Legislature(1993 - 1994)
01/20/1993 08:00 AM House RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE RESOURCES STANDING COMMITTEE
January 20, 1993
8:00 a.m.
MEMBERS PRESENT
Representative Bill Williams, Chairman
Representative Bill Hudson, Vice-Chairman
Representative Con Bunde
Representative Pat Carney
Representative John Davies
Representative Joe Green
Representative Jeannette James
Representative Eldon Mulder
MEMBERS ABSENT
Representative David Finkelstein
OTHER HOUSE MEMBERS PRESENT
Representative Gene Therriault
Representative Irene Nicholia
COMMITTEE CALENDAR
Overview Hearing for the Department of Environmental
Conservation
WITNESS REGISTER
Janice Adair, Assistant Commissioner
and Legislative Liaison
Department of Environmental Conservation
410 Willoughby Avenue, Suite 105
Juneau, AK 99801-1795
(907) 465-5010
POSITION STATEMENT: Provided information pertaining to the
Department
Mead Treadwell, Deputy Commissioner
Department of Environmental Conservation
410 Willoughby Avenue, Suite 105
Juneau, AK 99801-1795
(907) 465-5050
POSITION STATEMENT: Provided information pertaining to the
Department
Keith Kelton, Director
Division of Facility Construction and Operation
Department of Environmental Conservation
410 Willoughby Avenue, Suite 105
Juneau, AK 99801-1795
(907) 465-5180
POSITION STATEMENT: Provided information pertaining to the
Division
Kit Ballentine, Acting Director
Division of Environmental Health
Department of Environmental Conservation
410 Willoughby Avenue, Suite 105
Juneau, AK 99801-1795
(907) 465-5280
POSITION STATEMENT: Provided information pertaining to the
Division
Keith Kelton, Director
Division of Facility Construction and Operation
Department of Environmental Conservation
410 Willoughby Avenue, Suite 105
Juneau, AK 99801-1795
(907) 465-5180
POSITION STATEMENT: Discussed the Sanitation Task Force
document
Kurt Fredriksson, Deputy Director
Division of Spill Prevention and Response
Department of Environmental Conservation
410 Willoughby Avenue, Suite 105
Juneau, AK 99801-1795
(907) 465-5250
POSITION STATEMENT: Discussed the Division's programs
Mike Menge, Director
Division of Environmental Quality
Department of Environmental Conservation
410 Willoughby Avenue, Suite 105
Juneau, AK 99801-1795
(907) 465-5260
POSITION STATEMENT: Provided information pertaining to the
Division
Traci Cramer, Budget Analyst for the
Department of Environmental Conservation
Office of the Governor
Office of Management and Budget
P.O. Box 110020
Juneau, AK 99811-0020
(907) 465-3568
POSITION STATEMENT: Answered questions related to the DEC's
operating budget
ACTION NARRATIVE
TAPE 93-4, SIDE A
Number 000
The House Resources Committee was called to order by
Chairman Bill Williams at 8:05 a.m. Members present at the
call to order were Representatives Williams, Hudson, Bunde,
Carney, Davies, Green, James, and Mulder. Member absent was
Representative Finkelstein.
CHAIRMAN BILL WILLIAMS announced an overview by the
Department of Environmental Conservation (DEC) would be the
topic for the meeting and that a folder had been provided by
the DEC for the members. He said the DEC had been asked to
present a basic overview, including the structure of the
DEC, functions and duties of the various Divisions,
legislative priorities, and a brief description of key
issues that the DEC was involved in currently. He asked
specific issues be discussed in later meetings.
CHAIRMAN WILLIAMS noted for the record that Representatives
Bunde, Nicholia and Therriault joined the committee at 8:10
a.m.
CHAIRMAN WILLIAMS introduced Janice Adair, Assistant
Commissioner and Legislative Liaison for the DEC. Mead
Treadwell, Deputy Commissioner joined her at the committee
table.
JANICE ADAIR, ASSISTANT COMMISSIONER and LEGISLATIVE
LIAISON, DEC, introduced Keith Kelton, Director, Division of
Facilities, Construction and Operations; Kit Ballentine,
Acting Director, Division of Environmental Health; Mike
Menge, Director, Division of Environmental Quality; Kurt
Fredriksson, Deputy Director, Division of Spill Prevention
and Response; Traci Cramer, Budget Analyst for DEC, Office
of Management and Budget; and John Barnett, Executive
Director, Board of Storage Tank Assistance.
Number 047
MEAD TREADWELL, DEPUTY COMMISSIONER, DEC, stated John
Sandor, Commissioner of DEC, had asked him to speak about
partnerships. He wanted the committee to know that the DEC
was working to improve its relationships, especially with
communities. He said the DEC had signed off over fifty
community agreements around the state and was working to
sign more. These agreements listed basic environmental
problems within the community and strategies to solve them,
he added.
