Legislature(2003 - 2004)

03/26/2003 06:36 PM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 26, 2003                                                                                         
                            6:36 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Dan Ogg                                                                                                          
Representative Ralph Samuels                                                                                                    
Representative Ethan Berkowitz                                                                                                  
Representative David Guttenberg                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Cheryll Heinze                                                                                                   
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Les Gara                                                                                                         
Representative Beth Kerttula                                                                                                    
Representative Bill Williams                                                                                                    
Representative Kelly Wolf                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
EXECUTIVE ORDER 107 - TRANSFER OF HABITAT FUNCTIONS FROM ADF&G                                                                  
TO DNR                                                                                                                          
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TOM IRWIN, Commissioner                                                                                                         
Department of Natural Resources (DNR)                                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the hearing on EO 107,                                                                    
explaining the reorganization and answering questions previously                                                                
submitted for response.                                                                                                         
                                                                                                                                
KEVIN DUFFY, Commissioner                                                                                                       
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified  during the  hearing  on EO  107,                                                               
answering questions previously submitted for response.                                                                          
                                                                                                                                
NANCY WELCH, Deputy Director                                                                                                    
Division of Mining, Land and Water                                                                                              
Department of Natural Resources (DNR)                                                                                           
POSITION STATEMENT:  Testified on EO 107  and referred to  charts                                                               
to help  explain the  reorganization involved  with the  proposed                                                               
changes to the departments.                                                                                                     
                                                                                                                                
KERRY HOWARD, Deputy Director                                                                                                   
Division of Habitat and Restoration                                                                                             
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions pertaining to EO 107.                                                                   
                                                                                                                                
KEVIN BROOKS, Director                                                                                                          
Administrative Services                                                                                                         
Alaska Department of Fish & Game (ADF&G)                                                                                        
POSITION STATEMENT:   Testified  on EO  107, answering  questions                                                               
pertaining to administrative changes.                                                                                           
                                                                                                                                
DALE KELLY, Executive Director                                                                                                  
Alaska Trollers Association                                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified  on EO  107, expressing  concerns                                                               
that  the permitting  process remain  a good  one, and  that  the                                                               
commissioner's authority be re-engaged.                                                                                         
                                                                                                                                
EARL CHAMPION                                                                                                                   
Silver Bay Logging                                                                                                              
Hoonah, Alaska                                                                                                                  
POSITION STATEMENT:  Testified  on EO 107, suggesting that  "one-                                                               
stop shopping" would minimize delays in permitting.                                                                             
                                                                                                                                
PAUL SHADURA, President;                                                                                                        
Acting Executive Director                                                                                                       
Kenai Peninsula Fishermen's Association                                                                                         
Kenai, Alaska                                                                                                                   
POSITION STATEMENT:   Testified  on EO  107, expressing  concerns                                                               
over how  the system will  function effectively; asked  questions                                                               
such  as how  DNR will  respond to  recommendations made  by  the                                                               
Board of Fisheries.                                                                                                             
                                                                                                                                
FRANK RUE                                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Referred  to his  previous work  experience                                                               
for both  DNR and  ADF&G and testified  on behalf  of himself  in                                                               
opposition to EO 107.                                                                                                           
                                                                                                                                
CATHERINE POHL                                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified in strong opposition, urging  the                                                               
committee to overturn EO 107.                                                                                                   
                                                                                                                                
STEVE ALBERT, Habitat Biologist                                                                                                 
Division of Habitat and Restoration                                                                                             
Alaska Department of Fish & Game (ADF&G)                                                                                        
Eagle River, Alaska                                                                                                             
POSITION STATEMENT:   Testified  on the  tangible and  intangible                                                               
costs involved with EO 107.                                                                                                     
                                                                                                                                
BOB CHURCHILL, Member                                                                                                           
Anchorage Fish and Game Advisory Committee;                                                                                     
Member, Executive Board                                                                                                         
Alaska Fly Fishers                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified  on EO 107,  expressing the  need                                                               
for  accountability   to  be   established  under  the   proposed                                                               
structure.                                                                                                                      
                                                                                                                                
CLEM TILLION, Consultant                                                                                                        
Aleut Enterprise Corporation                                                                                                    
Adak, Alaska                                                                                                                    
POSITION STATEMENT:  Testified in support of EO 107.                                                                            
                                                                                                                                
PAULA TERRELL                                                                                                                   
Alaska Marine Conservation Council                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Expressed  concerns pertaining  to EO  107,                                                               
pointing   out  differences   between  single   versus   multiple                                                               
permitting, and DNR's versus ADF&G's mission statements.                                                                        
                                                                                                                                
SETH LITTLE                                                                                                                     
Alaska Center for the Environment                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified in opposition  to EO 107,  urging                                                               
the legislature to disapprove EO 107.                                                                                           
                                                                                                                                
BRUCE BAKER, President                                                                                                          
Board of Directors                                                                                                              
Southeast Alaska Conservation Council (SEACC)                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified in opposition  to EO 107,  asking                                                               
that consideration be given to the long-term health  of renewable                                                               
resources.                                                                                                                      
                                                                                                                                
GEOFFREY PARKER, Vice President                                                                                                 
State Council of Trout Unlimited;                                                                                               
Counsel to Alaska Sportfishing Association                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to EO  107, offering                                                               
suggestions on how to improve it.                                                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 03-19, SIDE A                                                                                                            
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  PAUL  SEATON   called  the  House  Special  Committee   on                                                             
Fisheries meeting to order at 6:36 p.m.   Representatives Seaton,                                                               
Ogg, Samuels, Guttenberg, and Berkowitz were present at the  call                                                               
to order.   Representative Wilson arrived as  the meeting was  in                                                               
progress.   Also  present  were Representatives  Gara,  Kerttula,                                                               
Williams, and Wolf.                                                                                                             
                                                                                                                                
EXECUTIVE ORDER  107 - TRANSFER OF  HABITAT FUNCTIONS FROM  ADF&G                                                             
TO DNR                                                                                                                        
                                                                                                                                
Number 0100                                                                                                                     
                                                                                                                                
CHAIR  SEATON announced  that  the  only order  of  business  was                                                               
Executive  Order (EO)  107, Transfer  of Habitat  Functions  from                                                               
ADF&G to DNR.   He clarified that  the goal of tonight's  hearing                                                               
was  to  identify the  process,  procedure,  and  structure  that                                                               
EO 107 would be  creating at the Department of Natural  Resources                                                               
(DNR), to  identify problems with that  process and to  determine                                                               
improvements  to  ensure  that  habitat  and  fisheries  will  be                                                               
protected within DNR.                                                                                                           
                                                                                                                                
Number 0307                                                                                                                     
                                                                                                                                
CHAIR SEATON explained that the Alaska Department of Fish &  Game                                                               
(ADF&G) and DNR would  be responding to a list of questions  that                                                               
had previously been  compiled and submitted by the House  Special                                                               
Committee on Fisheries.   [The meeting's agenda consisted of  the                                                               
following panels  testifying before the  committee:  DNR,  ADF&G,                                                               
members  of industry,  former state  officials and  experts,  and                                                               
public interest groups.]                                                                                                        
                                                                                                                                
Number 0630                                                                                                                     
                                                                                                                                
TOM IRWIN, Commissioner,  Department of Natural Resources  (DNR),                                                               
expressed appreciation  for receiving the  questions in  advance.                                                               
He introduced  staff who would  testify during the  meeting.   He                                                               
said Commissioner  Duffy would  address the  questions first  and                                                               
that he himself would follow up.                                                                                                
                                                                                                                                
Number 0705                                                                                                                     
                                                                                                                                
KEVIN  DUFFY, Commissioner,  Alaska  Department of  Fish  &  Game                                                               
(ADF&G), provided the following testimony:                                                                                      
                                                                                                                                
     On  February 12th,  the governor  introduced  Executive                                                                    
     Order  107, transferring  the permitting  functions  of                                                                    
     the  [Division  of Habitat  and  Restoration  ("Habitat                                                                    
     Division")]  to  the  DNR.    Other  functions  of  the                                                                    
     Habitat  Division,  including  some  of  the  research,                                                                    
     refuge management,  and special  projects, will  remain                                                                    
     in the ADF&G.  The administration believes  that moving                                                                    
     this function  into the  DNR creates  a more  effective                                                                    
     permitting process.   Contrary to some of the  opinions                                                                    
     that  have  been expressed  in  previous  hearings,  we                                                                    
     believe  this  move  will  not  negatively  affect  the                                                                    
     protection  of  fish and  wildlife  habitats.    Alaska                                                                    
     statutes  and regulations  protecting habitat  are  not                                                                    
     being loosened.   The same protection afforded  habitat                                                                    
     throughout the  state  will remain,  whether along  the                                                                    
     coastal areas or in Alaska's vast interior.                                                                                
                                                                                                                                
Number 0819                                                                                                                     
                                                                                                                                
COMMISSIONER DUFFY  asked  and answered  the following  questions                                                               
from  his  written  testimony, which  read  in  part  as  follows                                                               
[original punctuation provided, with some formatting changes]:                                                                  
                                                                                                                                
     Question  2:   How many  Habitat biologists  are  being                                                                    
     lost.  How  will the remaining biologists be  organized                                                                    
     around the state?                                                                                                          
                                                                                                                                
     The number  of  habitat biologists  transferred to  DNR                                                                    
     was not a  random process, but rather the work  product                                                                    
     of a very intense work group that  evaluated region-by-                                                                    
     region work  loads,  staff time  dedicated to  research                                                                    
     associated with  permitting,  and regional  differences                                                                    
     in the  amount of  public participation for  permitting                                                                    
     issues.  The  number of Habitat Biologist IV, III,  and                                                                    
     IIs and support  staff was carefully selected based  on                                                                    
     past  and  present  workloads  within  each  region  to                                                                    
     adequately address  permitting needs.    Enclosed is  a                                                                    
     copy of  the organizational chart  showing the  various                                                                    
     offices proposed  in the  Office of Habitat  Management                                                                    
      and Permitting in the Department of Natural Resources.                                                                    
                                                                                                                                
     Also included  are  spreadsheets that  list the  number                                                                    
     and  location  of  habitat  biologists  that  will   be                                                                    
     transferred to  DNR,  those remaining  at [ADF&G],  and                                                                    
     those positions that will be laid off or deleted.   The                                                                    
     following  is   an  overview  of   the  positions   and                                                                    
     functions that will be transferred and  those remaining                                                                    
     at Fish and Game:                                                                                                          
                                                                                                                                
     Functions Moving to DNR:   27 Habitat Biologists and  a                                                                    
     total of 36 total positions.                                                                                               
                                                                                                                                
       · Title 16 fish passage and anadromous fish stream                                                                       
          permitting                                                                                                            
        · Anadromous Waters Catalog (regulatory function)                                                                       
       · Project-related research and monitoring                                                                                
       · Consistency reviews, land use plan reviews,                                                                            
          review of 6217 documents, coastal boundaries                                                                          
          atlas                                                                                                                 
       · Forest Resources and Practices Act permitting                                                                          
                                                                                                                                
     Functions internally within the department moving  from                                                                    
     Habitat and Restoration  Division to Sport Fish:   14.5                                                                    
     Habitat Biologists;  19.5 total  positions.   One  half                                                                    
     indicates a part-time position.                                                                                            
                                                                                                                                
       · Fish stream surveys and database                                                                                       
        · Various research and restoration projects (e.g.,                                                                      
          stream bank restoration manuals and assistance,                                                                       
          ATV study and mapping)                                                                                                
       · Oil spill contingency plan reviews                                                                                     
        · ACMP [Alaska Coastal Management Program] support                                                                      
          to ADF&G Commissioner                                                                                                 
       · Special Areas Permitting                                                                                               
        · Kachemak Bay National Estuarine Research Reserve                                                                      
          (an additional 6.5 Habitat and Fish Biologists;                                                                       
          10.5 total positions)                                                                                                 
                                                                                                                                
     Internal Functions moving  to the Division of  Wildlife                                                                    
     Conservation:     3  Habitat   Biologists;  4.5   total                                                                    
     positions include:                                                                                                         
                                                                                                                                
       · Access Defense                                                                                                         
       · CARA/SWG [Conservation and Reinvestment Act]                                                                           
       · North Slope Grizzly Project                                                                                            
                                                                                                                                
     Functions  Moving   to  the   Division  of   Commercial                                                                    
     Fisheries:  3   Habitat   Biologists  whose   functions                                                                    
     include:                                                                                                                   
                                                                                                                                
       · LTF [Log Transfer Facility] Dive Survey                                                                                
       · Mariculture Leases                                                                                                     
       · Invasive Species                                                                                                       
                                                                                                                                
     EVOS [Exxon  Valdez Oil Spill]  (1 position) -  staying                                                                    
     within ADF&G                                                                                                               
                                                                                                                                
        · ARLIS [Alaska Resources Library and Information                                                                       
          Service] Librarian                                                                                                    
                                                                                                                                
Number 1112                                                                                                                     
                                                                                                                                
COMMISSIONER DUFFY continued presenting his written                                                                             
questions and answers, which read in part [original                                                                             
punctuation provided, with some formatting changes]:                                                                            
                                                                                                                                
     Layoffs                                                                                                                    
                                                                                                                                
     In addition,  we eliminated  30  Full Time  and 5  non-                                                                    
     permanent  positions -  23  are currently  filled.    A                                                                    
     number   of  positions   that  were   eliminated   were                                                                    
     management  and  administrative in  nature.    We  also                                                                    
     added  an  area   office  in  the  Mat-Su  Valley   and                                                                    
     eliminated   two  others   in  Ketchikan   and   Sitka.                                                                    
     Collective   bargaining   agreements   dictate    which                                                                    
     employees  are  given layoff  notices.    Consequently,                                                                    
     staff with  the least seniority or  who were in  single                                                                    
     positions  that  were   eliminated  received  lay   off                                                                    
     notices that will become effective May 1st.                                                                                
                                                                                                                                
Number 1202                                                                                                                     
                                                                                                                                
     Question  3:   Specifically,  how  will  permitting  be                                                                    
     expedited and maintain standards with  less biologists?                                                                    
     Will   biologists  visit   each  stream   site   before                                                                    
     permitting Title 16 permits?  Is there a  commitment by                                                                    
     the Department  of Natural Resources  that there  would                                                                    
     continue to  be the  same level  of permit  monitoring,                                                                    
     compliance and enforcement as previously existed  under                                                                    
     ADF&G?                                                                                                                     
                                                                                                                                
     A goal  of  Executive Order  107 is  to improve  permit                                                                    
     efficiency.   The organizational  structure within  DNR                                                                    
     for the Office of Habitat Management and  Permitting as                                                                    
     well  as   the   Office  of   Project  Management   and                                                                    
     Permitting  under the  deputy  commissioner  will  more                                                                    
     closely align the functions of the  habitat biologists,                                                                    
     the Alaska  Coastal Management Program,  and the  large                                                                    
     project   permitting  teams.     The   closer   working                                                                    
     relationship will  increase communication and  "problem                                                                    
     solving"  that  should  expedite  reviews  and   permit                                                                    
     issuance  -  especially for  those  projects  requiring                                                                    
     permits from more than one state agency.                                                                                   
                                                                                                                                
Number 1317                                                                                                                     
                                                                                                                                
COMMISSIONER DUFFY continued with the next question [original                                                                   
punctuation provided, with some formatting changes]:                                                                            
                                                                                                                                
     Question  4:    How  does  funding  for  the  new  DHMP                                                                    
     [Division of Habitat, Management &  Permitting] compare                                                                    
     to past Habitat Div. Funding levels?                                                                                       
                                                                                                                                
     Over  the  last  10  years,  Division  of  Habitat  and                                                                    
     Restoration's  authorized  budget  has  increased  from                                                                    
     $4.36 million to $8.81 million.  However,  the division                                                                    
     only spent $4.0 to $6.1 million, respectively.  The  FY                                                                    
     [fiscal  year]  2004  proposed  budget  requests  $7.37                                                                    
     million  to  be authorized;  this  includes  only  $2.0                                                                    
     million of General  Fund.  That comparison is  attached                                                                    
     on a spreadsheet.                                                                                                          
                                                                                                                                
Number 1401                                                                                                                     
                                                                                                                                
COMMISSIONER   DUFFY   addressed   question   22,   noting   that                                                               
Commissioner Irwin would be responding to the other questions:                                                                  
                                                                                                                                
     Question  22:    Can  DNR  use  federal  Dingle-Johnson                                                                    
     monies or only Fish and Game?                                                                                              
                                                                                                                                
     The Act (16  U.S.C. § 777  et seq) defines "state  fish                                                                    
     and game agency" broadly enough to cover DNR.   The Act                                                                    
     also  speaks in  the singular  that one  could  presume                                                                    
     that it meant for only one such agency in each state.                                                                      
                                                                                                                                
Number 1429                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN  testified that he's  seen firsthand that  DNR                                                               
maintains a balance between what should be held for  multiple use                                                               
- including  habitat - and  what is developed.   In addition,  he                                                               
said, based  on his personal experience  with the development  of                                                               
property both at  Fort Knox and  True North, when development  is                                                               
allowed  on  state  land,  DNR  limits  that  development  to   a                                                               
footprint that minimizes the overall impact.                                                                                    
                                                                                                                                
Number 1554                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN  referred to written  testimony and  responded                                                               
to  the  remaining questions  as  follows  [original  punctuation                                                               
provided, with some formatting changes]:                                                                                        
                                                                                                                                
     Question 1:  Who will the Deputy Commissioner be?                                                                          
                                                                                                                                
