Legislature(2011 - 2012)BARNES 124

01/31/2011 01:00 PM House RESOURCES


Download Mp3. <- Right click and save file as

Audio Topic
01:03:32 PM Start
01:03:59 PM Overview: Division of Spill Prevention & Response
02:08:05 PM Overview: Division of Water Quality
03:05:24 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overviews: TELECONFERENCED
Dept. of Environmental Conservation
- Water Quality Division
- Division of Spill Prevention & Response
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                        January 31, 2011                                                                                        
                           1:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eric Feige, Co-Chair                                                                                             
Representative Paul Seaton, Co-Chair                                                                                            
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Alan Dick                                                                                                        
Representative Neal Foster                                                                                                      
Representative Bob Herron                                                                                                       
Representative Cathy Engstrom Munoz                                                                                             
Representative Berta Gardner                                                                                                    
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  DIVISION OF SPILL PREVENTION & RESPONSE                                                                              
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
OVERVIEW:  DIVISION OF WATER                                                                                                    
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
LARRY DEITRICH, Director                                                                                                        
Division of Spill Prevention & Response                                                                                         
Department of Environmental Conservation                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided a PowerPoint presentation on the                                                                
Division of Spill Prevention and Response.                                                                                      
                                                                                                                                
LYNN TOMICH KENT, Director                                                                                                      
Division of Water                                                                                                               
Department of Environmental Conservation                                                                                        
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Provided an  overview of  the Division  of                                                             
Water.                                                                                                                          
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:03:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  PAUL   SEATON  called  the  House   Resources  Standing                                                             
Committee meeting to order at  1:03 p.m.  Representatives Seaton,                                                               
P. Wilson, Herron, Dick, Kawasaki,  Foster, Munoz, and Feige were                                                               
present at the call to  order.  Representative Gardner arrived as                                                               
the meeting was in progress.                                                                                                    
                                                                                                                                
^Overview:  Division of Spill Prevention & Response                                                                             
       Overview:  Division of Spill Prevention & Response                                                                   
                                                                                                                              
1:03:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON announced that the  first order of business would                                                               
be an  overview by the Department  of Environmental Conservation,                                                               
Division of Spill Prevention & Response.                                                                                        
                                                                                                                                
1:05:17 PM                                                                                                                    
                                                                                                                                
LARRY  DEITRICH,   Director,  Division  of  Spill   Prevention  &                                                               
Response,  Department of  Environmental Conservation,  introduced                                                               
the  PowerPoint   presentation,  titled  "Alaska   Department  of                                                               
Environmental  Conservation," which  focused on  the Division  of                                                               
Spill  Prevention  and  Response  (SPAR)  [Included  in  members'                                                               
packets], and  read the division's  mission (slide 2):   "Protect                                                               
public   health   and   the   environment   through   prevention,                                                               
preparedness  and   response  to  oil  and   hazardous  substance                                                               
releases."                                                                                                                      
                                                                                                                                
1:06:56 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH, showing  slide  3,  stated the  SPAR  goals to  be                                                               
prevention of spills, preparedness  for the occurrence of spills,                                                               
and  responsiveness to  spills, whether  it be  oil or  hazardous                                                               
substances.   He pointed out  that the division's  primary source                                                               
of funding was the Response Fund.                                                                                               
                                                                                                                                
1:07:23 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH   noted  that  slide  4   depicted  the  division's                                                               
organizational  structure,  and  he  listed  its  four  programs:                                                               
Prevention and  Emergency Response, Contaminated  Sites, Industry                                                               
Preparedness, and Response Fund Administration.                                                                                 
                                                                                                                                
1:08:04 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH  moved on to  slide 5, "Qualifications,"  and shared                                                               
that the  division's senior leadership  had a total of  156 years                                                               
of experience.   He  noted the  educational backgrounds  of these                                                               
leaders and the job classes which they managed.                                                                                 
                                                                                                                                
1:08:59 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH  directed attention  to  slide  7, "Prevention  and                                                               
Emergency  Response Mission,"  and  read the  mission:   "Protect                                                               
public health  and the environment  by preventing  and mitigating                                                               
the effects of oil and  hazardous substance releases and ensuring                                                               
their cleanup through government planning and rapid response."                                                                  
                                                                                                                                
1:09:24 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH observed  that  slide 8,  "Total  Spills by  Fiscal                                                               
Year," plotted  a bar  graph which depicts  the annual  spills in                                                               
Alaska since 1996.                                                                                                              
                                                                                                                                
1:10:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE asked what constituted a minimum spill.                                                                          
                                                                                                                                
MR. DEITRICH  replied that the  Clean Water Act defined  that any                                                               
spill of oil or hazardous substance must be reported.                                                                           
                                                                                                                                
1:10:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI  offered his  belief that, with  an aging                                                               
infrastructure,  the  trend  would  have  increased,  instead  of                                                               
decreased, and he asked why the downward trend.                                                                                 
                                                                                                                                
MR.  DEITRICH, in  response to  Representative Kawasaki,  offered                                                               
his belief that  the spill prevention programs  were "coming into                                                               
play."                                                                                                                          
                                                                                                                                
1:11:49 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH presented slide  9, "Responsibilities," and reported                                                               
that there  were three response  teams, which allowed for  a 24/7                                                               
capability  for  emergency  oil   spill  and  hazardous  material                                                               
(hazmat) response  anywhere in  Alaska.   He mentioned  that SPAR                                                               
had agreements  with local communities,  but that it  handled the                                                               
environmental functions in any disaster response.                                                                               
                                                                                                                                
1:12:34 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH  explained that slide  10, "Emergency  Response Team                                                               
Areas," showed the  zone coverage for each of  the three response                                                               
teams.                                                                                                                          
                                                                                                                                
1:12:47 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH  addressed  slide 11,  "Statewide  Hazmat  Response                                                               
Teams," and explained that the state  had opted not to have Level                                                               
A  hazmat protective  clothing,  which was  a fully  encapsulated                                                               
suit with a  self contained breathing apparatus.   Instead, there                                                               
was an  agreement with the  Anchorage and Fairbanks  fire service                                                               
districts  to allow  these  groups to  respond  outside of  their                                                               
jurisdiction, while  working for the state  on-scene coordinator.                                                               
He assessed  that this  was the beginning  of a  statewide hazmat                                                               
capability, which now consisted of 25 organizations.                                                                            
                                                                                                                                
1:14:35 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH introduced  slide 12,  "Oil Spill  Response Plans,"                                                               
which summarized that  the Alaska spill plan  was an amalgamation                                                               
of federal  and state spill plans.   He added that  the regulated                                                               
industries had its' requirements for oil spill planning.                                                                        
                                                                                                                                
1:15:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON  asked  if these  plans  had  been  specifically                                                               
developed for Alaska.                                                                                                           
                                                                                                                                
1:15:40 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH replied  that environmentally  sensitive areas  and                                                               
species  had to  be identified  in  the Alaska  plan, and  beyond                                                               
that, the  plan met  the standard requirements.   In  response to                                                               
Co-Chair  Seaton, he  clarified  that the  plan  was specific  to                                                               
Alaska.                                                                                                                         
                                                                                                                                
1:16:22 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH  stated  that  slide   13,  "Local  Spill  Response                                                               
Agreements  and Equipment,"  depicted the  43 communities  around                                                               
the state  with spill response  agreements and the  locations for                                                               
response equipment.                                                                                                             
                                                                                                                                
1:17:06 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH,  continuing  on   to  slide  14,  "Prevention  and                                                               
Emergency Response Activities," spoke  about the 684 responses to                                                               
1740  reported  spills,  the 24  significant  oil  and  hazardous                                                               
substance  spills, the  25 oil  spill drills  and exercises,  the                                                               
statewide  hazardous  materials  commodity flow  study,  and  the                                                               
updates of the unified and subarea response plans.                                                                              
                                                                                                                                
1:18:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON asked  why some  responses from  2007 were                                                               
still listed as active.                                                                                                         
                                                                                                                                
MR. DEITRICH  suggested that any remediation  might have extended                                                               
the time, and he offered to provide an update.                                                                                  
                                                                                                                                
MR. DEITRICH, in  response to Representative Herron,  said that a                                                               
red star was an indication of an information update.                                                                            
                                                                                                                                
1:19:40 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH  relayed that the  development and expansion  of the                                                               
Alaska SPAR program  had been event driven, and  he showed slides                                                               
15, 16, 17, 18, and 19, all depicting spill events.                                                                             
                                                                                                                                
