Legislature(2023 - 2024)BARNES 124

02/13/2023 01:00 PM House RESOURCES

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Audio Topic
01:04:28 PM Start
01:05:32 PM Presentation(s): Water Primacy Update
02:11:00 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Water Primacy Update by TELECONFERENCED
Department of Environmental Conservation
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                       February 13, 2023                                                                                        
                           1:04 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Tom McKay, Chair                                                                                                 
Representative George Rauscher, Vice Chair                                                                                      
Representative Josiah Patkotak                                                                                                  
Representative Dan Saddler                                                                                                      
Representative Jennie Armstrong                                                                                                 
Representative Donna Mears                                                                                                      
Representative Maxine Dibert                                                                                                    
                                                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kevin McCabe                                                                                                     
Representative Stanley Wright                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):  WATER PRIMACY UPDATE                                                                                          
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JASON BRUNE, Commissioner                                                                                                       
Department of Environmental Conservation                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the Water Primacy Update                                                                 
presentation.                                                                                                                   
                                                                                                                                
JULIE PACK, Assistant Attorney General                                                                                          
Department of Environmental Conservation                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the Water Primacy Update                                                                 
presentation.                                                                                                                   
                                                                                                                                
SHANNON MILLER, Program Manager                                                                                                 
Division of Water                                                                                                               
Department of Environmental Conservation                                                                                        
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Participated in  the Water  Primacy Update                                                             
presentation.                                                                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:04:28 PM                                                                                                                    
                                                                                                                                
CHAIR  TOM MCKAY  called the  House Resources  Standing Committee                                                             
meeting  to  order  at  1:04   p.m.    Representatives  Rauscher,                                                               
Saddler, Patkotak,  Armstrong, Mears, and Dibert  were present at                                                               
the  call  to  order.  Representative  Patkotak  arrived  as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
^PRESENTATION(S):  Water Primacy Update                                                                                         
             PRESENTATION(S):  Water Primacy Update                                                                         
                                                                                                                                
1:05:32 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY  announced the  only order of  business would  be the                                                               
Water Primacy Update presentation.                                                                                              
                                                                                                                                
1:06:09 PM                                                                                                                    
                                                                                                                                
JASON   BRUNE,   Commissioner,    Department   of   Environmental                                                               
Conservation (DEC),  began the Water Primacy  Update presentation                                                               
on slide  2 of a  PowerPoint [hardcopy included in  the committee                                                               
packet],  which   described  the  department's   current  primacy                                                               
programs   and   how   they  interact   with   specific   federal                                                               
environmental legislation.  He moved  to slide 3, which explained                                                               
Senate  Bill 27,  [passed during  the Twenty-Eighth  Alaska State                                                               
Legislature], which mandated that  DEC must take reasonable steps                                                               
to assume primacy of Section 404 of the Clean Water Act.                                                                        
                                                                                                                                
1:10:34 PM                                                                                                                    
                                                                                                                                
JULIE   PACK,   Assistant   Attorney   General,   Department   of                                                               
Environmental  Conservation,  noted  that EPA's  current  Section                                                               
404c veto  power would  be unaffected by  passage of  any primacy                                                               
assumption by the State of Alaska.                                                                                              
                                                                                                                                
1:11:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  if  EPA exercised  its veto  power                                                               
when it denied the Pebble Mine its permit.                                                                                      
                                                                                                                                
MS. PACK clarified that is the power to which she was referring.                                                                
                                                                                                                                
1:13:09 PM                                                                                                                    
                                                                                                                                
MS. PACK  moved to slide  5, which explained that  Section 404(c)                                                               
regulates  the discharge  of dredged  or fill  material into  the                                                               
waters  of the  United  States  and she  described  how it  would                                                               
interact with a piece of state-level legislation.                                                                               
                                                                                                                                
1:14:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked  what  the  ramifications  of  the                                                               
Sacket v. EPA case are.                                                                                                       
                                                                                                                                
MS. PACK explained  the issue behind Sacket v. EPA  and said that                                                             
the case is currently in  litigation and before the United States                                                               
Supreme Court.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  SADDLER   asked  what  the  implications   of  an                                                               
expanded definition  of wetlands  would have on  Alaska's current                                                               
resource policy.                                                                                                                
                                                                                                                                
MS.  PACK pointed  to slide  11 to  give context  to how  the EPA                                                               
currently inventories Alaska's wetlands.                                                                                        
                                                                                                                                