     Dick LeFebvre  holds  the existing  position of  Deputy                                                                    
     Commissioner for  DNR.   At this point,  it is  unclear                                                                    
     whether  an  additional  Deputy  Commissioner  may   be                                                                    
     needed for the  increased workload associated with  the                                                                    
     transfer of two existing programs to DNR -  Habitat and                                                                    
     Coastal Zone Management  - plus the proposed Office  of                                                                    
     Project  Management  and  Permitting.    I   think  the                                                                    
     committee  would expect  us to  approach it  from  this                                                                    
     standpoint.  I  don't think that  you add and hope  you                                                                    
     can fill  the work.   In business you  find out if  you                                                                    
     have the workload  and then add  to it.  We  understand                                                                    
     there may be  a necessity and consequently we're  being                                                                    
     straightforward.  At this time Dick LeFebvre is  Deputy                                                                    
     Commissioner.                                                                                                              
                                                                                                                                
Number 1690                                                                                                                     
                                                                                                                                
     Question  5:    Commissioner  Irwin  has   stated  that                                                                    
     agencies work together  more efficiently when they  are                                                                    
     housed   under   the   same   departmental   structure.                                                                    
     Specifically,  how will  the  DHMP issue  permits  more                                                                    
     efficiently?   How  will this  intra-agency  efficiency                                                                    
     between DNR  and DHMP be  superior to the  efficiencies                                                                    
     experienced between  DNR, ADF&G,  and  the Habitat  and                                                                    
     Restoration Division?                                                                                                      
                                                                                                                                
     You  have   likely  heard  me   reference  the   Fraser                                                                    
     Institute  Report and  the  overall  perception  mining                                                                    
     companies have of  Alaska.  The Fraser Report's  figure                                                                    
     3, "Investment  Attractiveness Index," encompasses  all                                                                    
     the   parameters  such   as   infrastructure,   policy,                                                                    
     regulations, land  issues,  wilderness, Native  claims,                                                                    
     tax regime,  et cetera,  that led  to that  conclusion.                                                                    
     I'm  convinced  the  habitat  move  will  increase  the                                                                    
     overall  efficiency  of   the  permitting  process   by                                                                    
     increasing  communication and  providing  the  teamwork                                                                    
     necessary  and  then further  defining  the  regulatory                                                                    
     "sideboards"   that   will   provide   the   investment                                                                    
     community  with  additional certainty.    This  is  one                                                                    
     element  in changing  the "perception"  the  investment                                                                    
     community has of doing  business in Alaska.  By  moving                                                                    
     the  permitting portion  of  Habitat to  DNR,  Alaska's                                                                    
     statutes  and regulations  protecting habitat  are  not                                                                    
     being  loosened  and   the  same  protection   afforded                                                                    
     habitat  throughout the  state (coastal  and  interior)                                                                    
     will remain.                                                                                                               
                                                                                                                                
Number 1817                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN addressed the next question:                                                                                 
                                                                                                                                
     Question 6:  There has been a great deal of  talk about                                                                    
     the  slow  turnover  time  for  permits  when  multiple                                                                    
     agencies are involved.   Can you explain the  different                                                                    
     procedural approach DNR  will take with respect to  the                                                                    
     permitting   of   single-agency   and   multiple-agency                                                                    
     projects?                                                                                                                  
                                                                                                                                
     A large percentage of the habitat permits are  what can                                                                    
     be  framed as  single agency  -  where no  other  state                                                                    
     authorization is  needed for  the  project to  proceed.                                                                    
     These single-agency permits can be issued by  a habitat                                                                    
     biologist  while  performing  a  field  inspection   or                                                                    
     issued  in  the  office  after  consideration  of   the                                                                    
     proposal.  While  the balance of permit  authorizations                                                                    
     may be lesser  in number, typically the permits  needed                                                                    
     from more  than one agency  are associated with  larger                                                                    
     projects   that  require   more  time   for   acquiring                                                                    
     information, reviewing  alternatives to  the  proposal,                                                                    
     or  other  considerations.    We  expect  that  certain                                                                    
     efficiencies will be gained by having  project managers                                                                    
     in  the   department  that   can  keep   the  flow   of                                                                    
     information necessary to make timely decisions.                                                                            
                                                                                                                                
     Executive Order 107 is the mechanism to move  a portion                                                                    
     of the  Division of Habitat and  Restoration to DNR  to                                                                    
     further refine  and facilitate the permitting  process,                                                                    
     not to subsume one  permit under another.  The  managed                                                                    
     "multiple-agency" review, modeled after the Large  Mine                                                                    
     Permitting  Team concept,  expedites  the  issuance  of                                                                    
     "multiple    permits"     by    establishing     closer                                                                    
     communication  between disciplines  to  resolve  issues                                                                    
     and solve  problems.  Conflicting requirements  between                                                                    
     disciplines can normally  be resolved among the  multi-                                                                    
     program team  to ensure  the resource being  considered                                                                    
     is protected and the spirit of the law is met.   In the                                                                    
     event of a conflict that cannot be resolved  within the                                                                    
     permitting team  or by the  project manager, the  issue                                                                    
     would be  elevated to  the  director of  the Office  of                                                                    
     Project Management and  Permitting and the director  of                                                                    
     the Office  of  Habitat Management  and Permitting  for                                                                    
     resolution.    Further  elevation,  depending  on   the                                                                    
     particular   issue,    might    involve   the    deputy                                                                    
     commissioner and then the commissioner.                                                                                    
                                                                                                                                
Number 2039                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN continued:                                                                                                   
                                                                                                                                
     Question 7:  Why is there such a time delay  in issuing                                                                    
     water  usage  permits  by  DNR?     Specifically,  what                                                                    
     procedures will ensure  that Title 16 permits are  free                                                                    
     from similar delays?                                                                                                       
                                                                                                                                
     The  Division of  Mining, Land  & Water  Director,  Bob                                                                    
     Loeffler, states that  there is NOT a significant  time                                                                    
     delay  in  issuing water  use  permits.    Typical  DNR                                                                    
     temporary water rights  (outside the coastal zone)  are                                                                    
     issued within 20 days:  the 20 days includes an  agency                                                                    
     review period.   Typical  water right permits  (outside                                                                    
     the coastal zone) are  issued within 60 days.  That  60                                                                    
     days includes  time-consuming procedures that Title  16                                                                    
     permits lack including: a) an agency review period,  b)                                                                    
     time  for neighbors  to  receive notice  of  the  water                                                                    
     right application  by certified mail,  and c) a  public                                                                    
     review period.   It  also  includes time  for staff  to                                                                    
     respond to the public's comments, and to write  a brief                                                                    
     decision as well  as the permit.   Title 16 permits  do                                                                    
     NONE of  these: no  agency comment,  no certified  mail                                                                    
     requirements, no public notice, and no  requirement for                                                                    
     a   decision.       In    general,   resource    agency                                                                    
     authorizations  vary  in  their  complexity,  statutory                                                                    
     requirements,  and   notice  provisions;   it  is   not                                                                    
     appropriate to compare  one permit to another in  terms                                                                    
     of cycle time.  Instead, the department looks  for ways                                                                    
     to become more efficient in processing applications.                                                                       
                                                                                                                                
Number 2216                                                                                                                     
                                                                                                                                
COMMISSIONER DUFFY testified:                                                                                                   
                                                                                                                                
     Question  8:    Will  the  new  DHMP  and   the  Deputy                                                                    
     Commissioner  have a  separate  and  different  mission                                                                    
     statement  than the  Department of  Natural  Resources?                                                                    
     What is the mission statement?                                                                                             
                                                                                                                                
     It  is interesting  that we  pulled out  DNR's  mission                                                                    
     statement relative to  the new OHMP [Office of  Habitat                                                                    
     Management and Permitting] of the  Deputy Commissioner.                                                                    
     We do not believe  that the missions of the two are  or                                                                    
     should be  different.   In  fact, Article  VIII of  the                                                                    
     Alaska Constitution requires all the  resource agencies                                                                    
     "to  encourage  the settlement  of  its  land  and  the                                                                    
     development of its  resources by making them  available                                                                    
     for maximum use  consistent with the public  interest."                                                                    
     Further, the  constitution makes it  clear that  "fish,                                                                    
     forests,  [and]  wildlife .  .  .  shall  be  utilized,                                                                    
     developed,  and  maintained  on  the   sustained  yield                                                                    
     principle,  subject  to  preferences  among  beneficial                                                                    
     uses."   Resource development is  an important part  of                                                                    
     the state's economy and  it is our goal to ensure  that                                                                    
     any  economic opportunity  is developed  and  preserved                                                                    
     for all Alaskans, both now and in the future.                                                                              
                                                                                                                                
Number 2333                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN asked and answered the next question as                                                                      
follows:                                                                                                                        
                                                                                                                                
     Question 9:   AS 16.05.870 says the Department of  Fish                                                                    
     and Game must  provide for "proper protection" of  fish                                                                    
     streams.  Will  the Deputy Commissioner define  "proper                                                                    
     protection?"  If so, how?                                                                                                  
                                                                                                                                
     The Legislature  has not chosen  to enact a  definition                                                                    
     of "proper protection," but could do so in  the future.                                                                    
     The Department  of Fish &  Game, in administering  this                                                                    
     permit program  in the  past,  has also  chosen not  to                                                                    
     attempt a regulatory  definition of the standard.   The                                                                    
     standard has  an inherently discretionary element  that                                                                    
     would be  difficult to reduce  to a simple  definition.                                                                    
     Since Executive Order 107 does not change the  law, but                                                                    
     merely moves it  from one department to another, we  do                                                                    
     not believe  that there is  any emphasis or  management                                                                    
     intent than  to give  fish streams "proper  protection"                                                                    
     or that the term needs further definition.                                                                                 
                                                                                                                                
Number 2436                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN continued:                                                                                                   
                                                                                                                                
     Question 10:    Considering the  mission statements  of                                                                    
     DNR and the new DHMP, will federal agencies  (EPA, Dep.                                                                    
     Of   Interior)   accept  the   DHMP   permits   without                                                                    
     additional federal permitting?                                                                                             
                                                                                                                                
     The legal relationships  between the state and  federal                                                                    
     governments  on  habitat  management  issues  will  not                                                                    
     change.   Also note  that in  chapter 124  of the  2002                                                                    
     Session  Laws,   both  DNR  and   ADF&G  Habitat   have                                                                    
     conservation as part of their statutory mission:                                                                           
          "The mission of the Division of Habitat and                                                                           
     Restoration  is  to  protect,  maintain,  enhance,  and                                                                    
     restore habitat for  fish and wildlife consistent  with                                                                    
     sound CONSERVATION and sustained yield principles.                                                                         
           "The mission of the Department of Natural                                                                            
     Resources is  to  develop, CONSERVE,  and maximize  the                                                                    
     use of Alaska's  natural resources consistent with  the                                                                    
     public interest."                                                                                                          
                                                                                                                                
Number 2542                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN testified:                                                                                                   
                                                                                                                                
     Question 11:   What is  the legal relationship  between                                                                    
     the Deputy Director  and the Commissioner in  reference                                                                    
     to  the  permit appeals  process?    Will  DNR  develop                                                                    
     appeals regulations with respect to  in-stream permits?                                                                    
     What will those regulations include?                                                                                       
                                                                                                                                
     Attached  is  the answer  to  this  question  that  was                                                                    
     addressed  by the  Department  of Law  for  the  Senate                                                                    
     Resources Committee.  Also included are  several charts                                                                    
     that depict the external appeal process as well as  the                                                                    
     internal conflict  resolution between  the Division  of                                                                    
     Forestry  and  the Office  of  Habitat  Management  and                                                                    
     Permitting.   I'd like  Nancy  Welch to  go over  those                                                                    
     charts for us.                                                                                                             
                                                                                                                                
Number 2639                                                                                                                     
                                                                                                                                
NANCY  WELCH,  Deputy Director,  Division  of  Mining,  Land  and                                                               
Water, Department of  Natural Resources (DNR), referred to  three                                                               
charts  contained  in the  committee  packet:    "[AS  16.05.840]                                                               
("840") Permits  -- Appeal  Procedures," "[AS 16.05.870]  ("870")                                                               
Permits  --  APA Appeal  Procedures,"  and  "Conflict  Resolution                                                               
Between Forestry  and Habitat"; she labeled  those charts "A,  B,                                                               
and C,"  respectively.  She noted  that boxes color-coded in  red                                                               
referred to  the "decision makers," and  said that regarding  840                                                               
permits,  in  most  cases, those  don't  go  through  an  appeals                                                               
process.                                                                                                                        
                                                                                                                                
Number 2839                                                                                                                     
                                                                                                                                
MS.  WELCH referred  to the  second chart,  "870 permits  --  APA                                                               
Appeal  Procedures."    She  explained  that  this  "trumps   the                                                               
statutory provision  that we have for  appeals in our  regulatory                                                               
process."   She pointed out  that neither ADF&G  nor DNR has  its                                                               
own hearing  officer; regardless of who  the hearing officer  is,                                                               
he/she makes a  recommendation to the commissioner, who, in  this                                                               
case, is the final administrative decision maker.   That decision                                                               
can be appealed in  court.  An APA appeal procedure, much like  a                                                               
judicial process, allows for evidentiary information.  She  noted                                                               
that not many 870 permits go through that process.                                                                              
                                                                                                                                
Number 3019                                                                                                                     
                                                                                                                                
MS.  WELCH  concluded  by  referring  to  the  chart,   "Conflict                                                               
Resolution Between  Forestry and  Habitat,"  which was  similarly                                                               
color-coded.  A conflict would be directed to the  state forester                                                               
and  the division  director of  habitat and  restoration, and  if                                                               
resolution   wasn't  reached,   it   would  be   taken   to   the                                                               
commissioners.   If resolution wasn't reached  at that level,  if                                                               
it was  in the coastal zone,  it would go  to the Coastal  Policy                                                               
Council; otherwise,  it would  go  to the  governor's office  for                                                               
resolution.   She referred to  the left-hand side  of the  chart,                                                               
"After Transfer"  and pointed out that  the decision maker  would                                                               
be  the state  forester for  situations involving  the  so-called                                                               
Forest Practices  Act (FPA);  otherwise, it would  be handled  by                                                               
the  division  director.    If  resolution  wasn't  reached,  the                                                               
commissioner  would   be  the  final   decision  maker  for   the                                                               
administration process.   She added that  with the transfer,  the                                                               
governor's office is  not involved, and a  layer at the level  of                                                               
division director would be eliminated.                                                                                          
                                                                                                                                
Number 3233                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN continued addressing question 11 as follows:                                                                 
                                                                                                                                
     DNR  has department-wide  appeal regulations;  thus  no                                                                    
     additional regulations  are required  for 840  permits.                                                                    
     Appeals of 870 permits will continue to be  governed by                                                                    
     the Administrative Procedure Act, although some of  the                                                                    
     DNR appeal regulations  are applicable.  After  further                                                                    
     study, DNR may  decide to amend its appeal  regulations                                                                    
     in  11 AAC  02  to  provide specific  guidance  on  870                                                                    
     permit appeals.                                                                                                            
                                                                                                                                
Number 3255                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN continued:                                                                                                   
                                                                                                                                
     Question 12:   Considering the potential passage of  HB
     86, would  there be  any appeals  process without  "new                                                                    
     scientific  information   or  newly  recognized   local                                                                    
     traditional knowledge?"                                                                                                    
                                                                                                                                
     There has already  been an amendment since the  initial                                                                    
     set of questions was  posed to DNR.  It is,  therefore,                                                                    
     only speculative at this  time as to what effect HB  86                                                                    
     will have on  DNR's appeals process, if any.   Further,                                                                    
     any effect  on appeal  rights would  presumably be  the                                                                    
     same regardless of whether EO 107 went into effect.                                                                        
                                                                                                                                
Number 3442                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN testified:                                                                                                   
                                                                                                                                
     Question 13:  Since  the Commissioner is a part of  the                                                                    
     appeals  process  for  permits  issued  by  the  Deputy                                                                    
     Commissioner,   is    the   commissioner    effectively                                                                    
     eliminated as  arbitrator between  DHMP  and the  Chief                                                                    
     Forester?                                                                                                                  
                                                                                                                                
     The  commissioner,   by  statute,   is  the   principal                                                                    
     executive  officer of  the department.   As  such,  the                                                                    
     commissioner  is  not  legally  precluded  from   being                                                                    
     involved in the  matters of the department.   Executive                                                                    
     Order  107   was  crafted  with   the  intent  of   the                                                                    
     commissioner  being  the  final  arbiter  of   internal                                                                    
     disputes between  the Offices of  Habitat Management  &                                                                    
     Permitting  and  the   Division  of  Forestry.     This                                                                    
     conflict resolution  provides an  excellent example  of                                                                    
     the permit  streamlining expected  by  the transfer  of                                                                    
     Title  16   permitting  to  DNR.     Moreover,  I   can                                                                    
     participate  in  a   variety  of  decisions  that   are                                                                    
     assigned by statute to the Director of the  Division of                                                                    
     Lands.                                                                                                                     
                                                                                                                                
     Additionally, the  position of  Deputy Commissioner  in                                                                    
     the   statutes  is   not   a  new   idea.      "Through                                                                    
     administrative   reorganization,  the   Department   of                                                                    
     Natural  Resources  has  eliminated  the  division   of                                                                    
     lands.    Duties  and  responsibilities  given  to  the                                                                    
     division of lands under Alaska Statutes Title 38,  have                                                                    
     been   assigned  to   the   deputy   commissioner   for                                                                    
     operations, who  has  been given  the additional  title                                                                    
     'director of lands.'"                                                                                                      
                                                                                                                                
Number 3520                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN addressed the next question:                                                                                 
                                                                                                                                
     Question 14:   Will public notices be required for  all                                                                    
     of  the new  permits  now  issued  by DNR?    Will  DNR                                                                    
     include the in-stream  permits under the public  notice                                                                    
     provisions of AS 38.05.945?                                                                                                
                                                                                                                                
