Legislature(2007 - 2008)BELTZ 211

01/25/2008 01:30 PM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 149 POLLUTANT DISCHARGE PERMITS TELECONFERENCED
Heard & Held
+= HB 7 FALSE CALLER IDENTIFICATION TELECONFERENCED
Heard & Held
= HB 151 INDEMNITY CLAUSE IN PUBLIC CONTRACTS
Moved SCS CSHB 151(JUD) Out of Committee
           CSHB 149(RES)-POLLUTANT DISCHARGE PERMITS                                                                        
                                                                                                                              
CHAIR FRENCH announced  the consideration of HB  149. [Before the                                                               
committee was CSHB 149(RES).]                                                                                                   
                                                                                                                                
2:18:31 PM                                                                                                                    
LARRY  HARTIG, Commissioner,  Alaska Department  of Environmental                                                               
Conservation (DEC), described HB 149  as a clean-up bill. Several                                                               
years ago  the legislature passed  a bill directing DEC  to apply                                                               
to  EPA (Environmental  Protection Agency)  to transfer  primacy,                                                               
which  is the  authority  to issue  National Pollutant  Discharge                                                               
Elimination System  (NPDES) permits in Alaska.  He explained that                                                               
the  federal   Clean  Water  Act  (CWA)   requires  that  certain                                                               
dischargers are  required to have  an NPDES permit and  then they                                                               
must comply with the terms of the permit.                                                                                       
                                                                                                                                
COMMISSIONER  HARTIG explained  that EPA  has identified  several                                                               
areas  where state  statutes must  be  changed in  order for  the                                                               
state to  get primacy The concern  is that Alaska law  must be at                                                               
least as  rigorous as the  federal law. The  Palin Administration                                                               
recognizes  the importance  of having  local decisions  made with                                                               
local input and oversight and is strongly supporting HB 149.                                                                    
                                                                                                                                
2:23:17 PM                                                                                                                    
COMMISSIONER HARTIG  explained that  primacy does not  change the                                                               
standard  for  making  decisions  about  permits.  In  fact,  the                                                               
permits that  EPA currently  issues are  based on  state approved                                                               
water  quality standards  and DEC  certifies  that those  permits                                                               
comply  with state  law. When  DEC assumes  primacy it  will base                                                               
permit decision on those same  water quality standards. Also, EPA                                                               
will continue to provide oversight  once DEC begins to administer                                                               
the program.                                                                                                                    
                                                                                                                                
COMMISSIONER HARTIG  stated that  DEC's objective  is to  have an                                                               
exemplary  program that's  based on  the best  science, the  best                                                               
public process, and founded on good public policy.                                                                              
                                                                                                                                
2:24:55 PM                                                                                                                    
CAMERON  LEONARD,  Assistant  Attorney General,  Civil  Division,                                                               
Environmental Section,  Department of Law (DOL),  Fairbanks, drew                                                               
attention  to  several documents  in  the  packet that  might  be                                                               
helpful:  "NPDES   Program  Approval  Criteria"   and  "Sectional                                                               
Analysis  of  CSHB  149(RES). He  explained  that  the  statutory                                                               
changes will  make the  state program at  least as  stringent and                                                               
comprehensive as the  federal law, which is  necessary to receive                                                               
EPA sanction.                                                                                                                   
                                                                                                                                
2:26:58 PM                                                                                                                    
MR. LEONARD  said he will  give a sectional analysis.  Sections 1                                                               
and 5  address the kinds  of monitoring, sampling,  and reporting                                                               
requirements that  can be  placed within  or outside  a discharge                                                               
permit.  Section 1  gives DEC  authority  to require  monitoring,                                                               
sampling, and reporting outside the  permit that is equivalent to                                                               
Section  308 of  the federal  Clean  Water Act  (CWA). Section  5                                                               
deals with  monitoring, sampling, and reporting  within a permit.                                                               
The state law  will be equivalent to the federal  law with regard                                                               
to what can be put in a permit.                                                                                                 
                                                                                                                                
MR. LEONARD said Section 2  addresses differences in terminology.                                                               
The  CWA uses  the term  "discharges" and  Alaska Statute  uses a                                                               
different  term,  which  caused   EPA  concern  about  equivalent                                                               
authority. To address  the concern, the phrase  "or discharge" is                                                               
added  to  Alaska Statute  to  ensure  that  the scope  of  DEC's                                                               
permitting authority  is as broad  as the federal law.  Also, the                                                               
last sentence in this section  is deleted because it is redundant                                                               
and inconsistent. Discharges into  publicly owned treatment works                                                               
is addressed in Section 4.                                                                                                      
                                                                                                                                
