Legislature(2021 - 2022)BARNES 124

05/10/2022 08:00 AM House RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 3:00 pm --
-- Continued from 5/9/22 --
+= SB 177 MICROREACTORS TELECONFERENCED
Moved CSSB 177(RES) Out of Committee
-- Invited & Public Testimony --
+= HB 120 STATE LAND SALES AND LEASES; RIVERS TELECONFERENCED
Moved CSHB 120(RES) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                      SB 177-MICROREACTORS                                                                                  
                                                                                                                                
3:05:56 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced  that the first order  of business would                                                               
be CS FOR  SENATE BILL NO. 177(RES), "An Act  relating to nuclear                                                               
facility siting permits; and relating to microreactors."                                                                        
                                                                                                                                
3:06:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  moved to  adopt Conceptual Amendment  1 to                                                               
CSSB 177(RES) [included  in the committee packet],  which read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     "all  cities and  boroughs must  approve a  site for  a                                                                    
     microreactor  before  DEC  can permit  it,  except  for                                                                    
     unorganized   boroughs   in   which   siting   is   the                                                                    
     responsibility of the legislature."                                                                                        
                                                                                                                                
CHAIR PATKOTAK objected for the purpose of discussion.                                                                          
                                                                                                                                
3:06:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS explained Conceptual  Amendment 1.  He said                                                               
the  Department of  Environmental  Conservation's (DEC's)  letter                                                               
responding to questions about local  authority over the siting of                                                               
microreactors  states   it  is  the  bill's   intent  that  local                                                               
governments do  maintain siting authority regardless  of the type                                                               
of borough  or municipality.   He noted that cities  and boroughs                                                               
with  planning and  zoning already  have this  authority so  [the                                                               
bill]  is not  changing  anything.   However,  he continued,  DEC                                                               
acknowledged  some ambiguity  for local  governments which  don't                                                               
currently have  planning and zoning  authority.  He  related that                                                               
the concept  of Conceptual Amendment  1 is that  in jurisdictions                                                               
which  don't  currently  have   planning  and  zoning  authority,                                                               
comfort would  be given to  citizens who are concerned  about the                                                               
bill  that  their  local  government  is  going  to  have  siting                                                               
authority.   He said he understands  DEC's answer to be  that the                                                               
local governments  will have that authority  anyway and therefore                                                               
Conceptual Amendment 1 is a clarifying amendment.                                                                               
                                                                                                                                
3:08:29 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK  invited DEC to  provide context to  the follow-up                                                               
letter  referenced  by  Representative Fields  [provided  in  the                                                               
committee packet] and to address the amendment.                                                                                 
                                                                                                                                
CHRISTINA CARPENTER, Director,  Division of Environmental Health,                                                               
Department  of Environmental  Conservation  (DEC),  spoke to  the                                                               
question from Representative Fields  about the siting requirement                                                               
for  the  Municipality  of  Anchorage.    She  said  the  current                                                               
language in AS  18.45.025(c) includes the requirement  that a DEC                                                               
permit   may  not   be  issued   until   the  municipality   with                                                               
jurisdiction over  the proposed  facility site has  approved that                                                               
permit.   So,  she advised,  if DEC  was looking  at approving  a                                                               
microreactor  site  within  the Municipality  of  Anchorage,  the                                                               
department  would  require  that the  municipality  approve  that                                                               
before DEC  would approve its  permit, and that would  not change                                                               
under SB  177.   She apologized  for not having  had a  chance to                                                               
read Conceptual Amendment 1.                                                                                                    
                                                                                                                                
3:10:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS agreed with Ms.  Carpenter that it is clear                                                               
Anchorage, Juneau, and the larger  jurisdictions already have the                                                               
siting  authority, which  he supports.   He  explained Conceptual                                                               
Amendment  1 was  designed to  confirm  that local  jurisdictions                                                               
which  are  organized but  do  not  currently have  planning  and                                                               
zoning authority, do still have  siting authority.  He read aloud                                                               
Conceptual  Amendment  1  and  said he  attempted  to  write  the                                                               
amendment to be  consistent with DEC's understanding  of the bill                                                               
but  provide clarity  where DEC's  memo suggested  there is  some                                                               
ambiguity with the current language.                                                                                            
                                                                                                                                