     Under Executive  Order 107,  the  law regarding  public                                                                    
     notices  for  anadromous  stream  permits  and  fishway                                                                    
     permits will  not  change in  any way.   Nor  does  DNR                                                                    
     expect  to  include  840  or  870  permits  under   the                                                                    
     provisions  of  AS 38.05.945.    Since  public  notices                                                                    
     under this statute are required for disposals of  state                                                                    
     interest, by  their very  nature, 840  and 870  permits                                                                    
     are excluded from this notice requirement.                                                                                 
                                                                                                                                
     However, I would expect that 840 and 870  permits would                                                                    
     receive public  notice  when associated  with a  "major                                                                    
     project."    Major projects  are  given  public  notice                                                                    
     primarily  because of  the scope  of the  project,  the                                                                    
     resources  that may  be  impacted, or  the  variety  of                                                                    
     authorizations   that  may   be  required   and   their                                                                    
     associated statutory  requirements for  notice.   As  a                                                                    
     matter  of  course,   any  notice  that  is   published                                                                    
     typically lists the  agency authorizations that may  be                                                                    
     required for the project to be approved.   Accordingly,                                                                    
     we  foresee  that  the  most  significant  fish  stream                                                                    
     permits  would  receive "public  notice,"  even  though                                                                    
     there is not a statutory requirement to do so.                                                                             
                                                                                                                                
Number 3650                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN testified:                                                                                                   
                                                                                                                                
     Question 15:   Because  the Forest  Practices Act  only                                                                    
     applies to state lands,  will there continue to be  any                                                                    
     authority for salmon stream buffers on federal lands?                                                                      
                                                                                                                                
     The  Forest Resources  Practices  Act applies  to  more                                                                    
     than just state lands.  Under AS 41.17.119,  it applies                                                                    
     to  "other  public  land."    Under  AS  41.17.900,  it                                                                    
     expressly  applies to  state,  municipal,  private  and                                                                    
     federal  lands.   Nothing  changes  by  virtue  of  the                                                                    
     reorganization.                                                                                                            
                                                                                                                                
Number 3732                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN continued:                                                                                                   
                                                                                                                                
     Question 16:   What is the Memorandum of  Understanding                                                                    
     between DNR-DHMP and ADF&G?                                                                                                
                                                                                                                                
     Frankly we  haven't had time  to sit down  and work  on                                                                    
     that; none has yet been drafted.                                                                                           
                                                                                                                                
     I'd like  to  make an  additional comment:   With  this                                                                    
     administration    and    the    cooperation     between                                                                    
     commissioners, this  will be  beneficial  to the  state                                                                    
     because we understand that we have  responsibilities to                                                                    
     protect and  to  respect certain areas.    It's been  a                                                                    
     privilege to work with Commissioner Duffy.                                                                                 
                                                                                                                                
Number 3812                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN continued:                                                                                                   
                                                                                                                                
     Question 17:   Would the DNR Commissioner continue  the                                                                    
     historical practice of  the Fish and Game  Commissioner                                                                    
     to  delegate  the  authority  for  making  the  initial                                                                    
     permitting decisions to the habitat biologists?   Would                                                                    
     these  decisions  therefore   become  subject  to   the                                                                    
     process for appeals to the DNR Commissioner?                                                                               
                                                                                                                                
     The  execution of  daily activities,  including  permit                                                                    
     issuance, is not expected to be any different  than any                                                                    
     other  programs  administered by  DNR.    Historically,                                                                    
     decision-making is delegated  to the lowest level  that                                                                    
     is prudent.   And that's good  business.  DNR does  not                                                                    
     plan  any  change  with  the  current   delegations  to                                                                    
     habitat biologists.   Such decisions  would be  subject                                                                    
     to appeal to the commissioner.                                                                                             
                                                                                                                                
     In  ADF&G,  there  was  no  formal  structure  for   an                                                                    
     internal appeal of 840  permits, but in DNR there is  a                                                                    
     structure  -  see  11  AAC  02  -  and  that  would  be                                                                    
     followed.   As mentioned earlier,  with respect to  870                                                                    
     permits,  the  appeal   process  is  governed  by   the                                                                    
     Administrative  Procedure Act  at  the ADF&G  and  will                                                                    
     continue to  be governed by  that law when  transferred                                                                    
     to DNR.                                                                                                                    
                                                                                                                                
Number 3933                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN testified:                                                                                                   
                                                                                                                                
     Questions 18:   Under EO 107,  the DNR Commissioner  or                                                                    
     the Deputy Commissioner would have broad  discretion to                                                                    
     interpret the  Anadromous Fish Act.   For example,  the                                                                    
     Commissioner/Deputy Commissioner  would "determine  the                                                                    
     waters  in  the  state  that  are  important  for   the                                                                    
     rearing, spawning, and  migration of anadromous  fish,"                                                                    
     and  the  DNR  Commissioner/Deputy  Commissioner  would                                                                    
     decide what  constitutes "important habitat," and  what                                                                    
     constitutes  "proper   protection"  for  the   rearing,                                                                    
     spawning,   and  migration   of  anadromous   fish   in                                                                    
     "important" streams.   Similar  discretion is  afforded                                                                    
     under the  Fishway Act.   Given the differing  mandates                                                                    
     of  the  Department   of  Natural  Resources  and   the                                                                    
     Department  of Fish  and  Game, what  safeguards  would                                                                    
     prevent   this   discretion   from   becoming    unduly                                                                    
     conflicted or compromised  because it would now  reside                                                                    
     with the DNR Commissioner/Deputy Commissioner?                                                                             
                                                                                                                                
     Both ADF&G and DNR  have conservation as part of  their                                                                    
     core mission.   Broadly speaking,  the Alaska  Statutes                                                                    
     assign   ADF&G   management  of   fish   and   wildlife                                                                    
     populations  and assign  DNR  management of  the  land,                                                                    
     tideland, parkland,  forest, and  so on  that fish  and                                                                    
     wildlife inhabit.   In the past,  there have been  some                                                                    
     exceptions  to  this  broad  division,  including   the                                                                    
     assignment of management of stream bottoms to ADF&G  in                                                                    
     AS 16.05.840  and AS  16.05.870.   EO  107 will  change                                                                    
     management   of   these   submerged   lands   to   DNR,                                                                    
     eliminating a divergence between ownership and  control                                                                    
     and  bringing   this   area  into   the  more   general                                                                    
     management pattern used  in Alaska.   In many of  DNR's                                                                    
     missions,  like  those of  other  agencies,  there  are                                                                    
     competing values to be balanced.  This does  not create                                                                    
     a  conflict.    Note  that  the  opinion  furnished  to                                                                    
     members of  the  committee by  the Legislative  Counsel                                                                    
     concurs in the absence of a conflict.                                                                                      
                                                                                                                                
Number 4147                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN continued with his testimony:                                                                                
                                                                                                                                
     Question  19:   The  National Oceanic  and  Atmospheric                                                                    
     Administration (NOAA) under the Department of  Commerce                                                                    
     has a  similar structure  as  is being  proposed by  EO                                                                    
     107.   For example, NOAA  Fisheries is responsible  for                                                                    
     both the promotion  of fisheries in federal waters  and                                                                    
     the protection  of fisheries  resources.   It has  been                                                                    
     suggested that  this has  caused increased  litigation,                                                                    
     introduced  costly delays,  and contributed  to  agency                                                                    
     gridlock.  How would DNR avoid similar problems?                                                                           
                                                                                                                                
     The statutory role of  NOAA is so different from  those                                                                    
     of state agencies, and the federal laws giving  rise to                                                                    
     litigation are  so different from  Alaska law, that  it                                                                    
     is  difficult  for   us  to  pursue  this   comparison.                                                                    
     Moreover,  while   there   is  litigation   surrounding                                                                    
     federal fisheries  management, we  are  not aware  that                                                                    
     this  would be  lessened  by splitting  the  management                                                                    
     function among  competing agencies.   If the member  of                                                                    
     the  committee   submitting  this  question  has   more                                                                    
     specific information on NOAA that it wishes to  have us                                                                    
     examine, we would be happy to review it.                                                                                   
                                                                                                                                
Number 4302                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN continued by asking and answering the next                                                                   
question:                                                                                                                       
                                                                                                                                
     Questions   20:     The   Governor   and   the   Acting                                                                    
     Commissioner of Fish  and Game - now, the  Commissioner                                                                    
     of  Fish  and  Game  -  and  the  Commissioner  of  the                                                                    
     Department  of  Natural  Resources  have  assured   the                                                                    
     public on  several occasions  that "the  same level  of                                                                    
     environmental protection will  continue to be  provided                                                                    
     for Alaska's  fish and  wildlife."  Under  EO 107,  the                                                                    
     Habitat Division authority for issuing permits and  for                                                                    
     the  monitoring, compliance  and enforcement  of  these                                                                    
     permits would  now be the  responsibility of DNR,  with                                                                    
     fewer biologists.                                                                                                          
                                                                                                                                
     Is there a commitment by the Governor that  the habitat                                                                    
     biologists who  are being transferred  from the  Alaska                                                                    
     Department of  Fish and Game would  be "housed" in  the                                                                    
     newly   formed  Office   of  Habitat   Management   and                                                                    
     Permitting?                                                                                                                
                                                                                                                                
     That  is the  plan  that  has been  outlined  [by]  the                                                                    
     governor and as  presented on the organizational  chart                                                                    
     enclosed in the committee packets.                                                                                         
                                                                                                                                
Number 4456                                                                                                                     
                                                                                                                                
CHAIR SEATON asked about the deputy commissioner's not being                                                                    
listed on the chart.                                                                                                            
                                                                                                                                
COMMISSIONER IRWIN explained that the commissioner and deputy                                                                   
commissioner were "lumped together."                                                                                            
                                                                                                                                
Number 4532                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN continued:                                                                                                   
                                                                                                                                
     Questions 21:  Is there a commitment by  the Department                                                                    
     of Natural Resources  to require the State Forester  to                                                                    
     grant "due  deference" under the  Forest Practices  Act                                                                    
     to the Office  of Habitat Management and Permitting  on                                                                    
     issues relating  to the  harvest of  trees from  within                                                                    
     the  66  foot  stream  buffers  on  salmon  streams  on                                                                    
     private land?                                                                                                              
                                                                                                                                
     Under  Section 23  of Executive  Order 107,  the  State                                                                    
     Forester is  still required  to give  due deference  to                                                                    
     the deputy  commissioner - who  will supervise a  staff                                                                    
     of habitat biologists - as it relates to  fish habitat,                                                                    
     including    variations    to    riparian    standards,                                                                    
     designation  of   alternative  site-specific   riparian                                                                    
     protection plans,  and road  location decisions  within                                                                    
     riparian  areas.    The  legislative  mandate  has  not                                                                    
     changed, other than  to assign the lead  responsibility                                                                    
     to an agent within DNR.                                                                                                    
                                                                                                                                
Number 4658                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN addressed question 23 [question 22 had                                                                       
previously been answered by Commissioner Duffy]:                                                                                
                                                                                                                                
     Question 23:  Within DNR, how will positions  be filled                                                                    
     once a  biologist leaves  the  position and  how do  we                                                                    
     guarantee that biologist  will be hired to fill  vacant                                                                    
     positions?     Presently,  personnel   in  ADF&G   have                                                                    
     Position   Control   Numbers   [PCNs]   and   Personnel                                                                    
     Description  Questionnaires  [PDQs]  that  define   the                                                                    
     requirements for  the position  and the  duties of  the                                                                    
     job.  When a vacant position becomes available  the PCN                                                                    
     hiring  requirements and  PDQ responsibilities  can  be                                                                    
     rewritten.   Therefore,  DNR  can, after  a  period  of                                                                    
     time, rewrite these positions to have non-biologist   -                                                                    
     environmental engineers,  foresters, or  water  quality                                                                    
     backgrounds - fill them.                                                                                                   
                                                                                                                                
TAPE 03-19, SIDE B                                                                                                            
Number 4643                                                                                                                     
                                                                                                                              
COMMISSIONER IRWIN continued with question 23:                                                                                  
                                                                                                                                
     After a  period of time,  biologists could represent  a                                                                    
     small group in DNR, as opposed to the  20-30 biologists                                                                    
     who are being  transferred today.  What assurances  can                                                                    
     we  have that  prohibits  this long-term  reduction  in                                                                    
     force of  people who care about  the resources and  are                                                                    
     knowledgeable about them?                                                                                                  
                                                                                                                                
     DNR  plans  to  leave  these  positions  classified  as                                                                    
     habitat biologists.   As  DNR's  missions and  measures                                                                    
     are  driven  in   large  part  by  legislative   budget                                                                    
     approvals and  statute amendments,  I cannot  guarantee                                                                    
     that  the  program  or  the  people  that  manage  that                                                                    
     program  won't  change  over  time.    I  do   believe,                                                                    
     however,  that the  scientific knowledge,  skills,  and                                                                    
     abilities that  these habitat biologists  bring to  DNR                                                                    
     are necessary for the proper management  and protection                                                                    
     of habitat.                                                                                                                
                                                                                                                                
Number 4603                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN concluded with the last question:                                                                            
                                                                                                                                
     Question 24:  How  will the structure of DNR be  formed                                                                    
     to avoid  targeted budget  reductions?   Next year  the                                                                    
     governor  could  eliminate the  whole  DNR  budget  for                                                                    
     biologists if  Executive Order 107  creates a  separate                                                                    
     layoff structure  in DNR.   Again, biologists would  be                                                                    
     reduced in  number and after a  number of years  duties                                                                    
     could be  transferred to people  in other Divisions  of                                                                    
     DNR who are less qualified.                                                                                                
                                                                                                                                
     DNR cannot make itself immune from budget  cuts enacted                                                                    
     by the legislature,  and does not seek  to do so.   The                                                                    
     administration  supports a  strong,  adequately  funded                                                                    
     habitat protection program.                                                                                                
                                                                                                                                
Number 4450                                                                                                                     
                                                                                                                                
CHAIR SEATON thanked  the commissioners and pointed out that  the                                                               
questions came  from a  number of sources.   He  referred to  the                                                               
meeting's agenda and announced that the next panels would be  DNR                                                               
and ADF&G.                                                                                                                      
                                                                                                                                
Number 4236                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ asked  if  thought had  been  given  to                                                               
keeping all  of the biologists by  simply moving them from  ADF&G                                                               
to DNR.                                                                                                                         
                                                                                                                                
COMMISSIONER IRWIN  replied that  a  lot of  discussion had  been                                                               
focused on what was needed in DNR to accomplish the work.   Based                                                               
on workload  efficiencies recommendations were  made that led  to                                                               
the following:  "This is what we need at this time."  He said  he                                                               
was very aware of the need for evaluating whether there were  too                                                               
many or  too few  employees to get  the job  done correctly,  and                                                               
that  ultimately  it  was  his  responsibility  [to  make   those                                                               
decisions].                                                                                                                     
                                                                                                                                
Number 4140                                                                                                                     
                                                                                                                                
KERRY   HOWARD,  Deputy   Director,  Division  of   Habitat   and                                                               
Restoration,  Alaska Department  of Fish  & Game  (ADF&G),  added                                                               
that in an ideal world, all of the biologists could move to  DNR.                                                               
However, as part of the reorganization, the expectation was  that                                                               
there would be a reduction in staff.   Therefore, this methodical                                                               
approach   took   into   consideration   which   functions   were                                                               
statutorily  required, which  could  be moved,  and  which  could                                                               
remain at ADF&G.                                                                                                                
                                                                                                                                
REPRESENTATIVE BERKOWITZ  asked what the  habitat biologists  had                                                               
recommended  to Commissioner  Duffy regarding  facilitating  this                                                               
move and ensuring that the quality of work would be continued  at                                                               
DNR.                                                                                                                            
                                                                                                                                
Number 4030                                                                                                                     
                                                                                                                                
COMMISSIONER DUFFY responded that  he'd not met with the  habitat                                                               
biologists  in   the  Southeast  region.     He  explained   that                                                               
Commissioner  Irwin was  planning  to meet  with  the  biologists                                                               
because under EO  107 those permitting responsibilities would  be                                                               
transferred to DNR.  Therefore, rather than dialoguing about  the                                                               
past,  the idea  was  for Commissioner  Irwin  to meet  with  the                                                               
habitat  biologists going  to DNR  to  begin creating  a  working                                                               
relationship.  Commissioner Duffy  added that he had talked  with                                                               
habitat biologists  about the  move, and expressed  his hope  was                                                               
that their professional expertise would continue at DNR.                                                                        
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  asked  Commissioner  Irwin  about  the                                                               
biologists'  recommendations   regarding  whether  the   proposed                                                               
staffing  levels under  EO  107  would adequately  safeguard  the                                                               
habitat.                                                                                                                        
                                                                                                                                
COMMISSIONER  IRWIN  replied   that  he'd  received  input   from                                                               
biologists who  didn't agree  with the move  and input  regarding                                                               
things that need to get done.  He said that he clearly  heard the                                                               
message  that "change  is very  hard  when you  get down  to  the                                                               
individual level."   He  said he respects  individuals and  their                                                               
feelings, and  that, in turn,  he hopes it's  recognized that  he                                                               
needs good habitat biologists in order to make this work.                                                                       
                                                                                                                                
Number 3732                                                                                                                     
                                                                                                                                
REPRESENTATIVE OGG referred  to [chart B] regarding 870  permits,                                                               
and asked about the pathway to a hearing officer in the  existing                                                               
structure versus the pathway after the transfer.                                                                                
                                                                                                                                
Number 3655                                                                                                                     
                                                                                                                                
MS. WELCH replied that the existing structure depicted that  some                                                               
of  the area  and  regional offices  had habitat  biologists,  so                                                               
"regardless  of where  they're  housed, they  actually  make  the                                                               
decision."  She explained that whoever makes the decision in  the                                                               
red box then continues on to the yellow box.                                                                                    
                                                                                                                                