MR. TREADWELL said a second partnership involved the
military, including the Coast Guard, in order to solve
environmental problems. He cited contaminated sites left by
the military as a large problem. At a meeting last week of
the Regional Response Team, a federal and state team that
responded to oil spills, the Corps of Engineers had
indicated the working relationship between government
agencies had improved greatly.
MR. TREADWELL said other partnerships involved the
Department of Natural Resources and Fish and Game on the
Resource Cabinet which helped set state policy on issues
related to natural resources. He also stated there was a
new pollution prevention program which worked with industry
finding solutions to problems outside regulations. He said
permission had been given by the Environmental Protection
Agency (EPA) to focus some federal grant funds toward
pollution protection. He felt this enabled the DEC to work
with industry in ranking those problems and seeking long
term solutions based on the environmental risks. He said
federal law did not always fit the Alaska situation.
Number 105
MR. TREADWELL stated the third partnership was with the
Environmental Crimes Unit set up between the DEC, the
Department of Law and the Department of Public Safety.
Because some people violated environmental laws with
malicious intent, forty staff members had received training
at the trooper academy in Sitka to enable them to recognize
environmental crimes and some prosecutions were pending. He
hoped these prosecutions would have a deterrent effect.
MR. TREADWELL said the fourth partnership was with the
University of Alaska. He felt there were not just economic
and regulatory, but also technical solutions that needed to
be addressed. He said four times a year the senior staff of
the DEC met with the Deans of the University campuses for
global change research, more cost effective ways for
sanitation, air quality, and other aspects of problem
solving. He stressed the state and federal relationship was
important to watch, especially in light of the fact that
this administration's goal was to bring more decision making
home to Alaska.
MR. TREADWELL pointed out most of the environmental programs
run by the DEC were delegated to the state by the federal
government which made this partnership one of the most time
consuming. He was happy to announce an order had been
signed to create a separate EPA region for Alaska. The
problems that face Alaska: Sanitation, drinking water,
permits for placer mines in the interior, etc., were not the
same as in the lower states. He said the DEC looked forward
to working with the Clinton administration to set up a new
partnership in terms of federal and state work for Alaska.
Number 186
MS. ADAIR pointed out much of what the DEC must deal with
had its roots in federal law. She asked members to look at
page 2 of the handout titled "The Alaska Department of
Environmental Conservation" which showed major state and
federal environmental laws. (The Alaska Department of
Environmental Conservation, December 1992, Departmental
Goals and Summary of Programs may be found in the Resources
Committee Room, Capitol #124, and after the adjournment of
the second session of the 18th Alaska State Legislature, in
the Legislative Reference Library.)
MS. ADAIR stated that since 1986 over 88 federal laws had
been added or expanded that impacted and placed a tremendous
burden on the DEC. She said the lack of input on these laws
made it difficult for the legislature to get a handle on the
DEC's responsibilities. She also provided an organization
chart for the Commissioner's office. (Office of the
Commissioner organization chart may be found in the
Resources Committee Room, Capitol #124, and after the
adjournment of the second session of the 18th Alaska State
Legislature, in the Legislative Reference Library.)
MS. ADAIR further stated that the Regional and District
Office Boundaries map outlined the divisions and could be
found in the handout cited above. She said directors
operated divisions that developed programs and those
programs were implemented by the regional administrators.
She said two exceptions were the Facilities Construction and
Operation Division and the Environmental Health Division
which were run out of the Juneau office. She said the
internal goals for the Department were included in the
handout. A strategic management planning process had been
successfully started in July 1992. Instead of being
reactive, the DEC was striving to be pro-active.
MS. ADAIR explained regional administrators, division
directors, and the staff of the Commissioner's office met
quarterly and outlined department goals, environmental
problems, solutions and successes, and wanted more public
input brought into the process.
MS. ADAIR felt rural Alaska had not been getting the
attention it needed from the DEC mainly because of its
remoteness. The DEC wanted to create a rural initiative and
after meeting with the Bureau of Land Management (BLM),
learned about their mentor program for students. Students
from rural Alaska would have the opportunity to work with a
mentor from the DEC for the summer on local environmental
issues. She said the program might include seafood
processing, bulk fuel storage, or fuel delivery. Eight DEC
employees were signed up for the summer of 1993 and the BLM
would find the students for the program. She iterated a
partnership theme had been adopted by the DEC and team
spirit within the DEC was also a challenge because of budget
cuts.