1:22:07 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON, pointing  to slide 19, asked if this  was a heat                                                               
or a materials signature.                                                                                                       
                                                                                                                                
MR. DEITRICH replied that it showed a temperature differential.                                                                 
                                                                                                                                
1:22:39 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH shared that slide  20 showed SPAR's involvement with                                                               
the response coordination to the Yukon flooding.                                                                                
                                                                                                                                
1:22:54 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH  moved  on  to  slide  22,  "Industry  Preparedness                                                               
Mission"  and  said that  the  mission  was to  "Protect  public,                                                               
health,  and   the  environment   by  ensuring   that  producers,                                                               
transporters  and  distributors  of  crude oil  and  refined  oil                                                               
products  prevent  oil spills  and  are  prepared materially  and                                                               
financially to respond and clean up spills."                                                                                    
                                                                                                                                
1:23:20 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH  explained that slide 23,  "Oil Production, Storage,                                                               
and   Transportation  Infrastructure,"   showed  the   crude  oil                                                               
infrastructure,   which  consisted   of  oil   wells,  production                                                               
facilities, crude oil transmission  pipelines, and storage tanks,                                                               
then  the refineries,  and finally,  the noncrude  oil terminals,                                                               
pipelines,  and  storage  terminals.    He  emphasized  that  the                                                               
components  shown  in  the  circle,  which  included  aboveground                                                               
storage tanks, aircraft, and tank trucks, were not regulated.                                                                   
                                                                                                                                
1:24:29 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH,  indicating   slide  24,  "Regulated  Components,"                                                               
stated that the regulated industry had very specific standards.                                                                 
                                                                                                                                
1:25:27 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH, in  response to  Co-Chair  Seaton, explained  that                                                               
three phase  referred to the oil,  gas, and water which  came out                                                               
of the ground from the well before separation.                                                                                  
                                                                                                                                
1:25:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI  asked about  oil spill  preparedness and                                                               
the aging infrastructure.                                                                                                       
                                                                                                                                
MR. DEITRICH replied that he would  address that later.  He moved                                                               
on to slide  25, which showed that 73 percent  of the spills were                                                               
from unregulated facilities.                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON  asked  for a  description  of  the  unregulated                                                               
facilities.                                                                                                                     
                                                                                                                                
MR.  DEITRICH referred  back  to  slide 23,  and  pointed to  the                                                               
facilities  in the  circle,  which  included aboveground  storage                                                               
tanks, tank trucks, and aircraft.                                                                                               
                                                                                                                                
1:27:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked how  SPAR was made aware of spills                                                               
from non-regulated facilities.                                                                                                  
                                                                                                                                
MR.  DEITRICH replied  that  the  owner was  required  to do  the                                                               
cleanup.                                                                                                                        
                                                                                                                                
1:28:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER, referring to slide  25, asked how the pie                                                               
chart would reflect the volume of the spills.                                                                                   
                                                                                                                                
MR.  DEITRICH  replied that  he  would  supply that  information,                                                               
which included a number of components.                                                                                          
                                                                                                                                
1:29:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ   asked  if  the  division   had  statutory                                                               
responsibilities for response to the unregulated spills.                                                                        
                                                                                                                                
MR.  DEITRICH replied  that the  basic statutory  requirement was                                                               
that a  spill must be  cleaned up.   He clarified that  there was                                                               
not any  statutory requirement for the  equipment, the operation,                                                               
or the spill prevention for unregulated facilities.                                                                             
                                                                                                                                
REPRESENTATIVE  HERRON,  referring  to  slide  26,  asked  for  a                                                               
differentiation between "Best available  technology" and the goal                                                               
to make preparedness and response "better."                                                                                     
                                                                                                                                
MR. DEITRICH replied  that there was a  requirement for regulated                                                               
facility operators to use the best available technology.                                                                        
                                                                                                                                
REPRESENTATIVE HERRON asked what "better" would mean.                                                                           
                                                                                                                                
MR. DEITRICH  replied that a goal  of SPAR was for  fewer spills,                                                               
and that would be "better"  operation, regardless of regulated or                                                               
unregulated.      Referring   to   slide  26,   he   listed   its                                                               
responsibilities   to   include    spill   drills,   inspections,                                                               
contingency plans, and financial responsibility.                                                                                
                                                                                                                                
1:32:15 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH  spoke briefly  about slide  27, "Drills"  and slide                                                               
28, "Spill Cooperatives."                                                                                                       
                                                                                                                                
1:33:05 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH  stated the importance for  prevention, and pointing                                                               
to slide 29,  "Overseas Ohio," he discussed the  crude oil tanker                                                               
and its collision with ice.                                                                                                     
                                                                                                                                
MR.  DEITRICH stated  that  slide 30  depicted  a "Tanker  Escort                                                               
System."    He  moved  on to  slide  31,  "Industry  Preparedness                                                               
Activities,"   which  listed   the   contingency  plan   actions,                                                               
inspections, exercises, and spills analysis.                                                                                    
                                                                                                                                
1:34:26 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH spoke  about slide 32, "Pump Station  1 Bypass," and                                                               
shared that the restart had to be through the corroded pipe.                                                                    
                                                                                                                                
MR. DEITRICH  pointed out that a  crew was testing the  pipe wall                                                               
thickness on slide 33, "Pipeline Inspections."                                                                                  
                                                                                                                                
MR.  DEITRICH   explained  that   slide  34,  "Drift   River  Oil                                                               
Terminal,"  showed a  threat which  had required  mobilization by                                                               
the response teams.                                                                                                             
                                                                                                                                
MR. DEITRICH examined  the pipeline break on  slide 35, "Lisburne                                                               
Pipeline Break."                                                                                                                
                                                                                                                                
1:35:50 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH  viewed slide 36  and slide 37,  "Contaminated Sites                                                               
Mission,"  and  read  the  mission  for  the  Contaminated  Sites                                                               
program:   "protect  public and  the environment  by identifying,                                                               
overseeing,  and   conducting  the  cleanup,   redevelopment  and                                                               
management of  contaminated sites in  Alaska."  He  declared that                                                               
most of the  contamination sites were legacy sites,  slide 38, as                                                               
the current cleanups were "robust" and taken to completion.                                                                     
                                                                                                                                
MR.  DEITRICH   described  slide   39,  "Open  vs   Closed  Sites                                                               
(cumulative)," which depicted the number  of sites for which SPAR                                                               
had responsibility.                                                                                                             
                                                                                                                                
MR.  DEITRICH  reported  that  83   percent  of  the  sites  were                                                               
contaminated by petroleum, slide 40, "Pollutant Type."                                                                          
                                                                                                                                
MR.  DEITRICH explained  that  inhalation,  ingestion, or  dermal                                                               
exposure  were the  exposure routes  that SPAR  worked to  block,                                                               
slide 41, "Exposure Pathways."                                                                                                  
                                                                                                                                
1:37:29 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH analyzed slide 42,  "Risk Continuum," which assessed                                                               
the relative  risks posed  by contaminated  sites, and  slide 43,                                                               
"Hazard Ranking," which showed the  percentage proportion of risk                                                               
priorities.                                                                                                                     
                                                                                                                                
MR.   DEITRICH   presented    slide   44,   "Contaminated   Sites                                                               
Responsibilities,"  listing the  program responsibilities,  which                                                               
included contaminated site management,  cleanup of state, federal                                                               
and private sites, and reuse and redevelopment.                                                                                 
                                                                                                                                
MR. DEITRICH  indicated that slide  45, "Site  Ownership," showed                                                               
that 50 percent of the contaminated sites were federal.                                                                         
                                                                                                                                
MR.  DEITRICH   explained  that  slide  46,   "Contaminated  Site                                                               
Remediation," showed a refinery  site with an interception trench                                                               
to  capture the  contaminants, and  that slide  47, "Activities,"                                                               
listed  the annual  assessment, monitoring  or cleanup  of sites.                                                               
He  flashed through  slides 48,  49,  50, and  51 which  pictured                                                               
contamination  sites including  abandoned  drums, a  contaminated                                                               
plume, an  historical bunker tank,  and contaminated soil  on the                                                               
North Slope.                                                                                                                    
                                                                                                                                
1:40:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked if  there were many abandoned drum                                                               
sites.                                                                                                                          
                                                                                                                                
MR.  DEITRICH  cautioned that  a  new  cache of  abandoned  drums                                                               
seemed to  appear just when it  seemed that all had  been cleaned                                                               
up.   He opined that  the North Slope  had been cleared  but that                                                               
there were still  problem areas in the Aleutians  and the Bristol                                                               
Bay area.                                                                                                                       
                                                                                                                                