1:17:22 PM                                                                                                                    
                                                                                                                                
MS.  PACK  continued  to  slide  8,  which  explained  the  legal                                                               
ramifications of the  state assuming control of a  portion of the                                                               
lands defined under  Section 404(g) of the Clean Water  Act.  She                                                               
moved  to slide  9,  which  gave further  context  to the  "legal                                                               
landscape"  of  Section  404(g)  of   the  Clean  Water  Act  and                                                               
continued to slide 10, which  displayed a map of potential waters                                                               
to be retained by DEC  if state legislation regarding the primacy                                                               
clause of Section 404 of the Clean Water Act were to pass.                                                                      
                                                                                                                                
REPRESENTATIVE SADDLER  asked about the lands  and waterways that                                                               
would be maintained under federal control.                                                                                      
                                                                                                                                
MS. PACK  responded that each  blue line  on the map  shows which                                                               
waterway would be maintained.                                                                                                   
                                                                                                                                
CHAIR  MCKAY asked  how much  of  the waterways  the state  would                                                               
acquire under the primacy clause of the Clean Water Act.                                                                        
                                                                                                                                
MS. PACK  explained that  the primacy clause  of the  Clean Water                                                               
Act allows for  only a certain amount of waters  to be taken over                                                               
by a state.                                                                                                                     
                                                                                                                                
1:21:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MEARS  asked  whether the  primacy  clause  would                                                               
apply only to geographic possessions.                                                                                           
                                                                                                                                
MS. PACK explained  how the Clean Water Act  interacts with state                                                               
land possessions.                                                                                                               
                                                                                                                                
REPRESENTATIVE  PATKOTAK  asked  about  the  long-term  financial                                                               
feasibility of the state owning current federal lands.                                                                          
                                                                                                                                
1:23:47 PM                                                                                                                    
                                                                                                                                
COMMISSIONER BRUNE advised that  the feasibility completed by DEC                                                               
specifically  addressed the  long-term viability  and feasibility                                                               
of the  possibility of  the state  assuming ownership  of federal                                                               
lands.                                                                                                                          
                                                                                                                                
SHANNON MILLER,  Program Manager,  Division of  Water, Department                                                               
of  Environmental Conservation,  joined  in  the presentation  on                                                               
slide 12, which  gave context to the amount of  wetlands and type                                                               
of  wetlands in  Alaska, and  she explained  that Section  404 is                                                               
meant solely for the regulation  of discharge or filled materials                                                               
into  the Waters  of the  United States  (WOTUS).   She continued                                                               
through  slides  13-15,  each  of  which  explained  legislative,                                                               
legal,  and executive  steps  that the  state  has taken  towards                                                               
assumption  of lands  included  under Section  404  of the  Clean                                                               
Water Act.                                                                                                                      
                                                                                                                                
1:27:50 PM                                                                                                                    
                                                                                                                                
MS.   MILLER  continued   to  slide   16,  which   displayed  the                                                               
feasibility study titled "Clean Water  Act Section 404 Dredge and                                                               
Fill Assumptions."   She  explained how  the study  was completed                                                               
and what it aimed to understand in its process.                                                                                 
                                                                                                                                
REPRESENTATIVE  SADDLER asked  what  the definition  of the  term                                                               
"general permit" is.                                                                                                            
                                                                                                                                
MS. MILLER explained  that a general permit is a  permit that DEC                                                               
may issue  to an entity to  allow for an easier  authorization of                                                               
that entity on any future developments or projects pursued.                                                                     
                                                                                                                                
1:30:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ARMSTRONG asked  for an example of  how the United                                                               
States  Army  Corps  of  Engineers (USACE)  may  have  handled  a                                                               
project differently than the state would.                                                                                       
                                                                                                                                
MS. MILLER explained  that if a federal entity were  to develop a                                                               
project  that  would  unavoidably  harm a  wetland  habitat,  the                                                               
entity would  have to set  aside separate  lands to create  a "no                                                               
net  loss" scenario  of development.    The state  is looking  to                                                               
create an alternative to the "no net loss" principle.                                                                           
                                                                                                                                
REPRESENTATIVE  ARMSTRONG asked  whether  the federal  government                                                               
has been cooperative with Alaska in creating a new alternative.                                                                 
                                                                                                                                
