Legislature(1997 - 1998)

02/26/1998 01:15 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HB 28 - REPEAL COASTAL ZONE MGMT PROGRAM                                       
                                                                               
CO-CHAIRMAN HUDSON announced the next order of business was House              
Bill No. 28, "An Act repealing the Alaska Coastal Management                   
Program and the Alaska Coastal Policy Council, and making                      
conforming amendments because of those repeals."                               
                                                                               
Number 2339                                                                    
                                                                               
REPRESENTATIVE BARNES made a motion to adopt the proposed committee            
substitute for HB 28, version 0-LS0189\B, Glover, 2/20/98, as a                
work draft.  There being no objection, it was so adopted.                      
                                                                               
Number 2376                                                                    
                                                                               
REPRESENTATIVE GENE THERRIAULT, Alaska State Legislature, sponsor              
of HB 28, explained when the bill was before the House Resources               
committee last year, it was an outright repeal of the program.  In             
response to the testimony last year, federal funds and the                     
coordination function of the Division of Governmental Coordination             
(DGC) would be retained under the proposed committee substitute.               
The local right of input would also be retained for state and                  
federal permitted projects.                                                    
                                                                               
TAPE 98-18, SIDE B                                                             
Number 0000                                                                    
                                                                               
REPRESENTATIVE THERRIAULT continued.  In reference to the zones,               
the proposed committee substitute would impact only 11 of the 30 or            
35 coastal districts.  He read the following verbiage from the                 
federal government in 1976:                                                    
                                                                               
"the landward extent of the coastal zone is to be determined by the            
state subject to statutory limitations. However, it is clear that              
the intent of Congress was for states to delineate boundaries with             
a relatively conservative approach including only those shore                  
lands, the use of which have a direct and significant impact on the            
coastal state."                                                                
                                                                               
REPRESENTATIVE THERRIAULT stated the proposed committee substitute             
would still meet the standard.  Information from DGC shows that the            
state had to make an argument with the federal government why it               
should go beyond the conservative wording.  Therefore, dropping                
back to a more conservative approach would not cause the state any             
significant problems with continued federal recognition.                       
                                                                               
Number 0087                                                                    
                                                                               
SARA FISHER-GOAD, Legislative Assistant to Representative Gene                 
Therriault, Alaska State Legislature, stated she does not have                 
anything to add to Representative Therriault's comments.  She is               
here to answer any questions of the committee members.                         
                                                                               
Number 0102                                                                    
                                                                               
REPRESENTATIVE BILL WILLIAMS asked Representative Therriault                   
whether he has been working with the Administration on this bill.              
                                                                               
Number 0117                                                                    
                                                                               
REPRESENTATIVE THERRIAULT replied he has been going back-and-forth             
with DGC, and has had numerous conversations with staff from the               
Governor's office.  It is fair to characterize that there are                  
differences in perspectives.                                                   
                                                                               
Number 0130                                                                    
                                                                               
REPRESENTATIVE WILLIAMS asked Representative Therriault to address             
the concerns of the United Fishermen of Alaska in regards to the               
watershed.                                                                     
                                                                               
Number 0141                                                                    
                                                                               
REPRESENTATIVE THERRIAULT replied it is important to remember when             
the Alaska Coastal Management Program (ACMP) went into place in the            
mid-1970s, it was suppose to be a bridge over statutory gaps in                
environmental protections.  Since that time numerous federal and               
state agencies' permitting requirements have come into being that              
offer additional protection such as the Clean Air Act, Clean Water             
Act, Forest Practices Act, and Title 46.  The protections have                 
eliminated the gaps and offer enough overlap.  There still needs to            
be an overall coordination function to make sure that applicants               
for multiple permits are not tied-up with each agency                          
independently.  It is somewhat separate, however, from the ACMP.               
The proposed committee substitute does not propose a deletion of               
the program, only some changes to the status quo.                              
                                                                               
Number 0234                                                                    
                                                                               
REPRESENTATIVE WILLIAMS wondered whether programs such as the                  
Forest Practices Act would take care of fish streams.  He also                 
wondered whether the proposed committee substitute would not lose              
the coordination of the ACMP, a concern of the city of Sitka.                  
                                                                               