3:11:50 PM                                                                                                                    
                                                                                                                                
GWEN  HOLDMAN,  Director, Alaska  Center  for  Energy and  Power,                                                               
University of Alaska Fairbanks, stated  she has been serving as a                                                               
technical   advisor   on   microreactors   on   behalf   of   the                                                               
administration.   She  said  this  question has  come  up in  her                                                               
discussions with  different stakeholders and  constituents around                                                               
the state.  She  noted she doesn't claim to be  an expert in this                                                               
area,   but  said   her  understanding   is  that   an  organized                                                               
municipality can  delegate this kind  of authority to  a planning                                                               
committee but if  that committee doesn't exist  that authority is                                                               
retained  by the  organizing city  council  or borough  assembly.                                                               
She  related that  this has  also come  up with  renewable energy                                                               
projects  and siting  authority related  to those,  so she  knows                                                               
that  that is  the process  for  a place  which does  not have  a                                                               
planning committee.  She said  she understands that the intent of                                                               
the conceptual amendment is to  clarify what the bill states, but                                                               
offered her opinion  that the language is not  needed and doesn't                                                               
add anything to her interpretation of the bill.                                                                                 
                                                                                                                                
3:13:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHRAGE opined that the  bill is clear as written.                                                               
He said  listening to  the department's  response gives  him some                                                               
relief.   He inquired  whether, with the  amendment, the  City of                                                               
Fairbanks and  the Fairbanks North  Star Borough would  both have                                                               
to approve [a siting].                                                                                                          
                                                                                                                                
3:13:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS responded  he  is  trying to  specifically                                                               
address the  statement in the  DEC memo that says,  "Arguably the                                                               
bill  provides  local  governments   with  a  specific  grant  of                                                               
authority  to   approve  these   permits  outside   the  planning                                                               
process."   He  maintained that  this statement  has a  degree of                                                               
ambiguity.  He said the  letter continues with the statement, "As                                                               
a  practical  matter a  municipality  might  be able  to  solicit                                                               
assistance."   He  related that  the  letter also  says that  the                                                               
statute  does not  require the  municipality to  have the  zoning                                                               
authority, only that the municipality  must provide approval.  He                                                               
said  it   seems,  given  these   statements,  that  it   is  the                                                               
understanding  of  DEC  that municipalities  probably  have  this                                                               
authority,  and  he thinks  they  should,  and  they do  have  an                                                               
agreement with  Ms. Holdman.   He said  he will support  the bill                                                               
anyway  but  would  like  to  clear up  any  ambiguity  and  give                                                               
citizens  some  assurance  that their  local  government  retains                                                               
jurisdiction over siting.                                                                                                       
                                                                                                                                
3:15:11 PM                                                                                                                    
                                                                                                                                
CHAIR  PATKOTAK  stated he  falls  back  to  the comfort  of  the                                                               
current statute and  added that the conceptual  amendment is last                                                               
minute.  He  said the DEC letter speaks to  AS 18.45.025(c) which                                                               
states that the  permit may not be issued  until the municipality                                                               
with jurisdiction  over the proposed  facility site  has approved                                                               
the permit.   So,  he continued,  that covers  municipalities and                                                               
cities  that have  elected  to  adopt planning  and  zoning.   He                                                               
offered his understanding that the  discussion point here is that                                                               
unorganized  cities  or organized  cities  or  boroughs that  are                                                               
lower  class that  don't retain  planning  and zoning  permitting                                                               
authority  still have  some sort  of backstop  versus it  being a                                                               
full legislature.                                                                                                               
                                                                                                                                
REPRESENTATIVE FIELDS  confirmed that that  is the intent  of the                                                               
proposed conceptual amendment.                                                                                                  
                                                                                                                                
3:16:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS related  that  his  home municipality  of                                                               
Fairbanks  has  planning  and  zoning  powers  but  not  economic                                                               
development  powers  or utility  powers.    He  said he  will  be                                                               
supporting Conceptual Amendment  1 because, while it  does say it                                                               
in the  DEC memo, double  clarification from the  amendment would                                                               
be  key so  there is  not  some ambiguity  in the  future that  a                                                               
second-class  borough without  specific powers  is excluded  from                                                               
the  requirement.   It would  not  be detracting  or hurting  the                                                               
bill, he continued, it would just be making it clear.                                                                           
                                                                                                                                
3:17:49 PM                                                                                                                    
                                                                                                                                
MS. HOLDMAN,  in reference  to the  words siting  and permitting,                                                               
advised  that  it  needs  to  be  clear  in  the  amendment  that                                                               
communities retain siting  authority over a project  and that the                                                               
permitting of  a project  is the  purview of DEC  as well  as the                                                               
U.S. Nuclear  Regulatory Commission (USNRC).   She suggested that                                                               
if the committee chooses to  move forward with the amendment, the                                                               
draft language  be adjusted  to ensure it's  clear that  it's the                                                               
siting authority that is being  retained by the local government,                                                               
not the approval of the permit.                                                                                                 
                                                                                                                                
REPRESENTATIVE FIELDS responded that  that is consistent with his                                                               
intent that the local jurisdiction pertains to siting.                                                                          
                                                                                                                                