1:42:05 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH  reviewed the  last  SPAR  program, slide  53,  the                                                               
"Response Fund Administration," and read its mission:                                                                           
                                                                                                                                
     Manage and  administer the Oil and  Hazardous Substance                                                                    
     Release Prevention  and Response Fund as  a sustainable                                                                    
     funding source  for the  state's core  spill prevention                                                                    
     and response programs.                                                                                                     
                                                                                                                                
He listed its  responsibilities, slide 54, to  include:  Response                                                               
Fund  management, cost  recovery,  contract management,  biennial                                                               
report   preparation  for   the   legislature,  and   information                                                               
technology team management.                                                                                                     
                                                                                                                                
1:42:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked about cost recovery.                                                                             
                                                                                                                                
MR.  DEITRICH replied  that  although the  spiller  paid for  any                                                               
costs  related to  the cleanup,  the cost  recovery needed  to be                                                               
averaged  over a  three  year  period, as  the  recovery may  not                                                               
happen for a few  years.  He opined that 90  percent of the costs                                                               
were recovered.                                                                                                                 
                                                                                                                                
MR. DEITRICH,  in response to Representative  Kawasaki, said that                                                               
the cost estimate for cleanup of  federal sites was done prior to                                                               
clean up so  that the agency involved could request  the money in                                                               
its next budget cycle.                                                                                                          
                                                                                                                                
MR.  DEITRICH directed  attention to  slide 55,  "Response Fund,"                                                               
which   depicted  the   funding  flow   for  both   response  and                                                               
prevention.                                                                                                                     
                                                                                                                                
1:44:58 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH  displayed slide 56, "Activities,"  which listed the                                                               
money recovered  from responsible  parties, from  federal grants,                                                               
from significant  spill responses,  and from state  contracts for                                                               
assessment and cleanup.                                                                                                         
                                                                                                                                
1:45:26 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH   pointed  out  that   slide  57,   "Response  Fund                                                               
Sustainable  Business Model,"  graphed the  decline in  crude oil                                                               
production.  He  declared that the funding for  the response fund                                                               
was based  on production,  not price  per barrel,  so as  the oil                                                               
flow diminishes so does the fund revenue.                                                                                       
                                                                                                                                
MR. DEITRICH,  speaking about slide 58,  "Initiatives," and slide                                                               
59,  discussed  the  risk assessments,  analysis,  and  emergency                                                               
towing system.                                                                                                                  
                                                                                                                                
1:47:38 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH, in  response to  Representative Seaton,  said that                                                               
the tow line  kits were pre-positioned in Unalaska,  and that one                                                               
was air deployable.  He reflected  that other tow line kits would                                                               
be pre-deployed in Kodiak and Sitka.                                                                                            
                                                                                                                                
1:48:10 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH pointed to slide  60, "Circumpolar Shipping Routes,"                                                               
which depicted the volume of shipping.                                                                                          
                                                                                                                                
1:48:35 PM                                                                                                                    
                                                                                                                                
MR. DEITRICH moved on to  slide 61, "Arctic Shipping Routes," and                                                               
explained the various northern routes.                                                                                          
                                                                                                                                
1:48:57 PM                                                                                                                    
                                                                                                                                
MR.  DEITRICH closed  with slide  62, "Deepwater  Horizon Lessons                                                               
Learned,"  noting that  Alaska had  participated in  a nationwide                                                               
review, and that many lessons were learned.                                                                                     
                                                                                                                                
1:49:53 PM                                                                                                                    
                                                                                                                                
MR.   DEITRICH,   in  response   to   an   earlier  question   by                                                               
Representative  Kawasaki,  explained  that  a  section  of  pipe,                                                               
encased in  concrete, had been pre-identified  for repair because                                                               
of  corrosion.   There was  seepage,  and the  pipeline was  shut                                                               
down,  but  as   the  seeping  oil  went   into  the  containment                                                               
structure, no  significant amount  of it had  escaped.   He noted                                                               
that  there were  two pipeline  inspection gauges  (pigs) in  the                                                               
line at the time  of shut down.  It was  necessary to remove them                                                               
so they  would not  freeze in  the pipe,  and this  required that                                                               
warm oil  be sent through the  pipe.  The dilemma  was whether to                                                               
wait for  the by-pass pipe to  be completed, or re-start  the oil                                                               
flow through the damaged pipe,  which could have lead to "unknown                                                               
potentially  irreversible  consequences  to  the  system."    The                                                               
decision was made  to re-start through the damaged  pipe, the two                                                               
pigs  were removed  from the  system, and  the system  was closed                                                               
again until  a temporary bypass was  completed.  He noted  that a                                                               
permanent  repair  would  be  done  during  the  upcoming  summer                                                               
months.                                                                                                                         
                                                                                                                                
1:52:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI asked  if there  were other  portions of                                                               
the pipeline with potentially similar problems.                                                                                 
                                                                                                                                
MR.  DEITRICH explained  that "changing  conditions are  going on                                                               
with the  composition of the oil."   He opined that  the programs                                                               
would need to  become more sophisticated and  aggressive in order                                                               
to  deal  with the  increase  in  sediment  and the  decrease  in                                                               
temperatures from low flows.                                                                                                    
                                                                                                                                
1:53:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  asked to  clarify that  the other  sections that                                                               
could not be pigged were on an accelerated maintenance schedule.                                                                
                                                                                                                                
MR.  DEITRICH  agreed.    He  reminded  the  committee  that  the                                                               
corrosion  had been  identified, and  that the  pipe replacements                                                               
would allow for complete testing.                                                                                               
                                                                                                                                
1:54:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER, referring  to slide  51, asked  for more                                                               
information on the North Slope Contaminated Soil Land Farm.                                                                     
                                                                                                                                
MR. DEITRICH explained that the  land was tilled to allow aerobic                                                               
oxidation to  feed the bugs  in the soil, which  would metabolize                                                               
and  break down  the hydrocarbons.    He pointed  out that  these                                                               
windrows of soil were a treatment method.                                                                                       
                                                                                                                                
REPRESENTATIVE GARDNER asked if this  was experimental or a means                                                               
to address an accidental spill.                                                                                                 
                                                                                                                                
MR. DEITRICH  replied that this  was a conventional clean  up and                                                               
it was economically efficient for cleaning up small spills.                                                                     
                                                                                                                                
REPRESENTATIVE GARDNER asked how this was monitored.                                                                            
                                                                                                                                
MR. DEITRICH replied  that it was completely  monitored until the                                                               
soil clean up level indicated it was completely treated.                                                                        
                                                                                                                                
1:56:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE,  directing attention to  slide 13, asked  why the                                                               
numerous  non state-owned  response equipment  containers on  the                                                               
North Slope were not depicted.                                                                                                  
                                                                                                                                
MR.  DEITRICH  explained  that  this  map  did  not  include  the                                                               
substantial industry or spill cooperatives' equipment.                                                                          
                                                                                                                                
1:57:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON asked  about  the  upcoming Clean  Pacific                                                               
Conference.                                                                                                                     
                                                                                                                                
MR.  DEITRICH clarified  that the  next Clean  Pacific Conference                                                               
would be the  following year, and that the annual  meeting of the                                                               
task force would be in Alaska during August.                                                                                    
                                                                                                                                
1:58:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON asked  if  the arctic  shipping and  trans                                                               
boundary agreements with British Columbia would be discussed.                                                                   
                                                                                                                                
MR.  DEITRICH replied  that currently  there were  trans-boundary                                                               
agreements with Canada in the south.   He noted that an agreement                                                               
for the north  was being worked out, and, although  there was not                                                               
a boundary agreement, the US  Coast Guard was working with Russia                                                               
on shipping and oil response coordination.                                                                                      
                                                                                                                                
1:59:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FOSTER asked  about unreported  spills which  are                                                               
eventually reported by a third party.                                                                                           
                                                                                                                                
MR. DEITRICH stated  that the regulated entities did  a very good                                                               
job of reporting.   He opined that fishing  vessels, home heating                                                               
fuel  tanks,  and small  tank  farms  were  the source  of  small                                                               
spills.                                                                                                                         
                                                                                                                                
2:01:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FOSTER asked  what tools  were used  to encourage                                                               
spill reports.                                                                                                                  
                                                                                                                                