Number 0273                                                                    
                                                                               
REPRESENTATIVE THERRIAULT replied the proposed committee substitute            
would retain coordination, access to federal funds, and the right              
of local people to comment on the consistency of their local                   
coastal plan.  The positives of the ACMP would be retained in the              
proposed committee substitute.                                                 
                                                                               
Number 0291                                                                    
                                                                               
REPRESENTATIVE REGGIE JOULE stated the management plans for some               
areas took a lot of time and money.  He asked Representative                   
Therriault whether he would propose money in order to make the                 
necessary changes, or would the expenses be left up to the coastal             
communities.                                                                   
                                                                               
Number 0314                                                                    
                                                                               
REPRESENTATIVE THERRIAULT replied the maps according to DGC are                
somewhat dated, but the geography and topography of the coastal                
areas have not changed much from when the initial zones were                   
identified.  The proposed committee substitute would only ask for              
the 11 districts that include the third zone to be dropped off.  He            
is not sure whether there would be a lot of out-of-pocket expenses.            
It has not been shown, to his satisfaction, that a financial                   
concern is real legitimate.  He pledged to the committee members               
that it would be something the House Finance committee would                   
address further.                                                               
                                                                               
Number 0385                                                                    
                                                                               
DIANE MAYER, Director, Division of Governmental Coordination                   
(Juneau), Office of Management and Budget, Office of the Governor,             
explained one of the primary duties of the division is to oversee              
the ACMP.  The proposed committee substitute would affect the                  
program substantively with administrative repercussions.                       
Historically, in the 1970s Congress passed an act giving coastal               
states "power" over federal actions, permitting decisions, and                 
money, if they did a coastal management program.  The power is in              
the form of federal consistency.  In other words, the federal                  
government would come to the state before taking action to ensure              
it is as consistent as possible with the state's coastal management            
program.  It is an enormous empowerment because Alaska is                      
surrounded by an outer-continental shelf and there are a lot of                
federal lands along its coast.  It is also used as a base for                  
federal permitting.  In 1975, the state legislature was interested             
in the empowerment of the act and debated the issue of either                  
networking existing authorities or creating a separate coastal                 
permit for two years.  The federal government gave the state $2.6              
million to debate the issue and continues to give money annually.              
The money is distributed to coastal communities, research agencies,            
and the agency to run the program.  In 1984, the state legislature             
looked at the program again in terms of the consistency process.               
In 1994, the state legislature looked at it again refining it                  
further.  Each time there was a lot of debate and discussion                   
because of the complex network of regulations involved.                        
                                                                               
MS. MAYER stated the changes in the proposed committee substitute              
would be very significant.  Section 2 would eliminate the zone of              
indirect influence.  In the attempt to draw on some convenient                 
mapping the state would have to go back to the lines drawn in 1977             
because the maps are so crude.  The division has estimated the cost            
to be over $1 million for the 11 districts to make the necessary               
changes.  She is concerned about investing over $1 million in                  
obsolete maps.  The data set and technology have improved,                     
therefore, it would lock the division into old data.                           
                                                                               
Number 0923                                                                    
                                                                               
CO-CHAIRMAN HUDSON asked Ms. Mayer who would be required to rewrite            
the plans.                                                                     
                                                                               
Number 0927                                                                    
                                                                               
MS. MAYER replied it would begin at the local government level                 
eventually moving on to the state and federal levels.  In addition,            
the proposed committee substitute would call for the 11 districts              
to make their changes in a 6-month time frame.  To help meet the               
deadline, part of the $1 million cost would be in temporary                    
personnel to help accelerate the mapping and public review process.            
The deadline is very, very tight and borders on being unrealistic.             
In addition, the number of consistency reviews may not decrease                
because when the boundary changes were made and accepted at the                
federal level there was an enormous amount of justification that               
went along with them.  Most of the justifications were tied to the             
fisheries.  Alaska argued for the protection and acknowledgment of             
salmon resources and their effects on the coastal economies.  The              
proposed committee substitute would make the state go back to the              
federal government and argue the justifications for deleting the               
zone.                                                                          
                                                                               
Number 1110                                                                    
                                                                               
REPRESENTATIVE THERRIAULT stated the impact would only be to 11                
districts, therefore, he questioned the $1 million figure.  If a               
lot of the figure is derived from a compressed time line, he would             
entertain an amendment to stretch it out on a project-by-project               
basis for example.                                                             
                                                                               