Number 280
MS. ADAIR said the handout contained fact sheets on
different DEC programs. She pointed out the Division of
Environmental Health included restaurant inspection, except
in Fairbanks and Anchorage where ordinances had been passed
to take over that function at a local level. Once the Lt.
Governor had signed the user fee regulation and after the 30
day waiting period, restaurants would pay the DEC for their
inspections, she added.
Number 330
KIT BALLENTINE, ACTING DIRECTOR, DIVISION OF ENVIRONMENTAL
HEALTH, pointed out the Division also handled the seafood
inspection program, which included testing for paralytic
shellfish poisoning in crabs and clams, meat and poultry
inspection program, and an animal health program which
included the state dairy farms' transporters and processors
of milk, and monitoring of domestic animals. She said their
laboratory component supported all other DEC Division
programs located in Palmer.
Number 340
MS. ADAIR explained the DEC had two laboratories, one
chemistry lab in Juneau and a lab in Palmer which supported
environmental health. She said the other division related
to sanitation was the Division of Facility Construction and
Operation. It included the Village Safe Water program,
fifty percent matching grants for facility construction, and
an operator training program for operators of waste water
treatment facilities. She invited the committee to a brown
bag lunch presentation on January 21, 1993, by Keith Kelton,
Director of the Division of Facility Construction and
Operation, where the capital budget process would be
explained.
Number 360
MR. TREADWELL felt quality Bush sanitation was the number
one health-related threat the DEC faced. He stated this
administration had made a strong commitment for additional
capital funding for rural sanitation. He asked members to
acquaint themselves with a report by the bipartisan task
force that had worked around the state for the last year on
this issue.
Number 370
KEITH KELTON, DIRECTOR, DIVISION OF FACILITY CONSTRUCTION
AND OPERATION, explained that last fall a document was
completed called "The Commitment to Alaskan's, Executive
Summary, Recommendations of the Alaska Sanitation Task
Force" which addressed the rural sanitation problems. He
said 12 sub-task groups representing 25 entities had worked
on issues of education, grants, utility management, local
government, subsidies, operator training, housing, roads,
research and development, the role of Native corporations,
and enforcement. Separate recommendations were brought
together in this document, some of which overlapped and were
directed at state government agencies so they might address
the issue in a unified manner.
MR. KELTON added that without budget increases, the task
force recommended joining agency resources and combining
efforts in a more consistent manner than in the past. That
document had been endorsed by the Alaska Federation of
Natives, the Municipal League, and the Governor's Rural
Development Sub-Cabinet, and was reflected in most of the
agencies' budgetary policy issues. He said the DEC
considered the issue of completing rural sanitation
improvements over the next 20 years a major goal and the
Finance Committee would see these issues addressed in the
capital budget.
Number 440
MS. ADAIR said the Division of Spill Prevention and Response
was created two years ago and consisted of programs
established in response to legislation after the Exxon
Valdez oil spill. These included contingency planning and
financial responsibility for oil shippers and oil storage
facilities, contaminated sites remediation and the program
for underground storage tanks.
Number 440
KURT FREDRIKSSON, DEPUTY DIRECTOR, DIVISION OF SPILL
PREVENTION AND RESPONSE, explained that two other programs
in the Division were the Government Preparedness and
Response Program that dealt with the government side of
planning for emergency response as well as the actual
response, and an industry program which related to tanker
traffic through Prince William Sound, large storage, and
terminal facilities.
Number 460
MS. ADAIR pointed out this Division was funded primarily
through the Oil and Hazardous Substance Response Fund (the
470 Fund), created by HB 470 in 1986. The 470 Fund received
no monies until the Exxon Valdez oil spill, and at that time
the legislature passed a nickel per barrel conservation
surcharge on all Alaska North Slope crude which went
directly into the 470 Fund. She explained that the statute
was specific and the only time the 470 Fund could be used
without specific legislative appropriation was in the event
of an eminent and substantial threat to the environment from
a release of oil or hazardous substance. Sometimes this
would be preventative and sometimes after the fact. Part of
the Underground Storage Tank Program was not eligible for
funding out of the 470 Fund.
MS. ADAIR stated an annual report by the DEC on the 470 Fund
was due to be out soon. She explained other agencies also
received monies from the 470 Fund such as the Division of
Emergency Services within the Department of Military and
Veterans Affairs, the Department of Fish and Game and the
Department of Natural Resources. The State Emergency
Response Commission (SERC) also received money out of the
470 Fund. She pointed out the SERC had its roots in federal
law and even though it was established during the same time
as the Exxon Valdez spill, it was created in response to the
Union Carbide chemical release.
MS. ADAIR pointed out in Alaska statutes, oil was sometimes
defined as a hazardous substance. She felt Title 46 which
directed the DEC's activities needed to be cleaned up. She
offered to answer any questions regarding the 470 Fund.
