Legislature(2007 - 2008)BARNES 124

03/19/2007 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 165 BIG GAME GUIDES AND TRANSPORTERS TELECONFERENCED
Moved Out of Committee
+ HB 128 OIL & GAS PRODUCTION TAX: EXPENDITURES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 149 POLLUTANT DISCHARGE PERMITS TELECONFERENCED
Moved CSHB 149(RES) Out of Committee
HB 149-POLLUTANT DISCHARGE PERMITS                                                                                            
                                                                                                                                
1:13:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO  announced that the  next order of  business would                                                               
be HOUSE BILL  NO. 149, "An Act relating to  the authority of the                                                               
Department  of  Environmental  Conservation  to  require  certain                                                               
monitoring, sampling,  and reporting  and to require  permits for                                                               
certain discharges of pollutants;  relating to criminal penalties                                                               
for  violations  of the  permit  program;  and providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
1:14:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG expressed  concern about  the loss  of                                                               
some of  the research  that might  not be  directly related  to a                                                               
specific project.   He asked if  the loss of research  could be a                                                               
loss to permitting or to other projects in the future.                                                                          
                                                                                                                                
1:16:46 PM                                                                                                                    
                                                                                                                                
CAMERON  LEONARD,  Senior  Assistant  Attorney  General,  Natural                                                               
Resources  Section,  Civil  Division (Fairbanks),  Department  of                                                               
Law, said  that nothing  in HB  149 will  change or  diminish the                                                               
Department  of  Environmental  Conservation's (DEC)  ability  and                                                               
authority  to  do  this  kind   of  water  body  assessments  and                                                               
monitoring.    The  legislation  merely  has  to  do  with  which                                                               
requirements, in connection with  a particular project, belong in                                                               
permits versus outside of the permits.                                                                                          
                                                                                                                                
1:17:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  maintained that  his concern  is still                                                               
who will do it.                                                                                                                 
                                                                                                                                
1:17:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  moved that  the committee  adopt Amendment                                                               
1, which read [original punctuation provided]:                                                                                  
                                                                                                                                
     Page 4, line 4:                                                                                                            
          Following "pollutants":                                                                                               
               Delete "listed"                                                                                                  
               Insert "as defined"                                                                                              
                                                                                                                                
     Page 4, line 10:                                                                                                           
          Following "(a)"                                                                                                       
               Insert "and (d)"                                                                                                 
                                                                                                                                
CO-CHAIR  JOHNSON   objected  to   Amendment  1   for  discussion                                                               
purposes.                                                                                                                       
                                                                                                                                
1:18:36 PM                                                                                                                    
                                                                                                                                
MR. LEONARD  stated that the  changes in Amendment 1  are changes                                                               
that  were   reached  after  considerable  discussion   with  the                                                               
Environmental Protection Agency (EPA)  to address their concerns.                                                               
The first change on page 4,  line 4, addresses EPA's request that                                                               
Alaska's  term "waste  material" be  as broad  as the  EPA's term                                                               
"pollutants."   Although Section 6  of the legislation  inserts a                                                               
new subsection that would specify  that, the EPA prefers that the                                                               
language  say, "includes  pollutants as  defined in"  rather than                                                               
"listed in".                                                                                                                    
                                                                                                                                
1:19:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO asked  if there is any  possibility that something                                                               
listed would be undefined.                                                                                                      
                                                                                                                                
MR.  LEONARD explained  that  the  EPA wanted  to  be clear  that                                                               
Alaska's  statute included  those  items listed  as  well as  the                                                               
definition.                                                                                                                     
                                                                                                                                
1:20:12 PM                                                                                                                    
                                                                                                                                
MR. LEONARD  then turned  to the second  portion of  Amendment 1,                                                               
which addresses the "state of  mind" necessary to pursue criminal                                                               
violations.  He reminded the  committee that negligent violations                                                               
of the Clean  Water Act (CWA) can give rise  to criminal charges,                                                               
although  they  do  not  have  to.    Alaska's  statutes  require                                                               
criminal negligence under [AS 46.03].790  and thus to satisfy EPA                                                               
and to  show that the state's  program is as stringent  as EPA's,                                                               
new subsection  (i) is inserted.   This new  subsection specifies                                                               
that for  purposes of the Alaska  Pollutant Discharge Elimination                                                               
System  (APDES) program,  simple  negligence is  sufficient.   To                                                               
further clarify,  the language "and  (d)" was added to  Section 8                                                               
in order  to specify  that the new  program under  subsection (i)                                                               
would also apply to oil  spills, subsection (d), since such would                                                               
also be a violation of the CWA.                                                                                                 
                                                                                                                                