MS. MILLER answered that a  memorandum of understanding (MOU) was                                                               
reached  in  2018 between  EPA  and  USACE  that allows  for  the                                                               
cooperation between the federal government and states.                                                                          
                                                                                                                                
REPRESENTATIVE  MEARS  asked  which divisions  within  DEC  would                                                               
become more  streamlined in  their operation  if the  Section 404                                                               
primacy clause were to be adopted by the state.                                                                                 
                                                                                                                                
MS.  MILLER  explained  that  the adoption  of  the  Section  404                                                               
primacy clause  by the  state would  allow for  DEC to  align its                                                               
permitting timelines with other state agencies.                                                                                 
                                                                                                                                
1:34:23 PM                                                                                                                    
                                                                                                                                
COMMISSIONER BRUNE added that there  would be other opportunities                                                               
created within DEC  if the Section 404 primacy clause  were to be                                                               
adopted.                                                                                                                        
                                                                                                                                
REPRESENTATIVE PATKOTAK  asked what  kind of  opportunities would                                                               
be presented to local governments in  Alaska if the state were to                                                               
adopt the Section 404 primacy clause.                                                                                           
                                                                                                                                
MS. MILLER  answered that  DEC would  create a  "regional general                                                               
permit" to  allow local governments  within a region to  adopt an                                                               
overarching  general permit  that  would apply  to any  community                                                               
within said region of the general permit.                                                                                       
                                                                                                                                
REPRESENTATIVE PATKOTAK  asked what guardrails would  be in place                                                               
to ensure that  local control of permitting would  be left intact                                                               
if  the Section  404 primacy  clause were  to be  adopted by  the                                                               
state.                                                                                                                          
                                                                                                                                
1:37:42 PM                                                                                                                    
                                                                                                                                
MS. MILLER  explained that a  general permit is  an umbrella-type                                                               
permit that  would allow  for any development  or activity  to be                                                               
authorized under it.                                                                                                            
                                                                                                                                
1:38:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PATKOTAK asked  what percentage  of authority  of                                                               
permitting  the state  would assume  if the  Section 404  primacy                                                               
clause were to be adopted by the state.                                                                                         
                                                                                                                                
COMMISSIONER BRUNE  answered that DEC  is trying to get  as close                                                               
to 100 percent as it can get.                                                                                                   
                                                                                                                                
MS. MILLER  added that the state  would be able to  eliminate the                                                               
"401  certification" as  required  by Section  401  of the  Clean                                                               
Water Act  if the  state were  to adopt  the Section  404 primacy                                                               
clause.                                                                                                                         
                                                                                                                                
1:40:45 PM                                                                                                                    
                                                                                                                                
MS. MILLER resumed the presentation  on slide 18, which described                                                               
how Alaska would be able  to address waterway cleaning priorities                                                               
sooner  if the  Section 404  primacy clause  were to  be adopted.                                                               
She continued to slide 19, which  explained how DEC would be able                                                               
to be more  accountable to Alaskans under an  assumed adoption of                                                               
the Section 404 primacy clause.                                                                                                 
                                                                                                                                
REPRESENTATIVE SADDLER asked whether  the state has the authority                                                               
to delegate federal and state authority itself.                                                                                 
                                                                                                                                
MS. MILLER explained different ways  that DEC currently delegates                                                               
authority  and  manages  policy throughout  different  levels  of                                                               
government.                                                                                                                     
                                                                                                                                
REPRESENTATIVE MEARS  asked whether  the proposed  general permit                                                               
program would  create regional offices with  which Alaskans could                                                               
interact.                                                                                                                       
                                                                                                                                
MS.  MILLER  replied  that  the   feasibility  study  outlined  a                                                               
scenario that created regional offices around Alaska.                                                                           
                                                                                                                                
COMMISSIONER BRUNE added that every  DEC position statewide could                                                               
be  teleworked,  anywhere  in   Alaska,  and  he  emphasized  the                                                               
positive   outcomes  that   teleworking  has   created  for   the                                                               
department.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MEARS  shared  her  concern  of  the  legislature                                                               
adopting a  program that would  be based off of  Alaska's current                                                               
weaknesses in employee recruitment and retention.                                                                               
                                                                                                                                
1:47:56 PM                                                                                                                    
                                                                                                                                
MS. MILLER responded  that the proposed program  created a robust                                                               
applicant  pool  compared  to what  other  state  departments  in                                                               
Alaska have seen.                                                                                                               
                                                                                                                                