REPRESENTATIVE THERRIAULT further stated there are instances where             
coastal councils reach outside of their existing zones.  The                   
proposed committee substitute would not curtail that ability, it               
would just say that their starting point is a more defined zone                
along the true coast of Alaska.                                                
                                                                               
Number 1169                                                                    
                                                                               
REPRESENTATIVE FRED DYSON asked Representative Therriault whether              
a smaller area of jurisdiction would produce a cost savings in the             
agency and a less restrictive environment for Alaskan citizens and             
enterprises.                                                                   
                                                                               
Number 1201                                                                    
                                                                               
REPRESENTATIVE THERRIAULT replied, in regards to individual                    
"permitees," if they fall outside of the more restricted zone they             
would not have to go through the ACMP.  If they require a state                
permit, they would have to go through the state as usual.  There is            
the potential for one less part of state government in terms of                
interaction, however.                                                          
                                                                               
Number 1256                                                                    
                                                                               
REPRESENTATIVE DYSON asked Representative Therriault whether he is             
postulating that the passage of the proposed committee substitute              
would reduce the operating expenses of the agency, after the                   
transitional expense of about $1 million.                                      
                                                                               
Number 1280                                                                    
                                                                               
REPRESENTATIVE THERRIAULT replied, "Potentially."  It is very hard             
to quantify, however.  Ms. Mayer indicated most permits would not              
be impacted, therefore, most of the permits are not in the far                 
reaches of the more restrictive zone at this time.                             
                                                                               
Number 1311                                                                    
                                                                               
REPRESENTATIVE DYSON stated, if the proposed committee substitute              
would not save operating money in the long-term, and it is not                 
presently impeding enterprise and citizen activity, he wondered why            
he was doing it.                                                               
                                                                               
Number 1328                                                                    
                                                                               
REPRESENTATIVE THERRIAULT replied there are instances where the                
coastal zone reaches hundreds of miles into the Interior of Alaska.            
The legislature needs to make a policy call to determine whether               
that was the original intent and which part of Alaska should be                
swept in under the program.                                                    
                                                                               
Number 1348                                                                    
                                                                               
REPRESENTATIVE DYSON stated there is an agency going beyond its                
chartered purpose and wondered whether the proposed committee                  
substitute would bring it "back on the reservation."                           
                                                                               
REPRESENTATIVE THERRIAULT replied, "Yes."                                      
                                                                               
Number 1368                                                                    
                                                                               
CO-CHAIRMAN HUDSON asked Ms. Mayer whether the agency is reaching              
well beyond what was originally intended in the Coastal Zone                   
Management Act.                                                                
                                                                               
Number 1380                                                                    
                                                                               
MS. MAYER replied Alaska is a large state.  The nature of the maps             
and reaches have a strong link to anadromous fish streams.  They               
are inland, but the federal government accepted them because of the            
fisheries link.                                                                
                                                                               
MS. MAYER reiterated the only maps the division has are from 1977              
and they are bad.  They do not include township, range or anchor               
point. They were intended to be refined when local coastal                     
districts did their programs.  Right now, 13 of the districts are              
in some stage of having a geographic information system (GIS) using            
federal dollars.  The Kenai Peninsula Borough has the most                     
sophisticated system.  The state will have to do some serious                  
mapping anyway, and the proposed committee substitute would put a              
lot of money into obsolete data.                                               
                                                                               
Number 1540                                                                    
                                                                               
CO-CHAIRMAN HUDSON asked Ms. Mayer whether she reads the                       
legislation as tying the state into the old maps.                              
                                                                               
MS. MAYER replied, "Yes."  The intent of the proposed committee                
substitute is to see a smaller coastal area of influence.  As a                
policy matter, boundaries certainly can be discussed, but the                  
attempted solution would tie the state to something that is on the             
books from 20 years ago.                                                       
                                                                               