1:21:20 PM                                                                                                                    
                                                                                                                                
MR.  LEONARD, in  response to  Representative Guttenberg,  stated                                                               
that the title of Section .790  is "Criminal penalties".  He then                                                               
confirmed  Co-Chair  Gatto's  understanding  that  [statute]  had                                                               
simple  negligence rather  than criminal  negligence in  order to                                                               
cover class  A.   Mr. Leonard further  confirmed that  this would                                                               
also be  under a  class A misdemeanor.   Therefore,  no penalties                                                               
are being changed.                                                                                                              
                                                                                                                                
1:21:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  whether  this allows  the state  to                                                               
select  a  gross  negligence standard  or  something  other  than                                                               
simple negligence.                                                                                                              
                                                                                                                                
MR. LEONARD replied  no, adding that a higher state  of mind than                                                               
EPA specifies  cannot be  required in order  to have  the program                                                               
approved.   He  specified  that [APDES]  could  require a  higher                                                               
state  of mind  if the  desire is  to pursue  a felony  charge or                                                               
other higher charge.  For  a simple misdemeanor charge, more than                                                               
negligence  cannot  be required  and  still  meet EPA's  approval                                                               
criteria.                                                                                                                       
                                                                                                                                
1:22:48 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  removed his  objection to  Amendment 1.   There                                                               
being no further objection, Amendment 1 was adopted.                                                                            
                                                                                                                                
1:23:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON expressed concern  with regard to the scope                                                               
of things  that will be  left out of  NPDES permits and  thus not                                                               
available to the public.                                                                                                        
                                                                                                                                
1:24:59 PM                                                                                                                    
                                                                                                                                
LYNN  TOMICH KENT,  Director, Division  of  Water, Department  of                                                               
Environmental Conservation  (DEC), related that revisions  to the                                                               
regulatory  water  quality  standards   are  public  noticed  for                                                               
comment,  as   well  as  all   of  the  supporting   science  and                                                               
information  driving  a potential  change  to  the water  quality                                                               
standards.   Therefore, basically anything the  department has is                                                               
available to the public also.                                                                                                   
                                                                                                                                
1:25:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  related his understanding that  one of the                                                               
intents for taking this primacy is  to keep things outside of the                                                               
permit requirement  and thus  it will not  be available  to third                                                               
parties.   Representative Seaton asked if  information will still                                                               
be available to  third parties to propose  additional revision of                                                               
regulations  for those  requirements made  outside the  permit or                                                               
does the  information become public  when the  department decides                                                               
to revise the regulations.                                                                                                      
                                                                                                                                
MR.  LYNN  answered that  any  additional  studies or  additional                                                               
information requested of  the permittee outside the  context of a                                                               
permit is available for public review.                                                                                          
                                                                                                                                
1:27:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO,  referring to the  language "into any  waters" on                                                           
page   3,  line   1,  clarified   his   understanding  that   the                                                               
aforementioned language only refers to  surface waters.  He asked                                                               
whether there is any value in adding the word "surface".                                                                        
                                                                                                                                
MR. CAMERON  highlighted that the  full phrase is "waters  of the                                                           
United  States",  which is  the  language  required in  order  to                                                           
ensure  that Alaska's  program is  as  inclusive as  that of  the                                                               
EPA's.   The  EPA  was  concerned, he  related,  that the  former                                                               
language "surface  waters" isn't exactly  the same as  "waters of                                                           
the United States".                                                                                                         
                                                                                                                                
CO-CHAIR  GATTO   questioned  whether  the  language   refers  to                                                               
"surface water" or "subsurface waters."                                                                                         
                                                                                                                                
MR. CAMERON  reminded the committee  that the  federal definition                                                               
of "waters of  the United States" also gets  into wetlands, which                                                       
may or may not be included  in the definition of "surface waters"                                                               
depending upon  one's perspective.   Mr. Cameron opined  that the                                                               
department felt it  had to use the EPA's terminology  in order to                                                               
address their concerns.   In further response  to Co-Chair Gatto,                                                               
Mr. Cameron  related his agreement  that HB 149 allows  the state                                                               
to  deal  with the  federal  government  and take  authority  for                                                               
enforcement as well as the permitting program itself.                                                                           
                                                                                                                                
