Legislature(2001 - 2002)

02/27/2002 01:00 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 421-WATER USE AND APPROPRIATION                                                                                            
                                                                                                                                
[Contains discussion of HB 392]                                                                                                 
                                                                                                                                
CO-CHAIR SCALZI announced that the  final order of business would                                                               
be  HOUSE  BILL NO.  421,  "An  Act  relating  to water  use  and                                                               
appropriation."                                                                                                                 
                                                                                                                                
Number 1162                                                                                                                     
                                                                                                                                
REPRESENTATIVE FATE moved to adopt CSHB 421, version 22-                                                                        
LS1334\L,  Luckhaupt, 2/27/02,  as the  working document.   There                                                               
being no objection, Version L was before the committee.                                                                         
                                                                                                                                
Number 1150                                                                                                                     
                                                                                                                                
JENNIFER  YUHAS, Staff  to Representative  Beverly Masek,  Alaska                                                               
State  Legislature,  presented HB  421  on  behalf of  the  House                                                               
Resources Standing Committee, sponsor.   Ms. Yuhas explained that                                                               
last  year there  was a  sunset attached  to the  temporary water                                                               
permits.   The intent was to  review the issue over  the interim.                                                               
She informed the committee that  water is a public-trust resource                                                               
for which  the constitutional  responsibility of  the legislature                                                               
to [distribute]  that resource  in the  public interest  has been                                                               
statutorily  designated to  the Department  of Natural  Resources                                                               
(DNR).  She noted that  she had reviewed the adjudication process                                                               
in general  for Alaska;  during her review  of this  process, the                                                               
department had produced draft regulations to change the process.                                                                
                                                                                                                                
MS.  YUHAS reported  that  she'd attended  some  meetings on  the                                                               
proposed  regulations;  issues  brought up  were,  first,  public                                                               
dissatisfaction because  of a seemingly  arbitrary [distribution]                                                               
of  the  public-trust  resource and,  second,  inability  to  get                                                               
access to records.   Therefore, this bill  simply addresses those                                                               
two  complaints,  by  directing  DNR to  develop  a  standardized                                                               
procedure so that  there is something to check  against in regard                                                               
to ensuring that [water permits]  are being distributed in a fair                                                               
manner, as well  as addressing the public's need  to access their                                                               
records.                                                                                                                        
                                                                                                                                
Number 0928                                                                                                                     
                                                                                                                                
BILL  TEGOSEAK,  Executive  Director, Inupiat  Community  of  the                                                               
Arctic Slope  (ICAS), testified  via teleconference,  noting that                                                               
the ICAS  is a federally  recognized, regional  tribal government                                                               
encompassing eight  sovereign tribal  governments.   Mr. Tegoseak                                                               
informed the committee  of the difficulty the  North Slope tribal                                                               
members  have  experienced  in  obtaining  information  from  the                                                               
Division of Mining and Water in regard to water usage.                                                                          
                                                                                                                                
MR.  TEGOSEAK  emphasized,  "My  comments  are  not  intended  to                                                               
reflect  opposition  to  onshore  oil  development,  because  our                                                               
tribal members  support responsible oil development  onshore, and                                                               
we  all benefit  from  such responsible  development."   However,                                                               
there is  the need  to ensure  sufficient public  water supplies,                                                               
especially   in  winter,   and  sufficient   water  to   maintain                                                               
subsistence resources.   "These  goals are not  incompatible with                                                               
onshore oil development," he suggested.                                                                                         
                                                                                                                                
MR.  TEGOSEAK  explained  that the  experience  of  the  regional                                                               
tribal  government has  been that  the  division hasn't  provided                                                               
access   to  information   on  past   water   usage  or   current                                                               
applications in  a reasonable fashion.   Therefore, [the regional                                                               
tribal  government] can't  be  sure its  water  sources are  well                                                               
managed.  Furthermore,  DNR appears to restrict  access to public                                                               
files, as noted in HB 392.   As an example, he offered his belief                                                               
that the  division recently implemented a  $50-per-hour charge to                                                               
obtain  agency files,  prepare files  for inspection,  and assist                                                               
the  requestor with  file inspection;  this is  in addition  to a                                                               
$22.50-per-hour copying charge.                                                                                                 
                                                                                                                                
