Legislature(2003 - 2004)

01/20/2004 03:35 PM Senate STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
           SB 190-KENAI RIVER SPECIAL MANAGEMENT AREA                                                                       
                                                                                                                                
CHAIR GARY STEVENS  announced SB 190 to be  up for consideration.                                                               
He  advised  that  committee   substitute  (CS)  23-LS0961\H  was                                                               
offered  and asked  for  a  motion to  adopt  it  as the  working                                                               
document.                                                                                                                       
                                                                                                                                
SENATOR GRETCHEN  GUESS motioned  to adopt the  \H version  of SB
190 as  the working document. There  was no objection and  it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
CHAIR GARY STEVENS asked Senator Wagoner to step forward.                                                                       
                                                                                                                                
SENATOR THOMAS  WAGONER, sponsor,  introduced Amy Seitz  and said                                                               
that she  worked on SB 190  when she was staff  to Representative                                                               
Lancaster.                                                                                                                      
                                                                                                                                
He  explained  that   the  issue  has  some   history.  In  2001,                                                               
Representative Lancaster  introduced a  bill to add  nearly 8,000                                                               
acres  to the  Kenai River  Special Management  Area. Because  of                                                               
problems  with  a  federal energy  regulation  commission,  3,500                                                               
acres  in  the  Kenai  Lake  area  were  removed.  In  subsequent                                                               
hearings, the acreage  was further reduced to 536  acres, most of                                                               
which  were  acquired  as habitat  recreation  lands  with  Exxon                                                               
Valdez Oil Spill (EVOS) money.                                                                                                  
                                                                                                                                
SENATOR WAGONER  pointed out that  SB 190 includes  the provision                                                               
that  makes agency  personnel ex  officio or  non-voting members.                                                               
State  and federal  employees are  valuable for  their expertise,                                                               
but he  said he firmly supports  the concept of a  true citizen's                                                               
advisory council.                                                                                                               
                                                                                                                                
CHAIR  GARY STEVENS  clarified that  the only  difference between                                                               
the original  bill and the \H  version is the composition  of the                                                               
advisory board.  The change is  on page  5, lines 11-13  and says                                                               
that employees,  elected officials or representatives  of a state                                                               
or  federal government  who were  members of  the advisory  board                                                               
would serve as ex officio or non-voting members.                                                                                
                                                                                                                                
SENATOR GRETCHEN GUESS  noted that "adjacent to  the Kenai River"                                                               
was added  after "municipalities"  on page 5,  line 9  to clarify                                                               
that the advisory board represents specific municipalities.                                                                     
                                                                                                                                
SENATOR WAGONER advised that provision  was added to preclude the                                                               
difficulty  the  Aquaculture   Association  experienced  when  an                                                               
interpretation became too broad.                                                                                                
                                                                                                                                
SENATOR JOHN COWDERY commented that  catching a salmon fishing on                                                               
the Kenai River is a large industry.                                                                                            
                                                                                                                                
SENATOR WAGONER agreed  saying it's a big part  of the summertime                                                               
economy  of  Kenai,  Soldotna  and   the  upper  river  area.  In                                                               
particular,  the upper  river area  is becoming  world known  for                                                               
float  trips  and  fly-fishing  and  the  resource  needs  to  be                                                               
protected.                                                                                                                      
                                                                                                                                
He pointed  out that SB 190  is basically the same  bill that the                                                               
Senate Resources Committee passed in  2002 [HB 165] at which time                                                               
there was  considerable public comment  regarding adding  land to                                                               
the Kenai  River Special Management  Area. He noted that  most of                                                               
the  land under  consideration  is not  suitable for  development                                                               
because of wetland issues, but  any additional development on the                                                               
Kenai  River  threatens the  continued  viability  of the  salmon                                                               
runs.                                                                                                                           
                                                                                                                                
To  address  the concern  regarding  removing  federal and  state                                                               
employees from the  board, he pointed out that they  were made ex                                                               
officio  members  and would  continue  to  provide expertise  and                                                               
guidance. He  described the bill as  " all in all,  a pretty good                                                               
bill " and  noted that the controversial lands  had been removed.                                                               
He asked if there were any questions.                                                                                           
                                                                                                                                
CHAIR GARY  STEVENS referred to page  5, lines 2-5 and  asked for                                                               
clarification that this allows for oil and gas leasing.                                                                         
                                                                                                                                
SENATOR WAGONER asked that Department  of Natural Resources (DNR)                                                               
representative to elaborate.                                                                                                    
                                                                                                                                
CHAIR  GARY  STEVENS  announced   that  Gary  Morrison  and  Pete                                                               
Panarese  from Anchorage  and Chris  Degernes from  Soldotna were                                                               
available via  teleconference and  asked whether  any of  the men                                                               
would like to address oil and gas questions.                                                                                    
                                                                                                                                
PETE  PANARESE, Division  of Parks  and Outdoor  Recreation, DNR,                                                               
reported that he  reviewed the language in the  CS and determined                                                               
that  the wording  was simply  reworked to  make a  more readable                                                               
document.                                                                                                                       
                                                                                                                                