1:28:45 PM                                                                                                                    
                                                                                                                                
MR.  CAMERON,  in  response to  Representative  Seaton,  said  he                                                               
believes that adopting the federal  definition as was done in the                                                               
regulations and using the terminology  in HB 149 should not cause                                                               
confusion, except  that the federal definition  itself is subject                                                               
to ongoing litigation and recent  decisions from the U.S. Supreme                                                               
Court.  If  one reads the statute and regulations  in tandem, the                                                               
coverage of the program is clear.                                                                                               
                                                                                                                                
1:30:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  related his understanding that  one of the                                                               
reasons  [for HB  149]  is  to have  less  third-party suits  for                                                               
information.   He noted  that the department  does not  track the                                                               
number of lawsuits threatened or filed  and thus it does not know                                                               
how many third-party suits about  information that would not have                                                               
been included under DEC's definition.                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON expressed his concern  that there is a $5.8                                                               
million fiscal  note and the  state is  not gaining.   He related                                                               
his theory that when the state  budget is reduced in future years                                                               
and there  are less [staff] then  it will result in  the delay of                                                               
permit issuance.                                                                                                                
                                                                                                                                
1:31:43 PM                                                                                                                    
                                                                                                                                
MS. KENT  clarified that the  program is envisioned  and budgeted                                                               
as a $4.8 million program.   She pointed out that DEC has already                                                               
been engaged in a permitting program  and working with EPA on its                                                               
permitting program.   The increase to the program  was about $1.5                                                               
million  which was  the incremental  amount that  brought forward                                                               
the full resources necessary to implement NPDES in the state.                                                                   
                                                                                                                                
CO-CHAIR GATTO surmised that it  is not a self-sustaining program                                                               
and thus still needs general funds.                                                                                             
                                                                                                                                
MS.  KENT related  that currently  the program  has full  funding                                                               
under  the base  budget  for  implementation of  the  NPDES.   In                                                               
further  response to  Co-Chair  Gatto, Ms.  Kent  opined that  it                                                               
would  be up  to  the legislature  how the  funding  goes in  the                                                               
future.  She  informed the committee that the  DEC operates other                                                               
programs under a primacy mode and  all the programs that it takes                                                               
on from  the federal  government are  subject to  ongoing federal                                                               
review  to ensure  sufficient funding  to implement  the program.                                                               
She  then confirmed  that [APDES]  is funded  in part  by general                                                               
funds, federal  funds, and fees.   The fees for the  program were                                                               
set by House  Bill 361, which passed a number  of years ago, that                                                               
allows  the department  to charge  for direct  cost of  providing                                                               
services.                                                                                                                       
                                                                                                                                
1:33:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON related  his understanding  that the  fees                                                               
are expected to almost double under NPDES primacy.                                                                              
                                                                                                                                
MS.  KENT  replied   yes.    The  department's   direct  cost  of                                                               
implementing the program in which  the department writes, issues,                                                               
and  performs  compliance work  results  in  an increase  in  the                                                               
department's direct costs by a factor of about 1.8.                                                                             
                                                                                                                                
MS.  KENT,   in  response  to  a   question  from  Representative                                                               
Guttenberg,  related   that  at   NPDES  program   approval,  the                                                               
department will need  to revise the existing fees.   The approach                                                               
to the  fees was established by  House Bill 361 and  that remains                                                               
in place.  The  change is in regard to the  direct work that will                                                               
be done that  supports the permitting and  compliance, which will                                                               
cause the fees to increase.                                                                                                     
                                                                                                                                
1:35:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG referred  to the  recommendations from                                                               
the work  group on  page 20  of the NPDES  Workgroup Report.   He                                                               
drew attention  to the following  language, "The  large community                                                               
wastewater workgroup  member does not think  primacy will provide                                                               
significant benefits  to this segment of  the regulated community                                                               
and does not support primacy."  He invited comment.                                                                             
                                                                                                                                
MS.  KENT  informed  the  committee   that  the  large  community                                                               
wastewater  workgroup   member  was  from  the   Municipality  of                                                               
Anchorage (MOA).   She  related that  the permit  for Anchorage's                                                               
facility will remain  with EPA and will not transfer  over to the                                                               
state.  Therefore,  that member did not see any  benefit to NPDES                                                               
primacy  since it  would  not impact  Anchorage's  facility.   In                                                               
further response  to Representative Guttenberg, Ms.  Kent related                                                               
that DEC did  not make any distinction, for  work group purposes,                                                               
regarding what is a large facility versus a small facility.                                                                     
                                                                                                                                
1:37:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  asked  if  Fairbanks,  Wrangell,  and                                                               
Sitka are covered.                                                                                                              
                                                                                                                                