Section  3 simply  clarifies that  DEC makes  the decision  about                                                               
which form  of authorization  to use for  any given  discharge or                                                               
activity.                                                                                                                       
                                                                                                                                
2:31:02 PM                                                                                                                    
MR.  LEONARD pointed  out that  Section 4  changes three  current                                                               
exemptions  in  AS  46.03.100(e).  EPA  was  concerned  that  the                                                               
federal  exemptions were  not as  broad so  the state  exemptions                                                               
were tightened. The first change  in .100(e)(1) deletes reference                                                               
to  "sewerage  system"  and  inserts  "publicly  owned  treatment                                                               
works" to match the federal exemption.                                                                                          
                                                                                                                                
CHAIR FRENCH clarified  that neither EPA nor DEC  would require a                                                               
permit for discharge into a publicly owned treatment plant.                                                                     
                                                                                                                                
MR. LEONARD agreed.                                                                                                             
                                                                                                                                
CHAIR FRENCH  asked if there's really  a difference or if  it's a                                                               
matter of semantics.                                                                                                            
                                                                                                                                
MR. LEONARD  explained that  under state  law the  term "sewerage                                                               
system" is  defined more broadly  than "publicly  owned treatment                                                               
works." That could be interpreted  to include a pipe running from                                                               
your house to the river so it was probably too broad.                                                                           
                                                                                                                                
CHAIR FRENCH asked if he would  say that this is more restrictive                                                               
than under current state law.                                                                                                   
                                                                                                                                
MR. LEONARD said there's no question about that.                                                                                
                                                                                                                                
2:33:23 PM                                                                                                                    
MR.  LEONARD said  the  second change  occurs  in .100(e)(4)  and                                                               
relates to  incidental discharges  such as water  from trenching,                                                               
drilling,  or  ditching.  It's  referred  to  as  the  incidental                                                               
discharge exception,  but basically  there was only  an exemption                                                               
if  the activity  did  not  result in  a  discharge into  surface                                                               
waters. Current  state law  uses the term  "surface water  of the                                                               
state" and  federal law uses  "waters of the United  States." The                                                               
phrases are similar  but not identical, so this  ensures that the                                                               
state  exemption isn't  any broader  than what  is allowed  under                                                               
federal law.                                                                                                                    
                                                                                                                                
The third  change occurs in  .100(e)(7) and relates  to discharge                                                               
of munitions.  Generally, the discharge of  munitions is exempted                                                               
from  the requirement  of getting  state authorization  unless it                                                               
results  in a  discharge into  water.  To match  federal law  the                                                               
phrase  "unless it  results in  a  discharge into  waters of  the                                                               
United States" is added.                                                                                                        
                                                                                                                                
CHAIR FRENCH  asked if  this will impact  the enormous  amount of                                                               
military training  exercises that occur around  Anchorage and the                                                               
Interior.                                                                                                                       
                                                                                                                                
MR. LEONARD replied  it's really just a change  in the permitting                                                               
agency. Applications will go to the state instead of EPA.                                                                       
                                                                                                                                
2:35:28 PM                                                                                                                    
MR. LEONARD reminded members that  Section 5 is linked to Section                                                               
1.  It   expands  DEC's  authority  to   include  monitoring  and                                                               
reporting  requirements  in  permits  to  be  equivalent  to  EPA                                                               
authority under the CWA.                                                                                                        
                                                                                                                                
He explained that  Sections 6 and 7 clarify that  the state's use                                                               
of the term "waste material"  includes "pollutants" as defined in                                                               
the CWA.                                                                                                                        
                                                                                                                                
MR.  LEONARD said  Section  8 adds  a new  subsection  (i) to  AS                                                               
46.03.790.  Current  state law  bases  its  criminal program  for                                                               
environmental  issues on  criminal  negligence,  which is  higher                                                               
state of  mind as defined in  the statute. EPA didn't  agree with                                                               
that  because   the  state  is   requiring  a  higher   level  of                                                               
culpability to  do criminal prosecutions  than is  required under                                                               
the  CWA.  For  purposes  of the  APDES  program  only,  criminal                                                               
enforcement is based on ordinary negligence.                                                                                    
                                                                                                                                