CHAIR GARY  STEVENS observed  that the bill  states that  oil and                                                               
gas leasing is open on the lands and follows state law.                                                                         
                                                                                                                                
MR. PANARESE agreed saying, "The state lands."                                                                                  
                                                                                                                                
SENATOR GUESS  asked Senator  Wagoner to  explain the  duties and                                                               
authority  of the  Kenai River  Special Management  Area Advisory                                                               
Board.                                                                                                                          
                                                                                                                                
SENATOR WAGONER  acknowledged that  he wasn't  an expert  and was                                                               
carrying the bill at Representative  Lancaster's request. He said                                                               
he  knows they  are  instrumental in  reviewing  the Kenai  River                                                               
system from  the mouth up  through Kenai Lake. They  work closely                                                               
with the Division  of Parks and Outdoor Recreation  and the Kenai                                                               
River Center. It is a user  group advisory board that is composed                                                               
of  citizens at  large, commercial  fishermen, and  sport fishing                                                               
guides. With regard to their  exact authority, he admitted he was                                                               
unsure  because most  of the  actual  enforcement and  regulation                                                               
authority rests with the state parks.                                                                                           
                                                                                                                                
SENATOR GUESS referred to page 5, line  9 and asked if there is a                                                               
definition for "user  groups" in the by laws so  that it would be                                                               
easier to determine who is and is not a user group.                                                                             
                                                                                                                                
SENATOR  WAGONER  said  that  user   groups  are  those  that  he                                                               
previously   defined:  the   general  public   including  several                                                               
municipalities, sports fishing  guides, and commercial fishermen.                                                               
"That pretty  well covers the whole  gauntlet of those of  us who                                                               
are interested  in preserving the  pristine beauty  and viability                                                               
of the  Kenai River  system and  the fish runs  that are  in it."                                                               
Also, the board  members are appointed every four  years and half                                                               
are rotated every two years.                                                                                                    
                                                                                                                                
SENATOR  GUESS asked  for elaboration  regarding  why areas  were                                                               
removed  from Representative  Lancaster's original  bill and  why                                                               
some of the lands were controversial.                                                                                           
                                                                                                                                
SENATOR  WAGONER said  the largest  controversy was  with Chugach                                                               
Electric and  related to access to  the flume, the road,  and the                                                               
rights of  way. Also, some  land was  to be purchased  or traded,                                                               
but  the state  is no  longer purchasing  additional property  to                                                               
include in reserves.                                                                                                            
                                                                                                                                
SENATOR  GUESS asked  if it  was  correct that  those lands  were                                                               
included  initially  because they  were  important  to the  river                                                               
system.                                                                                                                         
                                                                                                                                
SENATOR WAGONER said they were  undeveloped properties and it was                                                               
desirable to  keep them that way.  He admitted that he  agreed to                                                               
carry the bill  with the EVOS lands because they  were lands that                                                               
the state  had already purchased  and it would protect  them from                                                               
future development.                                                                                                             
                                                                                                                                
SENATOR  GUESS  questioned whether  some  of  the land  that  was                                                               
excluded is  critical to  ensure the habitat  of the  Kenai River                                                               
system.                                                                                                                         
                                                                                                                                
SENATOR WAGONER  opined they aren't  as critical as they  used to                                                               
be because development restrictions  are more stringent than they                                                               
used to  be. He  stated that he  isn't interested  in controlling                                                               
what  another person  may do  with their  property, but  property                                                               
rights on the Kenai River affect  far more people than just those                                                               
along the  river. It  is a  valuable system and  no one  wants to                                                               
lose it.                                                                                                                        
                                                                                                                                
SENATOR  GUESS asked  if  there  is a  reason  for the  immediate                                                               
effective date.                                                                                                                 
                                                                                                                                
SENATOR WAGONER  replied it isn't  a burning issue  and continued                                                               
to describe this as a non-partisan issue.                                                                                       
                                                                                                                                
SENATOR  BERT STEDMAN  noted  that  SB 190  applies  to just  536                                                               
acres, but that  it has a broader reach, as  it would protect the                                                               
Kenai River for generations to come.                                                                                            
                                                                                                                                
SENATOR WAGONER agreed.                                                                                                         
                                                                                                                                
SENATOR  STEDMAN  asked that  Senator  Wagoner  explain the  EVOS                                                               
acronym and how it relates to the Exxon Valdez.                                                                                 
                                                                                                                                
SENATOR WAGONER explained  that EVOS stands for  Exxon Valdez Oil                                                               
Settlement. Close to a $1  billion settlement was reached between                                                               
Exxon, the  State of Alaska  and the federal government.  A large                                                               
percentage of  that money  was used to  buy private  sector lands                                                               
and return  them to  the state, but  the current  governor halted                                                               
the practice.                                                                                                                   
                                                                                                                                
SENATOR  STEDMAN  observed that  these  lands  would be  held  in                                                               
perpetuity as untouched lands for future generations to enjoy.                                                                  
                                                                                                                                