Number 0703                                                                                                                     
                                                                                                                                
MR.  TEGOSEAK  said  although  [the  tribal  governments  aren't]                                                               
opposed  to  paying  reasonable  fees  for  these  services,  DNR                                                               
appears  to be  using this  policy to  limit the  availability of                                                               
records.   Moreover, for individuals requesting  records in order                                                               
to comment  on a project on  the North Slope, the  department has                                                               
delayed access on  the grounds that it's too  busy processing the                                                               
temporary water use  permits.  He said that is  unacceptable.  He                                                               
pointed  out  that  temporary water  use  permits  don't  require                                                               
public  notice;  he maintained,  therefore,  that  the least  DNR                                                               
could do is notify [the entity],  once a permit is issued, of how                                                               
much water the permit is for, how  long it is for, and from which                                                               
lake  the water  is being  taken.   However, DNR  has established                                                               
significant hurdles to this access to public records.                                                                           
                                                                                                                                
MR.  TEGOSEAK recalled  DNR's  past claims  that  it needed  more                                                               
money  for  its  water-permitting  program.    However,  now  the                                                               
department seems to  be placing roadblocks in  the public's path.                                                               
"We cannot see what the  Department of Natural Resources has done                                                               
with  this funding,"  he charged.    He reiterated  the need  for                                                               
access to  public documents  in a timely  fashion.   He expressed                                                               
the need  for DNR to  develop a  process in which  the department                                                               
would fax  documents in a  timely fashion or make  them available                                                               
on  the  Internet.    Mr. Tegoseak  explained  that  he  supports                                                               
Section 1  of HB  421 because  it may  achieve this  vital public                                                               
notice.   He urged the  committee to  add a provision  to require                                                               
that only copying charges be paid.                                                                                              
                                                                                                                                
Number 0456                                                                                                                     
                                                                                                                                
TAD  OWENS,  Executive  Director,  Resource  Development  Council                                                               
(RDC), testified via teleconference.   He explained that RDC is a                                                               
private, nonprofit trade  association that represents individuals                                                               
and companies  from Alaska's mining, timber,  tourism, fisheries,                                                               
and oil  and gas  industries.   Its mission  is to  grow Alaska's                                                               
economy through  responsible development  of the  state's natural                                                               
resources.                                                                                                                      
                                                                                                                                
MR.  OWENS announced  that RDC  supports  the changes  to HB  421                                                               
encompassed  in  Version  L.    He explained,  "As  a  rule,  RDC                                                               
supports efforts to clearly define  and streamline the permitting                                                               
procedures that are  used by Alaska's resource agencies.   And we                                                               
feel  that  HB   421  in  its  current  form   is  an  important,                                                               
incremental  step towards  this  standard."   However, Mr.  Owens                                                               
noted that RDC has concerns  about possible fiscal impacts of the                                                               
bill  and therefore  encourages the  legislature to  work closely                                                               
with DNR in  order to ensure that the department  is able to meet                                                               
the intent of the bill's language without additional funding.                                                                   
                                                                                                                                
Number 0305                                                                                                                     
                                                                                                                                
JAN  KONIGSBERG, Alaska  Public Waters  Coalition, testified  via                                                               
teleconference,  bringing attention  to the  process issues  that                                                               
Version  L addresses.    He said  the  coalition is  specifically                                                               
concerned with DNR's process that  has had the effect of limiting                                                               
public   access  to   public   information  on   water  use   and                                                               
applications  for water  use.   In the  last several  months, the                                                               
coalition has  had several  meetings that  were well  attended by                                                               
the public and  coalition members.  During  those meetings, there                                                               
were reports that  DNR has implemented processes  to limit access                                                               
by charging  fees for "file  review" and "file preparation."   He                                                               
expressed concern with the monetary  impact of this policy.  More                                                               
important, the  question is why  public servants  are potentially                                                               
filtering  public information  in these  records.   He said  [the                                                               
coalition]  hopes  this isn't  an  effort  by the  department  to                                                               
"sanitize" the records.  He explained:                                                                                          
                                                                                                                                
