Legislature(2023 - 2024)BUTROVICH 205

05/12/2023 03:30 PM Senate RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
**Streamed live on AKL.tv**
*+ SJR 12 SECTION 404 CWA PERMIT PROGRAM TELECONFERENCED
Moved SJR 12 Out of Committee
Uniform Rule 23 Waived
-- Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 104 TIMBER SALE: EXPEDITED/SALVAGE/NEGOTIATED TELECONFERENCED
Heard & Held
+= SB 69 GEOTHERMAL RESOURCES TELECONFERENCED
Heard & Held
             SJR 12-SECTION 404 CWA PERMIT PROGRAM                                                                          
                                                                                                                                
3:35:39 PM                                                                                                                    
CO-CHAIR  GIESSEL announced  the  consideration  of SENATE  JOINT                                                               
RESOLUTION  NO.  12  Supporting   action  by  the  United  States                                                               
Congress  to  authorize  and  appropriate  adequate  funding  for                                                               
states that assume  the dredge and fill  permitting program under                                                               
Section 404 of the Clean  Water Act; and expressing the intention                                                               
of  the  state  to  assume jurisdiction  over  the  program  when                                                               
funding is available.                                                                                                           
                                                                                                                                
3:35:51 PM                                                                                                                    
CO-CHAIR BISHOP,  speaking as  the sponsor  of SJR  12, explained                                                               
that  the  resolution  states  support   for  the  Department  of                                                               
Environmental Conservation's  (DEC) efforts to assume  the dredge                                                               
and fill permitting program under  Section 404 of the Clean Water                                                               
Act, and urges Congress to  appropriate the funds for states that                                                               
have  assumed  primacy.  He   clarified  that  the  Environmental                                                               
Protection  Agency  (EPA) would  still  retain  veto power  under                                                               
404(c)  as  well as  dredge  and  fill permitting  authority  for                                                               
federal waters of the US.                                                                                                       
                                                                                                                                
CO-CHAIR GIESSEL noted who was available to answer questions.                                                                   
                                                                                                                                
3:37:50 PM                                                                                                                    
SENATOR  KAWASAKI  asked  if  the  state  would  have  permitting                                                               
authority for  state waters but  not for Section 10  waters under                                                               
the 404 assumption.                                                                                                             
                                                                                                                                
3:38:30 PM                                                                                                                    
RANDY  BATES,   Director,  Division   of  Water,   Department  of                                                               
Environmental Conservation (DEC),  Juneau, Alaska, stated support                                                               
for SJR 12. He reported that  the department was working with the                                                               
congressional delegation, the funding  agencies at the Army Corps                                                               
of  Engineers (Corps)  and  the  Environmental Protection  Agency                                                               
(EPA), and  representative organizations the state  belongs to as                                                               
it look3 at  state primacy of the Section 404  program. He agreed                                                               
with the sponsor that EPA  will retain oversight authority over a                                                               
state-run  404  program  and the  Corps  will  retain  permitting                                                               
authority in the non-assumable Section  10 waters. The state will                                                               
assume permitting  authority in the assumable  Section 10 waters.                                                               
He deferred to Julie Pack to answer Senator Kawasaki's question.                                                                
                                                                                                                                
3:40:12 PM                                                                                                                    
JULIE  PACK, Assistant  Attorney General,  Environmental Section,                                                               
Civil Division,  Department of Law, Anchorage,  Alaska, confirmed                                                               
Mr. Bates' statement that once  the state assumes the Section 404                                                               
program, the  Corps will retain authority  over the non-assumable                                                               
Section 10 waters.                                                                                                              
                                                                                                                                
SENATOR KAWASAKI asked, if the  state were to assume 404 primacy,                                                               
whether permit applicants  would be faced with  working with both                                                               
EPA and the state when the  waterway has both Section 10 and non-                                                               
Section 10 waters.                                                                                                              
                                                                                                                                
MR. BATES  responded that it  was DEC's intention to  provide the                                                               
applicant  with an  option in  that circumstance.  They could  go                                                               
through the  Army Corps  of Engineers for  the entire  project or                                                               
they  could get  a permit  from  the Corps  for the  part of  the                                                               
project that's under the Corps'  jurisdiction and get a state 404                                                               
permit  for  the part  of  the  project  that  is inland  of  the                                                               
retained waters boundary.                                                                                                       
                                                                                                                                