CHAIR  SEATON   asked  if   the  habitat  biologists'   positions                                                               
currently at  ADF&G were  exclusively involved  in permitting  or                                                               
involved multiple activities.                                                                                                   
                                                                                                                                
COMMISSIONER  DUFFY  responded  that  those  positions   involved                                                               
multiple activities.                                                                                                            
                                                                                                                                
CHAIR  SEATON asked  if, due  to  the changes  from EO  107,  the                                                               
biologists would exclusively be involved in habitat permitting.                                                                 
                                                                                                                                
MS. HOWARD responded that habitat biologists at ADF&G perform  an                                                               
array  of duties  that depend  on  the individual  biologist  and                                                               
his/her position,  noting that no two  positions are exactly  the                                                               
same.   With the  move of a  portion of the  habitat division  to                                                               
DNR, she said that, inevitably, some of the duties  would change.                                                               
She  stated that  while  one of  the  predominate duties  of  the                                                               
biologists  at  DNR  will be  to  do  840  and  870  fish  stream                                                               
permitting, other  duties  will include  associated research  and                                                               
activities  such  as  review   of  land  use  plans,  FPA,   ACMP                                                               
consistency  reviews,  and  so  forth.    In  response  to  Chair                                                               
Seaton's question,  Ms. Howard  said that she  didn't think  that                                                               
any of the  positions at DNR would be single-focused because  all                                                               
of  the duties  envisioned as  moving  to DNR  would have  to  be                                                               
assumed and completed.                                                                                                          
                                                                                                                                
Number 3338                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG commented  that rather than issuing  an                                                               
executive order,  this could have  been an internal  organization                                                               
with  a  governmental coordination  policy.   He  asked  why  the                                                               
decision  to use  an executive  order was  made and  wondered  if                                                               
there was a more efficient way of achieving the same objectives.                                                                
                                                                                                                                
Number 3555                                                                                                                     
                                                                                                                                
COMMISSIONER DUFFY replied that the governor's office had made  a                                                               
decision to  pursue  this in  an expedited  fashion through  this                                                               
executive order.  He explained that since that decision was  made                                                               
and  this  proposed  policy  call  was  rolled  forward  to   the                                                               
legislature,  the  focus  has  been  on  creating  a   permitting                                                               
structure  that would  be maintained  for certain  activities  in                                                               
ADF&G and in  DNR, primarily Title 16,  and that the concern  has                                                               
been on  having an  adequate number of  people moving  to DNR  to                                                               
continue the permitting function.   He stated that the intent  of                                                               
the  administration was  to move  quickly on  a policy  call,  to                                                               
evaluate it,  to rule out  a comprehensive program,  and then  to                                                               
move  forward so  that a  new permitting  structure would  be  in                                                               
place for fiscal year 2004.                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG replied  that the  administration  was                                                               
making changes  in other  departments but in  different ways  and                                                               
asked if, with  the loss of more  than 30 percent of the  habitat                                                               
and restoration staff, there would be a loss of  credibility with                                                               
the  federal  government  regarding  programs  or  projects  that                                                               
wouldn't get done due to the loss of so many staff.                                                                             
                                                                                                                                
COMMISSIONER  DUFFY replied  no,  there haven't  been  giant  red                                                               
flags  in either  of  the departments,  relative to  the  federal                                                               
government's concern  over this transfer  of Title 16  permitting                                                               
responsibility to DNR.   He    noted that over time,  assessments                                                               
will reveal  whether additional activities  will be necessary  to                                                               
ensure the efficiency of the permitting system.                                                                                 
                                                                                                                                
REPRESENTATIVE GUTTENBERG  questioned whether habitat  protection                                                               
and  restoration  was  being  left  out  of   the  organizational                                                               
equation given that the habitat focus would be on permitting.                                                                   
                                                                                                                                
CHAIR SEATON  wondered if  this question pertained  to the  chart                                                               
regarding transferring staff  to the Division  of Sport Fish  and                                                               
the Division of Commercial Fisheries.                                                                                           
                                                                                                                                
REPRESENTATIVE GUTTENBERG  expressed concern  with the  [Division                                                               
of  Habitat and  Restoration's] focus  on permitting,  suggesting                                                               
that this might put the relationship with the  federal government                                                               
at risk.                                                                                                                        
                                                                                                                                
REPRESENTATIVE BERKOWITZ inquired  about the percentages of  time                                                               
biologists  spend   on   various  duties   such  as   permitting,                                                               
restoration, and research.                                                                                                      
                                                                                                                                
Number 2835                                                                                                                     
                                                                                                                                
MS.  HOWARD,  in  response to  an  earlier  question  from  Chair                                                               
Seaton, explained  that habitat biologists  currently perform  an                                                               
array  of  duties and  a  biologist  might spend  10  percent  of                                                               
his/her time  on restoration,  30 percent  on land-use  planning,                                                               
and the remainder  on permitting.  With  the staff going to  DNR,                                                               
permitting of 840  and 870 streams  will be a critical  component                                                               
but review  of land use plans,  the Tongass Land Management  Plan                                                               
Revisions, ACMP consistency reviews, and an array of  other land-                                                               
use  planning  and  review  activities  will  also  be  important                                                               
components.   She  referred  to  Commissioner Duffy's  desire  to                                                               
establish   clear   communication   pathways   between    habitat                                                               
biologists whether working at DNR or ADF&G and regardless if  the                                                               
focus is on permitting or  on land use plan reviews.  Ms.  Howard                                                               
said  that  both  commissioners want  to  have  a  memorandum  of                                                               
understanding (MOU) between biologists at DNR and ADF&G.                                                                        
                                                                                                                                
Number 2702                                                                                                                     
                                                                                                                                
MS.  HOWARD  continued  that  regarding  the   relationship  with                                                               
federal  agencies,  the  Division  of  Habitat   and  Restoration                                                               
currently   has    between   60    and    100   memorandums    of                                                               
agreement/understanding with various entities, and many of  those                                                               
are federal  agencies; obviously these will  need to be  revised,                                                               
updated, and edited.  For example, regarding a MOU  which expired                                                               
March  15th pertaining to  fish  passage issues  in Southeast,  a                                                               
forest service  official wrote  to Commissioner  Duffy this  week                                                               
and said, "We are  aware that you are in a reorganization, we  do                                                               
want to  continue working with the  biologists that move to  DNR.                                                               
We know that  you've got a lot on  your hands.  We're willing  to                                                               
continue with the agreement,  extend it, revise it right away  if                                                               
that's your  preference."   She  said the  federal agencies  have                                                               
indicated interest  in maintaining relationships with  biologists                                                               
both at ADF&G and DNR.                                                                                                          
                                                                                                                                
CHAIR SEATON asked where research projects involved with  habitat                                                               
restoration would predominately be assigned.                                                                                    
                                                                                                                                
MS. HOWARD  replied that the  projects are spread  out, and  that                                                               
some will go to  habitat biologists at DNR, some to the  Division                                                               
of Sport  Fish, some  to the Division  of Wildlife  Conservation,                                                               
and others to the Division of Commercial Fisheries.                                                                             
                                                                                                                                
CHAIR SEATON reflected that  biologists would continue to have  a                                                               
"mixed mission."   He  asked if  there was  anything formally  in                                                               
place, such  as  the MOU,  to assist  the biologists  at the  two                                                               
agencies in sharing knowledge on an ongoing basis.                                                                              
                                                                                                                                
Number 2345                                                                                                                     
                                                                                                                                
COMMISSIONER IRWIN  responded, "We  would be  very  remiss if  we                                                               
didn't  allow that  continued  cooperation between  those  groups                                                               
also."  He said this concern would be addressed in the MOU.                                                                     
                                                                                                                                
COMMISSIONER  DUFFY added  that a  number of  habitat  biologists                                                               
with vast  experience would be moved  to DNR, and would  continue                                                               
to require access  to the most up-to-date information  available.                                                               
Crossover  between the  two  departments would  be  necessary  to                                                               
ensure that  the best  permitting decisions  would be  made.   He                                                               
stated  that  given   the  professional  nature  of  the   people                                                               
involved,  he  believes  that  there  will  be   cooperation  and                                                               
coordination  among staff.    He  said  that for  those  who  are                                                               
critical of this change, the MOU will amplify and  identify those                                                               
communication pathways.                                                                                                         
                                                                                                                                
CHAIR SEATON said the House Special Committee on  Fisheries would                                                               
appreciate receiving a copy of the MOU.                                                                                         
                                                                                                                                
Number 2041                                                                                                                     
                                                                                                                                
REPRESENTATIVE KELLY  WOLF, Alaska  State  Legislature, asked  if                                                               
the  reference  to  habitat  biologist  was  a  reference  to   a                                                               
"permitter."                                                                                                                    
                                                                                                                                
MS. HOWARD responded that a habitat biologist is a  permitter but                                                               
he/she also performs an array of other responsibilities.                                                                        
                                                                                                                                
REPRESENTATIVE WOLF asked if a college education was  a necessary                                                               
requirement for habitat biologists.                                                                                             
                                                                                                                                
MS. HOWARD  replied that  there are specific  requirements for  a                                                               
habitat biologist; it requires a degree in the  biological field,                                                               
but not specifically a habitat biology degree.                                                                                  
                                                                                                                                
REPRESENTATIVE  WOLF asked  if  an environmental  science  degree                                                               
would be sufficient for a permitter.                                                                                            
                                                                                                                                
MS.  HOWARD replied  that she  didn't have  the PDQ  requirements                                                               
memorized but that  the position requires a  degree in a  natural                                                               
resource field, and depending  on the level of the biologist,  it                                                               
also requires a certain number of years of work experience.                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ  asked if  the biologists  going to  DNR                                                               
would continue to work in restoration and research.                                                                             
                                                                                                                                
Number 1902                                                                                                                     
                                                                                                                                
MS. HOWARD pointed  out that oftentimes the research function  is                                                               
done to gain knowledge in a specific area and is  associated with                                                               
monitoring a particular development  project.  In looking at  the                                                               
array of  research activities  that will  remain at  ADF&G or  be                                                               
transferred to DNR, the intent is to split the jobs  according to                                                               
function.   For  example, a  lot  of stream-bank  restoration  is                                                               
being  sent to  the  Division  of Sport  Fish,  whereas  research                                                               
associated with  oil and  gas activities  on the  North Slope  is                                                               
more  closely associated with  permitting and  will  be going  to                                                               
DNR.   She said that  a more detailed list  could be provided  to                                                               
identify  which   functions  would  stay   and  which  would   be                                                               
transferred.                                                                                                                    
                                                                                                                                
REPRESENTATIVE BERKOWITZ  said his overall  concern was that  the                                                               
overall  amount of  restoration  and  research being  done  by  a                                                               
finite number of biologists  would now be divided into two  camps                                                               
and that the number  of biologists would be reduced.  He said  he                                                               
was also  concerned with the  overall impact and  cost; he  asked                                                               
about the housing costs involved with the anticipated move.                                                                     
                                                                                                                                
Number 1714                                                                                                                     
                                                                                                                                
KEVIN   BROOKS,   Director,   Administrative   Services,   Alaska                                                               
Department of  Fish  & Game  (ADF&G), testified  that leases  and                                                               
other  administrative   details  had  been   discussed  by   both                                                               
agencies.   He said the  largest amount of  people needing to  be                                                               
moved are the 12  individuals in Anchorage.  He reported that  in                                                               
Juneau, about  8 people need to  move and that  there is room  in                                                               
the DNR  building; those people are  currently split between  the                                                               
headquarters facility and the  regional office.  In Fairbanks,  a                                                               
change is  not anticipated immediately;  those people will  stay.                                                               
The  transition  will  take some  time,  so  the  move  won't  be                                                               
completed  by April  15th.   Many smaller  offices, such  as  the                                                               
Petersburg or  Prince of  Wales Island offices,  will remain  the                                                               
same.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  BERKOWITZ asked  if  the 12  staff  in  Anchorage                                                               
would  need a  new home,  or  would be  transferred into  new  or                                                               
existing state leases.                                                                                                          
                                                                                                                                
MR. BROOKS referred to  the lease on Raspberry Road, where  staff                                                               
are  squeezed into  the ADF&G  offices, and  also to  the  Atwood                                                               
Building, a state-owned  facility at near-full capacity,  housing                                                               
DNR.  He said the  move could possibly result in a new lease  but                                                               
it  has not  yet been  determined; initially  work will  be  done                                                               
within the constraints of using existing space.                                                                                 
                                                                                                                                
REPRESENTATIVE BERKOWITZ  commented that  there would  eventually                                                               
be   additional  logistical   costs  involved   with   relocating                                                               
individuals.  He  asked to be kept  informed of the estimates  of                                                               
costs as they came in.                                                                                                          
                                                                                                                                
REPRESENTATIVE WOLF  offered that  the Kenai River  Center was  a                                                               
successful template  of  various agencies  working together  very                                                               
well, and suggested using that as an example.                                                                                   
                                                                                                                                
MR. BROOKS responded that  the need for this type of  cooperation                                                               
was  recognized in  light  of there  possibly  being a  new  area                                                               
office in the  [Matanuska-Susitna area], consisting of DNR  staff                                                               
and [Division  of Habitat and Restoration]  staff who were  being                                                               
transferred.                                                                                                                    
                                                                                                                                
Number 1155                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON  said   she  found  the  answers  to   the                                                               
questions reassuring, and  was pleased that an  MOU was going  to                                                               
be written.                                                                                                                     
                                                                                                                                
CHAIR  SEATON expressed  appreciation for  the detailed  answers,                                                               
saying  the graphic  framework would  be  helpful, as  would  the                                                               
clarification that due deference would still be applicable.                                                                     
                                                                                                                                
The committee took an at-ease from 8:10 to 8:15 p.m.                                                                            
                                                                                                                                
CHAIR  SEATON announced  that representatives  from the  industry                                                               
were next on the agenda.                                                                                                        
                                                                                                                                
Number 0800                                                                                                                     
                                                                                                                                
DALE  KELLY,  Executive Director,  Alaska  Trollers  Association,                                                               
testified  that she  represents hook-and-line  salmon  fishermen,                                                               
which is the only  fleet in the state actively managed under  the                                                               
Endangered  Species  Act  for  stocks  of  concern  and  for  the                                                               
Columbia River Basin, which,  she said, have been devastated  due                                                               
to  habitat  destruction  in  the  region.     The  association's                                                               
interest is  in  the protection  of key  habitat and  watersheds.                                                               
The association  doesn't know a lot  about habitat permitting  or                                                               
the  subtleties of  proper staffing,  but is  concerned that  the                                                               
permitting process remain a good one, she said.                                                                                 
                                                                                                                                
MS. KELLY said the  current system is good because it contains  a                                                               
series  of  checks and  balances  between ADF&G  and  DNR.    She                                                               
mentioned  that  she   represents  salmon  fishermen  in   state,                                                               
federal, and international arenas who are concerned about EO  107                                                               
and other  similar and  related bills  in the  legislature.   She                                                               
reported that  the  current permitting  process seems  efficient,                                                               
with an  average turnaround time  of 14 to  15 days, which  isn't                                                               
the case in other state agencies, including DNR.   She questioned                                                               
whether  the  move will  create  efficiencies  or  inefficiencies                                                               
because fewer staff will be available to do more work.                                                                          
                                                                                                                                
Number 0459                                                                                                                     
                                                                                                                                
MS. KELLY  testified that  the association supports  streamlining                                                               
bureaucratic process and  reducing governmental costs, but  isn't                                                               
sure  this  is  the   way  to  go.    She  noted  that  the   two                                                               
commissioners are  doing very  well with the  direction given  to                                                               
them, and that an  overwhelming concern is not whether ADF&G  and                                                               
DNR can  establish a permit structure  that makes sense;  rather,                                                               
she  said  the  crux  of  the  issue  is  this:    "There  is  no                                                               
commissioner  authority  that we  can  see  for  commissioner  of                                                               
[ADF&G] and,  in  fact, there  is actually  no direct  authority.                                                               
All of the Title 16 authority is being delegated to people  below                                                               
the commissioner of DNR."                                                                                                       
                                                                                                                                
MS.  KELLY continued  that establishing  a  system in  which  the                                                               
commissioners aren't in control  of the process hasn't been  done                                                               
in  the  state  before,  and  she  wondered  whether  it's   been                                                               
implemented in other  states.  She  said that within the  appeals                                                               
process, DNR appeals  would be elevated to the commissioner,  but                                                               
that would be  a pretty extreme case.   She said that within  the                                                               
existing system  there are cases when  commissioners have had  to                                                               
go "toe-to-toe and negotiate solutions," delegating authority  to                                                               
the lowest  level that's  practical - and  that's good  business,                                                               
she added.   She said that  there's nothing within the  structure                                                               
that allows  those commissioners to  conduct meaningful  dialogue                                                               
while  actually having  the authority  to  make decisions.    She                                                               
pointed out that there  is a never-ending appeals process in  the                                                               
ACMP and possibly there is a need to "get a grip on that and  re-                                                               
vamp that  program."  She said  if the commissioner doesn't  have                                                               
the authority, there will be some difficult times.                                                                              
                                                                                                                                
MS. KELLY concluded  by relating that the association would  like                                                               
to see the authority of the commissioner of ADF&G  be re-engaged.                                                               
She  highlighted  that   because  the  agencies  have   different                                                               
missions, the  tension between  the agencies is  healthy and  has                                                               
brought about  exceptional habitat  values.  Ms.  Kelly said  the                                                               
association suggests that the  governor take a step back,  listen                                                               
to  people's concerns on  all  sides, and  identify problems  and                                                               
solutions in  order to  come up with  a well-formed,  articulated                                                               
plan.    Otherwise, she  said,  the  goals of  an  efficient  and                                                               
better-run government won't be achieved.                                                                                        
                                                                                                                                