CO-CHAIR  GATTO   surmised  that  Representative   Guttenberg  is                                                               
interested in  whether there  is a  fixed number  that determines                                                               
coverage or non-coverage.                                                                                                       
                                                                                                                                
MS. KENT  specified that all  of the facilities with  a discharge                                                               
to a surface water body will need a NPDES permit.                                                                               
                                                                                                                                
1:38:44 PM                                                                                                                    
                                                                                                                                
MR.  CAMERON related  that the  situation with  MOA is  unique in                                                               
that  it  enjoys  a  waiver from  the  requirement  of  providing                                                               
secondary treatment for  its domestic wastewater.   The waiver is                                                               
only available  to large municipalities that  discharge to marine                                                               
waters, and  thus none of  the Interior communities  are eligible                                                               
for  that waiver.    In  fact, MOA  may  have  the only  facility                                                               
enjoying that waiver.                                                                                                           
                                                                                                                                
MS. KENT recalled  that four to five communities  qualify for the                                                               
aforementioned  waiver.   She offered  to  provide the  committee                                                               
with a list of those facilities  [enjoying the waiver].  She then                                                               
pointed  out that  those facilities  would still  need to  have a                                                               
NPDES permit,  but the EPA  would maintain the  responsibility to                                                               
issue the permits and ensure  compliance with those permits.  The                                                               
department would continue  to certify those permits  much like it                                                               
already does with existing permits.                                                                                             
                                                                                                                                
1:40:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  if  the fees  for those  facilities                                                               
would increase by  a factor of 1.8 or would  those fees remain at                                                               
the level the EPA and the state charge.                                                                                         
                                                                                                                                
MS. KENT responded that the  fees [for the facilities receiving a                                                               
waiver] would be the same as  they are today since those fees are                                                               
based on the department certifying the permit.                                                                                  
                                                                                                                                
1:41:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  commented that this  legislation addresses                                                               
an  enormous  issue.   He  then  asked  whether  HB 149  is  all-                                                               
encompassing to the  point that one could say that  it deals with                                                               
the state's wastewater permitting program in its entirety.                                                                      
                                                                                                                                
MS. KENT  answered that  HB 149 is  all-encompassing in  terms of                                                               
wastewater  discharges  to  waters  of the  U.S.    Although  the                                                               
[department]  does  have  other state  authorities  that  require                                                               
those discharging  wastewater to  the surface of  the land  or to                                                               
ground water  to obtain an  authorization from DEC,  that program                                                               
is unaffected by these NPDES primacy efforts.                                                                                   
                                                                                                                                
1:42:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON,   referring  to   the  March   19,  2007,                                                               
memorandum from Ms.  Kent, highlighted that on the  first page it                                                               
relates that  the CWA allows penalties  of up to $31,500  per day                                                               
per violation.  Using the Pebble  Mine as a backdrop, he inquired                                                               
as to the amount of penalties.                                                                                                  
                                                                                                                                
MR. CAMERON clarified that the  department does not have the same                                                               
penalty  amounts  as  EPA  because  under  the  state's  existing                                                               
statutes  the state  can seek  recovery in  the amount  of up  to                                                               
$100,000 for the initial violation  and not more than $10,000 for                                                               
each day after that.                                                                                                            
                                                                                                                                
REPRESENTATIVE EDGMON  clarified that his question  was regarding                                                               
placing  HB 149  in relation  to a  project of  the scope  of the                                                               
Pebble Mine.                                                                                                                    
                                                                                                                                
1:44:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  related his  understanding that  Section 2                                                               
seems  to  be  straightforward   in  regard  to  requiring  prior                                                               
authorization from the  department for the discharge  of solid or                                                               
liquid waste.   However, Section  4(e)(4) includes  the following                                                               
qualifier "if  the discharge  is incidental  to the  activity and                                                               
the activity does  not produce a discharge from  a point source".                                                               
Therefore,  he inquired  as to  why  a similar  qualifier is  not                                                               
included  in Section  2.   He also  inquired as  to whether  [the                                                               
aforementioned qualifying  language] came from the  original work                                                               
group and is in addition to the EPA requirements.                                                                               
                                                                                                                                
MR. CAMERON explained that Section  2(a) is the general statement                                                               
that certain activities require  authorization while Section 4(e)                                                               
specifies  exceptions that  are not  covered under  Section 2(a).                                                               
Section 4(e) specifies those activities  that are exempt from the                                                               
requirement of  obtaining an authorization unless  they result in                                                               
a discharge  into waters  of the U.S.   Therefore,  discharges to                                                               
land or ground water would not need prior state authorization.                                                                  
                                                                                                                                