Number 1594                                                                    
                                                                               
MS. MAYER further stated, in regards to the timing issue, an                   
extension would not alter the process.  According to the National              
Oceanic and Atmospheric Administration (NOAA), "The existing                   
boundary was set as part of district program development and                   
represents extensive issue, resource analysis, public involvement,             
and negotiation between this office and the state and the coastal              
district.  In many cases the boundary was the most difficult issue             
to resolve during district program development.  Nonetheless,                  
working together we were successful in establishing a boundary that            
met state and local needs as well as the Coastal Zone Management               
Act (CZMA) federal requirements.  Any changes to the agreed upon               
district boundaries should be accomplished through a similar                   
process of analysis, public involvement, and negotiation.  In any              
case, at a minimum, a state's coastal boundary must encompass all              
the areas necessary to control uses which have a direct and                    
significant impact on coastal waters.  Substantive changes to                  
boundaries and authorities are specifically identified as two of               
the more significant types of program changes that would be subject            
to the amendment process described at 15 CFR 923 81-83."                       
Therefore, there is nothing the state could do to avoid going                  
through the process, and that would still be costly.                           
                                                                               
Number 1721                                                                    
                                                                               
REPRESENTATIVE THERRIAULT stated he would have to evaluate the                 
current dollar amount being expended on mapping with the further               
refinement of the mapping to determine whether the $1.1 million                
could be offset.                                                               
                                                                               
Number 1752                                                                    
                                                                               
REPRESENTATIVE JOULE asked Ms. Mayer what would be the effect of               
the proposed committee substitute on the anadromous rivers.                    
                                                                               
Number 1770                                                                    
                                                                               
MS. MAYER replied the effect would require project proposals to be             
reviewed holistically.                                                         
                                                                               
Number 1899                                                                    
                                                                               
CO-CHAIRMAN HUDSON asked Ms. Mayer whether she sees any potential              
loss of federal money received by the various communities.                     
                                                                               
Number 1916                                                                    
                                                                               
MS. MAYER replied the money would be threatened because the effect             
would be to argue that the boundaries are not significant.                     
                                                                               
Number 2040                                                                    
                                                                               
GAIL ALSTROM, Program Director, Cenaliulritt Coastal Management                
Program, testified via teleconference in Saint Marys.  The                     
program's goal is to achieve a balance between economic growth and             
resource protection.  Cenaliulritt has managed to develop a plan               
specific to the area. It has been reviewed extensively by the                  
public and forwarded to the state and federal government for                   
approval.  Ensuring a balance of local, state, and national                    
interests, the process works to give every entity involved a fair              
voice in how the resources will and should be managed.                         
Applications for projects are reviewed for consistency with the                
plan.  At the local level, coastal management gives people a better            
understanding of the state and federal decision making processes,              
as well as encourages early and continuous consultation with local             
communities, government agencies, and the public to prevent or                 
settle conflict.                                                               
                                                                               
MS. ALSTROM further stated the proposed committee substitute would             
seriously harm the effectiveness of the coastal districts.  It                 
would reduce local influence in state and federal land management              
decisions, a limitation that is unacceptable.  Specifically,                   
Section 5 makes it unclear whether the powers granted by the ACMP              
to municipalities and Coastal Resource Service Areas (CRSA) would              
be changed, especially the authority to raise concerns during the              
consistency review.  Cenaliulritt does not have independent zoning             
and planning powers to fall back on like municipalities have                   
through Title 29.  Without authority, CRSAs could not suggest                  
stipulations for state and federal permits, and without authority              
to run their programs there is no reason for their existence.                  
Section 6 would eliminate the process of petitioning for                       
consistency determination appeals.  Although it is not routinely               
used by Cenaliulritt, it does offer an opportunity when necessary              
to have its concerns heard fairly by the council, otherwise it                 
would undermine the whole integrity and usefulness of the program.             
In closing, the district looks forward to the committee members                
opposing the proposed committee substitute.                                    
                                                                               
Number 2424                                                                    
                                                                               
CHUCK DEGNAN, Program Director, Bering Straits Coastal Resource                
Service Area, testified via teleconference in Unalakleet.  The                 
program is in opposition to the proposed committee substitute.                 
There are many rivers in his area that carry salmon and other                  
anadromous fish, an important coastal resource.                                
                                                                               
TAPE 98-19, SIDE A                                                             
Number 0000                                                                    
                                                                               
MR. DEGNAN continued.  The Bering Straits CRSA does not want the               
local knowledge cut off.  The local people do not control how far              
the coastal resources go up river which determines the coastal                 
zone.  The program is wholeheartedly opposed to the reduction in               
the coastal zone boundary of the Bering Strait Coastal Resource                
Service Area.  It would be a loss not only to the local people, but            
to the state as well.                                                          
                                                                               