TAPE 03-20, SIDE A                                                                                                            
Number 0001                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG  asked what  would happen  if  agencies                                                               
couldn't negotiate among themselves.                                                                                            
                                                                                                                                
MS. KELLY  responded that if  agencies couldn't negotiate,  there                                                               
would  be a  lot  of litigation  and  unhappy people;  either  an                                                               
administrative  or judicial  appeals  process would  be  the  end                                                               
result.                                                                                                                         
                                                                                                                                
CHAIR  SEATON asked  if  the  MOU  between DNR  and  ADF&G  would                                                               
potentially re-engage authority to the commissioners.                                                                           
                                                                                                                                
MS. KELLY said she has learned that one doesn't really know  what                                                               
is contained in  an MOU until  it's been written; she  questioned                                                               
whether an MOU could "top a statute."                                                                                           
                                                                                                                                
Number 0201                                                                                                                     
                                                                                                                                
CHAIR SEATON commented  that the idea is  that the MOU would  re-                                                               
engage   not  only   the  habitat   biologists,  but   also   the                                                               
commissioners;  he  said this  concern  would  be  passed  on  to                                                               
Commissioner Irwin.                                                                                                             
                                                                                                                                
Number 0256                                                                                                                     
                                                                                                                                
EARL CHAMPION, Silver Bay  Logging, testified that he's lived  in                                                               
Alaska for  almost 30  years and  that most  of his  professional                                                               
career   has  involved   private   industry  projects   and   the                                                               
development of  natural resources.  He  relayed an experience  he                                                               
had  in obtaining  a permit  and explained  that in  the  current                                                               
permitting  process,  after  one  completes  an  application  and                                                               
delivers  it  to  the  [Division  of   Governmental  Coordination                                                               
(DGC)], it gets  distributed to other agencies needing to  review                                                               
it, with the general rule being that a response will come  within                                                               
50  days.   In this  particular example,  when it  was nearly  50                                                               
days, the [Division of Habitat and Restoration] advised DGC  that                                                               
there hadn't been  sufficient time to review the application  and                                                               
more time  was needed.   After  being informed,  "that the  clock                                                               
stopped,"  notification  was  received  two  and  one-half  weeks                                                               
later,  specifying  the conditions  that  were  needed  for  this                                                               
permit.  He  reported that instead of 50  days, it took 4  months                                                               
to get this permit.                                                                                                             
                                                                                                                                
MR. CHAMPION further explained that this was the 6th or 7th  time                                                               
that the barge had been permitted to do the same thing.   He said                                                               
that he had to  become his own advocate to make the permit  move,                                                               
and told  the committee  that "government  is here  to serve  the                                                               
applicant"  and   that  he's   interested  in  streamlining   the                                                               
permitting process.   He suggested that  by bringing this  "under                                                               
one house," the delays  would be minimized.  The permitting  laws                                                               
would still  need to  be followed, but  streamlining the  process                                                               
would get it closer to "one-stop shopping."                                                                                     
                                                                                                                                
CHAIR SEATON  said the legislature  would probably be  developing                                                               
missions  and measures  for the  department  and looking  at  the                                                               
success of the department regarding timelines and delays.                                                                       
                                                                                                                                
REPRESENTATIVE  WILSON said  that  Mr. Champion's  testimony  was                                                               
"something  real to  hang  our hat  on,"  and  could be  used  to                                                               
measure whether the proposed changes would make a difference.                                                                   
                                                                                                                                
REPRESENTATIVE GUTTENBERG asked if Mr. Champion  noticed anything                                                               
specific in  the proposed changes  that would make  it easier  to                                                               
obtain his permit.                                                                                                              
                                                                                                                                
MR. CHAMPION  replied that [he wouldn't  know] that answer  until                                                               
he experienced the changes.                                                                                                     
                                                                                                                                
Number 0854                                                                                                                     
                                                                                                                                
PAUL  SHADURA, President  and  Acting Executive  Director,  Kenai                                                               
Peninsula Fishermen's  Association, said the  association is  not                                                               
opposed  to the  change within  the divisions,  but wants  to  be                                                               
assured   of  accountability   and   of  there   being   adequate                                                               
protections  to spawning  streams,  and to  anadromous  and  non-                                                               
anadromous  resident species.   He  reported  that the  Board  of                                                               
Fisheries  recently adopted  a  statewide wild  trout  policy  in                                                               
conjunction  with  a  sustainable  fisheries  policy,  and   that                                                               
habitat is  a main concern.   He said  he was unsure  of how  DNR                                                               
would relate to the Board of Fisheries' recommendations.                                                                        
                                                                                                                                
Number 1145                                                                                                                     
                                                                                                                                
MR.  SHADURA   referred  to  AS  16.05.870,   and  read:     "The                                                               
commissioner shall, in  accordance with AS 44.62  (Administrative                                                               
Procedure Act),  specify the various  rivers, lakes, and  streams                                                               
or parts  of them that are  important for the spawning,  rearing,                                                               
or migration of  anadromous fish."   He said he understands  that                                                               
this duty  will go directly  to the new  deputy director, and  he                                                               
questioned whether  the person  in this new  position would  have                                                               
the   necessary   qualifications   and   expertise   to   discern                                                               
biological,  developmental, and  conservation  issues.   He  said                                                               
that there  must be  a  way for  ADF&G to  have some  say in  the                                                               
permitting process.   He referred to  [Article III, Section  26],                                                               
noting that  the governor  did appoint  a commission  to do  this                                                               
job.  He  suggested the establishment of a commission to  approve                                                               
of  permitting;  the   commission  could  be  confirmed  by   the                                                               
legislature and  would include a  qualifications review.   Deputy                                                               
commissioners  and   subordinates  are   not  reviewed   by   the                                                               
legislature, he added.                                                                                                          
                                                                                                                                
MR.  SHADURA  continued  that  another  issue  pertained  to  the                                                               
anadromous fish  catalogue, saying that  those functions will  go                                                               
to DNR, yet  fish streams surveys and databases will be  compiled                                                               
by  the  Division of  Sport  Fish.   He  expressed  concern  that                                                               
evaluations  will be  made  by people  who  do not  have  habitat                                                               
expertise.   He said  it seems like  the Division  of Sport  Fish                                                               
will be  designating the  anadromous streams  and resident  areas                                                               
for resident populations, and he's not sure how this  dual system                                                               
will  function.    He concluded  by  saying  that  he  hoped  his                                                               
concerns would be alleviated by further testimony.                                                                              
                                                                                                                                
CHAIR SEATON  noted that  DNR was writing  down the  questions that                                                             
were  being generated  during the  meeting and  that hopefully  DNR                                                             
would provide  a response to  Mr. Shadura's question about  how the                                                             
Board of Fisheries would relate to the DNR.                                                                                     
                                                                                                                                
Number 1758                                                                                                                     
                                                                                                                                
FRANK RUE told the committee that  he served as the Commissioner of                                                             
ADF&G for  the past eight  years and before  that he was  the ADF&G                                                             
habitat director for  seven years; for nine years prior  to that he                                                             
was  a resource  manager  for  DNR.   He  referred  to his  written                                                             
testimony and testified as follows:                                                                                             
                                                                                                                                
     I do not support  EO 107 and urge you to disapprove  it                                                                    
     and  instead  work  with  the  administration  and  the                                                                    
     public to address  any real or perceived problems  with                                                                    
     the ADF&G  administration of the  Anadromous Fish  Act,                                                                    
     the Fishways Act, and the FPA.                                                                                             
                                                                                                                                
     I  am submitting,  for  the  record, two  letters,  one                                                                    
     signed by  the last  five commissioners  of [ADF&G]  to                                                                    
     Governor Murkowski  and one from  me to  Representative                                                                    
     Gara.    I  believe they  are  both  relevant  to  your                                                                    
     deliberations.                                                                                                             
                                                                                                                                
     Tonight I will limit my remarks to the two  reasons the                                                                    
     administration  has given  to  justify this  move.    I                                                                    
     believe these two issues are related to the  success or                                                                    
     failure of this structure.                                                                                                 
                                                                                                                                
     First,  that this  restructuring will  lead to  a  more                                                                    
     efficient  and  streamlined  permitting  process;   and                                                                    
     second,  that  DNR will  maintain  the  same  level  of                                                                    
     protection as ADF&G.                                                                                                       
                                                                                                                                
     If this  move is about  efficiency, or removing  layers                                                                    
     of the bureaucracy, I  don't see it.  You could  reduce                                                                    
     three regional  supervisors to  one operations  manager                                                                    
     in the  name of  efficiency and leave  the function  in                                                                    
     ADF&G.  You can cut deputy directors and  biologists in                                                                    
     the  name  of efficiency  and  leave  the  function  in                                                                    
     ADF&G.                                                                                                                     
                                                                                                                                
     The fact  is that  the vast majority  of projects  that                                                                    
     require an anadromous fish habitat permit or a  fishway                                                                    
     permit are single-permit projects and require no  other                                                                    
     authorization.  Those permits are issued in an  average                                                                    
     of just  14  days, so  what layers  of bureaucracy  are                                                                    
     being removed and what  timelines are being sped up  by                                                                    
     moving the function to DNR?  I don't believe any.                                                                          
                                                                                                                                
Number 2126                                                                                                                     
                                                                                                                                
MR. RUE continued:                                                                                                              
                                                                                                                                
     Projects  that do  require more  than an  ADF&G  permit                                                                    
     seldom  require  a  DNR  permit  too.    The  Corps  of                                                                    
     Engineers  and  ADF&G are  far  more  likely  to  issue                                                                    
     permits for  the same project,  so what duplication  is                                                                    
     being removed?  None, in my opinion.                                                                                       
                                                                                                                                
     Forest  practices-related culverts  do  not  require  a                                                                    
     permit from DNR.  The timber industry was  very adamant                                                                    
     that there be no  FPA permits.  The only permit  needed                                                                    
     by a timber company  for a culvert is an ADF&G  permit.                                                                    
     Here again,  no duplication is  removed by putting  DNR                                                                    
     in charge of fish habitat as opposed to having ADF&G.                                                                      
                                                                                                                                
     The second issue is that if the level of  protection is                                                                    
     to be  the same under  DNR as it  is under ADF&G,  then                                                                    
     why  make the  move?    In  fact, this  move  is  about                                                                    
     weakening  the  standard  of  protection  for  Alaska's                                                                    
     salmon, trout and other fish.                                                                                              
                                                                                                                                
     There  are  several reasons  I  believe  the  level  of                                                                    
     protection will  be lower  under DNR than  it has  been                                                                    
     under ADF&G.                                                                                                               
                                                                                                                                
     Start  with   the   different  missions   of  the   two                                                                    
     departments.   DNR is  focused primarily on  developing                                                                    
     renewable and non-renewable resources on state lands  -                                                                    
     oil and gas;  minerals; timber; agriculture and  parks.                                                                    
     It  is  expressly not  responsible  for  management  of                                                                    
     Alaska's wildlife or development of its fisheries.                                                                         
                                                                                                                                
     Fish  and Game  is responsible  for managing  fish  and                                                                    
     wildlife  for  the sustainable  use  and  enjoyment  of                                                                    
     Alaskans.                                                                                                                  
                                                                                                                                
     What this means  in reality is the commissioner of  DNR                                                                    
     gets out the cut and the commissioner of fish  and game                                                                    
     gets out the catch.                                                                                                        
                                                                                                                                
Number 2302                                                                                                                     
                                                                                                                                
MR. RUE continued:                                                                                                              
                                                                                                                                
     The  ADF&G  commissioner   goes  to  work  every   day,                                                                    
     responsible  for   Alaska's   commercial,  sport,   and                                                                    
     subsistence  and personal  use  fisheries.   These  are                                                                    
     fisheries people who need to feed themselves and  their                                                                    
     families and they  generate close to a billion  dollars                                                                    
     in income  each year.  They  employ more Alaskans  than                                                                    
     any other sector of the economy.                                                                                           
                                                                                                                                
     When  faced  with  a  development  project  that  could                                                                    
     impact important  fish habitat, who  do you think  will                                                                    
     have greater  concern  and determination  to make  sure                                                                    
     that habitat is protected?                                                                                                 
                                                                                                                                
     The commissioner of  ADF&G, who is responsible for  all                                                                    
     the  fisheries in  the state;  who knows  that  habitat                                                                    
     protection is  one  of the  foundations of  sustainable                                                                    
     fish and wildlife management; who knows that he or  she                                                                    
     will fail the fishermen of Alaska if habitat is lost?                                                                      
                                                                                                                                
     Or, under the  scheme of EO 107, a deputy  commissioner                                                                    
     in DNR, who  has no responsibility to the fishermen  of                                                                    
     Alaska?                                                                                                                    
                                                                                                                                
     The level  of protection will also  be lower because  a                                                                    
     deputy commissioner  in DNR,  not  the commissioner  of                                                                    
     ADF&G who is confirmed by the legislature, is  the last                                                                    
     administrative stop  for anadromous  and resident  fish                                                                    
     habitat decisions,  outside of  an appeal,  apparently.                                                                    
     Although, before, we heard something different.                                                                            
                                                                                                                                
Number 2356                                                                                                                     
                                                                                                                                
MR. RUE testified:                                                                                                              
                                                                                                                                
     A deputy commissioner in DNR, and not  the commissioner                                                                    
     of  ADF&G, will  decide  what is  "important  habitat,"                                                                    
     what is  "proper protection" and  when fish passage  is                                                                    
     "necessary."                                                                                                               
                                                                                                                                
     Instream  habitat  of   king  salmon,  steelhead,   and                                                                    
     rainbow trout  will have  less stature  in  DNR than  a                                                                    
     potato.   A  potato at  least has  a cabinet-level  DNR                                                                    
     commissioner responsible for its well-being.                                                                               
                                                                                                                                
     A  deputy  commissioner at  DNR  does  not  have  equal                                                                    
     standing with the commissioner  of DOT or his own  boss                                                                    
     or the  regional forester of  the United States  Forest                                                                    
     Service (USFS) to  bring issues to their attention  and                                                                    
     effectively argue  for fish habitat  protection.   Fish                                                                    
     habitat will lose out.                                                                                                     
                                                                                                                                
     I  have  23  years  of  experience  at  DNR  and  ADF&G                                                                    
     negotiating   the  FPA;   negotiating  with   DOT,   as                                                                    
     transportation  projects  are  built  to  protect  fish                                                                    
     habitat; negotiating oil and gas stipulations on  state                                                                    
     and federal leases; working to keep trees  important to                                                                    
     stream  habitat  in buffers;  and  working  to  protect                                                                    
     critical  wildlife  and  fish  habitat  in   state  and                                                                    
     federal forest plans.                                                                                                      
                                                                                                                                
     I  can guarantee  you from  my experience,  that  ADF&G                                                                    
     commissioners  will  care   more  and  have  a   higher                                                                    
     standard  of protection  for fish  than will  a  deputy                                                                    
     commissioner at DNR.                                                                                                       
                                                                                                                                
Number 2541                                                                                                                     
                                                                                                                                
Mr. Rue continued:                                                                                                              
                                                                                                                                
     The  level  of protection  will  be  lower  because  22                                                                    
     people have been cut from the [Division of  Habitat and                                                                    
     Restoration].  The workload has not gone down;  time in                                                                    
     the field will.                                                                                                            
                                                                                                                                
     Will  the  remaining  positions  that  go  to  DNR   be                                                                    
     biologists now and in  the future?  They don't have  to                                                                    
     be under  the order; they  could be resource  managers,                                                                    
     foresters,  or hydrologists  rather than  trained  fish                                                                    
     habitat biologists.                                                                                                        
                                                                                                                                
     The  level of  protection  will be  lower  because  the                                                                    
     biologists who  are left at DNR  will be isolated  from                                                                    
     their  peers   at  ADF&G's   [Division  of   Commercial                                                                    
     Fisheries and Division of Sport Fish].   One operations                                                                    
     manager,  instead   of  three  knowledgeable   regional                                                                    
     supervisors,  will be  responsible for  the  biologists                                                                    
     and issues from Barrow to Ketchikan.                                                                                       
                                                                                                                                
     It is  curious that  the  governor wants  less and  not                                                                    
     more supervision and support for these  same biologists                                                                    
     he accused of having personal agendas.                                                                                     
                                                                                                                                
     None  of  this   makes  sense  unless  you  want   less                                                                    
     protection  for  Alaska's  fish  and   easier,  cheaper                                                                    
     development  of  timber, roads,  and  mines  that  will                                                                    
     impact salmon and trout.                                                                                                   
                                                                                                                                
Number 2634                                                                                                                     
                                                                                                                                
MR. RUE testified:                                                                                                              
                                                                                                                                
     There is an alternative.                                                                                                   
                                                                                                                                
     If you want the same standard of protection,  leave the                                                                    
     function of fish habitat  protection in ADF&G.  If  the                                                                    
     legislature agrees  that positions should  be cut  from                                                                    
     the [Division of  Habitat and Restoration], you can  do                                                                    
     that and keep the function ADF&G.                                                                                          
                                                                                                                                
     If the legislature  feels that the policies ADF&G  uses                                                                    
     to implement the  Anadromous Fish Act and the  Fishways                                                                    
     Act need  to be changed,  that can be  done by  working                                                                    
     with the  administration and  the  public to  implement                                                                    
     regulations.  Commissioner Irwin probably wasn't  aware                                                                    
     of this,  not  many people  are, but  ADF&G has  tried,                                                                    
     twice, to  adopt detailed  regulations on  870 and  840                                                                    
     and  both  times the  DNR  prevented  them  from  going                                                                    
     public.   That way, Alaskans will  have more say  about                                                                    
     how  much  or  how  little  protection  they  want  for                                                                    
     Alaska's salmon and trout habitat than they will if  EO                                                                    
     107 is allowed to go into effect.                                                                                          
                                                                                                                                