MR.  DEITRICH replied  that there  was an  attempt to  target the                                                               
source  of spills,  and, if  it was  not a  regulated source,  to                                                               
provide  educational  and  technical  assistance.    He  directed                                                               
attention to  the home fuel heating  tank design on the  SPAR web                                                               
page.   He spoke about  the clean harbor initiative  to encourage                                                               
spill reports.                                                                                                                  
                                                                                                                                
2:03:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON asked  for  a  list  of the  top  five                                                               
unregulated problems.                                                                                                           
                                                                                                                                
MR. DEITRICH  said that  he would  supply that  information which                                                               
could include the number, volume, and sources of spills.                                                                        
                                                                                                                                
2:05:03 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:05 p.m. to 2:07 p.m.                                                                       
                                                                                                                                
^Overview:  Division of Water Quality                                                                                           
              Overview:  Division of Water Quality                                                                          
                                                                                                                              
CO-CHAIR SEATON announced that the  final order of business would                                                               
be an overview of the Division of Water Quality.                                                                                
                                                                                                                                
2:08:05 PM                                                                                                                    
                                                                                                                                
LYNN  TOMICH KENT,  Director, Division  of  Water, Department  of                                                               
Environmental Conservation,  remarked that the Division  of Water                                                               
also  has a  lot  of experienced  staff.   She  related that  the                                                               
mission of  the division is  to protect water quality  and assist                                                               
communities  in improving  sanitation conditions.   The  division                                                               
addresses   "all  things   water  except"   the  following:   the                                                               
regulation of  public drinking water systems,  water quantity, or                                                               
aquatic habitat issues.   She then reviewed  the structure within                                                               
the  Division  of  Water,  which   has  two  main  components  of                                                               
Facilities  and Water  Quality.   The division  also has  a small                                                               
administrative group that works on  budget issues and manages the                                                               
division's data  systems.   The Facilities  side of  the division                                                               
has  44 positions.   In  response  to Co-Chair  Seaton, Ms.  Kent                                                               
agreed  to provide  a slide  illustrating the  division structure                                                               
with the names of the individuals in the positions.                                                                             
                                                                                                                                
MS.  KENT returned  to the  Facilities  side of  the Division  of                                                               
Water,  and  highlighted  that it  has  the  following  programs:                                                               
Municipal  Grants   and  Loans,  the  Village   Safe  Water,  and                                                               
Operations  Assistance  Programs.    The  core  services  on  the                                                               
Facilities side is to provide  funding and engineering assistance                                                               
to communities  of all  sizes throughout  the state  for drinking                                                               
water,  sewerage,  and  solid  waste   facilities.    Other  core                                                               
services of the Facilities side  are to provide training programs                                                               
for  and certification  of water  and sewer  system operators  as                                                               
well  as routine  and emergency  assistance to  rural communities                                                               
for the operation of their systems.                                                                                             
                                                                                                                                
MS.  KENT then  turned to  the  grants portion  of the  Municipal                                                               
Grants and  Loans Program.   She informed the committee  that the                                                               
division's  Municipal  Grants  Program serves  first  and  second                                                               
class cities, home rule cities,  organized boroughs, and eligible                                                               
private utilities.   A percentage of the grant  funded portion of                                                               
a sewer  and water systems  project is based  on the size  of the                                                               
community.   Therefore, a community  with a population  of 10,000                                                               
or more  is eligible for a  project to receive 60  percent of its                                                               
funds from the grant and the  community must provide a 40 percent                                                               
match to the  project.  Smaller communities can  receive a higher                                                               
percentage for  the grant portion  of a project, 85  percent, and                                                               
the community  must match  with the remaining  15 percent  of the                                                               
project.                                                                                                                        
                                                                                                                                
2:11:40 PM                                                                                                                    
                                                                                                                                
MS.  KENT, in  response  to Representative  P. Wilson,  confirmed                                                               
that the  division does an  annual solicitation of  projects from                                                               
the communities, which  are then ranked and  scored.  Ultimately,                                                               
projects  and  communities are  found  in  the division's  annual                                                               
budget request.                                                                                                                 
                                                                                                                                
2:12:19 PM                                                                                                                    
                                                                                                                                
MS.  KENT, returning  to her  overview, told  the committee  that                                                               
eligible  projects   for  grants   are  drinking   water  supply,                                                               
treatment,   distribution,   and  storage   systems;   wastewater                                                               
collection,  treatment,   and  discharge  systems;   solid  waste                                                               
facilities; and water quality enhancement.                                                                                      
                                                                                                                                
2:12:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON asked if the  division's available funding varies                                                               
from year to year or is it a formula driven amount.                                                                             
                                                                                                                                
MS.  KENT answered  that although  the division's  funding varies                                                               
from year-to-year,  it's fairly stable.   In further  response to                                                               
Co-Chair Seaton,  Ms. Kent estimated  that the  division's budget                                                               
is approximately $20 million.                                                                                                   
                                                                                                                                
2:13:32 PM                                                                                                                    
                                                                                                                                
MS. KENT, returning to her  overview, informed the committee that                                                               
the division manages  two loan funds, and thus acts  similar to a                                                               
bank.   The  division  manages  a Clean  Water  Loan  Fund and  a                                                               
Drinking  Water Loan  Fund.   Under  the Clean  Water Loan  Fund,                                                               
eligible projects  would be wastewater facilities.   The division                                                               
can pay for  the design for collection,  treatment, and discharge                                                               
systems on solid waste facilities,  such as landfill closures and                                                               
landfill  collection and  treatment  systems,  and water  quality                                                               
enhancement projects.   The Drinking  Water Loan Fund  will cover                                                               
the design  and construction of  drinking water facilities.   She                                                               
noted  that  there  are  some  private  water  systems  that  are                                                               
eligible to receive loan funds  from the department, such systems                                                               
are  economically  regulated  by  the  Regulatory  Commission  of                                                               
Alaska (RCA).   Ms. Kent explained that up to  100 percent of the                                                               
eligible  project costs  can be  covered  by a  loan, unlike  the                                                               
grant.   Often communities will obtain  a grant for a  portion of                                                               
the  project and  use  the  loan fund  to  meet  the local  match                                                               
requirement, which is allowed under the loan funds.                                                                             
                                                                                                                                
2:14:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER inquired as to  what type of private water                                                               
systems would be economically regulated by the RCA.                                                                             
                                                                                                                                
MS.  KENT related  her understanding  that systems  are those  in                                                               
which their  rate structure is overseen  by the RCA.   In further                                                               
response  to  Representative  Gardner, Ms.  Kent  confirmed  that                                                               
there are private water systems  that aren't regulated by the RCA                                                               
and they're referred  to as public water systems.   She clarified                                                               
that such systems may be  smaller systems that serve an apartment                                                               
building.                                                                                                                       
                                                                                                                                
2:15:18 PM                                                                                                                    
                                                                                                                                
MS.  KENT  continued  her  overview  regarding  the  Division  of                                                               
Water's loan  programs.   She informed  the committee  that there                                                               
are  no  upfront fees  for  the  division's  loan program.    The                                                               
communities  can use  the funds  from the  loan as  their project                                                               
proceeds.  Therefore,  the community doesn't have  to receive the                                                               
entire amount of the loan upfront,  and thus the interest is paid                                                               
[on the amount  that is used] as  it's used.  The  benefit to the                                                               
communities is that the interest rates are very low.                                                                            
                                                                                                                                
2:15:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  asked if 100  percent of  the loan fund  is used                                                               
every year.                                                                                                                     
                                                                                                                                
MS.  KENT stated  that  the  Drinking Water  Loan  Fund is  fully                                                               
utilized and  the Clean Water  Loan is not quite  fully utilized.                                                               
The loan  fund has been  used much  like a checking  account, she                                                               
explained.    Therefore, no  loans  beyond  the amount  of  funds                                                               
available are  made.  The  division is currently  reviewing ideas                                                               
and methods to achieve better  cash-flow management and loan more                                                               
money.   In further  response to Co-Chair  Seaton, Ms.  Kent said                                                               
that  the original  funding  for  both the  loan  funds was  from                                                               
federal  grants.    In  fact, the  division  receives  an  annual                                                               
federal grant to help capitalize the  loan funds.  The loan funds                                                               
also include  loan payments  from previous  loans that  have been                                                               
issued as well as interest on the fund itself.                                                                                  
                                                                                                                                
2:17:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON inquired as to  how many municipalities                                                               
applied for the grants but did not receive funding.                                                                             
                                                                                                                                
MS. KENT said she will provide that information.                                                                                
                                                                                                                                