Number 530
MR. TREADWELL offered to brief the committee on the annual
report of the 470 Fund.
CHAIRMAN WILLIAMS noted for the record that Representative
Hudson and Carney joined the committee at 8:40 a.m.
Number 540
MR. MENGE, DIRECTOR, DIVISION OF ENVIRONMENTAL QUALITY,
explained that the programs in this Division had to do with
air, land, and water, including solid waste management, air
quality, etc., and these programs effected everyone's lives.
He said some of these programs typified the partnership with
federal programs and Congress desired that local governments
administer the programs to the maximum extent feasible. The
concept known as "primacy" was offered by the federal
government, and the state had primacy in the air arena at
present. In accepting primacy, the state accepted all the
federal mandates, however, it also afforded some opportunity
for local control.
MR. MENGE pointed out federal laws in many cases were
written for other states and would not take into
consideration Alaska situations. He felt his Division often
acted as a go-between to moderate some of the inflexible
positions the EPA might take in order to protect the Alaska
environment to the maximum extent possible. He said other
issues within the Division were drinking water, industrial
waste water, including municipalities, and industrial
discharge where the EPA issued permits and had primacy. He
explained the program of domestic waste water was in the
process of being privatized. A manual was being created,
training through the University and certification through
DEC should help complete that process, he added.
Number 610
MR. MENGE said another water issue was non-point source
pollution. He explained a point source as anything that
came out of a pipe and anything else that dealt with water,
such as rain falling on a parking lot or a stream in a
backyard. Forest practices was the major area where non-
point source pollution was a consideration. Storm water was
also a non-point source water pollution issue. He felt
after the reauthorization of the Clean Water Act and since
the issues of non-point sources which included agriculture,
irrigation, forestry and storm water run-off had not been
addressed in the last 20 years, that federal legislation
would be seen in this area in 1993.
MR. MENGE said another non-point source program was the
water quality standards program. The federal government,
through the Clean Water Act, set up requirements for each
state regarding water quality standards giving the state
flexibility relating to those standards. He said this was a
complicated issue and offered any information needed when
the issue came before the legislature. In regard to solid
and hazardous waste areas, the EPA and the DEC had formed a
long-term partnership and historically, the EPA retained
primacy in this area. Five years ago, at the direction of
the legislature, the DEC moved forward to obtain primacy of
that program. However, because of the budget restraints,
more responsibility had been left with the EPA. He felt
this issue would also come before the legislature during the
18th Legislative Session.
MR. MENGE stated the State's Resource Conservation Recovery
Act Program was designed to permit and inspect facilities to
ensure their compliance with state and federal laws. He
explained that at the beginning of the year, the DEC and the
EPA negotiated which activities would be performed by each
organization. After a spill, the DEC's Division of Spill
Prevention and Response would have jurisdiction. He said
solid waste management, primarily municipal solid waste, was
in his Division's jurisdiction, and also included large
volume waste associated with mining and oil and gas
activities. Major new federal laws were being passed and
the state was in the process of adopting regulations in
order to retain primacy in this area.
Number 675
MR. MENGE explained the EPA had offered significant
incentives to allow the State to approach the resolution of
problems in permafrost and remote areas that lacked
transportation. He pointed out the entire law regarding
solid waste was written for areas that had roads, and in
Alaska, a road was not always a part of the picture. He
said the organic chemical laboratory was used when a
substance analysis was needed immediately, as well as
certified private labs around the state. In order to
certify private labs, the laboratory must be able to not
only do the testing needed, but also judge the quality of
the work in private labs.
MR. MENGE said work was being done to form partnerships with
the University system, the Department of Health and Human
Services, and the Forest Service, for better utilization of
the laboratory facility and equipment, which could help
offset the cost of maintaining the facility.
Tape 93-4, Side B
Number 000
MR. MENGE said the state's coastal zone interactions came
under the jurisdiction of the Division of Environmental
Quality. The Division also was responsible for the quality
of community agreements as referred to by Mead Treadwell.
He hoped the agreements were being used as tools so
communities and the DEC could work together more
successfully. He said the pollution prevention aspect was
being integrated into the everyday permitting process.
Number 074
MS. ADAIR pointed out the DEC was very important to the
economic development of the state because a permitting
requirement would be needed for such businesses as seafood
processors, restaurants, bars, and hotels, or industrial
businesses. She assured members that the DEC was striving
to process permits in a timely fashion and the conditions
regarding the permit were reasonable. Lastly, she said the
Division of Information and Administrative Services provided
financial services, reviewed grant applications, provided
public information, personnel, supply and data processing.