     I do not  think there is a  way for the legislature  to                                                                    
     make a  silk purse out  of a sow's  ear.  EO  107 is  a                                                                    
     sow's  ear   for   Alaska's  fish   despite  the   best                                                                    
     intentions of the current commissioner of DNR.   Please                                                                    
     work to reject EO 107.                                                                                                     
                                                                                                                                
Number 2803                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON said  that the committee would be  awaiting                                                               
responses to some good questions that had been brought up in  Mr.                                                               
Rue's testimony.                                                                                                                
                                                                                                                                
REPRESENTATIVE BERKOWITZ stated that the development of  Alaska's                                                               
resources will  play a critical  role in the  state's economy  in                                                               
the  foreseeable  future  and  that  the  development  of   those                                                               
resources is  dependent upon federal cooperation.   He asked  Mr.                                                               
Rue  about the  importance of  having  a strong,  viable  habitat                                                               
division  in  order  to  maintain  positive  relations  with  the                                                               
federal government, that is,  to develop resources, and to  "keep                                                               
at  bay  those  lawyers  who  would  otherwise  seek  to  prevent                                                               
development of the resources."                                                                                                  
                                                                                                                                
MR. RUE replied that this was an issue when he  was commissioner.                                                               
He said that  regarding involvement by federal agencies,  ADF&G's                                                               
attempts  to maintain  the existing  fisheries has  enhanced  the                                                               
state's  credibility  in  the  permitting  process.    Similarly,                                                               
[many]  private citizens  or  groups concerned  about  fish  have                                                               
agreed with ADF&G's approach and have not pushed for appeals.                                                                   
                                                                                                                                
MR. RUE cited  the Fort Knox [gold] mine  and the North Slope  as                                                               
examples of good projects.  He referred to the desire by  federal                                                               
agencies, to turn huge  gravel pits in the North Slope back  into                                                               
moist tundra.  Because the [Division of Habitat  and Restoration]                                                               
made it clear that this wasn't a reasonable request,  the federal                                                               
agencies backed off and those pits are now lakes - fish  habitat.                                                               
Trust  has been  established because  of ADF&G's  reliability  in                                                               
"looking  out for  the  interests of  fish,"  and under  the  new                                                               
structure, he  said he  didn't  know if,  in the  long run,  this                                                               
would continue to be the case.                                                                                                  
                                                                                                                                
Number 3230                                                                                                                     
                                                                                                                                
CATHERINE POHL  said she was  speaking on behalf  of herself  and                                                               
told the  committee that she was  a habitat biologist with  ADF&G                                                               
and  could  offer a  view  from  the field.    She  provided  the                                                               
following testimony:                                                                                                            
                                                                                                                                
     EO 107 will  not result in streamlined permitting.   It                                                                    
     will gut  habitat protection and  degrade habitat.   It                                                                    
     will   also   discredit  the   state,   create   chaos,                                                                    
     inefficiency,  and  delays.     And  it  may   endanger                                                                    
     economically  important negotiations.    To  meet  your                                                                    
     mandate  of  sustaining  the  state's   productive  and                                                                    
     valuable fisheries resources,  I believe you will  need                                                                    
     to reject EO 107.                                                                                                          
                                                                                                                                
     I believe the public does not want the  consequences of                                                                    
     EO  107.    Unfortunately,  few  may  understand  those                                                                    
     consequences.  To understand, you need to look  closely                                                                    
     at how  habitat protection happens,  and how that  will                                                                    
     be affected  by organizational structure  and by  staff                                                                    
     levels.                                                                                                                    
                                                                                                                                
Number 3401                                                                                                                     
                                                                                                                                
MS. POHL continued:                                                                                                             
                                                                                                                                
     There will  be a  loss of accountability  since EO  107                                                                    
     strips ADF&G of  its authority for habitat  protection,                                                                    
     but not  its  responsibility.  We  all  know that  when                                                                    
     authority and responsibility  don't line up, things  go                                                                    
     wrong.  It's  a classic management tenant.  The  deputy                                                                    
     commissioner  from   DNR  would  not   be  subject   to                                                                    
     legislative approval and  DNR would not be  responsible                                                                    
     or   answerable   in  the   same   way   to   fisheries                                                                    
     stakeholders.  Not answerable in the same way  that you                                                                    
     are or  that [ADF&G] is.   This sounds like  philosophy                                                                    
     but it  is really important,  given the flexibility  of                                                                    
     the statutes.   A commissioner charged with  protection                                                                    
     and  management  of   fish  and  wildlife,  and   their                                                                    
     habitat,  and  subject  to  legislative  approval,   is                                                                    
     needed for accountability.  And that  accountability is                                                                    
     essential for effective habitat protection.                                                                                
                                                                                                                                
     So how would  that work on the  ground?  Title 16  fish                                                                    
     habitat protection  statutes are narrow  in scope,  but                                                                    
     open and  discretionary tools for providing  protection                                                                    
     more  than  requirements.    There  are  no  Title   16                                                                    
     permitting  regulations, just  policy and  statute,  so                                                                    
     commissioner-level    commitment,    expertise,     and                                                                    
     accountability are essential.  There could  be dramatic                                                                    
     losses to fish passage and spawning habitat, and  still                                                                    
     strictly  meet  the  minimum    "requirements  of   the                                                                    
     statute" -  if the  power  to protect,  itself, is  not                                                                    
     effectively invoked.                                                                                                     
                                                                                                                                
Number 3496                                                                                                                     
                                                                                                                                
MS. POHL continued:                                                                                                             
                                                                                                                                
     It   appears   that   this   is   exactly   what    the                                                                    
     administration has  in mind, given  the staff cuts  and                                                                    
     recently  drafted   legislation.     This   legislation                                                                    
     proposes changing  general  concurrence projects,  such                                                                    
     as  Title  16  permits,  into  general  permits.    The                                                                    
     majority  of  Title  16  permits  would  then  have  no                                                                    
     review, and  no site-specific  conditions.   That is  a                                                                    
     recipe for disaster.   Older USFS road crossings  would                                                                    
     be an  example of  where that kind  of approach  leads.                                                                    
     Seventy percent  of surveyed  national forest  culverts                                                                    
     fail to meet fish passage standards.                                                                                       
                                                                                                                                
     What  does  the  change  in  authority  mean  to  other                                                                    
     habitat protection  outside the stream  bank?   There's                                                                    
     been talk about  that this evening which was  confusing                                                                    
     to  me, and  perhaps to  some  of you  as well.    ACMP                                                                    
     standards and review  provide our only real  protection                                                                    
     for riparian buffers outside of the FPA.  It  allows us                                                                    
     to avoid, minimize, or mitigate effects on  key habitat                                                                    
     through project review.   That's a big  part of my  job                                                                    
     now, but a  part that will go away  on May 1st.  I  say                                                                    
     that because we've  had to prioritize our workload  due                                                                    
     to extreme staff cuts.   The ACMP part of it, and  that                                                                    
     includes  buffers, protection  for  eelgrass,  tideland                                                                    
     fills,  estuaries,   near-shore  habitat:  No   review.                                                                    
     Other than fish  passage, nothing is more important  to                                                                    
     the future of Alaska's fisheries.                                                                                          
                                                                                                                                
Number 3658                                                                                                                     
                                                                                                                                
MS. POHL continued:                                                                                                             
                                                                                                                                
     If there's  no statutory or  regulatory requirement  to                                                                    
     review such projects at  all, let alone to review  them                                                                    
     in a way  that protects important habitat,  concurrence                                                                    
     is assumed if  there's no objection in the ACMP  review                                                                    
     process.   So  the bottom  line is  that  commissioner-                                                                    
     level commitment and accountability are just  essential                                                                    
     for habitat protection, beyond the stream bank as  well                                                                    
     as within the stream bank.                                                                                                 
                                                                                                                                
     There's no  indication that habitat protection  outside                                                                    
     of ordinary  high water will happen  at DNR.   Proposed                                                                    
     legislation  makes clear  that the  intention,  despite                                                                    
     statements   otherwise,   such   as   "no   change   in                                                                    
     substantive   environmental   requirements,"   is    to                                                                    
     eliminate even  the basic,  modest, habitat  protection                                                                    
     the  state   can  now   provide  for  stream   buffers,                                                                    
     productive tidelands,  and nearshore waters,  crippling                                                                    
     state review projects on federal land as well  as urban                                                                    
     areas.   If habitat  protection remains a  goal of  the                                                                    
     state, the  legislature will  need  to assure,  through                                                                    
     its own  authority, that  habitat protection is  placed                                                                    
     in the hands of  an agency and a commissioner that  can                                                                    
     protect  the use  and enjoyment  of fish  and  wildlife                                                                    
     through its implementation of statute and regulation.                                                                      
                                                                                                                                
Number 3809                                                                                                                     
                                                                                                                                
MS. POHL continued:                                                                                                             
                                                                                                                                
     Ironically, other  agencies will  continue to  look  to                                                                    
     ADF&G  for habitat  guidance.   ADF&G  consultation  is                                                                    
     hard-wired  into  their  permits.    Yet  there  is  no                                                                    
     provision for this role in the  proposed reorganization                                                                    
     plan.  It is  as if the proponents of EO 107 are  blind                                                                    
     to  the  current scope  of  review  that  supports  the                                                                    
     mutual  habitat  protection  goals  of  municipalities,                                                                    
     federal agencies,  and the  state.   Mr. Rue  mentioned                                                                    
     some of those examples.   He mentioned our role in  the                                                                    
     core permit process.   You could also add in all  kinds                                                                    
     of   municipal  permit   reviews,  setback   variances,                                                                    
     restoration  plans,  wetland  fill,  and  subdivisions.                                                                    
     There  is   also  the   FERC  (Federal  Energy   Review                                                                    
     Commission)  process, smoothing  the  way  for  federal                                                                    
     permitting.    Loss   of  ADF&G's  role  in  the   FERC                                                                    
     hydropower  process may  lead  to roadblocks  with  the                                                                    
     federal agencies.                                                                                                          
                                                                                                                                
Number 3905                                                                                                                     
                                                                                                                                
MS. POHL continued:                                                                                                             
                                                                                                                                
     We've also  talked about  the inefficiencies that  will                                                                    
     result from the loss of the close communication we  now                                                                    
     have with  ADF&G biologists.   Perhaps most  important,                                                                    
     with the  demise of area  offices, the efficiency  that                                                                    
     comes with knowing the  ground and the players will  be                                                                    
     lost.  It will be impossible to  schedule frequent site                                                                    
     visits  to distant  locales, and  since we  don't  know                                                                    
     these distant  places, it will  be impossible to  issue                                                                    
     good permits with minimal review.  Delays will  result.                                                                    
     With  the staff  cuts, we  will no  longer be  able  to                                                                    
     offer   significant    scoping    early   in    project                                                                    
     development, though early involvement is known to  save                                                                    
     time and money  for the applicant.  Unnecessary  delays                                                                    
     due   to    last-minute   project   modification    are                                                                    
     inevitable.                                                                                                                
                                                                                                                                
     There are  already considerable losses  of funding  for                                                                    
     habitat   protection,   assessment,   and   restoration                                                                    
     because  many  of the  funding  sources  available  for                                                                    
     habitat work  at ADF&G  cannot be  transferred to  DNR.                                                                    
     This   unnecessarily    impoverishes   state    habitat                                                                    
     protection, and  will lead  to  habitat degradation  as                                                                    
     well as permitting delays.                                                                                                 
                                                                                                                                
Number 4005                                                                                                                     
                                                                                                                                
MS. POHL continued:                                                                                                             
                                                                                                                                
     Approximately     one-third     of     the      state's                                                                    
     permitting/project   review   staff   received   layoff                                                                    
     notices.  Southeast was  hit the hardest.  Five of  the                                                                    
     nine project  review biologists  were laid  off.   This                                                                    
     represents over 50 years  "on the ground" from Icy  Bay                                                                    
     to southern Southeast.  If anyone could  streamline, it                                                                    
     would be these  "master" permitters.  They  streamline.                                                                    
     They know  the country  and the  operators, and  that's                                                                    
     what it takes.   What will be  left will be a  skeletal                                                                    
     crew will  remain to cover  the entire Archipelago  and                                                                    
     outer coast  to  Cape Yagataga.   What  will this  look                                                                    
     like?                                                                                                                      
                                                                                                                                
     There  is no  way we  can  cover for  even one  of  the                                                                    
     permitters lost to layoff.  Delays are  inevitable with                                                                    
     half or one-third of the permitting staff.                                                                                 
                                                                                                                                
     Compliance  monitoring  and  post-project   inspections                                                                    
     will  be  a  luxury  we  can't  afford.    And  without                                                                    
     monitoring    and    inspections,    there    is     no                                                                    
     accountability.   Enforcement is  time  consuming.   It                                                                    
     requires  a  consistent  field  presence,  as  well  as                                                                    
     supervisory and  legal  support -  not likely  at  DNR.                                                                    
     And   wide-ranging  ADF&G   management   and   research                                                                    
     biologists, who  do get in the  field and are  trained,                                                                    
     will lose  the ability  to enforce for  habitat.   Most                                                                    
     habitat protection  occurs voluntarily,  as it  should,                                                                    
     but that  is  due to  our field  presence, our  current                                                                    
     field   presence,   which   provides   education    and                                                                    
     continuing enforcement.                                                                                                    
                                                                                                                                
Number 4110                                                                                                                     
                                                                                                                                
MS. POHL continued:                                                                                                             
                                                                                                                                
     In addition  to that loss of  that field presence,  and                                                                    
     delays, you'll  see a  much-reduced scope  of review  -                                                                    
     fewer projects reviewed,  fewer issues addressed.   You                                                                    
     will see degradation of urban and  forested landscapes.                                                                    
     There is no sign  that DNR will pick up ADF&G's  review                                                                    
     roles in municipal  and federal projects.  Perhaps  the                                                                    
     saddest part is  that there are  no real gains in  this                                                                    
     for industry, only losses.                                                                                                 
                                                                                                                                
     Among the losses will  be a loss of state  credibility,                                                                    
     handicapping  long-term  fisheries,  subsistence,   and                                                                    
     development  negotiations.   Without hydro  review,  it                                                                    
     may be hard  for ADF&G to pass  the "red face" test  in                                                                    
     treaty   negotiations   with   our    salmon-challenged                                                                    
     neighbors to the south.                                                                                                    
                                                                                                                                
     We  are  losing a  generation  of  habitat  biologists'                                                                    
     expertise as  well,  crippling the  state's ability  to                                                                    
     train new  biologists and setting  the state's  habitat                                                                    
     program capability back at  least 10 or 15 years,  even                                                                    
     if the EO decision is reversed within weeks or months.                                                                     
                                                                                                                                
     One  thing  I've learned  from  working  as  a  habitat                                                                    
     biologist is  that most  Alaskans care  about fish  and                                                                    
     wildlife.   They care  a lot.   Some  say EO  107 is  a                                                                    
     runaway train.   But I don't believe  that.  I have  to                                                                    
     believe that all of you and your colleagues need to  do                                                                    
     the right thing, that  you want to do the right  thing.                                                                    
      There is no tweaking, no Band-Aid to make EO 107 work.                                                                    
     Please support the resolution to overturn EO 107.                                                                          
                                                                                                                                
Number 4258                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  asked  both  commissioners  for  their                                                               
assurances that  biologists and  others from  the department  who                                                               
chose to testify would not be subject to any retaliatory action.                                                                
                                                                                                                                
COMMISSIONER IRWIN  replied, "That  question was  totally out  of                                                               
line.  ... Of course we care about people."  He said he knew  Ms.                                                               
Pohl had strong opinions  against EO 107 and he complimented  her                                                               
for sharing her views.                                                                                                          
                                                                                                                                
[Commissioner Duffy  indicated his concurrence with  Commissioner                                                               
Irwin's remarks.]                                                                                                               
                                                                                                                                
REPRESENTATIVE BERKOWITZ said he intended no offense, but  wanted                                                               
to encourage good dialogue  on the subject matter.  He asked  Ms.                                                               
Pohl about  the impact of  the removal of  the biologists on  the                                                               
North Pacific Salmon Treaty.                                                                                                    
                                                                                                                                
MS. POHL replied  that without hydro biologists' review of  hydro                                                               
projects, if hydro-related problems  were to create loss of  runs                                                               
in  British Columbia  and  the  Pacific Northwest,  the  loss  of                                                               
credibility would become an issue.  She said the  state's habitat                                                               
protection program  has been a "strong  suit" in negotiations  on                                                               
these issues.                                                                                                                   
                                                                                                                                
Number 4530                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  asked  about  the  loss  of   funding                                                               
sources for ADF&G biologists.                                                                                                   
                                                                                                                                
MS.  POHL  replied that  funds  would  no longer  be  applied  to                                                               
project review and  habitat protection because those funds  would                                                               
need  to remain  at ADF&G  even though  the function  of  project                                                               
review was being moved to DNR.                                                                                                  
                                                                                                                                
REPRESENTATIVE GUTTENBERG asked, "Why would that be?"                                                                           
                                                                                                                                
MR.  RUE offered  that the  reason involved  federal aid  dollars                                                               
such as the  Dingle-Johnson and Wallop-Breaux funds; these  funds                                                               
couldn't be used for  permitting because they go directly to  the                                                               
fish and wildlife agency [ADF&G].  He said he thought some  money                                                               
could  go  to DNR  via  RSA  [reimbursable  services  agreement],                                                               
through a rehire position to do instream flow.                                                                                  
TAPE 03-20, SIDE B                                                                                                            
Number 4625                                                                                                                     
                                                                                                                                