MR. LEONARD said Section 9 provides an immediate effective date.                                                                
                                                                                                                                
2:38:05 PM                                                                                                                    
CHAIR FRENCH asked  where lawsuits would take place  if a citizen                                                               
is unhappy about a decision DEC made about issuing a permit.                                                                    
                                                                                                                                
MR. LEONARD  explained that  an appeal  of a  permitting decision                                                               
has  two stages.  Appeals  of  DEC permits  are  referred to  the                                                               
Office of  Administrative Hearings (OAH). Following  the hearing,                                                               
AOH typically makes  a recommendation to the  commissioner of DEC                                                               
who then makes a final decision  on the permit. If the citizen is                                                               
still  unhappy, he  or she  could  appeal to  the state  superior                                                               
court and ultimately to the state supreme court.                                                                                
                                                                                                                                
The other kind of litigation in  this program is called a citizen                                                               
suit. That's  when a  citizen sues for  violation of  an existing                                                               
permit.  Those cases  would continue  to go  to federal  district                                                               
court and those decisions are appealed to the Ninth Circuit.                                                                    
                                                                                                                                
CHAIR  FRENCH asked  why  a  citizen would  be  forced  to go  to                                                               
federal  court when  a  state  agency issued  the  permit and  is                                                               
overseeing the program.                                                                                                         
                                                                                                                                
2:40:13 PM                                                                                                                    
MR. LEONARD  replied those are  the provisions of a  citizen suit                                                               
under the CWA. He further explained  that a suit can't be brought                                                               
if the agency that issued the  permit is already enforcing it. So                                                               
if EPA attorneys  bring enforcement action on  a federally issued                                                               
permit a  citizen suit is precluded.  It will work the  same with                                                               
the state.  If DEC  is already  enforcing the  terms of  a permit                                                               
that  it  issued, the  suit  will  be  in  state court  and  that                                                               
precludes  a citizen  suit in  federal court.  He added  that EPA                                                               
attorneys  have  said  that  most citizen  suits  are  for  minor                                                               
violations and EPA usually isn't a participant.                                                                                 
                                                                                                                                
SENATOR  WIELECHOWSKI  asked how  many  cases  have been  brought                                                               
under the first scenario that in the future will be under OAH.                                                                  
                                                                                                                                
MR. LEONARD  said according  to a Region  10 attorney,  there are                                                               
very  few permit  appeals that  go to  the federal  environmental                                                               
appeals board (EAB)  and fewer yet to the  Ninth Circuit. There's                                                               
not a high volume of appeals on the state side either, he added.                                                                
                                                                                                                                
SENATOR WIELECHOWSKI  highlighted the  zero fiscal note  from the                                                               
Department  of  Law  and  asked  if  this  wouldn't  have  fiscal                                                               
ramification.                                                                                                                   
                                                                                                                                
MR. LEONARD replied  this bill doesn't affect  the resources that                                                               
DOL will have to invest in the program.                                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI  asked if  the DEC  and EPA  fine structures                                                               
are comparable.                                                                                                                 
                                                                                                                                
MR. LEONARD  explained that  the difference is  that EPA  has the                                                               
authority to assess a penalty  administratively and DEC has to go                                                               
to court.  However, that's  not an  obstacle to  program approval                                                               
because  the amount  of  damages DEC  can  recover satisfies  EPA                                                               
requirements. He agreed to provide the numbers.                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI again highlighted  the fiscal notes and said                                                               
he  hopes  they adequately  reflect  the  additional legal  work.                                                               
Referring  to  testimony in  the  other  body,  he asked  if  DEC                                                               
intends to list the same  requirements within the permit that EPA                                                               
lists or  if some of  those requirements would be  listed outside                                                               
the permit.                                                                                                                     
                                                                                                                                
MR. LEONARD referred  to his discussion about  the monitoring and                                                               
reporting requirements  and said  that's the  only area  that the                                                               
state has said it may list  outside the permits. The testimony in                                                               
the other body reflected the  belief that information that wasn't                                                               
tied to compliance with effluent  limits could inappropriately be                                                               
subject to citizen  suit enforcement if it was  listed within the                                                               
permit.                                                                                                                         
                                                                                                                                
2:45:57 PM                                                                                                                    
SENATOR  WIELECHOWSKI  summarized  that when  the  state  assumes                                                               
primacy  there  will  be less  monitoring  and  reporting  issues                                                               
within the DEC permit.                                                                                                          
                                                                                                                                