SENATOR KAWASAKI  asked under what circumstance  an applicant who                                                               
is  interfacing two  separate  waterbodies  would forego  working                                                               
with the state and opt to work only with the federal government.                                                                
                                                                                                                                
MR. BATES cited  the example of a project that  has just a sliver                                                               
of state waters and the  rest is non-assumable Section 10 waters.                                                               
He continued that  for a project that is  substantially in state-                                                               
assumed  waters   or  that   has  some   compensatory  mitigation                                                               
requirements that the state could  manage more appropriately, the                                                               
applicant may choose to bifurcate the review process.                                                                           
                                                                                                                                
3:45:02 PM                                                                                                                    
CO-CHAIR  GIESSEL  opened public  testimony  on  SJR 12;  finding                                                               
none, she closed public testimony.                                                                                              
                                                                                                                                
3:45:26 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:47:08 PM                                                                                                                    
CO-CHAIR GIESSEL reconvened the meeting and noted that there was                                                                
an amendment for the committee to consider.                                                                                     
                                                                                                                                
3:47:19 PM                                                                                                                    
SENATOR WIELECHOWSKI moved to adopt Amendment 1 to SJR 12, work                                                                 
order 33-LS0846\A.1, on behalf of Senator Claman.                                                                               
                                                                                                                                
                                                   33-LS0846\A.1                                                                
                                                       Radford                                                                  
                                                        5/12/23                                                                 
                                                                                                                                
                          AMENDMENT 1                                                                                           
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE             BY SENATOR CLAMAN                                                                        
          TO:  SJR 12                                                                                                           
                                                                                                                                
                                                                                                                                
     Page 1, line 3, following "Act;"                                                                                         
          Insert  "supporting federal  funding to  locate in                                                                  
     the  state  a  United States  Environmental  Protection                                                                  
     Agency office that serves the state;"                                                                                    
                                                                                                                                
     Page 2, following line 10:                                                                                                 
          Insert new material to read:                                                                                          
          "WHEREAS    the   United    States   Environmental                                                                  
     Protection  Agency  office  that serves  the  state  is                                                                    
     located in  Seattle, Washington,  which is  1,448 miles                                                                    
     away from Anchorage, the state's largest city; and"                                                                        
                                                                                                                                
     Page 2, following line 27:                                                                                                 
          Insert new material to read:                                                                                          
          "FURTHER   RESOLVED   that    the   Alaska   State                                                                  
     Legislature  supports federal  funding  for the  United                                                                    
     States  Environmental  Protection  Agency  office  that                                                                    
     serves the  state to  be located in  the state;  and be                                                                    
     it"                                                                                                                        
                                                                                                                                
3:47:24 PM                                                                                                                    
CO-CHAIR GIESSEL objected for purposes of discussion.                                                                           
                                                                                                                                
SENATOR  WIELECHOWSKI   qualified  that   he  was   offering  the                                                               
amendment  for  Senator  Claman  who was  presenting  a  bill  in                                                               
another  committee.  He  read  Amendment   1  and  suggested  the                                                               
department articulate its position on the amendment.                                                                            
                                                                                                                                
CO-CHAIR GIESSEL asked Mr. Bates to comment on Amendment 1.                                                                     
                                                                                                                                
3:48:11 PM                                                                                                                    
MR.  BATES stated  that DEC  doesn't object  to Amendment  1, but                                                               
believes that it may be redundant  as there already is a district                                                               
office  in the  federal  building  in Anchorage  for  EPA. It  is                                                               
staffed by Region 10, which  includes Alaska, Washington, Oregon,                                                               
and  Idaho and  that office  interacts  with Washington  DC on  a                                                               
regular  basis. He  also  noted  that at  one  time  there was  a                                                               
district office  for EPA in  the federal building in  the capital                                                               
[city].                                                                                                                         
                                                                                                                                
3:49:00 PM                                                                                                                    
SENATOR DUNBAR asked  whether the EPA office for  Alaska was ever                                                               
located in Seattle.                                                                                                             
                                                                                                                                
MR. BATES  said he  wasn't aware  of a  district office  that was                                                               
outside  the state,  but there  is  a significant  Region 10  EPA                                                               
office in Seattle and DEC works with that office regularly.                                                                     
                                                                                                                                