MR. RUE continued that those funds were used by the  [Division of                                                               
Habitat and Restoration] for project reviews.  He said he  didn't                                                               
believe the  federal aid  office would  allow those  funds to  be                                                               
directed to DNR.                                                                                                                
                                                                                                                                
MS.  POHL  added that  the  issue  was one  of  credibility  with                                                               
federal agencies  because the agency with  expertise in fish  and                                                               
wildlife is ADF&G.  She said, "You'd be swimming  upstream trying                                                               
to convince them otherwise."                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  asked about  the  projected amount  of                                                               
federal dollars that would be lost.                                                                                             
                                                                                                                                
MS. POHL deferred to management to answer that question.                                                                        
                                                                                                                                
Number 4536                                                                                                                     
                                                                                                                                
CHAIR SEATON  asked about  developing missions  and measures,  in                                                               
order  to  look  at the  loss  of  habitat  protections  such  as                                                               
eelgrass, for  example.  He said  the committee would  appreciate                                                               
some way of measuring loss, and that this information would  also                                                               
give  DNR the  opportunity  to make  sure  that "the  loss  isn't                                                               
creeping."                                                                                                                      
                                                                                                                                
MS. POHL  responded that DNR's emphasis on  Title 16 issues  will                                                               
probably continue  but that with  a reduced staff,  the scope  of                                                               
projects would  have to  be reduced.   She  said that  biologists                                                               
have  prioritized  projects   "from  today  forward,  given   the                                                               
transition" and  that the  ACMP-type issues  which don't  involve                                                               
Title 16 permits have fallen below the "can do" line.   Regarding                                                               
the question  on performance measures, she  repeated there is  no                                                               
"tweaking  or Band-Aid  that could  make this  thing work  in  an                                                               
acceptable way."    However, she  said one  could track  incoming                                                               
core  permits, categorize, and  enter those  to  a database,  and                                                               
note  which   involve  productive   tidelands,  estuaries,   [or]                                                               
eelgrass.   She pointed out  this was  problematic unless it  was                                                               
reviewed; it's the habitat biologists who review the  information                                                               
and determine  which resources are  affected.  She  said that  at                                                               
least by looking at the incoming notices and counting those  that                                                               
don't get looked at, one could guess at the amount  involved with                                                               
the most sensitive resources  but "you will never even know  what                                                               
resources you're missing if these projects aren't reviewed."                                                                    
                                                                                                                                
Number 4205                                                                                                                     
                                                                                                                                
STEVE  ALBERT,  Habitat   Biologist,  Division  of  Habitat   and                                                               
Restoration, Alaska Department of Fish & Game  (ADF&G), testified                                                               
that he has worked for  the state for over 21 years, mostly as  a                                                               
habitat biologist, and wanted  the committee to know that  having                                                               
"financial  axes  to  grind"  was  not  the  motivation  for  his                                                               
testimony.   He referred to  his written testimony  and told  the                                                               
committee:                                                                                                                      
                                                                                                                                
     Today in Alaska  we are facing the fiscal realities  of                                                                    
     a budget deficit.   We stand at  a crossroad - a  major                                                                    
     fork in the road.  One road leads  to rapid development                                                                    
     of non-renewable extractive resource industries at  any                                                                    
     cost.  Proposed administrative and  legislative actions                                                                    
     will  completely  dismantle  environmental  regulation,                                                                    
     remove almost all  opportunities for public notice  and                                                                    
     input,  and place  the final  decision-making  approval                                                                    
     for development projects in the hands of a few.                                                                            
                                                                                                                                
     The  other  road also  has  development  of  extractive                                                                    
     resources but with measured growth, recognition of  the                                                                    
     economic values of renewable resource  development such                                                                    
     as  tourism,  sport  fishing,  and  hunting,  and   the                                                                    
     recreational  values  attached to  our  vast  fish  and                                                                    
     wildlife resources.   The economic value and number  of                                                                    
     jobs associated with this component of the economy  far                                                                    
     exceeds all  other industries.   Fish have returned  to                                                                    
     Alaska since the eons  of time.  Why would you want  to                                                                    
     risk these resources?                                                                                                      
                                                                                                                                
Number 4000                                                                                                                     
                                                                                                                                
MR. ALBERT continued:                                                                                                           
                                                                                                                                
     In the  next 10-50  years, what will  Alaskans do  when                                                                    
     the mines play out, the trees have been  harvested, the                                                                    
     waters dammed  to provide power  for industry, the  oil                                                                    
     and gas  is depleted,  and when  all of  our lands  are                                                                    
     (indisc.) disposed?  In April 2002, [U.S.]  Senator Ted                                                                    
     Stevens  said, "The  day will  come  when oil  and  gas                                                                    
     revenues will not be  available.  When that occurs,  we                                                                    
     will have our  permanent fund, but we should also  have                                                                    
     in  the meantime  dedicated  funds for  preserving  and                                                                    
     protecting the revenue base of this state  forever, and                                                                    
     that is  the fisheries  resource.  It  is the  resource                                                                    
     that will sustain our state far into the future."                                                                          
Number 3852                                                                                                                     
                                                                                                                                
MR. ALBERT testified:                                                                                                           
                                                                                                                                
     The proposed  reorganization's tangible and  intangible                                                                    
     costs  will be  great but  will  likely be  shifted  to                                                                    
     municipal governments, the general public,  industries,                                                                    
     developers, large  and small,  and private  landowners.                                                                    
     But   where   are  the   efficiencies   and   benefits?                                                                    
     Presently habitat permits are free and fast.   How will                                                                    
     development  project   proponents,  small  and   large,                                                                    
     respond to DNR's  $200 to $500  per permit fees in  the                                                                    
     future?  How  will developers respond to absorbing  the                                                                    
     costs of having to wait even longer for  their permits?                                                                    
     A little  guy  putting in  a driveway  culvert will  be                                                                    
     paying the  same as  a large timber  company for  their                                                                    
     log stringer bridge permit.  [Commissioner]  Irwin  has                                                                    
     often referred  to  his business  approach to  managing                                                                    
     state  government.   Any reasonable  corporate  manager                                                                    
     would  request  completion  of  a  detailed,  long-term                                                                    
     cost/benefit  analysis before  this  reorganization  is                                                                    
     implemented.   Any  reasonable manager  would  identify                                                                    
     the standards  by which you,  the legislature, and  the                                                                    
     public will  be able  to measure increased  efficiency.                                                                    
     Any   reasonable  manager   would  compare   rates   of                                                                    
     regulatory  enforcement   at  DNR  and   ADF&G.     The                                                                    
     legislature and the public need these elements to  make                                                                    
     an informed management decision.                                                                                           
                                                                                                                                
     Throughout this  whole  reorganization discussion,  for                                                                    
     months  now, DNR  Commissioner  Tom Irwin,  has  heaped                                                                    
     tons of  praise on how the  permitting process for  his                                                                    
     previous company  was handled  in  the ADF&G  Fairbanks                                                                    
     office where the [Division of Habitat  and Restoration]                                                                    
     was a separate entity.   As an example, he mentioned  a                                                                    
     water reservoir  project for which  his company  needed                                                                    
     an  ADF&G permit.    He  stated that  he  received  his                                                                    
     permit in a very timely manner and the  environment was                                                                    
     protected and  even enhanced.   As a  reminder to  this                                                                    
     Committee, the  [Division of  Habitat and  Restoration]                                                                    
     was  a separate  entity and  the  system worked.    The                                                                    
     system as  it is  right now works!   It  works for  the                                                                    
     public, to  whom we are all  responsible, for the  fish                                                                    
     and  wildlife   resources  that  they   expect  to   be                                                                    
     available  for their  use and  enjoyment, and  for  all                                                                    
     development projects,  except for  literally a  handful                                                                    
     of  ill-conceived  or  incomplete  projects,   proposed                                                                    
     annually.                                                                                                                  
                                                                                                                                
Number 3720                                                                                                                     
                                                                                                                                
MR. ALBERT concluded:                                                                                                           
                                                                                                                                
     I am  not against development, I  live in a house  made                                                                    
     of wood, I  drive a car  that requires gasoline, and  I                                                                    
     heat my house  with natural gas.   But I appeal to  you                                                                    
     to recognize  that development at  any cost over  other                                                                    
     societal values,  without recognizing  the concepts  of                                                                    
     sustainability and multiple use resource management  is                                                                    
     wrong, is  poor public policy,  and against the  vision                                                                    
     of the  writers of  the Alaska Constitution.   I  truly                                                                    
     believe  we   can  have   reasonable  development   and                                                                    
     maintain  fish,  wildlife, and  water  quality  values.                                                                    
     Balancing  the  budget while  placing  public  resource                                                                    
     values at risk is unacceptable.                                                                                            
                                                                                                                                
Number 3645                                                                                                                     
                                                                                                                                
BOB  CHURCHILL,   Member,  Anchorage  Fish   and  Game   Advisory                                                               
Committee, and Member, Executive Board, Alaska Fly Fishers,  told                                                               
the  committee  that  for  the  past  2  years  he  was  on   the                                                               
Southcentral Regional Advisory Council, the federal companion  to                                                               
the state advisory committee, and he also sat for 3 years on  the                                                               
Board of Game.   He said he was familiar with public process  and                                                               
its  importance in  contributing  to making  good  decisions;  he                                                               
suggested that  EO 107 be debated  in the House  and Senate.   He                                                               
said that although  salmon currently appear to be plentiful,  due                                                               
to their two-to-eight year cycle, damaging consequences can  take                                                               
a long  time to show up.   He asked that,  in addition to  salmon                                                               
runs,  issues  involving resident  species  and  other  dependent                                                               
wildlife be looked  at and considered.   He said that the  "total                                                               
dollar  budget" needs  to be  examined  to ensure  that  critical                                                               
arenas such  as salaries,  work hours, trainings,  transportation                                                               
to sites, supplies, and equipment are included.                                                                                 
                                                                                                                                
MR.  CHURCHILL  asked,  "What  kind  of  accountability  have  we                                                               
established for these upper level, key managers who are going  to                                                               
make these  decisions?"  He  mentioned that fly-fishermen  travel                                                               
to  Alaska from  all over  the world  and spend  a lot  of  money                                                               
because of  the environment and [the  resource].  He asked,  "How                                                               
is enforcement going to work?"  He also expressed concern that  a                                                               
high level  of accountability be  built into the  system for  the                                                               
managers  who   will  be  accepting  responsibilities   regarding                                                               
habitat.                                                                                                                        
                                                                                                                                
CHAIR SEATON  noted that accountability  is difficult to  measure                                                               
and  asked Mr.  Churchill to  send any  specific suggestions  for                                                               
measuring accountability to the committee.                                                                                      
                                                                                                                                
Number 3052                                                                                                                     
                                                                                                                                
CLEM   TILLION,   Consultant,   Aleut   Enterprise   Corporation,                                                               
mentioned that he was  a former legislator, a former chairman  of                                                               
the  North Pacific  Fisheries Management  Council, and  a  former                                                               
chairman  of   INPFC  [International   North  Pacific   Fisheries                                                               
Commission].  He  began by telling the  committee his views on  a                                                               
variety of issues.   He stated that he was supportive of EO  107,                                                               
noting  that  he  didn't  believe  that  one  had  to  be   anti-                                                               
conservation to be  supportive of EO 107.   He said that many  of                                                               
the witnesses were thinking of their "rice bowls" rather than  of                                                               
the actual  need to "protect  this or that."   He mentioned  that                                                               
taxes had been raised in the fishing industry so  that commercial                                                               
fisheries  would have  the necessary  budget, whereas  the  sport                                                               
fishery received money  through funds such as Dingle-Johnson  and                                                               
Wallop-Breaux.  Mr. Tillion  continued that he liked the idea  of                                                               
cutting the  budget because we've "gotten too  fat," and said  he                                                               
viewed this  cut as a way  of getting enough  money to keep  "the                                                               
regular ADF&G going."   He said he believes that the  legislation                                                               
requiring protection  exists, and  said, "Don't  worry about  who                                                               
loses their job, worry about the job and the resource itself."                                                                  
                                                                                                                                
REPRESENTATIVE BERKOWITZ said  opposition to EO  107 had more  to                                                               
do with the reality that the protections afforded to  the habitat                                                               
and  the jobs  of Alaskans  who depend  on the  habitat would  be                                                               
adversely  affected  rather  than  there  being  a  concern  with                                                               
protecting the "rice bowls" of 30 biologists.                                                                                   
                                                                                                                                
CHAIR SEATON announced that  the panel of public interest  groups                                                               
would be the next group to testify.                                                                                             
                                                                                                                                
The committee took an at-ease from 9:30 to 9:32.                                                                                
                                                                                                                                
Number 2448                                                                                                                     
                                                                                                                                
PAULA   TERRELL,   Alaska   Marine   Conservation   Council,   an                                                               
organization of about  1,000 members, said its guiding  principle                                                               
is  to promote,  urge, encourage,  and work  towards  sustainable                                                               
fisheries.    She began  by  saying  there's  a  misunderstanding                                                               
between Title 16 permitting and single permitting.   She referred                                                               
to  Mr.  Champion's   earlier  testimony,  explaining  that   his                                                               
difficulty was with DGC, not  with ADF&G.  She said with EO  107,                                                               
the  governor indicated  that the  problem  was not  with  single                                                               
permitting  but with  multiple permitting.    She said  that  the                                                               
permitting  horror  stories   do  not  always  reflect   instream                                                               
permitting, Title 16.  Ms. Terrell mentioned that  the transition                                                               
report indicated  "they wished to see  any decision about  moving                                                               
habitat to  DNR deferred until a  new commissioner could come  in                                                               
and a habitat director  would come in that would then review  the                                                               
whole process."  She questioned why the transition report  wasn't                                                               
being listened to.                                                                                                              
                                                                                                                                
Number 2037                                                                                                                     
                                                                                                                                
MS.  TERRELL referred to  question  3, addressed  earlier in  the                                                               
meeting, and  said  Commissioner Irwin's  response didn't  answer                                                               
whether  the  site-specific  visits,  currently  being  done   by                                                               
habitat  biologists, would  be  continued  in the  future.    Ms.                                                               
Terrell  referred  to   the  question,  "What  about  a   mission                                                               
statement?"  She  suggested that a separate mission statement  be                                                               
made  for  the  [DHMP].   She  stated  that  DNR's  goal  is  "to                                                               
contribute to  Alaska's economic  health and quality  of life  by                                                               
protecting and maintaining the state's resources and  encouraging                                                               
wise development of these resources by making them  available for                                                               
public use."   Under [Sec. 16.05.020], the ADF&G commissioner  is                                                               
required to "manage,  protect, maintain, improve, and extend  the                                                               
fish,  game, and  aquatic plant  resources of  the state  in  the                                                               
interest  of  the  economy and  the  general  well-being  of  the                                                               
state."     Ms.  Terrell   said  the   aforementioned  would   be                                                               
accomplished through  rehabilitation enhancement and  development                                                               
programs; ADF&G must do all things necessary to  ensure perpetual                                                               
and  increasing production.    She  pointed out  that  these  two                                                               
mandates [between DNR & ADF&G] are different.                                                                                   
                                                                                                                                
Number 1755                                                                                                                     
                                                                                                                                
MS.  TERRELL continued that  there  was a  difference of  opinion                                                               
regarding whether the Dingle-Johnson funds could be used  outside                                                               
of  ADF&G  and  she  asked  for  clarification  on  this.     She                                                               
questioned  how  the  monitoring,  enforcement,  and   compliance                                                               
involved with the habitat biologists being moved to DNR would  be                                                               
managed; she  asked how jobs  could be  done adequately when  the                                                               
number of available workers will be diminished.  She  inquired as                                                               
to how the  department will answer these questions before  making                                                               
a decision about  EO 107.  She  suggested that a broader view  be                                                               
taken, with consideration given to ACMP and DGC, as well.                                                                       
                                                                                                                                
MS.   TERRELL  cautioned   that  fishermen   currently   function                                                               
successfully with the Marine Stewardship  Council's certification                                                               
of Alaska's wild salmon.  According to Bob Tkacz's "Laws for  the                                                               
SEA," certifiers  will consider "what's  happening with  habitat"                                                               
and, she said, without certification, "we are in dire straits."                                                                 
                                                                                                                                
Number 1328                                                                                                                     
                                                                                                                                
SETH LITTLE,  Alaska Center for  the Environment, testified  that                                                               
this  public-interest conservation  organization has  over  8,000                                                               
dues-paying  members from  around the  state.   He  provided  the                                                               
following testimony:                                                                                                            
                                                                                                                                
     We recognize the need to develop our  state's resources                                                                    
     but also  to  identify the  responsibility to  conserve                                                                    
     and protect  the state's  fish and wildlife  resources.                                                                    
     In order to fully comprehend and assess the  impacts of                                                                    
     the governor's  Executive Order  107,  the missions  of                                                                    
     ADF&G and DNR  need to be  fully understood.  They  are                                                                    
     very different.   The [ADF&G's]  mission is to  protect                                                                    
     and develop Alaska's fish and wildlife  resources while                                                                    
     DNR's mission is to promote development of  the state's                                                                    
     resources.   These  two  missions balance  each  other,                                                                    
     providing  a  system of  checks  and  balances  and  an                                                                    
     opportunity for  fish and wildlife  biologists to  work                                                                    
     with developers through the permitting process.                                                                            
                                                                                                                                
     By  moving  the permitting  authority,  one  agency  is                                                                    
     given primacy  in the  process of  checks and  balances                                                                    
     that  has  been in  place  since  statehood  to  manage                                                                    
     Alaska's  fish  and  wildlife  resources  and  resource                                                                    
     development.   This is far more  than a process  change                                                                    
     as  it is  a major  substantive and  statutory  change.                                                                    
     (Indisc.)  requires  applying  knowledge  of  fish   to                                                                    
     individual conditions,  which can cost  far less to  do                                                                    
     the job  right the first time,  rather than to  restore                                                                    
     the habitat after it has been diminished.                                                                                  
                                                                                                                                