Number 117
MS. ADAIR stated the DEC expected a variety of activities in
Washington, D.C., this year that would impact the DEC. One
of the most important issues might be a national seafood
inspection program. She pointed out the DEC's Division of
Environmental Health seafood inspection program was
considered a model for the United States and had been used
as the basis for past federal bills, and could be used again
in 1993 as a model. Other issues that would affect Alaska
were the Clean Water Act and the Resource Conservation and
Recovery Act which were up for reauthorization in 1993.
MS. ADAIR pointed out that both the governor's office in
Washington, D.C., and a contract lobbyist working for the
EPA helped keep the DEC informed on pending issues in
Washington. She said the DEC staff in some cases traveled
to Washington, D.C., in order to bring information about
Alaska's unusual circumstances such as the lack of roads in
rural Alaska.
Number 160
MR. TREADWELL informed the committee that the DEC's
Commissioner, John Sandor, served as one of three state
trustees on the Exxon Settlement Trust Council. He said
that many issues, including Kachemak Bay, were being
considered by these trustees and probably would be brought
before the legislature. Secondly, he said radiation threats
affecting Alaska was an issue being worked on with the
Department of Energy. He also felt the committee would want
a briefing on a study requested by the governor on radiation
threats affecting Alaskans.
Thirdly, MR. TREADWELL pointed out wetlands were Alaska's
most important issue under the Clean Water Act. Much of the
state was wetlands and the federal government was the local
zoning authority. He stated that the DEC was drafting a
state wetlands control program that would enable the state
to receive a statewide general permit from the Corps of
Engineers for a better wetlands management scheme. The
fourth issue he wanted the committee to be aware of was
international issues. He said the state was affected in the
Arctic by what was put into the air and water by neighbors
across the sea.
MR. TREADWELL added the Department of State had asked Alaska
to act as an observer and a participant in meetings of the
Arctic Environmental Protection Strategy. Also, the state
was involved in several programs with the Northern Forum, an
association of fourteen regional governments in the north,
to exchange environmental and clean-up information.
Number 217
REPRESENTATIVE BILL HUDSON asked if the governor would have
a bill prepared regarding the $50 million criminal
settlement from the Exxon Valdez case, similar to HB 411
that was introduced during the 17th Legislative Session.
MR. TREADWELL said the administration wanted to see what
action the trustees took on January 19, 1993, and he felt
there would be a proposal or a position on existing
proposals forthcoming.
REPRESENTATIVE HUDSON said he thought the action taken by
the trustees was that the state agreed to spend $7.5 million
and the federal government agreed to another $7.5 million to
buy back Kachemak Bay land, for a total of $15 million.
MR. TREADWELL said the state, in addition to the lawsuit
against Exxon, had filed a lawsuit against Alyeska.
Involved in that $30 million settlement was a $7.5 million
payment to buy back lands at Kachemak Bay. The federal and
state trustees who jointly administered the $900 million in
the civil settlement had agreed to spend $7.5 million from
that $900 million to help buy back the land at Kachemak Bay
State Park. He understood one of the conditions the
trustees placed on the agreement was that the buy-back would
not be greater than $22.5 million.
MR. TREADWELL concluded the administration would like to
work with the legislature in finding funding sources,
possibly out of the general fund, or other sources such as
land or timber trades, he added.
Number 250
REPRESENTATIVE JOHN DAVIES asked for an update on the
oxygenated fuel issues.
MR. TREADWELL said a meeting would be scheduled with
scientists and policy makers to look at the work done by the
Center for Disease Control (CDC), the Alaska Department of
Health, and other research that had been done on the
oxygenated fuel issue as soon as the CDC was ready to make a
presentation. In Fairbanks, the EPA had given the governor
the option of canceling that oxygenated fuel program because
of health concerns raised in the community. The program was
then canceled. The EPA agreed to step up the studies on
health effects on this issue, he added.
MR. MENGE said the DEC expected to hear from the CDC in the
next few days.
REPRESENTATIVE DAVIES asked about the status of studies in
Anchorage and whether the CDC would perform studies there.
MR. TREADWELL said one of the major questions that would be
addressed was whether the concerns found in Fairbanks also
applied to Anchorage.
MR. MENGE said the Department Health and Human Services had
done parallel studies in Fairbanks and Anchorage, but the
CDC had only done studies in Fairbanks.
Number 293
REPRESENTATIVE DAVIES asked for the status of the "Air
Quality Permit Bill" proposed by the DEC Air Quality
Legislative Working Committee on the Clean Air Act and what
the DEC's position would be if the governor introduced that
bill.