2:18:18 PM                                                                                                                    
                                                                                                                                
MS. KENT moved on to the  Village Safe Water (VSW) Program, which                                                               
works with  rural communities  to develop  sustainable sanitation                                                               
facilities.   This  program provides  100 percent  grants to  the                                                               
community  for   planning,  design,   and  construction   of  the                                                               
projects.   The funding source  for the VSW program  is primarily                                                               
from  federal grants  from  the  Environmental Protection  Agency                                                               
(EPA)  and  the  U.S.  Department  of  Agriculture  (USDA)  Rural                                                               
Development Program with a 25  percent cost share from the state.                                                               
In response  to Co-Chair  Seaton, Ms Kent  agreed to  provide the                                                               
committee with  the number  of applicants and  those who  are and                                                               
are not  serviced.   She then informed  the committee  that those                                                               
communities  who  are  eligible  under  the  Village  Safe  Water                                                               
Program are  unincorporated communities with a  population of 25-                                                               
600  within a  two-mile radius,  second class  cities, and  first                                                               
class cities with  fewer than 600 residents.  She  noted that the                                                               
VSW program  provides more  assistance than  it would  for larger                                                               
communities.   The  division provides  financial, technical,  and                                                               
engineering   assistance   to   plan,   design,   and   construct                                                               
facilities.   These  are  sanitation  facilities, drinking  water                                                               
systems, and  sewage collection, treatment, and  disposal as well                                                               
as  washeterias  and  solid waste  management  facilities.    She                                                               
turned  to the  key issues  of  the Village  Safe Water  Program,                                                               
which  include   a  widening  gap  between   critical  needs  and                                                               
available  funding.   Critical needs  are those  communities that                                                               
don't have first-time  drinking water or sewer  systems and those                                                               
communities  that don't  have infrastructure  that meets  current                                                               
regulatory requirements and may have  a potential impact on human                                                               
health.                                                                                                                         
                                                                                                                                
2:20:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON  surmised  then  that  [critical  needs]  aren't                                                               
renewals or  maintenance but rather  the provision  of facilities                                                               
for the first time in a community.                                                                                              
                                                                                                                                
MS. KENT replied yes.                                                                                                           
                                                                                                                                
2:20:33 PM                                                                                                                    
                                                                                                                                
MS.  KENT,  continuing  with  her  overview,  remarked  that  the                                                               
widening gap is partly due  to decreasing federal funding for the                                                               
program.   Moreover, some  of the  communities that  haven't been                                                               
served  yet are  the communities  that are  hard to  serve.   For                                                               
instance, they  may be  communities that are  spread out  and for                                                               
which it's difficult  to have a pipe system or  they may not have                                                               
a suitable  water source  or land  for construction.   Therefore,                                                               
not only are such communities  challenging, those hurdles make it                                                               
more expensive to serve.                                                                                                        
                                                                                                                                
2:21:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON asked if the  state offers alternative systems to                                                               
pipe systems, such as composting toilets.                                                                                       
                                                                                                                                
MS. KENT replied yes.                                                                                                           
                                                                                                                                
2:21:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DICK asked  if the division looks  into the future                                                               
of a  community, that is  the population trend of  the community,                                                               
when it  decides to construct a  water system.  He  noted that in                                                               
his  district  there  is  a  village  in  which  a  $1.7  million                                                               
washeteria was constructed  and the next year  the school closed.                                                               
That village  barely has the funds  to purchase the fuel  for the                                                               
washeteria.    He  noted  that  the  school  closure  was  fairly                                                               
predictable.                                                                                                                    
                                                                                                                                
MS. KENT said that is one of  the key issues for the Village Safe                                                               
Water Program.   The division  works directly with  the community                                                               
to evaluate systems  the community has the  capability to operate                                                               
and  maintain  over  time.   She  highlighted  that  a  community                                                               
doesn't  receive  funds  until  the division  has  evaluated  the                                                               
community's administrative  structure, a capacity  assessment, in                                                               
order to  ensure whether  it has the  infrastructure to  manage a                                                               
particular utility.  The division  reviews the "use-ability" of a                                                               
type  of facility  in a  community.   Therefore, every  community                                                               
that  wants pipes  will  get  them.   Still,  the division  works                                                               
closely  with the  villages  to  select a  system.    As much  as                                                               
possible, the  division tries  to serve  the community  and homes                                                               
that are there while performing some forecasting.                                                                               
                                                                                                                                
2:23:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FOSTER  directed attention  to the  chart entitled                                                               
"Critical  Needs  -vs-  Available Funding"  and  underscored  the                                                               
difference in  needs, which totals $648  million, versus funding,                                                               
which  totals  $60 million.    He  highlighted that  the  funding                                                               
amounts to  one-tenth of the  present need, which  is increasing.                                                               
He  inquired as  to  the  reasoning behind  the  increase in  the                                                               
critical needs.                                                                                                                 
                                                                                                                                
MS. KENT pointed out that inflation  is in play.  Therefore, when                                                               
the  price of  fuel spiked,  construction costs  in rural  Alaska                                                               
increased as well.  She  explained that when the division defines                                                               
those critical  needs of a  community, the division  isn't trying                                                               
to  decide  what  system  the  community  needs.    Many  of  the                                                               
facilities are  old and  as drinking  water systems  are designed                                                               
and constructed, they  have to comply with all the  new rules and                                                               
thus  the cost  of  systems  increase because  of  that as  well.                                                               
Therefore, there are many factors at  play and causing the gap to                                                               
widen, which would occur even with steady state funding.                                                                        
                                                                                                                                
2:25:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  recalled  that  the  Village  Safe  Water                                                               
agency used to be a one-stop  shop, whereas now it's the USDA and                                                               
the consortium  as well  as the  Village Safe  Water agency.   He                                                               
asked if that's exacerbated the situation or made it easy.                                                                      
                                                                                                                                
MS. KENT  explained that two different  funding sources available                                                               
and two  organizations, DEC and  the Alaska Native  Tribal Health                                                               
Consortium, work on  the project.  Ms. Kent opined  that it works                                                               
well and isn't exacerbating the  problem.  In further response to                                                               
Representative Herron, Ms. Kent clarified  that the source of the                                                               
funding coming from two different agencies isn't that difficult.                                                                
                                                                                                                                
2:27:03 PM                                                                                                                    
                                                                                                                                
MS.  KENT,  in  response  to  Representative  Wilson,  agreed  to                                                               
provide information regarding the status/progress of the needs.                                                                 
                                                                                                                                
2:27:57 PM                                                                                                                    
                                                                                                                                
MS.  KENT moved  on to  the Operations  Assistance Program.   She                                                               
informed the  committee that different classes  of drinking water                                                               
and wastewater systems have developed  based on the complexity of                                                               
operating them.   Further, education and  experience requirements                                                               
have been  designed in  order to ensure  that the  operators have                                                               
the skill set  necessary to operate the systems in  a safe manner                                                               
while providing  safe drinking water  and sewage disposal.   Part                                                               
of  the  aforementioned  program includes  training  courses  for                                                               
operators.  The division developed  and administers tests and the                                                               
operators are  certified.  When  those facilities  obtain permits                                                               
from the  division, those permits  require that the  facility use                                                               
an operator  certified at  the correct  level for  the particular                                                               
facility.   Ms.  Kent  further informed  the  committee that  the                                                               
division  operates a  Remote  Maintenance  Worker (RMW)  Program,                                                               
which helps  develop the  capacity of  rural Alaskans  to operate                                                               
their  own  facilities.   These  workers,  she highlighted,  help                                                               
safeguard the investment  in rural Alaska by  ensuring the proper                                                               
maintenance and operation  of the facilities.  There  are 15 RMWs                                                               
throughout the  state, of  which 13 are  employees of  7 regional                                                               
health corporations  that received  DEC grants  to pay  for those                                                               
RMWs, and  2 are DEC  employees.  She characterized  these [RMWs]                                                               
as the  circuit riders who  travel to villages to  provide "over-                                                               
the-shoulder"  assistance  to  facility   operators  as  well  as                                                               
emergency assistance for breakdowns and  such.  Ms. Kent referred                                                               
to these individuals  as "the heroes of rural  Alaska."  Further,                                                               
the list of communities these  individuals served in the last few                                                               
months  as  related on  the  slide  entitled "Remote  Maintenance                                                               
Workers" is fairly impressive.                                                                                                  
                                                                                                                                
2:30:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON  relayed that  the  Village  Safe Water  website                                                               
specifies the remaining  needs.  However, the  website also says:                                                               
"This assessment  does not include  the needs of 65  rural Alaska                                                               
villages that are non Native."   He then requested information on                                                               
those villages that aren't included and what their needs entail.                                                                
                                                                                                                                
