
     This  bill does  not  address the  real  question.   The                                                                   
     real question:   Is  there adverse  impact due to  these                                                                   
     mixing  zones or  due to  any  other mixing  zones.   If                                                                   
     there  is  adverse  impact,  no mixing  zone  should  be                                                                   
     allowed   irrespective   of   whether  it   involves   a                                                                   
     municipality, a  fish processing plant, a village,  or a                                                                   
     mine.   If there  is no  adverse impact  and that's  the                                                                   
     purpose of  the science that's  required to  obtain such                                                                   
     a   permit   and   there    are   no   other   practical                                                                   
     alternatives,  a mixing  zone may be  appropriate.   All                                                                   
     discharges  must   be  treated  equally  and   the  same                                                                   
     rigorous  science  must  be applied  before  any  mixing                                                                   
     zone is approved.                                                                                                          
                                                                                                                                
9:07:04 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON noted  that the City of Palmer has  provided a letter                                                              
in support of HB 74.                                                                                                            
                                                                                                                                
9:07:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked how villages and  municipalities have                                                              
faired prior to the regulatory change last year.                                                                                
                                                                                                                                
MR.  BORRELL  said  that  he  didn't   know  the  details  of  the                                                              
situation  prior to  the  regulatory change.    Under the  current                                                              
regulations, it  appears that a  village can obtain a  mixing zone                                                              
[permit]  in   a  resident  fish   spawning  area,   he  surmised.                                                              
However,  under   the  legislation   those  villages   that  don't                                                              
currently have a  mixing zone wouldn't be able to  obtain one.  He                                                              
recalled  a DEC EPA  meeting several  years ago  in which  the EPA                                                              
representative  admitted  that  many remote  villages  don't  have                                                              
permits  of  any  kind  and  mentioned  that  they  can't  get  to                                                              
everything.                                                                                                                     
                                                                                                                                
9:09:50 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON, in  response to  Representative Johnson,  clarified                                                              
that in essence  House Bill 328 of the Twenty-Fourth  Alaska State                                                              
Legislature is identical to [HB 74].                                                                                            
                                                                                                                                
9:10:29 AM                                                                                                                    
                                                                                                                                
DR. ROLAND MAW,  United Cook Inlet Drift Fishermen's  Association;                                                              
Past President,  Kenai Wild,  began by  noting his agreement  with                                                              
Ms. Smith's  comments regarding  the hydrocarbon  issue.   Dr. Maw                                                              
related his  support of HB 74.   With regard to  marketing salmon,                                                              
he said  that perception  is the  reality.   He then recalled  his                                                              
attendance at the  Chefs of America convention  where he displayed                                                              
the  Kenai  Wild  salmon  product.   The  chefs  held  cards  that                                                              
specify endorsed  products  available to  them, products  that are                                                              
in  question  for  consumption,  and  products  that  wouldn't  be                                                              
purchased.   There was some question  about Alaska salmon  as some                                                              
of  the   salmon  products   from  Alaska   were  listed   in  the                                                              
questionable category.   However,  Kenai Wild, Kenai,  and Bristol                                                              
Bay salmon  as well as southeast  troll salmon were listed  in the                                                              
endorsed products  category.  He  recalled spending a lot  of time                                                              
discussing  the  handling  procedures, environment  in  which  the                                                              
fish were raised,  and about heavy metals and  other contaminants.                                                              
Therefore,  he surmised  that if  Alaska isn't  careful with  this                                                              
mixing zone  issue, some of  Alaska's products won't  be supported                                                              
or listed in the endorsed category.                                                                                             
                                                                                                                                
9:16:21 AM                                                                                                                    
                                                                                                                                
JOHN NELSON  stated support  for HB  74.   He highlighted  that he                                                              
lives  in an area  with pristine  waters.   In fact,  the area  is                                                              
part  of the  sockeye capital  of  the world.   Additionally,  the                                                              
village utilizes  Lake Iliamna water for human  consumption.  With                                                              
regard to earlier  testimony that villages have  the obligation to                                                              
pump/discharge  their sewer  lagoons  in fresh  water, Mr.  Nelson                                                              
stated his  disagreement.   He informed  the committee  of various                                                              
villages, including  the Village of Kokhanok that  don't discharge                                                              
contaminated water into [fresh water].                                                                                          
                                                                                                                                
9:18:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX related  her  understanding  then that  the                                                              
Village of  Kokhanok isn't concerned  about any dire  consequences                                                              
that  Mr. Borrell  discussed  in  relation to  village  wastewater                                                              
systems.                                                                                                                        
                                                                                                                                
MR. NELSON replied,  "No, no I wasn't.  No, I just  wanted to make                                                              
a commentary of that."                                                                                                          
                                                                                                                                