COMMISSIONER HARTIG stepped  in to clarify that there  will be no                                                               
difference between an EPA and a  DEC issued NPDES permit in terms                                                               
of  the   requirements  for  meeting  water   quality  standards.                                                               
Likewise,  there will  be  no difference  in  the monitoring  and                                                               
reporting requirements  for compliance  with those  water quality                                                               
standards. The difference  is that DEC wants  more flexibility to                                                               
ask permit holders to provide  additional data. Currently DEC and                                                               
EPA can ask for  more data, but EPA does it  under the permit. He                                                               
described a  hypothetical situation of  a discharger in  a remote                                                               
area in Alaska  that is asked to  collect additional information.                                                               
The permit holder  knows that the additional  data doesn't relate                                                               
to compliance with  any law. Although they're  willing to collect                                                               
the  data, agreeing  to  do  so within  the  permit is  worrisome                                                               
because if  they miss even  one collection they could  be subject                                                               
to a  citizen suit. Under  the CWA  there is strict  liability so                                                               
the fact  that the weather  was too bad  to collect the  data one                                                               
day is  not a defense.  The permit holder  could be exposed  to a                                                               
potentially severe penalty.                                                                                                     
                                                                                                                                
COMMISSIONER  HARTIG  said the  state  wants  the flexibility  of                                                               
putting the  request in a  separate agreement that's  outside the                                                               
permit. If  anything it increases  monitoring because  the permit                                                               
holder is  more likely  to agree to  enhanced monitoring  if they                                                               
know  it won't  expose  them  to liability  that  they would  not                                                               
otherwise have.                                                                                                                 
                                                                                                                                
2:49:15 PM                                                                                                                    
CHAIR FRENCH said the obvious  policy choice if whether the state                                                               
wants control over its own  permitting. The potential tradeoff is                                                               
whether the entity  that assumes control is as tough  as the EPA.                                                               
The next  administration may view  these matters  differently. He                                                               
asked if any state has returned primacy to the EPA.                                                                             
                                                                                                                                
COMMISSIONER  HARTIG said  he knows  that Alaska  is one  of five                                                               
states  that does  not  have  primacy, but  he  doesn't know  the                                                               
answer to the specific question.                                                                                                
                                                                                                                                
MR. LEONARD  said he isn't aware  of any state that  has given it                                                               
back.                                                                                                                           
                                                                                                                                
2:50:38 PM                                                                                                                    
SENATOR  THERRIAULT referred  to work  he did  years ago  to take                                                               
over the  404 discharge  permits. He said  he doesn't  recall any                                                               
state that ever gave that authority  back. He also worked on this                                                               
legislation  initially  and in  doing  that  research he  doesn't                                                               
recall any state that gave primacy back.                                                                                        
                                                                                                                                
SENATOR McGUIRE  highlighted the document titled  "NPDES Permits"                                                               
and read the following:                                                                                                         
                                                                                                                                
     Under  federal regulations,  any  state permit  program                                                                    
     must be as stringent as  EPA's program in order for EPA                                                                    
     to approve it.  That means that the  state must require                                                                    
     permits  for the  same operations  as does  EPA. Stated                                                                    
     another way, Alaska cannot  exempt from permit coverage                                                                    
     anyone who needs a federal permit.                                                                                         
                                                                                                                                
SENATOR McGUIRE  said that although  it appears that  states have                                                               
never given back control, any  administration that wasn't doing a                                                               
good job would attract the  attention of lawmakers or the federal                                                               
government. "I  like the  fact that  the EPA  has to  continue to                                                               
approve it," she added.                                                                                                         
                                                                                                                                
2:52:12 PM                                                                                                                    
SENATOR WIELECHOWSKI asked  if there are requirements  for DEC to                                                               
consult  with other  agencies such  as U.S  Fish and  Wildlife or                                                               
National  Marine  Fisheries  over   critical  habitat  issues  or                                                               
endangered species listings.                                                                                                    
                                                                                                                                
MR.  LEONARD  explained that  most  of  the federal  consultation                                                               
duties do  not apply  to a state  permit decision.  However, most                                                               
major projects  that require  an NPDES  permit also  require some                                                               
other federal  permit so  consultation will go  on base  on those                                                               
permits.                                                                                                                        
                                                                                                                                
SENATOR WIELECHOWSKI  asked if that  won't result in  more third-                                                               
party lawsuits.                                                                                                                 
                                                                                                                                