MS. ADAIR said the DEC supported the committee's proposed
legislation and a consensus had been reached as a result of
four months of hard work by individuals who devoted their
own time and energy. She understood the Senate Resources
Committee would be introducing this bill and the DEC would
be working to help move it through the process. She said
the bill must be passed during the 18th Legislative Session
to keep Alaska Highway Fund sanctions from taking place.
REPRESENTATIVE DAVIES asked if the DEC had a position on HB
39, "An Act relating to prevention, abatement, and control
of air pollution."
MS. ADAIR said she had not done a comparison of the two
bills but believed they were not the same. She said the DEC
would support the proposed "Air Quality Permit Bill" (the
Senate Resources Committee bill).
Number 316
REPRESENTATIVE JOE GREEN said in the past there had been an
adversarial feeling between the DEC and industry and he was
glad to see that was changing. He wanted to know if the DEC
was taking a strong role regarding wetlands' classification
and, specifically, if they agreed permafrost land should
automatically be classified as wetlands. He disagreed with
that regulation.
Number 337
MR. TREADWELL said according to the law, all permafrost
areas in the state were classified as wetlands. He said the
Bush administration had made the promise of a no net loss of
the nation's wetlands and a White House task force had been
assigned that issue. In Alaska, a smaller percentage of
wetlands was lost to development than any other place in the
nation. He understood an average of 53 percent of wetlands
had been lost in the Lower 48, and Alaska was less than one
percent.
MR. TREADWELL explained that the Bush administration had
worked on a delineation manual used in the field to define
wetlands. Alaska had some input regarding the manual but it
had been delayed into the Clinton administration. On August
9, 1991, President Bush had issued a policy statement on
wetlands, which included a statement that states with less
than one percent loss of wetlands would not have to go
through the litigation sequencing required by other states.
This statement had not been backed by regulations but the
DEC had been working to make the one percent rule stick.
MR. TREADWELL felt if the one percent rule was in effect,
the DEC could classify high, medium and low wetlands, and
keep tracking the use of wetlands to simplify the
application process. He stated the DEC would be working
towards adding input to the delineation manual, asking for
specific science and for regional delineation manuals. He
said it was very important for everyone to work for the
state's exemption in federal regulations, and that a major
part of the state's program was to classify wetlands by
value and set up a scheme to accomplish that. He felt this
classification was in the best interest of sound land
planning.
Number 396
REPRESENTATIVE GREEN said the wetlands issue certainly
adversely affected industry and community development. He
wanted to know if there were any group efforts such as that
of the Municipal League on the issue.
Number 400
MR. TREADWELL said the Municipal League had passed two
resolutions in the past supporting the one percent rule and
the state permitting program. He said the DEC was committed
to making appointments to a wetlands task force for strong
municipal representation. He cited Petersburg as an example
where all usable municipal land was considered wetlands, and
assured the committee local communities would be involved
and considered as partners in the planning process. He
noted this administration had said zoning belonged in local
government.
REPRESENTATIVE ELDON MULDER said several years ago Anchorage
had been embarrassed by signs around creeks and lagoons
cautioning the public about polluted water. He said
legislation had been passed for a matching grant program for
communities, and the state could provide funds to identify
the source of that pollution. He asked the DEC if anything
had been done with that program.
MR. KELTON said Anchorage traditionally received a lump sum
of money instead of identifying specific projects for
funding. Those Anchorage dollars required a 50 percent
match. Anchorage could then allocate those dollars in any
area for the improvement of environmental water quality or
sanitation problems. He said he would have to find out past
appropriations for Anchorage, but his recollection was that
Anchorage spent minimal amounts on water quality issues and
had focused funding on extensions of Local Improvement
Districts and treatment processes at the Point Margo plant.
Number 456
MR. TREADWELL said there had been a few other efforts to
clean up Anchorage streams. He pointed out the Water Watch
statewide program enlisted volunteer groups, and that an
effort was being made to have all major streams in the
Anchorage bowl adopted by these groups. Secondly, he said
the fecal coliform number that the state used was about ten
times less than the national number. Rumor was that this
number had been a typographical error and that error
declared many of the streams polluted, he added. This error
was being looked at and a decision was pending in the water
quality standards to correct the error.
MR. TREADWELL assured the committee that those streams in
the Anchorage area were being looked at, and an agreement
had been made to list the polluted water bodies statewide
and provide a regulatory plan to return those water bodies
to water quality standard. Within the Anchorage area and
other urban areas, he predicted that sewers and septic tanks
on the hillsides would become a water quality issue. He
felt the DEC needed long-term solutions for these
situations.
REPRESENTATIVE MULDER said village safe water was a big
problem, and applauded the DEC's efforts in urban areas as
well, because not only were the signs embarrassing for
visitors, but it was also a health hazard. He agreed long-
term solutions needed to be addressed and funded, especially
better and expanded sewage systems.