MS. KENT agreed to do so.                                                                                                       
                                                                                                                                
2:31:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FOSTER related  his assumption  that some  of the                                                               
RMWs went to Savoonga during last month's power outage.                                                                         
                                                                                                                                
MS. KENT said that she was  unsure whether the RMWs actually went                                                               
to Savoonga or  provided remote assistance as they do  both.  She                                                               
offered to check on that.                                                                                                       
                                                                                                                                
2:31:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON asked  if the division  provides grants                                                               
to the non Native villages.                                                                                                     
                                                                                                                                
MS. KENT  explained that  eligibility is not  based on  whether a                                                               
community is  Native or non  Native, but  rather is based  on the                                                               
earlier  mentioned criteria.   Eligible  communities  must be  an                                                               
unincorporated  community  with  a population  of  25-600  people                                                               
residing  within a  two-mile radius,  a second  class city,  or a                                                               
first class city with a population no more than 600 people.                                                                     
                                                                                                                                
2:32:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON recalled that a few  years ago there was an audit                                                               
with regard  to the  management of  grants.   He asked  if that's                                                               
been resolved.                                                                                                                  
                                                                                                                                
MS. KENT responded  that recent audits of the  Village Safe Water                                                               
Program have  found no exceptions.   She opined that  fairly good                                                               
improvements have been made in the program's procedures.                                                                        
                                                                                                                                
2:33:06 PM                                                                                                                    
                                                                                                                                
MS. KENT,  returning to the  overview, directed attention  to the                                                               
slide entitled "Division  of Water - Water  Quality," which lists                                                               
the  following  five  Water  Quality  Programs:    Water  Quality                                                               
Standards,  Assessment  and   Restoration;  Wastewater  Discharge                                                               
Permitting;  Compliance and  Enforcement; Cruise  Ship Regulatory                                                               
Program;  and Water  Quality Monitoring.   The  core services  of                                                               
water quality  include the establishment of  protective standards                                                               
for water  quality; identify and  restore polluted  waters; issue                                                               
wastewater  discharge   permits  to  facilities   that  discharge                                                               
contaminants;  ensure facility  compliance with  permits; provide                                                               
community assistance  for water  quality protection;  and monitor                                                               
water quality and provide public access to that data.                                                                           
                                                                                                                                
2:33:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  requested that Ms.  Kent bring the  committee up                                                               
to date with regard to the copper standard for aquatic life.                                                                    
                                                                                                                                
2:34:18 PM                                                                                                                    
                                                                                                                                
MS.  KENT explained  that when  the division  sets water  quality                                                               
standards, it's  done by  regulation.   The standards  consist of                                                               
two standards.   One  standard is designated  uses, which  is the                                                               
types  of  uses  of  water   the  division  protects  water  for.                                                               
Designated uses  include protection  for drinking  water, seafood                                                               
processing  and  other  industrial uses,  swimming,  non  contact                                                               
recreation, as  well as fish  and other wildlife.   The standards                                                               
apply to the  water body and are measures of  how clean water has                                                               
to be to protect the aforementioned uses.                                                                                       
                                                                                                                                
2:35:25 PM                                                                                                                    
                                                                                                                                
MS. KENT explained  that the second part of the  standards is the                                                               
criteria.   For  each use  and contaminant,  the division  sets a                                                               
level  that  is safe  for  use.    Therefore, the  criteria  will                                                               
include numeric  standards for [contaminants] such  as copper for                                                               
the protection of aquatic life and  human health.  She noted that                                                               
the  numeric standards  for a  contaminant may  be different  for                                                               
different uses  of the water.   She also noted that  the division                                                               
has  narrative  criteria  for   attributes  that  aren't  readily                                                               
measured, such as  "may not cause a visible sheen  on the surface                                                               
of the water."   Alaska's water quality standards  are adopted by                                                               
DEC in  regulation and have  to be approved  by the EPA  prior to                                                               
the  state  using  them  for  Clean  Water  Act  purposes.    The                                                               
standards are  used to  help set permit  limits, identify  when a                                                               
water body might be polluted, and  help measure when a water body                                                               
has been  cleaned and  no longer considered  polluted.   Ms. Kent                                                               
informed the  committee that the  division has a couple  of water                                                               
quality standards revisions in progress:   some changes have been                                                               
made to  the residue criteria  and working toward  final adoption                                                               
of  those   regulations,  and  there  are   pending  mixing  zone                                                               
regulations  revisions for  which  the division  is awaiting  EPA                                                               
approval.  She noted that it's not  unusual for the EPA to take a                                                               
few years  to approve  standards revisions.   In response  to Co-                                                               
Chair Seaton, Ms.  Kent related that the  water quality standards                                                               
review and  approval process  for EPA  is becoming  more complex.                                                               
In  fact, the  EPA has  consultation requirements  with the  U.S.                                                               
Fish &  Wildlife Service and  the National Oceanic  & Atmospheric                                                               
Association (NOAA).   Therefore, the EPA is  dependent upon third                                                               
party agencies to  review their work in  approving the division's                                                               
work.  At  this point, the division has been  told that EPA staff                                                               
is assigned to the mixing zone revisions and are working on it.                                                                 
                                                                                                                                
2:37:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI asked  if  any  water quality  standards                                                               
adopted by DEC are higher than the minimum set by the EPA.                                                                      
                                                                                                                                
MS.  KENT  answered  that  almost  all  of  DEC's  standards  are                                                               
identical to  those set by  the EPA because the  [division] isn't                                                               
funded  to do  the  host  of laboratory  studies.   However,  she                                                               
mentioned  that DEC  has a  few  standards, including  petroleum,                                                               
which are more stringent than the EPA standards.                                                                                
                                                                                                                                
2:38:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON  related his  understanding  that  the state  is                                                               
required to  have water  quality standards that  are at  least as                                                               
strict as the federal requirements.                                                                                             
                                                                                                                                
MS. KENT replied yes, adding that  the state is required to do so                                                               
apart from the primacy for the permitting program.                                                                              
                                                                                                                                
2:38:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  asked if the  division is able  to discuss                                                               
the regulations with EPA.                                                                                                       
                                                                                                                                
MS. KENT  answered that  DEC has been  fairly adamant  in working                                                               
with EPA  and moving them  along.  This  long period of  time for                                                               
review and approval  of water quality standards  isn't limited to                                                               
region  10 of  EPA.   She related  her understanding  that states                                                               
across the country  have challenges with EPA  moving through that                                                               
review  and   approval  process  in   a  timely  fashion.     She                                                               
acknowledged that it's very frustrating.                                                                                        
                                                                                                                                
2:39:44 PM                                                                                                                    
                                                                                                                                
MS.  KENT, in  response to  Representative Munoz,  explained that                                                               
currently the state  adopts a change in regulation  and then it's                                                               
submitted  to the  EPA for  review and  approval.   She said  she                                                               
wasn't aware  of other  states in which  the legislature  has set                                                               
water quality standards.   If there is a  statute established for                                                               
a water  quality standard, she  presumed that the  standard would                                                               
also have to go through some  sort of review and approval process                                                               
through the EPA.                                                                                                                
                                                                                                                                
2:40:39 PM                                                                                                                    
                                                                                                                                
MS. KENT returned to the  slide entitled "Water Quality Standards                                                               
- Issues."   She informed the committee that the  Clean Water Act                                                               
requires the state  to review all of its  water quality standards                                                               
every three years, which is  referred to as the triennial review.                                                               
This review invites the public to  let the division know if there                                                               
is  new science  or  information  that might  cause  review of  a                                                               
particular standard  and determine whether it  should be changed.                                                               
The start of  that triennial review is coming up.   The division,                                                               
she related,  is always  reviewing its  standards and  working on                                                               
what might need to be changed.   The division believes that there                                                               
are  a  few things  it  should  do  over  the next  three  years,                                                               
including  anti-degradation, which  is a  code term  for a  Clean                                                               
Water Act  requirement that states  may not allow  degradation of                                                               
water  quality  except  under  some  very  narrow  circumstances.                                                               
Therefore,  DEC has  adopted regulation  policy that  mirrors the                                                               
federal policy.  Furthermore, DEC  has adopted interim procedures                                                               
regarding how  the anti-degradation  policy will  be implemented.                                                               
She noted that  during the next triennial review, the  plan is to                                                               
develop more robust implementation  procedures for how that anti-                                                               
degradation policy  will be implemented  in permitting  and other                                                               
DEC actions.                                                                                                                    
                                                                                                                                