Number 0125                                                                    
                                                                               
TINA ANDERSON, Coastal Coordinator, Aleutians East Borough Coastal             
Management Program, testified via teleconference in Sand Point.                
The borough supports local involvement in state and federal land               
management decisions through the ACMP and opposes the changes by               
reducing its involvement.  The proposed committee substitute would             
force the borough to reduce its coastal zone.  The purpose of                  
including all coastal zones is to effectively manage uses and                  
activities that have or may have a direct impact on the marine                 
coastal waters and anadromous streams.  The borough's residents                
rely on salmon for commercial and subsistence uses and they should             
be able to influence the management of those uses within the                   
boundary of the borough, including the zone of indirect influence.             
                                                                               
Number 0272                                                                    
                                                                               
JIM VORDERSTRASSE, Mayor, city of Barrow, testified via                        
teleconference in Barrow.  He supports Gail Alstrom's comments from            
Saint Marys.  The changes would limit the city's ability to comment            
on activities that might impact fisheries, and the bowhead whale               
hunt that are very important to the region.  The city of Barrow is             
opposed to the bill.                                                           
                                                                               
Number 0415                                                                    
                                                                               
ALICE RUBY, Chair, Bristol Bay Coastal Resource Service Area;                  
Director of Operations, Choggiung Limited, testified via                       
teleconference in Dillingham.  She agreed with Gail Alstrom's                  
testimony from Saint Marys.  The Bristol Bay CRSA encompasses a                
portion of an unincorporated borough including one first class                 
city, five second class cities, two unincorporated cities, hundreds            
of acres of state lands, and four river drainages.  The economy                
relies heavily on the salmon fisheries and growing visitor                     
industry. There is also potential for oil and gas, and mineral                 
development. The Bristol Bay CRSA successfully assisted and                    
developed the Commercial Recreation Permit Program operated by the             
village corporations on the Nuyshagak River.  The CRSA was able to             
bring the Department of Natural Resources, the Department of Fish              
and Game, and the corporations to the table, along with the                    
Nuyshagak management plan, to develop a program that generates                 
about $100,000 of gross profits for Choggiung Limited each year.               
There is also a growing number of participants in the commercial               
recreation industry.  This is all because the Bristol Bay CRSA was             
able to find a balance between habitat, environment, and economic              
developmental needs.  The passage of the bill would reduce the                 
CRSA's ability to influence those types of things within the                   
region.  The fishing industry could not stabilize the commercial               
fishery or grow a recreational industry without the ability to                 
influence.  In closing, the Bristol Bay CRSA urges the committee               
members to not pass the bill and to maintain the vehicle for                   
cooperation to promote development in the Bristol Bay region.                  
                                                                               
Number 0598                                                                    
                                                                               
WILLIAM SHELDON testified via teleconference in Kotzebue.  He                  
agrees with Mr. Degnan's testimony from Unalakleet.  Local input is            
not being considered which is why he opposes HB 28.  He wondered               
what Section 2 (A) would mean in terms of permits for sheefish.                
                                                                               
Number 0742                                                                    
                                                                               
MS. MAYER replied Mr. Sheldon's concern would require looking at               
the local maps to determine whether it would fall in or out                    
according to the subsection.  It would take quite a bit of follow              
up.                                                                            
                                                                               
CO-CHAIRMAN HUDSON announced the committee will not take any final             
action on the proposed committee substitute today.                             
                                                                               
Number 0821                                                                    
                                                                               
JENNIFER CARMAN, Coastal Coordinator, Ketchikan Gateway Borough,               
testified via teleconference in Ketchikan.  The borough actively               
participates in the ACMP.  The passage of HB 28 would eliminate the            
district's ability to appeal to the Alaska Coastal Policy Council              
when a state or federal permit decision does not fairly consider               
the borough's interest.  It would also reduce the coastal zone                 
boundary by excluding the zone of indirect influence.  The                     
borough's zone of indirect influence includes areas that influence             
the water quality of the lakes and creeks that supply potable water            
to residents of the borough, cities of Ketchikan and Saxman, as                
well as provide a habitat for anadromous fish.  She also serves as             
Southeast's representative to the Alaska Coastal Management Program            
Working Group.  In this position she can testify that most of the              
watershed serving Southeast communities are affected by the zone of            
indirect influence.  Excluding the zone, would have negative                   
effects on the ability to manage their water systems.                          
                                                                               