REPRESENTATIVE  ARMSTRONG asked  whether  the  pool of  qualified                                                               
applicants is  the same pool  of people  who would staff  the new                                                               
program.                                                                                                                        
                                                                                                                                
COMMISSIONER  BRUNE emphasized  that  the retention  of staff  is                                                               
paramount  to giving  the  regulated  community timely,  science-                                                               
based, and dependable permits.                                                                                                  
                                                                                                                                
REPRESENTATIVE  ARMSTRONG  asked  whether DEC's  requested  funds                                                               
account  for  the  cost  of  training the  new  recruits  to  the                                                               
program.                                                                                                                        
                                                                                                                                
COMMISSIONER  BRUNE confirmed  that  the funds  requested by  the                                                               
department   absolutely  include   the  cost   of  training   new                                                               
employees.                                                                                                                      
                                                                                                                                
1:51:31 PM                                                                                                                    
                                                                                                                                
MS. MILLER resumed the presentation  on slide 20, which described                                                               
the mixed  benefits and challenges of  the National Environmental                                                               
Policy Act  of 1969 (NEPA).   She continued to slides  21 and 22,                                                               
which explained  the challenges  of USACE  retaining some  of the                                                               
waterways  it  currently manages  and  displayed  a map  with  an                                                               
example of  how such a management  system would work.   She moved                                                               
to slide 23, which highlighted the  need for MOUs between DEC and                                                               
EPA.  Slide 24 described the  workload that DEC would acquire and                                                               
the  staffing necessary  to assume  the possible  workload.   Ms.                                                               
Miller moved to slide 25, which displayed a simplified cost-                                                                    
benefit analysis of the proposed program by DEC.                                                                                
                                                                                                                                
1:56:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ARMSTRONG  asked  how  confident DEC  is  in  its                                                               
ability to not go over budget past 2025.                                                                                        
                                                                                                                                
MS.  MILLER  answered  that  DEC anticipates  its  figure  of  $5                                                               
million is the correct amount.                                                                                                  
                                                                                                                                
COMMISSIONER  BRUNE  added  that DEC  completed  its  feasibility                                                               
study to analyze the trend of  development in Alaska to create an                                                               
estimate of the number of positions  the state would need to keep                                                               
up with development.                                                                                                            
                                                                                                                                
REPRESENTATIVE MEARS commented that  permit fees do not generally                                                               
keep up with  a department's funding needs and  explained that it                                                               
would be necessary for DEC to be funded by the general fund.                                                                    
                                                                                                                                
COMMISSIONER  BRUNE  explained  that  the benefit  of  a  general                                                               
permit is that  there is a finite number  of responsibilities for                                                               
each entity  involved in  the permitting process.   He  said that                                                               
there  are   multiple  private  entities   who  are   willing  to                                                               
participate  in  the  proposed permitting  program  in  order  to                                                               
streamline the development of projects in Alaska.                                                                               
                                                                                                                                
2:04:07 PM                                                                                                                    
                                                                                                                                
MS. MILLER  moved to  slide 26,  which described  the feasibility                                                               
study's recommendations  of actions  to be taken  by DEC  and the                                                               
legislature to enact the proposed permitting program.                                                                           
                                                                                                                                
COMMISSIONER BRUNE  explained that  the root  of the  Section 404                                                               
primacy  clause  is  to return  the  decision-making  process  to                                                               
Alaska  and continue  to "raise  the bar"  of what  environmental                                                               
conservation is to the rest of the country.                                                                                     
                                                                                                                                
REPRESENTATIVE  MEARS  asked   how  the  governor's  supplemental                                                               
budget  would  assist DEC  in  creating  its proposed  permitting                                                               
program.                                                                                                                        
                                                                                                                                
COMMISSIONER BRUNE  replied that  DEC has received  permission to                                                               
pursue the efforts of returning primacy to the state                                                                            
                                                                                                                                
REPRESENTATIVE MEARS asked why there  were so many people working                                                               
on  the  proposed permitting  program  and  not the  solid  waste                                                               
program currently active at DEC.                                                                                                
                                                                                                                                
COMMISSIONER  BRUNE   explained  that  the   proposed  permitting                                                               
program is more complex than the solid waste program.                                                                           
                                                                                                                                
2:11:00 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 2:11 p.m.                                                                 

Document Name Date/Time Subjects
02.13.2023 HRES DEC 404 Overview.pdf HRES 2/13/2023 1:00:00 PM