SENATOR WAGONER agreed  and said that although most  of the lands                                                               
are  wetlands or  have wetlands  on  them, SB  190 ensures  their                                                               
protection by placing them in the park system.                                                                                  
                                                                                                                                
CHAIR GARY STEVENS called on Ted Wellman to give testimony.                                                                     
                                                                                                                                
TED  WELLMAN  from  Anchorage testified  via  teleconference.  He                                                               
advised that he was speaking for  himself, but that he has served                                                               
on the  Kenai River  Special Management  Area Advisory  Board for                                                               
eight years. He  spoke in support of the bill  with regard to the                                                               
acreage, but  disagreed with making  some of the members  ad hoc.                                                               
Initially he was not in favor  of allowing agency members to vote                                                               
but has since  changed his mind. They have  a stabilizing quality                                                               
and  provide regular  and ongoing  information to  the board.  He                                                               
expressed  concern  that  a special  interest  group  might  gain                                                               
control of the board and drive it in the wrong direction.                                                                       
                                                                                                                                
MR  WELLMAN stated  no  objection to  the  Department of  Natural                                                               
Resources  and the  Department of  Fish and  Game having  no vote                                                               
because  they are  "too  close." However,  he  believes that  the                                                               
refuge and Forest  Service should be voting  members because they                                                               
prevent  any user  group among  the public  members from  gaining                                                               
control of the board. In his  eight years on the board, there was                                                               
no  problem with  the  agencies  voting and  he  could recall  no                                                               
instance in which the agency member made a determining vote.                                                                    
                                                                                                                                
To clarify  any misunderstanding, he  explained that  the Chugach                                                               
Electric  property was  a small  part  of the  land selected  for                                                               
inclusion in the park. Most of  the land slated for inclusion did                                                               
not  have  to  be  purchased.  There  was  some  objection  about                                                               
commercial development  around Kenai Lake and  after an extensive                                                               
public process, the board recommended  including the areas in the                                                               
park  to protect  the river.  In particular,  exchanges regarding                                                               
commercial and  non-commercial development in the  Cooper Landing                                                               
area  were   fiery,  but  the   board  thought   that  commercial                                                               
development was incompatible with the river.                                                                                    
                                                                                                                                
He  expressed pleasure  that  SB  190 would  add  536 acres,  but                                                               
stated  his belief  that the  other  land should  be included  as                                                               
well.  He then  acknowledged that  Chugach Electric's  objections                                                               
were legitimate.  He said he  would be happy to  answer questions                                                               
about how the board works.                                                                                                      
                                                                                                                                
CHAIR  GARY STEVENS  asked Mr.  Wellman to  comment on  the board                                                               
responsibilities and what it accomplishes.                                                                                      
                                                                                                                                
MR.  WELLMAN explained  that  in  the mid  1990s,  the board  was                                                               
charged with  redeveloping the comprehensive  plan for  the Kenai                                                               
River. They did  so through an extensive  public hearing process.                                                               
The plan  addresses all  activity on the  river. They  review and                                                               
comment on  permit applications for  building on the  river, they                                                               
participate  in water  quality  monitoring  studies, they  review                                                               
enforcement  issues related  to guiding  activities, they  advise                                                               
the park on  guide stipulations and numbers, and  they review and                                                               
comment on any other uses related  to the river that might affect                                                               
the public.  Generally, they  are very  active and  aggressive in                                                               
protecting the river.                                                                                                           
                                                                                                                                
4:00 pm                                                                                                                       
                                                                                                                              
CHAIR GARY STEVENS asked Mr. Vincent-Lang to give testimony.                                                                    
                                                                                                                                
DOUG  VINCENT-LANG, Department  of Fish  and Game,  testified via                                                               
teleconference  to  say  that  the   land  under  discussion  was                                                               
specifically purchased to  be set aside. They  are EVOS purchases                                                               
and most are  wetlands that form critical habitat  to sustain the                                                               
fisheries.                                                                                                                      
                                                                                                                                
SENATOR  WAGONER remarked  that Mr.  Wellman brought  up a  point                                                               
that  might  benefit  from additional  clarification.  The  water                                                               
quality  study  on  the  Kenai   River  that  the  Department  of                                                               
Environmental Conservation  (DEC) was involved in  was not funded                                                               
last year. He advised that he  is working to re fund that program                                                               
so that  the water  quality study  can be  completed in  the next                                                               
year or two.                                                                                                                    
                                                                                                                                
SENATOR  GARY STEVENS  noted  that  the bill  would  move to  the                                                               
Senate   Resources  Committee   next.  Fiscal   notes  from   the                                                               
Department of  Natural Resources and  the Department of  Fish and                                                               
Game were  attached and the bill  did not have a  referral to the                                                               
Finance Committee.                                                                                                              
                                                                                                                                
SENATOR JOHN  COWDERY made  a motion to  move CSSB  190(STA) from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
notes. There was no objection and it was so ordered.                                                                            

Document Name Date/Time Subjects