Number 0913                                                                    
                                                                               
THOMAS LOGAN testified via teleconference in Mat-Su.  He is a Big              
Lake resident.  When the bill first came out he was wholeheartedly             
for it, but the proposed committee substitute would cost the                   
borough a whole lot of money.  He does not want to see the bill                
move forward.                                                                  
                                                                               
Number 0944                                                                    
                                                                               
KEN HUDSON, Chief of Code Compliance, Matanuska-Susitna Borough;               
Coordinator, Matanuska-Susitna Coastal Management District,                    
testified via teleconference in Mat-Su.  He supports the comments              
made by the other local districts and Ms. Mayer.  The borough,                 
however, has recommended reducing the boundaries and other changes             
that are being proposed in the committee substitute and has been               
pursuing those types of changes within the ACMP.  The borough lauds            
the goal of the ACMP, but it is not appropriate for the state to               
dictate what the local district boundaries should be, or restrict              
its ability to affect decision making by the state and federal                 
governments that would negatively impact its local resources.                  
                                                                               
Number 1013                                                                    
                                                                               
ROBERT FAGERSTRUM, Member, Nome Common Council; Member, Alaska                 
Coastal Policy Council, testified via teleconference in Nome.  The             
coastal program in Nome is important because it largely depends on             
mineral and oil development.  He encouraged the committee members              
to not rush through the bill.  He is opposed to the proposed                   
committee substitute.                                                          
                                                                               
Number 1078                                                                    
                                                                               
JIM GLASPELL testified via teleconference in Anchorage.  He has                
worked with ACMP issues since 1981.  In reference to the changes in            
Section 2, reducing the coastal zone management boundary to the                
zones of direct interaction and direct influence reverts to the                
interim or initial boundaries approved by the Alaska Coastal Policy            
Council in 1979.  At the time, the interim boundaries were clearly             
recognized to be a starting point to develop a district's program.             
Therefore, to arbitrarily change the boundaries would ignore                   
recognition of the critical interaction and development of resource            
uses of the coastal areas, habitats, and fish and wildlife                     
populations.  He suggested looking at the status of the salmon                 
populations in Washington and Oregon to see a demonstrable effect              
of the importance of proactive coastal resource protection.  In                
reference to the changes in Section 5 regarding policy, a key                  
component of the ACMP is the ability to protect coastal resources              
through locally developed plans and by using enforceable policies              
to supplement existing state and federal regulations.  It is the               
only way they have to implement their program standards through                
inclusion of state permits and authorizations.  The proposed                   
changes would preclude any district policies or permit stipulations            
across the broad spectrum of local coastal resource issues of which            
the district does not or cannot exercise authority.  Limiting state            
agency involvements ignores their knowledge and expertise to                   
implement the programs.  The approach proposed in the bill would               
restrict district involvement in state agencies to the point of                
degrading their programs.  Overall, the arbitrary shrinking of the             
coastal boundary without justification, the limitation of agency or            
district involvement, and the elimination of the petition process              
for consistency would emasculate key components of the ACMP almost             
to the point of completely eliminating it at a time when the state             
is striving to give a greater voice to local knowledge and                     
expertise.                                                                     
                                                                               
Number 1261                                                                    
                                                                               
LISA PARKER, Planning Director, Kenai Peninsula Borough, testified             
via teleconference in Kenai.  The proposed committee substitute                
would reduce the involvement of local districts in state and                   
federal land management decisions.  With 80 percent of the land in             
the Kenai Peninsula Borough owned by state or federal agencies, it             
would drastically reduce the borough's cooperative efforts.  In                
regards to reducing the zone, the decision should be made at the               
local level.  Local governments are concerned about being dictated             
to by state agencies.  The borough does not support the elimination            
of the appeal process.  It would only serve to make the permitting             
process lengthier and more cumbersome.  Without an appeals process,            
the only option would be to take the matter to the courts when                 
everybody knows they are clogged up.  In regards to the overall                
impact of the proposed committee substitute, it would adversely                
impact the Kenai Peninsula Borough by making the implementation of             
the program more complex.  The proposed time frame is not                      
realistic.  The borough asks that the committee members not proceed            
in a hasty manner.  If changes are made, then sufficient funds need            
to be appropriated so that local plans can be amended to reflect               
the changes.  The Kenai Peninsula Borough is not opposed to change;            
it deals with change everyday.                                                 
                                                                               