9:19:04 AM                                                                                                                    
                                                                                                                                
JIM  KULAS, Environmental  Manager,  Red  Dog Mine,  Teck  Cominco                                                              
Alaska  Incorporated,  began  by  saying  that he  is  calling  on                                                              
behalf   of  Teck   Cominco   and   its  partner   NANA   Regional                                                              
Corporation.   He  related  Red  Dog's opposition  to  HB 74,  and                                                              
opined  that  existing regulations  adequately  protect  spawning.                                                              
He  explained that  at  the  Red Dog  Mine  two mixing  zones  are                                                              
necessary  and are used,  although they  are only  used as  a last                                                              
resort.    The  mine  has  done   exhaustive  work  to  treat  its                                                              
discharge  to meet  the best  standards possible.   The  discharge                                                              
permitting process  is very rigorous and detailed.   For instance,                                                              
the Red  Dog Mine  had a  permit renewed  by EPA  that took  eight                                                              
years  to obtain.   Furthermore,  to obtain a  mixing zone  permit                                                              
requires  considerable  study  and  science  to justify  it.    He                                                              
explained  how this  is monitored  by the state  annually  and how                                                              
the Red Dog  Mine spends over $1  million per year to  monitor its                                                              
discharge.   Again, the  mixing zones  were a  last resort  as the                                                              
mine  was  spending  almost  $5  million per  year  to  treat  and                                                              
discharge  water  and roughly  $50  million  in capital  costs  to                                                              
construct the [treatment]  plant.  The aforementioned  illustrates                                                              
the effort  before requesting a mixing  zone.  In the  case of Red                                                              
Dog Mine,  what it discharges  meets drinking water  standards for                                                              
metals.    However,  the  mixing  zone is  necessary  for  pH  and                                                              
dissolved solids.   Mr. Kulas  pointed out  that the Red  Dog Mine                                                              
has been discharging  for 18 years and through  all the exhaustive                                                              
studies, no aquatic  harm has been identified.  In  fact, the fish                                                              
population  downstream from  the  mine's discharge  has  increased                                                              
over the life  of the operation.  Therefore,  Mr. Kulas reiterated                                                              
that the existing  regulations allow for protection.   With regard                                                              
to the  question of  grandfathering,  he pointed  out that  all of                                                              
the  permits   issued  by   EPA  only   have  a  five-year   life.                                                              
Therefore,  he questioned  how satisfactory  grandfathering  would                                                              
be for a permit with a limited life.                                                                                            
                                                                                                                                
9:23:16 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON related  his understanding,  "So, you  were able  to                                                              
get your  mixing zone  permit and  do this  for the decade  before                                                              
January 1, 2006, you've been able to operate.  Is that correct?"                                                                
                                                                                                                                
MR.  KULAS replied  yes, adding  that the  Red Dog  Mine has  been                                                              
discharging since 1990.                                                                                                         
                                                                                                                                
9:23:40 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON inquired  as to the difference between  the situation                                                              
10-12 years  ago and today.   He also inquired  as to why  Red Dog                                                              
Mine  was  able   to  operate  and  survive  under   the  previous                                                              
regulations  and why  it would  be  difficult to  return to  those                                                              
previous regulations.                                                                                                           
                                                                                                                                
MR. KULAS  explained that  in the  case of the  Red Dog  Mine, the                                                              
original  discharge permit  was  based on  a technology  standard.                                                              
That  permit and  those limits  were relatively  easy to  achieve.                                                              
Subsequent  to  the  issuance  of that  permit,  EPA  changed  its                                                              
permitting  requirements  to  what's  considered  a  water-quality                                                              
based  standard.   At  that point,  the  permit  limits were  much                                                              
lower and  thus the  mixing zone  was required.   He informed  the                                                              
committee that  the Red Dog  Mine has to  change its  operation to                                                              
respond to  the Grayling spawning  period such that  the discharge                                                              
is  decreased  so  that  the mixing  zone  isn't  required.    The                                                              
aforementioned  is achieved  with state oversight  during  which a                                                              
biologist is  brought on site to  observe spawning and  inform the                                                              
mine when it has concluded.                                                                                                     
                                                                                                                                
9:26:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  asked if  Mr.  Kulas  is saying  that  the                                                              
standards and requirements are more stringent now.                                                                              
                                                                                                                                
MR. KULAS  replied yes.   When EPA changed  the basis  for writing                                                              
the  permit limits  from  a technology  basis  to a  water-quality                                                              
basis, the  permit limits were  ratcheted down considerably.   For                                                              
example, in  the case of zinc the  Red Dog Mine was  allowed 1,500                                                              
parts per  million (ppm) in its  discharge and that  was decreased                                                              
to  198  ppm,  which  is  almost   10-fold.    The  aforementioned                                                              
occurred on virtually every permit limit.                                                                                       
                                                                                                                                
9:26:59 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON, upon  determining no  one else  wished to  testify,                                                              
closed public testimony.                                                                                                        
                                                                                                                                
[HB 74 was held over.]                                                                                                          
                                                                                                                                

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