1:47:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON inquired as  to who makes the determination                                                               
as to whether the discharge is incidental to the activity.                                                                      
                                                                                                                                
MR. CAMERON said  that someone at DEC would have  a judgment call                                                               
to make.                                                                                                                        
                                                                                                                                
MS.  KENT  related  that  DEC's  permit  staff  would  make  that                                                               
decision when someone  asks whether an authorization  from DEC is                                                               
necessary or from  a public complaint in  which someone questions                                                               
what someone else is doing.                                                                                                     
                                                                                                                                
1:48:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO drew  attention to page 2, line  25, which inserts                                                               
the language "publicly owned treatment  works".  He asked if that                                                           
language means only government owned.                                                                                           
                                                                                                                                
MR. CAMERON  pointed out  that it  is a term  that is  defined in                                                               
federal  regulations  to  mean government  owned,  not  privately                                                               
owned.                                                                                                                          
                                                                                                                                
CO-CHAIR GATTO surmised then that  if there was a privately owned                                                               
treatment works that  was larger than a  similar government owned                                                               
treatment works, there is an exclusion.                                                                                         
                                                                                                                                
MR. CAMERON noted his agreement,  and related that the department                                                               
tried to extend the scope  of this exemption to include privately                                                               
owned  treatment   works  that   have  been  authorized   by  the                                                               
department.  However,  that would have gone  beyond the exemption                                                               
under federal law and could not be approved by EPA.                                                                             
                                                                                                                                
1:49:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON directed  attention  to page  3, line  19,                                                               
which addresses firing/rifle ranges and  the language:  ", unless                                                           
it results in a discharge into  waters of the United States."  In                                                           
a situation  in which a  skeet or trap  range and the  pellets go                                                               
into the  water, he asked  if these  will be non-exempt  and will                                                               
DEC require a NPDES for lead in those areas.                                                                                    
                                                                                                                                
MS.  KENT  informed  the  committee   that  such  facilities  are                                                               
currently required  to obtain an  NPDES permit from EPA  and this                                                               
[legislation]  doesn't change  the requirements  for obtaining  a                                                               
NPDES permit for a firing range.                                                                                                
                                                                                                                                
1:50:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON related  his  understanding that  existing                                                               
statute exempts such facilities, but  the new language on page 3,                                                               
line  19,  changes  that  exemption to  a  non-exemption  if  the                                                               
facility [discharges into] the water.                                                                                           
                                                                                                                                
MS.  KENT reminded  the committee  that this  portion of  statute                                                               
includes the  disposal of  liquids and solid  waste to  the lands                                                               
and waters of the state.   Therefore, the exemption was to remove                                                               
the  requirement  to  obtain a  state  authorization  for  firing                                                               
munitions  at  a firing  range.    However, because  EPA's  NPDES                                                               
permit program  requires an NPDES  permit for firing  into waters                                                               
of  the U.S.,  the  state NPDES  does as  well.   Therefore,  the                                                               
department  maintained a  carve-out  such that  a  permit is  not                                                               
required for  a firing range that  discharges to land.   Still, a                                                               
permit under the  NPDES program run by the state  or the EPA does                                                               
require a NPDES permit.                                                                                                         
                                                                                                                                
1:51:47 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO recalled  the  firing range  in  Eagle River  and                                                               
reminded the committee  that the lower end of the  Eagle River is                                                               
next  to  the  inlet.    If munitions  land  in  wetlands,  which                                                               
ultimately end  up in the waters  of the U.S., "does  that pretty                                                               
much  nullify  everybody  from doing  anything  every  time,"  he                                                               
asked.                                                                                                                          
                                                                                                                                
MS.  KENT related  her understanding  that the  EPA required  the                                                               
Eagle River  Flats to  apply for  a NPDES  permit for  the range,                                                               
which  she  opined is  still  an  active  range.   She  said  she                                                               
suspected  that the  EPA  did  not issue  a  permit, although  it                                                               
required a permit application to be submitted.                                                                                  
                                                                                                                                
1:52:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON commented  that in Sitka there  is a firing                                                               
range over  waters, which led  to a change  in the makeup  of the                                                               
shot.                                                                                                                           
                                                                                                                                
1:53:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON moved  to report  HB  149, as  amended, out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  149(RES)  was                                                               
reported from the House Resources Standing Committee.                                                                           
                                                                                                                                

Document Name Date/Time Subjects