2:42:09 PM                                                                                                                    
                                                                                                                                
MS.  KENT moved  on to  the copper  criteria, which  is based  on                                                               
EPA's  copper  standards.   There  was  much interest  in  copper                                                               
criteria  in  a  previous  triennial   review.    Therefore,  DEC                                                               
performed  a  full  scientific literature  review  on  copper  to                                                               
determine what  kinds of scientific  information would  cause DEC                                                               
to change its copper criteria.   That review found that there are                                                               
no lethality effects  and growth effects on salmon  due to copper                                                               
that is at or below existing  standards, and thus no changes were                                                               
made to the copper criteria.                                                                                                    
                                                                                                                                
2:43:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  highlighted  that  there  are  collateral                                                               
elements  around  copper,  and  thus he  asked  if  [the  review]                                                               
included those elements as well.                                                                                                
                                                                                                                                
MS. KENT responded that DEC  was just reviewing copper.  However,                                                               
the department  has learned that  there are some things,  such as                                                               
dissolved  organic  carbon,  that  may  affect  the  toxicity  of                                                               
copper.                                                                                                                         
                                                                                                                                
2:43:46 PM                                                                                                                    
                                                                                                                                
MS.  KENT informed  the  committee that  DEC  sponsored a  copper                                                               
session at last  year's Alaska Forum on the  Environment in order                                                               
to share what it knows  about copper and obtain other information                                                               
on copper.   Due of  the level of interest  in copper as  well as                                                               
recent studies  that show  some behavioral  effects on  salmon at                                                               
very  low  concentrations  of  copper,   it's  very  likely  that                                                               
there'll be another  session on copper at  the upcoming triennial                                                               
review.                                                                                                                         
                                                                                                                                
2:44:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE  asked if  there  are  other naturally  occurring                                                               
compounds that  present problems specifically in  Alaska in terms                                                               
of meeting certain EPA standards.                                                                                               
                                                                                                                                
MS. KENT replied  yes, explaining that in some  of Alaska's water                                                               
bodies  there are  natural  conditions of  a  substance that  are                                                               
above the state's water quality  standard.  There is a regulation                                                               
that allows the  aforementioned to be the  prevailing standard if                                                               
it's  truly the  natural condition.   "We  don't try  to regulate                                                               
Mother Nature," she stated.                                                                                                     
                                                                                                                                
2:45:08 PM                                                                                                                    
                                                                                                                                
MS. KENT, in response to  Co-Chair Seaton, related that there was                                                               
a  presentation on  studies performed  in  the Pacific  Northwest                                                               
regarding behavioral  response to copper and  whether salmon will                                                               
avoid a  predator in  the presence  of copper.   The  finding was                                                               
that there  was a reduced response  from the salmon [when  in the                                                               
presence of  copper] and thus  the salmon is more  susceptible to                                                               
predation.   In  further response  to Co-Chair  Seaton, Ms.  Kent                                                               
related that  DEC will likely  review any new literature  that is                                                               
available  as  DEC  is  unlikely  to  fund  its  own  independent                                                               
studies.                                                                                                                        
                                                                                                                                
2:46:18 PM                                                                                                                    
                                                                                                                                
MS.  KENT, returning  to the  overview, directed  the committee's                                                               
attention   to   the   slide   entitled   "Wastewater   Discharge                                                               
Permitting."   Any  discharge of  liquid  or solid  waste to  the                                                               
land,  water,   or  subsurface  requires   a  permit   from  DEC.                                                               
Permitees for  wastewater discharge permits include:   the timber                                                               
industry, mining, oil and  gas, seafood processing, construction,                                                               
and domestic sewage treatment.                                                                                                  
                                                                                                                                
2:46:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI asked if there  are any permits for coal,                                                               
particularly  when ash  is used  as  backfill, specifically  with                                                               
regard to the water tables.                                                                                                     
                                                                                                                                
MS. KENT responded  that she believes [coal] is  regulated by the                                                               
solid waste  program, for which  the regulations are  designed to                                                               
protect water as well.                                                                                                          
                                                                                                                                
2:47:25 PM                                                                                                                    
                                                                                                                                
MS. KENT  moved on to  the topic of  discharges to the  waters of                                                               
the  United States,  which  refers to  surface  waters.   Surface                                                               
waters require a National  Pollutant Discharge Elimination System                                                               
(NPDES) permit.   Alaska as well  as 46 other states  has assumed                                                               
the authority to implement a  permitting program that mirrors the                                                               
NPDES   program,  which   is  the   Alaska  Pollutant   Discharge                                                               
Elimination  System  (APDES).    The [DEC]  has  taken  over  the                                                               
permitting program in phases, based  on the type of industrial or                                                               
domestic discharge.  At this point,  phases 1, 2, and 3 have been                                                               
transferred  to the  state, which  includes domestic  wastewater,                                                               
timber  and seafood  industries; federal  facilities, stormwater,                                                               
pretreatment  program, miscellaneous  industrial, and  the mining                                                               
industry.   The final phase  is primarily oil  and gas.   The EPA                                                               
does  and  always will  retain  responsibility  for a  few  small                                                               
groups  of permits  in  the  state because  the  Clean Water  Act                                                               
requires such.                                                                                                                  
                                                                                                                                
2:48:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  inquired as  to the amount  of staff  working on                                                               
the permits and the turnaround time for the permits.                                                                            
                                                                                                                                
MS. KENT told  the committee that the staffing  for DEC's program                                                               
is more robust  than what the EPA had when  it ran the permitting                                                               
program.  Although  DEC is issuing permits as quickly  as the EPA                                                               
did, the desire is to issue them a lot faster.                                                                                  
                                                                                                                                
2:49:41 PM                                                                                                                    
                                                                                                                                
MS. KENT,  continuing with  the overview,  referred to  the slide                                                               
entitled   "Wastewater    Discharge   Permitting-   public/tribal                                                               
involvement"  and remarked  that the  permitting process  is very                                                               
transparent and more inclusive than  the program EPA was running.                                                               
She then informed the committee  that the division has issued 637                                                               
general permit  authorizations, 3  APDES individual  permits, and                                                               
25 permits in  various stages of development  or near completion.                                                               
As  is the  case with  all  major environmental  laws, the  Clean                                                               
Water Act  is, in part, dependent  upon permitees self-monitoring                                                               
and  -reporting to  the  division.   The  department reviews  the                                                               
monitoring  data, inspects  facilities,  at times  takes its  own                                                               
samples,  and  when  necessary takes  enforcement  actions.    In                                                               
response  to Co-Char  Seaton,  the  discharge monitoring  reports                                                               
that  are self-reported  by  the facilities  are  available on  a                                                               
public website.                                                                                                                 
                                                                                                                                
2:51:43 PM                                                                                                                    
                                                                                                                                
MS.   KENT,  referring   to   the   slide  entitled   "Compliance                                                               
Inspections," explained  that DEC's  inspection goals  follow the                                                               
EPA's inspection goals  for the country.   The department reviews                                                               
major facilities  once every  two years,  whereas it  reviews the                                                               
non major facilities  once during the permit cycle  that is every                                                               
five years.  The department also  tries to review 5-10 percent of                                                               
the stormwater facilities  based on the size  of the construction                                                               
sites.   Furthermore, DEC performs  complaint-driven inspections.                                                               
Returning to  her presentation, Ms.  Kent informed  the committee                                                               
that DEC's goal last year was  to conduct 120 inspections, but it                                                               
actually  conducted  140  inspections.    Twenty-two  notices  of                                                               
violation were  issued and  one compliance  order by  consent was                                                               
performed.                                                                                                                      
                                                                                                                                
2:52:40 PM                                                                                                                    
                                                                                                                                
MS. KENT  moved on  to Alaska's  cruise ship  regulatory program,                                                               
which is the first  in the nation and may still  be the only such                                                               
program in  the nation.  In  2010, 28 cruise ships  registered to                                                               
visit Alaska.  The Ocean Ranger  Program is the only such program                                                               
in  the nation.   Under  the Ocean  Ranger Program,  vessels that                                                               
enter Alaska's  waters are  required to have  an ocean  ranger on                                                               
board.   The  ocean ranger's  job is  to observe  compliance with                                                               
both state  and federal health, safety,  and environmental rules.                                                               
The Ocean Ranger  Program was established by law in  2006 and the                                                               
program is funded  with a $4.00 per head passenger  fee.  The fee                                                               
brings in  between $3.6-$4  million per  year depending  upon the                                                               
number of  passengers.  In  2010, 90  percent of the  vessels had                                                               
ocean rangers  on board for their  entire voyage in Alaska.   The                                                               
remaining  10 percent  of vessels  were either  visited by  ocean                                                               
rangers or  DEC when  in port.   Almost  2,000 daily  reports are                                                               
provided by the ocean rangers.   Ms. Kent told the committee that                                                               
5 of the 21 ocean rangers  deployed last year were Alaskans.  The                                                               
department is  working with the  Department of Labor  & Workforce                                                               
Development  regarding more  training opportunities  in order  to                                                               
increase the number of ocean rangers who are Alaskans.                                                                          
                                                                                                                                