     Water    is   a    constitutional-protected   resource.                                                                    
     Information in state files on  water use should also be                                                                    
     freely  given and  constitutionally protected  as well,                                                                    
     Otherwise,  there  can  be  no  public  or  legislative                                                                    
     oversight of DNR's water permitting program.                                                                               
                                                                                                                                
MR.  KONIGSBERG   announced  the   coalition's  support   of  the                                                               
provisions  of  Section  1.   He  indicated  hope  regarding  the                                                               
standardized  procedure and  access  to  public documents,  along                                                               
with assurances that  DNR will observe the  current regulations -                                                               
five free hours before anyone in the public is charged a fee.                                                                   
                                                                                                                                
Number 0065                                                                                                                     
                                                                                                                                
PAM  MILLER,  Arctic  Connection, testified  via  teleconference.                                                               
The  owner  of a  small  business  for  which  part of  the  work                                                               
involves consulting  on water-resource issues around  Alaska, Ms.                                                               
Miller mentioned  that she'd participated  in the  American Water                                                               
Resources  Association -  Alaska Section  meeting last  April, at                                                               
which time  surface waters were  discussed.  Ms. Miller  said she                                                               
was  testifying  in  support  of public  access  to  DNR's  water                                                               
records and  a standardized procedure  as described in  Section 1                                                               
of HB  421.   Ms. Miller  explained that  she is  concerned about                                                               
water in  general, due  to what  has happened  in places  such as                                                               
California.                                                                                                                     
                                                                                                                                
TAPE 02-11, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
MS. MILLER indicated she'd attended  a meeting with DNR regarding                                                               
its  proposed  regulations;  although she'd  requested  a  simple                                                               
listing of all  the permits, she hadn't yet seen  that list.  She                                                               
related  other personal  experiences  regarding the  difficulties                                                               
with DNR's  process involving  access to the  public record.   In                                                               
regard to HB 421, Ms. Miller  said she views Section 1 as helpful                                                               
in the research she has done.   She pointed out that AS 44.62.312                                                               
in part says:                                                                                                                   
                                                                                                                                
     (a) It is the policy of the state that                                                                                     
           (1) the governmental units mentioned in AS                                                                           
        44.62.310(a) exist to aid in the conduct of the                                                                         
     people's business;                                                                                                         
        (2) it is the intent of the law that actions of                                                                         
           those units be taken openly and that their                                                                           
     deliberations be conducted openly;                                                                                         
        (3) the people of this state do not yield their                                                                         
     sovereignty to the agencies that serve them;                                                                               
                                                                                                                                
MS.  MILLER concluded  by again  expressing  concern with  public                                                               
information on water resources.                                                                                                 
                                                                                                                                
Number 0369                                                                                                                     
                                                                                                                                
ART GRISWOLD, Farmer, testified  via teleconference in support of                                                               
HB 421.   He noted that he  is very interested in  HB 392 because                                                               
it  would  provide  agriculture  with  a  secondary  position  to                                                               
domestic water.   Mr.  Griswold expressed the  need to  know what                                                               
wells are recorded when one  purchases property.  Furthermore, he                                                               
asked  how someone  would know  where and  when one's  irrigation                                                               
well  would be  mixed  up  with one's  domestic  water.   Without                                                               
access  to  domestic  water usage  closest  to  one's  irrigation                                                               
wells, there is no knowledge  of the impact on [domestic waters].                                                               
Having this information  on the Internet would  provide much more                                                               
information.                                                                                                                    
                                                                                                                                