MR. LEONARD explained that DEC  is required by regulation to send                                                               
copies of  draft permits  to all  the relevant  federal agencies.                                                               
Only time will tell if more citizen suits will be brought.                                                                      
                                                                                                                                
COMMISSIONER  HARTIG added  that  the basic  requirements of  the                                                               
Endangered  Species  Act  still  apply. Although  the  Section  7                                                               
requirement  that  one  federal agency  consult  another  federal                                                               
agency doesn't apply,  the taking prohibition under  Section 9 is                                                               
there.  It  would be  a  violation  of  the  federal act  if  the                                                               
permitted  action  resulted  in   the  taking  of  an  endangered                                                               
species.  DEC  doesn't want  to  set  anyone  up to  violate  the                                                               
Endangered  Species   Act.  Currently  the  APDES   workgroup  is                                                               
reviewing  a guidance  document  that will  be  available to  the                                                               
public in several weeks. It  discusses communication with federal                                                               
agencies, local  communities and  individuals to  assure everyone                                                               
that nothing  will be lost  when the state gets  primacy. Federal                                                               
agencies,  including  the  EPA,  will review  that  document.  He                                                               
offered to share it with the committee.                                                                                         
                                                                                                                                
2:55:39 PM                                                                                                                    
COMMISSIONER  HARTIG said  his last  point  is that  the EPA  has                                                               
oversight on  each permit, not  just the overall program.  It has                                                               
its  own memorandum  of agreement  established  with the  federal                                                               
agencies that DEC  consults with under essential  fish habitat or                                                               
the  Endangered  Species Act.  It  establishes  to how  EPA  will                                                               
review  the state's  permits and  consult with  the agencies.  It                                                               
also sets out the procedure if  it is disgruntled with a proposed                                                               
permit action.                                                                                                                  
                                                                                                                                
SENATOR  WIELECHOWSKI   reiterated  the  importance   for  having                                                               
guidelines in  place to protect  the state from  lawsuits. Little                                                               
or  no  consultation increases  the  likelihood  of lawsuits,  he                                                               
said.                                                                                                                           
                                                                                                                                
SENATOR  THERRIAULT  asked if  he  is  specifically referring  to                                                               
consultation with federal agencies.                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI  said yes;  the EPA  is required  to consult                                                               
with  those   federal  agencies,   but  DEC  doesn't   have  that                                                               
requirement.                                                                                                                    
                                                                                                                                
Commissioner  HARTIG relayed  that DEC  provides draft  copies of                                                               
all  its  permits to  the  agencies  directly. They  can  comment                                                               
directly to DEC or they can  work through EPA. He reiterated that                                                               
EPA has the authority to veto DEC permits.                                                                                      
                                                                                                                                
2:57:31 PM                                                                                                                    
SENATOR HUGGINS asked if this impacts DEC's role at Pebble Mine.                                                                
                                                                                                                                
COMMISSIONER HARTIG said  Pebble is on the radar, but  it's a bit                                                               
far  off. The  timeline  is  that the  state  will hopefully  get                                                               
primacy about  a year from now.  Then there will be  a three-year                                                               
phase-in  during  which time  the  state  will address  the  less                                                               
complicated permits  first. Unless  the Pebble  application comes                                                               
in 3-4  years from now, it's  more than likely that  the EPA will                                                               
write that permit.                                                                                                              
                                                                                                                                
2:59:07 PM                                                                                                                    
SENATOR HUGGINS  asked if any  individuals or  organizations will                                                               
have "their hair on fire" over DEC receiving this authority.                                                                    
                                                                                                                                
COMMISSIONER HARTIG acknowledged that  some people have expressed                                                               
concerns and those are being  addressed in various ways including                                                               
the  guidance  document. For  example,  that  document calls  for                                                               
consultation with  tribes. Although  some are concerned  that the                                                               
EPA  is more  rigorous than  the  state, he  agrees with  Senator                                                               
McGuire. If people don't respect the  job DEC is doing, he firmly                                                               
believes that  the legislature, the  EPA, and the courts  will do                                                               
something about it.                                                                                                             
                                                                                                                                
3:00:58 PM                                                                                                                    
CHAIR FRENCH  commented that it  says something that a  long list                                                               
of environmental  groups has not  signed up to testify  today. He                                                               
thanked Commissioner Hartig  and announced that he  would hold HB
149 in committee.                                                                                                               

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