MR. TREADWELL said the assessment program mentioned earlier
was a capital budget item this year (1993) in the amount of
$300,000.
Number 510
REPRESENTATIVE HUDSON asked if any seafood or health
inspections on offshore vessels or operations were being
done.
MS. BALLENTINE said any vessel that came into an Alaskan
port was permitted by the DEC and inspections were done
while those vessels were in port. She said further that the
DEC did not have the capability for inspections on fishing
grounds.
REPRESENTATIVE HUDSON pointed out that by the time the
product came into port it had already been processed.
MS. BALLENTINE concurred.
Number 524
MR. TREADWELL pointed out the DEC had held up the shipment
of products in some situations in the past.
REPRESENTATIVE HUDSON said the bottom fish operation by the
Puget Sound fleet was of major concern to him. He wanted to
know its effect on the Alaskan economy and whether the
product was well inspected.
MR. TREADWELL said besides seafood inspection, vessels must
also comply with oil and water laws. He disclosed the DEC
had asked the EPA to ensure inshore facilities and offshore
processors would comply with the same grinding, air quality,
and discharge requirements. He said enforcement efforts in
cooperation with the Coast Guard had been stepped up
regarding processors within the three mile limit to make
sure those processors held state permits.
Number 542
REPRESENTATIVE HUDSON said he had worked with oil spill
prevention laws and was aware of the need for contingency
plans for non-crude operators. He wanted to know if a plan
was being developed and when that plan would be completed.
MS. ADAIR disclosed a contingency plan was in the works, but
financial responsibility continued to be a problem.
REPRESENTATIVE HUDSON asked if the governor had vetoed the
bill which gave assistance to small operators.
MS. ADAIR said the bill suspending financial responsibility
had passed.
MR. TREADWELL added that either in that bill or other
language, the legislature had requested a legislative
research group to come up with a report with the DEC on that
bill, and a letter of intent was pending. He was scheduled
to meet in Anchorage with members of the insurance committee
that might have found a solution, he noted.
Number 563
REPRESENTATIVE HUDSON voiced concern about the Clean Air Act
and asked if the air quality bill introduced in the Senate
would reflect the administration's view.
MS. ADAIR said the "Air Quality Permit Bill" was a product
of a DEC appointed interim committee. She said proposed
changes to [AS].O10 language had not been added to the bill,
and [AS].O10 contained very broad statutory language which
allowed the DEC to regulate air pollutants to protect public
health. She pointed out there was concern that the DEC
would use this provision unfairly to regulate air
contaminants. The statute had been on the books since 1971
when the DEC was established and it had only been used twice
outside of what had been required by the federal law. One
was to regulate ammonia discharge from the Unical plant in
the Kenai. The plant was one of the largest ammonia plants
in North America and ammonia was not one of the regulated
substances under the federal act.
MS. ADAIR stated the other instance in which the statute was
used regarded Government Hill in Anchorage, where a tank
farm sat below a bluff. Because the tanks were owned by
separate owners, it escaped regulation under the federal
act, so the DEC used [AS].010 to regulate benzine emissions
from Government Hill. She said the public was very
concerned about health issues in this situation and a
compromise had been made in the proposed legislation. The
environmental community and some industrial groups had been
opposed to the addition of [AS].010 language and, therefore,
it had been left out. She felt that including [AS].010
language could end the consensus that all parties had worked
so hard to reach.
MR. TREADWELL added the DEC had kept their commitment to the
interim committee to deliver to the legislature the proposed
"Air Quality Permit Bill". He said the DEC's commissioner
had approached the committee with some questions regarding
the proposed bill and the [AS].010 issue could be brought up
again before the committee. He felt some parts of [AS].010
language were important to consider, if not in this bill,
but in other places such as a scientific advisory group. He
said the DEC supported the concept of a scientific advisory
group.
Number 615
REPRESENTATIVE CON BUNDE commended the DEC on actively
pursuing malicious polluters. He asked for a briefing when
the DEC addressed the problems with operation CHARIOT. He
also asked for an explanation of the resource funding going
to the Department of Veterans and Foreign Affairs.
Number 637
MS. ADAIR said when the response legislation was passed
after the Exxon Valdez accident, responsibility was divided
between the DEC and the Division of Emergency Services which
was in the Department of Military and Veterans Affairs
(DMVA), for responding to an oil spill. The DEC was given
authority to do the contingency planning, the financial
responsibility, and the DMVA was given the responsibility
for statewide training depots and corps, she added.
REPRESENTATIVE BUNDE asked if and when a federal EPA office
was located in Alaska how it would impact the DEC in regard
to duplication of effort and regulations.