MR. GRISWOLD  offered his belief  that this legislation  would be                                                               
beneficial.   However, he  expressed concern  with a  comment [in                                                               
another hearing]  that it would take  DNR five years to  catch up                                                               
on  the water  permitting.   Therefore,  he  questioned how  that                                                               
backlog could  be addressed  while providing  anything up-to-date                                                               
on the Internet.                                                                                                                
                                                                                                                                
Number 0524                                                                                                                     
                                                                                                                                
SUE SCHRADER,  Alaska Conservation  Voters (ACV), noted  that the                                                               
committee  packet  should  include   her  position  paper.    She                                                               
highlighted the fact that ACV  supports the provisions in Section                                                               
1 of HB  421.  Having this information more  readily available to                                                               
the public will be beneficial to most Alaskans, she offered.                                                                    
                                                                                                                                
Number 0611                                                                                                                     
                                                                                                                                
BOB  LOEFFLER,  Director, Division  of  Mining,  Land and  Water,                                                               
Department  of Natural  Resources, testified  via teleconference.                                                               
He said,  "Quite frankly, I  don't understand where some  of this                                                               
is coming  from."  He related  his belief [that the  division] is                                                               
fully committed  to providing everyone  public information.   Mr.                                                               
Loeffler  explained [the  division's] policy  that its  files are                                                               
open to the public at all times.   He pointed out that if someone                                                               
makes an appointment,  the file may be ready.   However, [without                                                               
an appointment] the  file may be [in use by  staff] and thus it's                                                               
harder [to have the file available immediately].                                                                                
                                                                                                                                
MR. LOEFFLER informed the committee  that people are charged $.25                                                               
a page for  copies and $50 for  research.  He said  that since he                                                               
has been  director, to  his knowledge,  only Greenpeace  had been                                                               
charged $50; that  was because Greenpeace had  requested over 100                                                               
files, which  had to  be pulled  from archives  and a  variety of                                                               
other places.   He acknowledged the possibility  that an employee                                                               
had told Ms.  Miller she'd be charged $50; however,  he said that                                                               
isn't the  division's policy.   "The notion  that we  hide public                                                               
records  or,  as  was  implied, that  we  were  shredding  public                                                               
records is just not true," he stressed.                                                                                         
                                                                                                                                
Number 0756                                                                                                                     
                                                                                                                                
MR. LOEFFLER advised the committee  that [division personnel] had                                                               
spent   over  eight   hours  discussing   the  regulations   with                                                               
representatives, including Mr. Konigsberg and  Ms. Miller, from a                                                               
variety of  environmental groups;  no one  had brought  up issues                                                               
regarding  access to  public records.   Therefore,  he noted  his                                                               
slight shock at  these accusations.  Mr.  Loeffler reiterated his                                                               
belief that  the division's  files are  open to  the public.   If                                                               
there is information otherwise, he suggested [informing] him.                                                                   
                                                                                                                                
MR. LOEFFLER turned to Section  1 and informed the committee that                                                               
there are many  records available on the Internet,  but those are                                                               
a  bit  cumbersome.    Mr.  Loeffler said  he  wasn't  sure  what                                                               
[Section 1]  was requesting.  He  pointed out that if  the desire                                                               
is to  make all the  division's files available on  the Internet,                                                               
that would amount to 1.4 million pieces of paper.                                                                               
                                                                                                                                
Number 0858                                                                                                                     
                                                                                                                                
CO-CHAIR SCALZI  related his belief  that the intent is  to place                                                               
as much  information as  possible on  the Internet.   He  said he                                                               
didn't think it  would be mandated to do it  now, which he viewed                                                               
as a  [House Finance  Committee] decision.   The bill  urges that                                                               
the  division  move   in  the  direction  [of   placing  as  much                                                               
information on the Internet as possible].                                                                                       
                                                                                                                                