Number 1401                                                                    
                                                                               
OLIVER HOLMS, Commercial Fisherman in Kodiak, testified via                    
teleconference in Kodiak.  He opposes the proposed committee                   
substitute.  He agrees with the comments made by Gail Alstrom from             
Saint Marys.  The bill would amount to an unfunded mandate to the              
borough.  If boroughs were states, it would be an attack on states'            
rights.  Local governments need this current to participate                    
meaningfully in the development of their own areas.  There is a                
considerable amount of federal land in the Kodiak Island Borough               
and without the authority that the ACMP gives the borough, it would            
have very little say in things like offshore oil and federal land              
development.  He also fishes for salmon so the habitats in the                 
uplands are very important to him, and really the whole community.             
The current Endangered Species Act (ESA) listings for Pacific                  
salmon in the Northwest demonstrates the need for a coastal zone               
management program that considers the needs of salmon in the                   
uplands.  Waiting for an ESA listing is extremely expensive for                
society.                                                                       
                                                                               
Number 1510                                                                    
                                                                               
JOHN DUNHAM, Deputy Director for Land Management, North Slope                  
Borough; Coastal Coordinator, North Slope Borough, testified via               
teleconference in Barrow.  The North Slope Borough opposes the                 
proposed committee substitute to HB 28.  It supports oil and gas               
exploration and development, primarily because it has the ability              
through its coastal management program to protect its coastal                  
resources.  The residents would most likely be opposed to oil and              
gas development without a strong voice in what happens in its                  
coastal area.  The borough is opposed to the mandated change in the            
coastal boundary, and the elimination of an independent third party            
review of a coastal consistency determination.  He reiterated it               
would severely restrict the borough's ability to comment on oil and            
gas issues in federal waters and the National Petroleum Reserve -              
Alaska (NPRA) in terms of subsistence resources.  The North Slope              
Borough opposes the proposed committee substitute.                             
                                                                               
Number 1610                                                                    
                                                                               
KAROL KOLEHMAINEN, Program Director, Aleutians West Coastal                    
Resource Service Area, testified via teleconference in Anchorage.              
The CRSAs are organized to be a local voice to protect the balance             
and orderly use of the resources in their area.  If the CRSAs can              
not add then they will be very limited in terms of designing a                 
program to guide development.  The state is currently investigating            
the inclusion of Adak into the Aleutians West CRSA.  If it should              
occur, she could envision the local people, state agencies, and the            
CRSA, as a liaison, working together to use, manage, restore, and              
enhance its coastal development.  In addition, coastal district                
policies become state laws at the completion of a review process,              
and the authority to enforce the laws is provided through the                  
process.  The implementation is in accordance with the                         
comprehensive-use plan and statement of needs, policies,                       
objectives, and standards adopted by the district.  Given the                  
constraints of the proposed committee substitute, the local people             
could still identify their needs through their CRSA, but she is not            
sure what policies, objectives, or standards the districts could               
adopt.  The elimination of the petition review process would be a              
step towards silencing the local voice and the opportunity to be               
heard by an independent body not involved in the original decision.            
                                                                               
Number 1752                                                                    
                                                                               
SUSAN FLENSBURG, Environmental Program Coordinator, Bristol Bay                
Native Association (BBNA), testified via teleconference in                     
Dillingham.  She is testifying today on behalf of BBNA in                      
opposition to HB 28.  It would gut the coastal management program.             
It is a misguided effort that would fail to take into consideration            
the loss of a few million dollars in federal funding for the state,            
and legal standing over federal activities - two of the major                  
incentives for Bristol Bay to participate in the coastal management            
program.  In terms of limiting permit stipulations, it would                   
backfire and thwart development rather than help facilitate it.                
The BBNA also takes issue with the proposed boundary reduction                 
changes.  It would drastically reduce the coastal zone boundaries              
of both the Lake and Peninsula Borough and the Bristol Bay CRSA.               
Their boundaries are linked to anadromous water bodies and fish                
habitats and Bristol Bay supports the world's largest salmon run.              
Finally, the issues that promoted the introduction of the bill                 
could be addressed through the ACMP assessment rather than radical             
surgical changes through legislation.  Given the public's concerns,            
BBNA is pleased to hear that the bill will not be passed out of the            
committee today.  It is even premature to send it to the House                 
Finance committee without giving it more airing.  If it is going to            
pass out of the House Resources committee, BBNA specifically                   
requests it be referred to a Community and Regional Affairs'                   
subcommittee.                                                                  
                                                                               