MS. ADAIR hoped the DEC and the EPA would meet, divide
responsibilities and work more efficiently together. She
explained that because of the EPA's Seattle location, the
DEC was often forced to duplicate the EPA's efforts to
insure all information was gathered and that such
information was correct.
REPRESENTATIVE GREEN asked if the formation of the EPA's
District 11 would provide the EPA with more information on
Alaska's problems.
MS. ADAIR felt if the EPA's Regional Administrator and the
decision-makers were Alaskans, it would be more likely that
they would have information for the circumstances dealt with
here in Alaska.
Tape 93-5, Side A
Number 000
REPRESENTATIVE GREEN asked if the DEC in its biological lab,
in conjunction with the Department of Health, handled
hepatitis screening.
MS. ADAIR said during an outbreak, the DEC could be involved
in testing, but the primary responsibility for humans was
handled by the Department of Health and Social Services.
REPRESENTATIVE GREEN asked if a list of the funding of HB
470 would be available to the legislature.
MS. ADAIR said the report by the DEC was due to the
legislature on the fifteenth or twentieth day of the
session, and the transmittal letter and report would be on
time.
Number 036
REPRESENTATIVE DAVIES asked if the Clean Air Act bill was
considered a consensus bill by the DEC.
MS. ADAIR replied in the affirmative. She pointed out a
briefing had been held in the governor's conference room and
all members of the interim committee that worked on the
proposed legislation had voiced their support and intent to
work to ensure passage of the Clean Air Act bill. She said
certain amendments added to the bill could cause some groups
to withdraw their support.
Number 047
REPRESENTATIVE DAVIES asked for the approximate percentage
of total support from federal dollars versus state dollars
for the DEC's operation.
TRACI CRAMER, BUDGET ANALYST FOR THE DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, OFFICE OF MANAGEMENT AND BUDGET,
was unsure of the percentage, but disclosed the general fund
portion of the operating budget was $21 million.
MS. ADAIR disclosed the total operating budget to be
approximately $45 million.
MR. TREADWELL explained that on a program by program basis
the DEC received money for drinking water programs and air
programs which, after the air bill, would be self
liquidating, and have more federal mandates on solid
hazardous waste with less funding. He indicated the DEC
received federal funding in other areas as well.
REPRESENTATIVE DAVIES inquired into the percentage of
program budgets that would be funded under user fees and was
concerned that if the user fee was too high, compliance
might be a problem.
Number 118
MS. ADAIR said the DEC's goal was to privatize domestic
septic system approvals. For one year the DEC had been
working toward this goal, she added, and explained that the
DEC began septic system inspections as a favor to the
lending industry. She noted this was a very time consuming
program which, in other states, was a local responsibility.
She said the DEC was working with Alaska Housing and hoped
to charge the $250 fee only when a private engineer was not
used in such inspections.
Number 150
REPRESENTATIVE JEANNETTE JAMES asked whether the EPA office
would be located in Anchorage or Juneau.
MS. ADAIR disclosed the EPA office would be located in
Anchorage, according to the Presidential directive.
Number 160
REPRESENTATIVE PAT CARNEY asked why the DEC was spending
state money for domestic septic system inspections without
legislative regulations requiring the DEC to perform that
function.
MS. ADAIR said historically the DEC had performed domestic
septic system inspections. She noted lending institutions
wanted insurance by the health authority that the septic
system was in working order and in compliance with local
regulations. Because the Constitution said the legislature
should provide for the public health, the DEC had been made
the health authority for the state, and unless a local
government passed an ordinance to take that responsibility
upon themselves, the DEC held responsibility for this
inspection. When the DEC stopped doing these inspections in
years past, banks stopped making loans and the DEC was
forced to begin the process again, she advised.
Number 204
MR. TREADWELL pointed out although the DEC felt inspections
were needed for septic tanks, it was not mandated under the
DEC's regulations and, therefore, could be privatized.
CHAIRMAN WILLIAMS asked how the DEC would like to handle
questions from the legislature.
MS. ADAIR preferred questions come to her office from the
legislature, which she could then direct to the appropriate
Division.
Number 244
REPRESENTATIVE HUDSON asked the Committee to filter
questions through the House Resources Committee staff so all
members receive the information.
ANNOUNCEMENTS
CHAIRMAN WILLIAMS announced that at 8:00 a.m. on Friday,
January 22, 1993, there would be an overview hearing by the
Department of Fish and Game. He announced further that the
House Special Committee on Fisheries had been invited to
that meeting.
ADJOURNMENT
There being no further business to come before the
committee, Chairman Williams adjourned the meeting at 9:50
a.m.
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