MR. LOEFFLER said he was fine  with that because he believes [the                                                               
division] works for the public.                                                                                                 
                                                                                                                                
Number 0930                                                                                                                     
                                                                                                                                
MS.  YUHAS  turned  to  Mr.  Loeffler's  comment  that  from  the                                                               
meetings with  the environmental  groups, he  was unaware  of any                                                               
concerns  regarding  public  access.    However,  at  those  very                                                               
meetings  was where  she became  aware that  there was  a problem                                                               
with accessing  public records,  she said.   Therefore,  the bill                                                               
was  introduced.   Ms.  Yuhas  said she  feels  that this  access                                                               
problem was evident at those meetings.                                                                                          
                                                                                                                                
MS.  YUHAS   expressed  the  need  for   clarification  from  the                                                               
department  regarding  its  definition  of  "significant  use  of                                                               
water."  Last year, the  legislature gave the department $300,000                                                               
to address the backlog.  [That  money was used to] create 5.5 new                                                               
positions.  Through regulation, it  appears that the backlog will                                                               
be  eliminated because  of the  definition of  significant use  -                                                               
50,000 gallons  a day -  as well as the  department's application                                                               
requirement  [for   use]  above  50,000  gallons,   although  the                                                               
application won't be processed unless  there is a conflict or the                                                               
gallon usage  becomes 50,000 gallons  a day.  Therefore,  most of                                                               
the backlog would be incorporated.                                                                                              
                                                                                                                                
Number 1042                                                                                                                     
                                                                                                                                
MS. YUHAS  said the department  is on  record as not  being happy                                                               
with Representative Harris's  bill regarding defining significant                                                               
use.  Therefore, she requested  clarification from the department                                                               
on  its  definition of  significant  water  use, on  whether  the                                                               
department  feels  it should  be  defined,  as  well as  how  the                                                               
department  intends  to  address  the  backlog  through  defining                                                               
significant use.                                                                                                                
                                                                                                                                
MR. LOEFFLER  answered that significant use  is currently defined                                                               
in regulation  as 500  gallons a  day or  5,000 gallons  over ten                                                               
days.   The  [division] had  proposed regulations  changing that,                                                               
although analysis  of the public  comment hasn't  been completed.                                                               
He explained that those  regulations would've changed significant                                                               
use to  5,000 gallons  a day  from an  anadromous fish  stream or                                                               
50,000  from groundwater  or  a nonanadromous  fish  stream.   No                                                               
decision has been  made on that.  He commented,  however, that it                                                               
would only have limited impact on the backlog.                                                                                  
                                                                                                                                
Number 1138                                                                                                                     
                                                                                                                                
MS. YUHAS  pointed out that the  fiscal note will be  attached to                                                               
HB 421 in order to create a  few more positions at DNR, which she                                                               
feels is  a cheaper route  than losing  more lawsuits due  to not                                                               
adhering to the  public process.  Ms. Yuhas  urged the department                                                               
to better address  its responsibility to the  public by reviewing                                                               
its  monetary requirements  to meet  what HB  421 is  requesting.                                                               
She further  urged the  department to  be prepared  to articulate                                                               
those requirements  to the  House Finance  Committee.   Ms. Yuhas                                                               
said, "I  believe that the  department may expect a  higher level                                                               
of scrutiny this year from  the elected officials who appropriate                                                               
these funds in  light of last year's award.   We still don't know                                                               
what exactly is  happening with that $300,000."   Ms. Yuhas urged                                                               
the committee to report the bill from committee.                                                                                
                                                                                                                                
Number 1220                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE  moved  to  report  CSHB  421,  version  22-                                                               
LS1334\L, Luckhaupt,  2/27/02, out  of committee  with individual                                                               
recommendations and the forthcoming fiscal  note.  There being no                                                               
objection, CSHB  421(RES) was reported  from the  House Resources                                                               
Standing Committee.                                                                                                             

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