Number 1909                                                                    
                                                                               
PATRICK GALVIN testified via teleconference in Dillingham.  He is              
an attorney with extensive experience with the ACMP in representing            
costal districts and applicants.  He opposes the bill because it is            
not in the best interest of the state.  It would effectively get               
rid of the ACMP, indirectly.  It would eliminate the players'                  
involvement in the program and their ability to have any impact on             
the projects.  It would take the state out of compliance with                  
federal funding resulting in the program disappearing.                         
Historically, when the state established the coastal boundaries it             
decided that anadromous fish were an important resource.  The bill             
effectively says that anadromous fish are not an important resource            
and are not worth protecting when they leave the ocean.  Section 5             
would make local plans meaningless and would create a non-function             
status for the CRSAs.  It would also take the program out of                   
compliance with federal law according to CFR 923.41.  It would also            
mean that the state would not have the ability to put stipulations             
on federal projects on federal lands or the outer-continental                  
shelf.  This combined with the subsistence debate would "hand the              
keys over to the federal government."  Section 6 would eliminate               
the petition process, a required element under federal law (CFR                
923.42).  In closing, the proposed committee substitute does not               
favor Alaska, it favors the federal government.                                
                                                                               
Number 2090                                                                    
                                                                               
DICK COOSE testified on behalf of Concerned Alaskans for Resources             
and Environment (CARE).  The concept of the proposed committee                 
substitute is supported by CARE.  There needs to be better                     
management of the coastal zones.  Mr. Coose stated, having worked              
in Southeast Alaska for 18 years, he believes there are a number of            
things such as the Forest Practices Act that protect fish streams              
upland.  In summary, it needs to be reduced, but the local people              
need some control so it should be protected.  Otherwise, he urged              
the committee members to move forward with the proposed committee              
substitute because there needs to be less government control.                  
                                                                               
Number 2157                                                                    
                                                                               
DICK HOFFMAN, Commercial and Recreational Fisherman, stated he is              
concerned because he sees a diminished protection for the riparian             
and anadromous streams.  The surest way to impair the health of a              
fish stock is to destroy its spawning bed - the area of indirect               
effect.  For that reason, he is opposed to the bill.  It would have            
a detrimental impact and aggravate the issue of access to fish and             
game resources creating more trouble for the legislature and the               
people of Alaska.                                                              
                                                                               
Number 2226                                                                    
                                                                               
MURRAY WALSH, Representative, Alaska Chapter of the American                   
Planning Association, stated planners are not biologist,                       
environmentalist, or tree huggers in general, but rather address               
the needs of employers.  Most planners work for local governments              
and need every tool necessary to carry out the wishes of the                   
elected masters such as coastal management.  The proposed committee            
substitute could cause a loss of federal approval for the ACMP.                
Mr. Walsh is a planner who represents mining companies, logging                
companies, and other forms of development.  He has had to seek                 
permits from state, local, and federal agencies.  And of the lot,              
the coastal management programs care the most because they consider            
economic development and expediency, and pro-development policies              
in their plans.  The people at DGC also care. If there is one                  
person who could be blamed for the presence of the ACMP, he is the             
one.  He knew 20 years ago that the program would not mean much if             
it did not include pro-development policies.  It is bothersome                 
today that local governments and the state have not learned yet how            
to exercise pro-development policies in a regulatory setting.                  
Therefore, if "we lose this, then I will make more money because my            
clients won't have anybody in their corner at the state level.  No             
other agency at state government, involved in the regulatory                   
program, gives a damn."                                                        
                                                                               
CO-CHAIRMAN HUDSON announced the bill will be heard again on                   
Tuesday, March 3, 1998.                                                        

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