2:54:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ inquired  as to  the training  requirements                                                               
for the ocean rangers.                                                                                                          
                                                                                                                                
MS. KENT  answered that an  ocean ranger has  to be a  U.S. Coast                                                               
Guard licensed marine  engineer or have a degree  from a maritime                                                               
academy.    She  noted  that  the  marine  engineer  requirements                                                               
include sea time.   She also noted that it's  a challenge to find                                                               
Alaskans who want to do this part-time work.                                                                                    
                                                                                                                                
2:54:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  inquired as  to why  the Ocean  Ranger                                                               
Program  uses  the  nationwide marine  [union]  rather  than  the                                                               
Alaska oriented marine [union].                                                                                                 
                                                                                                                                
MS.  KENT explained  that  DEC contracts  out  management of  the                                                               
Ocean  Ranger  Program.    Therefore,   the  contractor  has  the                                                               
opportunity  to work  with either  marine  union.   She said  she                                                               
didn't know that  there would be any better Alaska  hire rates by                                                               
using  the   Alaska  union  rather   than  the   national  union,                                                               
particular since it's a seasonal position.                                                                                      
                                                                                                                                
REPRESENTATIVE  P. WILSON  emphasized  that she  didn't like  the                                                               
fact that the ocean rangers really  didn't have a presence in the                                                               
state.   She acknowledged that  there's a presence  in Anchorage,                                                               
but it's  a different  division.   Therefore, she  suggested that                                                               
the legislature may need to review the matter further.                                                                          
                                                                                                                                
2:57:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON asked  if the  problem in  which the  contractor                                                               
wasn't accepting  Alaska engineering licenses.   He recalled that                                                               
the contractor  was only accepting licenses  that were unlimited,                                                               
which  is  problematic  since  those in  Alaska  are  mainly  tug                                                               
engineers.                                                                                                                      
                                                                                                                                
MS.  KENT agreed  to provide  information on  that matter  to the                                                               
committee.                                                                                                                      
                                                                                                                                
2:57:47 PM                                                                                                                    
                                                                                                                                
MS. KENT highlighted that the  Division of Water does perform the                                                               
cruise ship air emissions, opacity  readings.  Those readings are                                                               
done  with   the  department's  certified  readers   as  well  as                                                               
contractors.                                                                                                                    
                                                                                                                                
2:58:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  inquired as  to when  the next  Science Advisory                                                               
Panel will meet.                                                                                                                
                                                                                                                                
MS.  KENT   explained  that  the   Science  Advisory   Panel  was                                                               
established by  the legislature to  help the division  review the                                                               
technologies  for wastewater  discharge from  cruise ships.   The                                                               
panel met  three times in  2010.   The panel consists  of experts                                                               
from around  the world.   She recalled  that the next  meeting of                                                               
the panel will be a teleconference in the next couple of weeks.                                                                 
                                                                                                                                
2:59:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON remarked  that the  meeting would  likely be  of                                                               
interest to  legislators, and thus  he encouraged her  to forward                                                               
the details to the committee.                                                                                                   
                                                                                                                                
2:59:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON  related a  concern  that  he's heard  that  the                                                               
requirement  for best  available technology  isn't being  applied                                                               
across all cruise ships.                                                                                                        
                                                                                                                                
MS.  KENT explained  that  by  statute the  cruise  ships have  a                                                               
higher threshold  for their wastewater  discharge permits.   Most                                                               
wastewater discharges  in Alaska are allowed  an opportunity, via                                                               
permitting, to  have a  permitted mixing  zone.   Therefore, what                                                               
the cruise ship discharges after  treatment that doesn't get them                                                               
down to  the water  quality standards allows  the cruise  ship to                                                               
discharge  [wastewater] that  has  contaminants a  bit above  the                                                               
water quality standards, knowing that  in the mixing zone it will                                                               
dilute with the  surface water and all the standards  will be met                                                               
and the  designated uses  will be  protected at  the edge  of the                                                               
mixing zone.     The law  is headed  toward requiring  all cruise                                                               
ships  to  meet the  water  quality  standards  at the  point  of                                                               
discharge.  The vessels that  discharge in Alaska are meeting all                                                               
of the  water quality standards  at the point of  discharge, save                                                               
the  following substances:   ammonia,  copper, nickel,  and zinc.                                                               
The  Science Advisory  Panel, she  commented, was  established to                                                               
review emerging new technologies  that will allow the elimination                                                               
of the  aforementioned contaminants from the  wastewater prior to                                                               
discharging in Alaska  waters.  Since the  technology isn't quite                                                               
at  that  point,  the  permit allows  those  contaminants  to  be                                                               
discharged  at a  bit higher  level  than the  set water  quality                                                               
standards.   In  further response  to Co-Chair  Seaton, Ms.  Kent                                                               
explained that  all vessels operating  and discharging  in Alaska                                                               
have  systems  for which  some  do  better  than others  for  the                                                               
aforementioned four substances while  other systems address other                                                               
substances.  There  is no one system that  consistently meets the                                                               
water  quality standards  for all  four of  the substances.   She                                                               
noted  that  [the systems]  take  into  their wastewater  systems                                                               
different waste  streams and  discharge different  waste streams,                                                               
and  therefore  the data  has  to  be  reviewed carefully.    For                                                               
instance, "a vessel with a  certain kind of treatment system that                                                               
looks like  it might  be meeting  all the  standards may  be only                                                               
treating gray  water and  not both gray  water and  black water."                                                               
Therefore, the panel is reviewing the data.                                                                                     
                                                                                                                                
3:02:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  asked  if   the  federal  standards  are                                                               
related to the point of discharge or the mixing zone.                                                                           
                                                                                                                                
MS. KENT answered that the  federal standards relate to the water                                                               
body itself.   The federal standards  are used to set  the limits                                                               
in the  permit, but a permit  will often allow a  discharge above                                                               
the  standards because  there will  be dilution  and no  negative                                                               
impact on the water body as a whole.                                                                                            
                                                                                                                                
3:03:19 PM                                                                                                                    
                                                                                                                                
MS. KENT,  continuing her overview,  informed the  committee that                                                               
DEC has a  small non-point source program.  She  explained that a                                                               
non-point source is something that  doesn't come from a pipe, but                                                               
can enter  a water  body such  as animal  waste, park  runoff, or                                                               
fertilizers from yards.   The division works  with communities to                                                               
try  to avoid  such problems  "because non-point  source problems                                                               
are  what are  causing  polluted waters  today;  it's really  not                                                               
permitted facilities  anymore."  She  said that part of  the non-                                                               
point  source program  is  small  grants to  help  us meet  state                                                               
priorities  for water  quality and  perform outreach.   Ms.  Kent                                                               
related  that the  division monitors  water  quality and  reports                                                               
those findings  on the web site.   She pointed out  that although                                                               
Alaska has  half the  nation's waters, it  doesn't have  half the                                                               
nation's funding for water quality  monitoring.  The division has                                                               
to slowly  work around the  state collecting baseline data.   The                                                               
map entitled "AKMAP" illustrates  that the division is collecting                                                               
baseline data as funding is  available.  She highlighted that the                                                               
data  has  specific  objectives,  is collected  under  a  quality                                                               
assurance  plan, and  reported on  the division's  website.   The                                                               
division  also  produces  a  biannual report  of  the  health  of                                                               
Alaska's waters in  which the public is informed  of the polluted                                                               
waters,  recovering  waters,  and  recovered waters.    The  2010                                                               
Integrated Water  Quality Monitoring and Assessment  report is on                                                               
the division's website.                                                                                                         
                                                                                                                                
3:05:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON thanked the division for its presentation.                                                                      
                                                                                                                                
3:05:24 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 3:05 p.m.                                                                 

Document Name Date/Time Subjects
SPAR Division Overview (H) RES.pdf HRES 1/31/2011 1:00:00 PM
WQ Division Overview (H) RES.pdf HRES 1/31/2011 1:00:00 PM