3:19:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHRAGE said he supports  the intent of Conceptual                                                               
Amendment 1 but  isn't comfortable with the  language and working                                                               
so quickly.   He stated he  would like to get  the perspective of                                                               
Legislative Legal Services  and clarify with DEC.   He encouraged                                                               
taking the  route of a  floor amendment  and said that  he cannot                                                               
support the amendment.                                                                                                          
                                                                                                                                
3:19:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  surmised DEC has already  started drafting                                                               
regulations that it anticipates needing  if the bill becomes law.                                                               
She noted  that in  most state  agencies which  permit, it  is an                                                               
affirmative process  whereby the agency says  yes once thresholds                                                               
have been  met.  She  asked whether  DEC is contemplating  in its                                                               
regulatory package what analysis  it would do regarding community                                                               
decisions and  siting.  For  example, whether a  community saying                                                               
yes  to  a specific  project  in  a  specific location  would  be                                                               
considered to be within DEC's  oversight of the siting or whether                                                               
DEC  would do  [its  own] analysis  with  considerations such  as                                                               
earthquakes and tsunami hazards.                                                                                                
                                                                                                                                
MS. CARPENTER  replied that  DEC has  not started  the regulation                                                               
package  but  has  discussed  what  is  anticipated  in  a  draft                                                               
regulation package.   She said  this would include  provisions of                                                               
what criteria  had to  be met  before DEC  could issue  a permit,                                                               
such as  local participation, the permit  application review, and                                                               
local  approval of  DEC's permit.    Regulations, she  continued,                                                               
would include  such things as  minimum setback  requirements from                                                               
homes  or  property  lines  if  applicable,  surface  water,  and                                                               
drinking  water supply.   She  advised that  the applicant  would                                                               
also be  required to identify  any potential releases  or impacts                                                               
to  land, air,  or water.    She offered  her understanding  that                                                               
tsunami and earthquake  evaluations are part of  the USNRC permit                                                               
application process.                                                                                                            
                                                                                                                                
3:22:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  addressed Representative  Schrage's point.                                                               
He said if  Conceptual Amendment 1 is  adopted, Legislative Legal                                                               
Services  would write  it because  there  would be  a motion  for                                                               
technical changes.   He said he is willing to  have the amendment                                                               
adopted now or to withdraw it and offer it on the floor.                                                                        
                                                                                                                                
REPRESENTATIVE SCHRAGE  responded that  the amendment  is unclear                                                               
as to whether it  would be the cities or whether  it would be the                                                               
cities and the boroughs, and  he is concerned about a duplicative                                                               
approval process.                                                                                                               
                                                                                                                                
CHAIR PATKOTAK stated he is in  support of something on the floor                                                               
because, as the  bill is, there has been a  lot of work regarding                                                               
recognizing  the powers  and preference  of the  different cities                                                               
and places.                                                                                                                     
                                                                                                                                
3:24:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS withdrew Conceptual Amendment 1.                                                                          
                                                                                                                                
3:24:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCKAY  asked whether  the reactor for  Eielson Air                                                               
Force Base has been sited and  whether DEC or the Fairbanks North                                                               
Star Borough have been involved in that.                                                                                        
                                                                                                                                
MS.  HOLDMAN  answered  that  the   Eielson  project  is  located                                                               
jurisdictionally within  the Fairbanks North  Star Borough.   She                                                               
offered her understanding  that it will be the  borough that will                                                               
make the  decision whether to  approve the siting of  the project                                                               
within the  borough assembly  or at the  advice of  the borough's                                                               
planning committee.                                                                                                             
                                                                                                                                
3:25:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN observed that the  DEC fiscal note does not                                                               
anticipate any new  money being needed to  develop supervision of                                                               
microreactor permitting.   She asked whether  DEC is anticipating                                                               
a  job class  with people  who  have nuclear  science or  nuclear                                                               
engineering in their background or  whether this will be absorbed                                                               
with the kinds of staff currently within the department.                                                                        
                                                                                                                                
3:26:53 PM                                                                                                                    
                                                                                                                                
MS. CARPENTER responded  that DEC put forward a  zero fiscal note                                                               
in  recognition that  its microreactors  are multiple  years out.                                                               
At this  point, she stated, she  doesn't have an idea  of the job                                                               
class or  staffing requirements  that will be  needed.   But, she                                                               
continued, it  is noted that  DEC can  soon begin working  on the                                                               
regulations package  with existing  staff because  the department                                                               
has the support  of Ms. Holdman's staff and  the various national                                                               
laboratories  that can  assist  DEC with  the  drafting of  those                                                               
regulations.  She  specified that once the  facility is permitted                                                               
in the  state, it  is subject  to oversight  by the  U.S. Nuclear                                                               
Regulatory Commission.                                                                                                          
                                                                                                                                