CO-CHAIR  BISHOP  asked him  to  clarify  that the  EPA  district                                                               
office  was  in the  federal  building  in  the Capital  City  of                                                               
Juneau, not the state capitol building in Juneau.                                                                               
                                                                                                                                
MR. BATES said  that's correct; EPA district  offices are located                                                               
in federal buildings.                                                                                                           
                                                                                                                                
SENATOR WIELECHOWSKI  asked how  many EPA  employees were  in the                                                               
Anchorage district office.                                                                                                      
                                                                                                                                
3:50:23 PM                                                                                                                    
MR. BATES said  he didn't know the exact number  but he was aware                                                               
of  several   attorneys,  some   staff,  and   some  higher-level                                                               
positions that were counters to his supervisor.                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI asked  what percentage of the  work is being                                                               
done in Anchorage as opposed to Seattle.                                                                                        
                                                                                                                                
MR. BATES  said he didn't  know but he  would follow up  with EPA                                                               
and provide an answer.                                                                                                          
                                                                                                                                
3:51:01 PM                                                                                                                    
SENATOR WIELECHOWSKI withdrew Amendment 1  and asked Mr. Bates to                                                               
provide a response as quickly as possible.                                                                                      
                                                                                                                                
CO-CHAIR GIESSEL stated that Amendment 1 has been withdrawn.                                                                    
                                                                                                                                
3:51:30 PM                                                                                                                    
SENATOR KAWASAKI  asked what the  impact has been on  the general                                                               
fund since  the state  assumed the Section  402 program  about 12                                                               
years ago.                                                                                                                      
                                                                                                                                
3:52:04 PM                                                                                                                    
MR. BATES said  the Section 402 program  for wastewater discharge                                                               
permitting was implemented in phases  from 2008 through 2012. The                                                               
state currently  receives about $2.6  million in  federal support                                                               
and  the state  has been  providing about  $1.5 million  from the                                                               
general  fund,  which is  a  little  more  than the  required  25                                                               
percent match,  and the permit  fees bring another  $1.5 million.                                                               
In total, the 402 program operates on about $5.5 million.                                                                       
                                                                                                                                
DEC estimates that  the funding for the 404 program  will be $4.9                                                               
million  in FY2024  and $4.7  million in  subsequent years.  This                                                               
includes  32 staff.  Current funding  for the  404 program  would                                                               
come  from the  general  fund (GF)  and  the resolution  requests                                                               
federal funding  to offset  some of the  GF. Building  the permit                                                               
fees  into  the   404  program  will  offset   the  general  fund                                                               
requirement much like it currently does in the 402 program.                                                                     
                                                                                                                                
3:53:59 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:54:09 PM                                                                                                                    
CO-CHAIR  GIESSEL  reconvened  the meeting.  Finding  no  further                                                               
questions, she solicited a motion.                                                                                              
                                                                                                                                
3:54:19 PM                                                                                                                    
CO-CHAIR BISHOP moved  to report SJR 12,  work order 33-LS0846\A,                                                               
from committee with individual  recommendations and attached zero                                                               
fiscal note.                                                                                                                    
                                                                                                                                
3:54:33 PM                                                                                                                    
CO-CHAIR GIESSEL found no objection  and SJR 12 was reported from                                                               
the Senate Resources Standing Committee.                                                                                        

Document Name Date/Time Subjects
SJR 12 Sponsor Statement v A 05.12.23.pdf SRES 5/12/2023 3:30:00 PM
SJR 12
SJR 12 Support Document - DEC 404 FAQ.pdf SRES 5/12/2023 3:30:00 PM
SJR 12
SJR 12 Support Document - DEC 404 Assumption Cheat Sheet.pdf SRES 5/12/2023 3:30:00 PM
SJR 12
SJR 12 Fiscal Note 05.12.23.pdf SRES 5/12/2023 3:30:00 PM
SJR 12
HB 104 CS WORKDRAFT Version D 05.12.23.pdf SRES 5/12/2023 3:30:00 PM
HB 104
SJR 12 Amendment #1.pdf SRES 5/12/2023 3:30:00 PM
SJR 12
HB 104 Explanation of Changes Ver. U.A to Ver. D 05.12.23.pdf SRES 5/12/2023 3:30:00 PM
HB 104