     Experience has  shown  that the  direct involvement  of                                                                    
     biologists knowledgeable  about fish  and fish  habitat                                                                    
     in  the  review of  culvert  designs  and  installation                                                                    
     plans is the single most effective means  of preventing                                                                    
     fish  passage  problems.   This  gives  biologists  the                                                                    
     ability and  authority  to respond  to both  individual                                                                    
     environmental conditions and the needs of operators.                                                                       
                                                                                                                                
Number 1156                                                                                                                     
                                                                                                                                
MR. LITTLE  continued that he  had heard vague  responses to  the                                                               
submitted questions,  specifically to questions  three and  five,                                                               
noting  that  the  response  to  question  five  was   "increased                                                               
communication  and  teamwork."     He  referenced  the  MOU   and                                                               
questioned the long-term measures  that would be in place at  DNR                                                               
and DHMP to ensure that fish and wildlife habitat  would continue                                                               
to receive the  current level of scrutiny that  is in place.   He                                                               
also asked about long-term  measures to ensure that a high  level                                                               
of  recruitment  would   remain  in  place,  while  taking   into                                                               
consideration  lay-offs,  retirement, and  staff  turnover.    He                                                               
wondered  whether, similar  to  the [Department  of  Community  &                                                               
Economic   Development],  DNR   could   contract   with   private                                                               
consultants to do the work of habitat biologists.  He concluded:                                                                
                                                                                                                                
     Please do not  let this executive order go through  the                                                                    
     legislature  without  a vote  on  the  issue.    Recent                                                                    
     hearings and  testimony have  brought up  far too  many                                                                    
     unanswered questions and  concerns from members of  the                                                                    
     public for there not to be a legislative process and  a                                                                    
     vote.                                                                                                                      
                                                                                                                                
Number 0758                                                                                                                     
                                                                                                                                
BRUCE  BAKER, President,  Board  of Directors,  Southeast  Alaska                                                               
Conservation Council (SEACC), said  that SEACC is a coalition  of                                                               
18  volunteer  conservation  groups  in  14   communities  across                                                               
Southeast Alaska from Yakutat  to Ketchikan.  He said that  SEACC                                                               
is  dedicated  to safeguarding  the  integrity  of  the  region's                                                               
unsurpassed  natural environment  while providing  for  balanced,                                                               
sustainable use  of the  region's resources.   He testified  that                                                               
SEACC  agrees with  much of  the previous  legislative  testimony                                                               
against EO  107.   He told the  committee that he  served for  11                                                               
years  as deputy  director of  ADF&G's [Division  of Habitat  and                                                               
Restoration].  He provided the following testimony:                                                                             
                                                                                                                                
     My  primary question  tonight  is why  the  legislature                                                                    
     would acquiesce to the relinquishment of  the authority                                                                    
     you've retained over  fish and game habitat  protection                                                                    
     since statehood.   We  urge you  to carefully  consider                                                                    
     the following points.                                                                                                      
                                                                                                                                
     Number one.  EO 107 reduces the authority and  right of                                                                    
     the legislature  to influence  executive management  of                                                                    
     the  state's fish  and wildlife  by shifting  the  core                                                                    
     statutory responsibilities  of the ADF&G  commissioner,                                                                    
     an  executive officer  appointed  by the  governor  and                                                                    
     subject  to  legislative  confirmation,  to  a   deputy                                                                    
     commissioner of DNR  appointed by the DNR  commissioner                                                                    
     and not subject to legislature confirmation.                                                                               
                                                                                                                                
     The  first  Alaska  legislature  specifically  assigned                                                                    
     accountability  for  core  [ADF&G]  functions  to   the                                                                    
     commissioner  of  fish  and  game.    However,  EO  107                                                                    
     assigns these core fish and game responsibilities to  a                                                                    
     deputy   commissioner,   a   position   not    directly                                                                    
     accountable to the legislature.  Executive  Order [107]                                                                    
     is, therefore,  constitutionally impermissible  because                                                                    
     it  does not  simply reorganize  the functions  of  the                                                                    
     executive  branch   but   significantly  alters   those                                                                    
     functions by  assigning them to  an executive  official                                                                    
     who is not the head of the department.                                                                                     
                                                                                                                                
     Secondly,  EO   107  fails  to   specify  any   minimum                                                                    
     qualifications  for   the   DNR  deputy   commissioner.                                                                    
     Section 23 of  the order directs the state forester  to                                                                    
     "recognize  the expertise  of the  deputy  commissioner                                                                    
     with regard  to fish and  wildlife habitat."   However,                                                                    
     Section 40  does not  require the  DNR commissioner  to                                                                    
     appoint  a  person   with  any  expertise  related   to                                                                    
     protection of  fish and  wildlife habitat  as a  deputy                                                                    
     commissioner.  In comparison, the  [ADF&G] commissioner                                                                    
     must be  a "qualified executive  with knowledge of  the                                                                    
     requirements    for   the    protection,    management,                                                                    
     conservation,  and restoration  of  the fish  and  game                                                                    
     resources  of the  state."   The  executive  order  has                                                                    
     transferred   responsibility    to   a   person    with                                                                    
     unspecified qualifications and unknown abilities.                                                                          
                                                                                                                                
Number 0525                                                                                                                     
                                                                                                                                
MR. BAKER concluded:                                                                                                            
                                                                                                                                
     In conclusion, unless a majority of the  legislature in                                                                    
     joint session disapproves  of this executive order,  it                                                                    
     will:  1) reduce this and future  legislatures' control                                                                    
     over the  state's fish  and game  resources by  placing                                                                    
     the core responsibilities for fish passage  and habitat                                                                    
     protection  into the  hands  of a  state  official  not                                                                    
     directly accountable  to the legislature.   2) It  will                                                                    
     also transfer responsibility for the protection of  the                                                                    
     state's  fish  and  game  resources  from  a  qualified                                                                    
     executive   to,  as   I   mentioned,  a   person   with                                                                    
     unspecified qualifications and unknown abilities.                                                                          
                                                                                                                                
     We urge the legislature to put the long-term  health of                                                                    
     Alaska's fish  and game,  and  the welfare  of all  the                                                                    
     Alaskans  who depend  upon these  renewable  resources,                                                                    
     ahead of any short-term political objectives.                                                                              
                                                                                                                                
Number 0324                                                                                                                     
                                                                                                                                
GEOFFREY  PARKER,   Vice  President,  State   Council  of   Trout                                                               
Unlimited  and   Counsel  to  Alaska  Sportfishing   Association,                                                               
testified in opposition  to EO 107.   He told the committee  that                                                               
he was on the  Anchorage Fish and Game Advisory Committee for  20                                                               
years, had  served on various planning  teams for ADF&G and  DNR,                                                               
and was  special counsel  to the Senate  State Affairs  Committee                                                               
under  former  Senator  Mitch  Abood.    He  explained  that  his                                                               
testimony  was divided  into  the following  sections:    general                                                               
perspectives,  what  to  do  immediately,  and   eleven  specific                                                               
suggestions.  He provided the following testimony:                                                                              
                                                                                                                                
     For general  perspectives on  this, I'd  like to  offer                                                                    
     [the following] eight.                                                                                                     
                                                                                                                                
     First, we've  heard from a  number of legislators  that                                                                    
     they  have  received more  public  opposition  on  this                                                                    
     topic than any other they can remember.                                                                                    
                                                                                                                                
     Second, every biologist who has appeared before any  of                                                                    
      these committees has spoken out against this transfer.                                                                    
                                                                                                                                
     Third, as  a matter  of perspective,  the governor  has                                                                    
     lost  the factual  arguments.   He had  two,  (indisc.)                                                                    
     relying on examples,  but (indisc.) has been  disproved                                                                    
     by [ADF&G's]  very efficient record.   What you saw  in                                                                    
     the morning's  paper  was, chiefly,  some new  argument                                                                    
     arising.  But  it makes sense to combine  professionals                                                                    
     in the resource arena.  The problem with  that argument                                                                    
     is the budget cuts  to DNR have eliminated many of  the                                                                    
     professionals there                                                                                                        
                                                                                                                                
     Fourthly, take a look at the budget.  We're  going from                                                                    
     ... $12.4  million for ADF&G down  to $3.5 million  for                                                                    
     this  habitat permitting  function  in DNR  to  perform                                                                    
     (indisc.) [FPA]  function, 870 and  840 functions,  and                                                                    
     the  Coastal   Zone  Management   functions  that   are                                                                    
     currently in  DGC.  That will  pay salaries, but  won't                                                                    
     do  anything  else.    It  won't  pay   for  equipment,                                                                    
     leasing, and so forth.                                                                                                     
                                                                                                                                
     Fifth, look at the  costs.  DNR will basically be  able                                                                    
     to cover salaries but they will not be able  to travel,                                                                    
     and we will lose many of our federal funds.                                                                                
                                                                                                                                
     Sixth, look at what's going to happen from a  matter of                                                                    
     perspective, with staff.  Many biologists at ADF&G  who                                                                    
     are going  to  be transferred  are already,  apparently                                                                    
     looking for other work.  [Tape ends.]                                                                                      
                                                                                                                                
TAPE 03-21, SIDE A                                                                                                            
                                                                                                                              
MR. PARKER continued:                                                                                                           
                                                                                                                                
     DNR won't meet its  staff needs, or is highly  unlikely                                                                    
     to do  so.   And  ask yourself  whether bright,  young,                                                                    
     professional biologists coming out of school  are going                                                                    
     to want to work for a management agency or be  a permit                                                                    
     (indisc.)  They are  going to want to work in an  arena                                                                    
     where they  can publish  and ascend  in their  careers.                                                                    
     That would  be ADF&G.    You'll get  biologists in  DNR                                                                    
     that  are  a  lot  like  biologists  in  the  Corps  of                                                                    
     Engineers [or] the Federal Highway Administration.                                                                         
                                                                                                                                
     Seventh,  take a  look at  where  the effects  of  this                                                                    
     change  will  most  be  felt.    It  will  be  here  in                                                                    
     Southcentral because  that's where the  permit load  is                                                                    
     greatest.                                                                                                                  
                                                                                                                                
     Finally, eighth, most importantly, we're talking  about                                                                    
     a billion  dollar (indisc.) in  direct ex-vessel  value                                                                    
     in the  combined ex-vessel value  of salmon plus  sport                                                                    
     fishing  for  (indisc.).   Sport  fishing,  I  want  to                                                                    
     emphasize,  is  now [worth]  $600-and-some  million  of                                                                    
     first round of expenditure  in the state.  And  rainbow                                                                    
     trout, in just  three drainages - the Naknek,  Kvichak,                                                                    
     and Nushagak  - have surpassed  in their dollar  value,                                                                    
     by  direct expenditure,  all  the value  of  commercial                                                                    
     salmon costs in Bristol Bay.                                                                                               
                                                                                                                                
Number 0208                                                                                                                     
                                                                                                                                
MR. PARKER continued:                                                                                                           
                                                                                                                                
     Now I'd  like to go  to the next  part of my  testimony                                                                    
     which  is "What  we should  do now."  ... Most  of  you                                                                    
     don't want to embarrass the governor by  rejecting this                                                                    
     proposal, which we  urge you to  reject.  What you  can                                                                    
     do, short of that, is ask the governor step  back, take                                                                    
     time.   There's nothing  wrong with  hearing more  from                                                                    
     the public and doing this later.                                                                                           
                                                                                                                                
     Now, the third part, and the final suggestions.   First                                                                    
     of all, if  EO 107 goes into effect  then  ... I  would                                                                    
     suggest eleven possible amendments to the statutes.                                                                        
                                                                                                                                
     First, I would put into statute a requirement  that DNR                                                                    
     adopt  very strict  regulations  to implement  870  and                                                                    
     840.   To remove the (indisc.)  and make it clear  that                                                                    
     the statutes must  fully protect fishery resources  and                                                                    
     that they will be strictly construed.                                                                                      
                                                                                                                                
     Secondly,   I  would   address   this  in   statute   -                                                                    
     qualifications  of  the deputy  commissioner  -  and  I                                                                    
     would parrot AS  16.05.010 which requires that he be  a                                                                    
     professional with experience in the management of  fish                                                                    
     and game.  I would (indisc.) qualify that  1959 statute                                                                    
     to  require  that  the  person  also   have  biological                                                                    
     training as a fisheries biologist.                                                                                         
                                                                                                                                
     Thirdly,  I  would  address  the  overall  need  for  a                                                                    
     mission statement for this deputy commissioner or  this                                                                    
     staff in DNR and that mission statement should  be very                                                                    
     straight, very  specific, that  there should  be a  no-                                                                    
     degradation standard for our fisheries.                                                                                    
                                                                                                                                
     Fourthly, I would enact a requirement for a  task force                                                                    
     to report on how well this transfer is occurring.   And                                                                    
     I  would put  on  that  task force,  by  statute,  what                                                                    
     (indisc.)  non-governmental   agencies  such   as   the                                                                    
     American Fisheries Society, as well as ADF&G.                                                                              
                                                                                                                                
     Fifth, I would modify the defense that exists  in civil                                                                    
     suits that  a permittee  who has obtained  a permit  is                                                                    
     not liable in a  civil suit for legal errors that  have                                                                    
     developed  from  the  permit.    I  would  modify  that                                                                    
     defense so  that it would only  exist if ADF&G  concurs                                                                    
     with the permit.  That would create an incentive for  a                                                                    
     permittee  to bring  order  to both  (indisc.)  himself                                                                    
     from  civil suits,  for  example, for  public  nuisance                                                                    
     which exists in  both the 840 and 870, to  bullet-proof                                                                    
     himself from damages claims if he has a permit  that is                                                                    
     signed-off on by ADF&G also.                                                                                               
                                                                                                                                
     Sixth, I would  address penalty and damages  provisions                                                                    
     in both of  these statutes, 840 and 870; (indisc.)  and                                                                    
     I  would make  clear  that  both are  [public  nuisance                                                                    
     statutes].  And then I would make clear that  both have                                                                    
     an (indisc.) so  that if DNR does  not do this ...  the                                                                    
     public can.  The  great irony in 870, 840, and ...  DNR                                                                    
     statutes,  (indisc.)  a  public  nuisance  to  block  a                                                                    
     fisherman from having  access to navigable waters,  and                                                                    
     yet, it's not a public nuisance to block the  fish from                                                                    
     having access to  those waters?   We need to fix  that.                                                                    
     You guys need to fix that.                                                                                                 
                                                                                                                                
     Seventh,   I  would   maintain  the   public   interest                                                                    
     exception  to  attorney's fees,  liability,  for  suits                                                                    
     that seek to protect  fish in this context, of 840  and                                                                    
     870.  You should  not repeal those if you want to  have                                                                    
     an effective  program at DNR because  it is the  public                                                                    
     that helps these programs to be effective.                                                                                 
                                                                                                                                
     Eighth, I would model portions of these  statutes after                                                                    
     hazardous waste  laws, in  one specific sense.   For  a                                                                    
     permittee, I  would  make a  (indisc.) of  interest  in                                                                    
     land  that is  subject to  a permit  while any  of  the                                                                    
     events could go wrong  on account of that permit.   And                                                                    
     you should  do that  if  you are  really serious  about                                                                    
     protecting  this   state's  largest,  most   lucrative,                                                                    
     renewable industry, which  is fishing - commercial  and                                                                    
     sport.                                                                                                                     
                                                                                                                                
     Ninth,  I  would implement  notice  provisions  in  the                                                                    
     statute that require [ADF&G] and  responsible entities,                                                                    
     specifically like  the American  Fisheries Society,  to                                                                    
     be (indisc.) no permit application.                                                                                        
                                                                                                                                
     Tenth, I would  advise 870 and  840 to mimic the  [FPA]                                                                    
     in one respect.   And that is  to presume, just as  the                                                                    
     [FPA]  presumes that  a  water body  is  an  anadromous                                                                    
     water body  if it is connected  to an anadromous  water                                                                    
     body ... you should know that 870 and 840  presume that                                                                    
     a body, so attached, and having had  characteristics of                                                                    
     (indisc.), like the  [FPA] says ... is also  anadromous                                                                    
     and presumably important.  The reason that  I emphasize                                                                    
     "presumably  important"  is  that  870  and   840  were                                                                    
     drafted in 1959  and actually pre-date the  territorial                                                                    
     law, and by presuming that they are  important, reflect                                                                    
     modern  fisheries  (indisc.)  genetic  diversity  being                                                                    
     important.                                                                                                                 
                                                                                                                                
     Last,  number eleven,  I would  move and  (indisc.)  in                                                                    
     ADF&G,  certain specific,  limited,  land-use  planning                                                                    
     and designation  functions that are  currently in  DNR,                                                                    
     so that  ADF&G can  administratively act and  designate                                                                    
     river  corridors that  are  important  for  commercial,                                                                    
     sport, and subsistence  purposes and conserve them,  so                                                                    
     they will not be (indisc.).                                                                                                
                                                                                                                                
Number 0926                                                                                                                     
                                                                                                                                
COMMISSIONER  IRWIN   suggested,  rather   than  continuing   the                                                               
meeting, that on behalf of himself and Commissioner Duffy,  staff                                                               
work  together  to  combine  notes  and  to  compile  a  list  of                                                               
questions.   He  said  those questions  would  be answered  in  a                                                               
timely manner.                                                                                                                  
                                                                                                                                
CHAIR SEATON  concurred that this was  an excellent idea,  noting                                                               
that addressing questions or common themes that had been  brought                                                               
up during the meeting would benefit the process.                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the committee, the  House                                                               
Special  Committee   on  Fisheries  meeting   was  adjourned   at                                                               
approximately 10:15 p.m.                                                                                                        

Document Name Date/Time Subjects