3:27:55 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK  requested Ms. Carpenter to  make the department's                                                               
closing comments.                                                                                                               
                                                                                                                                
MS.  CARPENTER  offered her  appreciation  to  the committee  for                                                               
hearing  CSSB  177(RES) and  urged  the  committee's support  for                                                               
passing the bill.                                                                                                               
                                                                                                                                
3:28:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS  moved to  report  CSSB  177(RES) out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
[zero] fiscal note.                                                                                                             
                                                                                                                                
3:28:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  objected and said  she will be  voting no.                                                               
She related  that she  wishes the committee  was talking  about a                                                               
specific project, such  as the Eielson project and  the siting of                                                               
that  project,  because  of  the many  concerns  that  have  been                                                               
brought to her.   She noted that on an  active U.S. Department of                                                               
Defense   (DoD)  installation,   some  of   the  concerns   about                                                               
oversight,  security, and  waste  management  would be  addressed                                                               
because of the  secured nature of a military site.   She said the                                                               
state doesn't have  the expertise in place and if  Alaska had one                                                               
successful  project then  looking to  change the  law to  make it                                                               
easier for  multiple jurisdictions  to do it  would be  a logical                                                               
step.  No  one has attempted to site a  nuclear project in Alaska                                                               
using  the  current  statute,  she continued,  yet  it  is  being                                                               
attempted to  throw it  out.   Representative Hannan  said Alaska                                                               
has 150-plus  local jurisdictions that  will get to weigh  in and                                                               
is going to trust the  U.S. Nuclear Regulatory [Commission] to be                                                               
the  state's  experts and  have  the  state's best  interests  at                                                               
heart.  Things don't follow in  a rational story of how the state                                                               
should  be acting,  she opined,  so right  now she  is vehemently                                                               
opposed to  the bill, but not  to microreactors.  She  added that                                                               
need  has  been  demonstrated  to  change [the  law]  and  it  is                                                               
premature.                                                                                                                      
                                                                                                                                
3:31:02 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK  said he  appreciates the  scrutiny of  a case-by-                                                               
case basis and would like to see this brought forward.                                                                          
                                                                                                                                
3:31:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER  offered  his  understanding  that  this                                                               
process  is  a  long way  off  and  he  doesn't  think a  lot  of                                                               
communities will be  rushing in right away.  He  said he believes                                                               
there will be scrutiny on  the military base microreactor and the                                                               
microreactor  in his  community of  Valdez.   Alaska  is a  great                                                               
testing  ground for  this program,  he opined,  and it  should be                                                               
helped along  to see  how it works  out.  He  said he  would vote                                                               
yes.                                                                                                                            
                                                                                                                                
3:32:38 PM                                                                                                                    
                                                                                                                                
A  roll call  vote  was taken.    Representatives McKay,  Fields,                                                               
Cronk, Hopkins,  Rauscher, Gillham,  Schrage, and  Patkotak voted                                                               
in  favor  of   moving  CSSB  177(RES)  out   of  committee  with                                                               
individual  recommendations and  the  accompanying [zero]  fiscal                                                               
note.  Representative  Hannan voted against it.   Therefore, CSSB
177(RES)  was  reported  out  of  the  House  Resources  Standing                                                               
Committee by a vote of 8-1.                                                                                                     
                                                                                                                                

Document Name Date/Time Subjects
HB 120 Amendment Fields G.4 5.10.2022.pdf HRES 5/10/2022 8:00:00 AM
HB 120
HB 120 Amendment Fields G.6 5.10.2022.pdf HRES 5/10/2022 8:00:00 AM
HB 120
HB 120 Amendment Fields G.5 5.10.2022.pdf HRES 5/10/2022 8:00:00 AM
HB 120
SB 177 DEC Responses to Committee Questions 5.10.2022.pdf HRES 5/10/2022 8:00:00 AM
SB 177
HB 120 Amendment Rauscher G.1 5.10.2022.pdf HRES 5/10/2022 8:00:00 AM
HB 120
SB 177 Testimony Packet 5.10.2022.pdf HRES 5/10/2022 8:00:00 AM
SB 177
SB 177 Fields Conceptual Amendment 5.10.22.pdf HRES 5/10/2022 8:00:00 AM
SB 177
HB 120 Amendment Packet with Committee Actions 5.10.2022.pdf HRES 5/10/2022 8:00:00 AM
HB 120
HB 120 Testimony Packet Four 5.10.2022.pdf HRES 5/10/2022 8:00:00 AM
HB 120