Legislature(2013 - 2014)BARNES 124

01/23/2013 01:00 PM House RESOURCES


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01:04:37 PM Start
01:05:10 PM Overview: Department of Environmental Conservation
03:06:01 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Division Overviews: TELECONFERENCED
- Dept. of Environmental Conservation
- Dept. of Natural Resources
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                        January 23, 2013                                                                                        
                           1:04 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eric Feige, Co-Chair                                                                                             
Representative Dan Saddler, Co-Chair                                                                                            
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Mike Hawker                                                                                                      
Representative Craig Johnson                                                                                                    
Representative Paul Seaton                                                                                                      
Representative Geran Tarr                                                                                                       
Representative Chris Tuck                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kurt Olson                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                             
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
OVERVIEW:  DEPARTMENT OF NATURAL RESOURCES                                                                                      
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
LARRY HARTIG, Commissioner                                                                                                      
Department of Environmental Conservation (DEC)                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented an overview of the Department of                                                               
Environmental Conservation (DEC).                                                                                               
                                                                                                                                
ALICE EDWARDS, Director                                                                                                         
Division of Air Quality                                                                                                         
Department of Environmental Conservation (DEC)                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Presented  a PowerPoint titled  Division of                                                             
Air  Quality Overview  during the  presentation by  Department of                                                               
Environmental Conservation.                                                                                                     
                                                                                                                                
ELAINE BUSSE FLOYD, Acting Director                                                                                             
Division of Environmental Health                                                                                                
Department of Environmental Conservation (DEC)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION   STATEMENT:     Presented  a   PowerPoint  during   the                                                             
Department of Environmental Conservation overview.                                                                              
                                                                                                                                
LARRY DIETRICK, Director                                                                                                        
Division of Spill Prevention & Response                                                                                         
Department of Environmental Conservation (DEC)                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided a  PowerPoint during the Department                                                             
of Environmental Conservation overview.                                                                                         
                                                                                                                                
MICHELLE BONNET HALE, Director                                                                                                  
Division of Water                                                                                                               
Department of Environmental Conservation (DEC)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Presented a PowerPoint  during the overview                                                             
by Department of Environmental Conservation.                                                                                    
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:04:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  DAN   SADDLER  called  the  House   Resources  Standing                                                             
Committee  meeting  to  order  at   1:04  p.m.    Representatives                                                               
Saddler,  Feige, Johnson,  Hawker,  Tuck, P.  Wilson, and  Seaton                                                               
were present at  the call to order.   Representative Tarr arrived                                                               
as the meeting was in progress.                                                                                                 
                                                                                                                                
^OVERVIEW:   Department of Environmental Conservation                                                                         
      OVERVIEW:   Department of Environmental Conservation                                                                  
                                                                                                                                
1:05:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER announced that the  only order of business would                                                               
be an overview by the Department of Environmental Conservation.                                                                 
                                                                                                                                
1:05:42 PM                                                                                                                    
                                                                                                                                
LARRY   HARTIG,   Commissioner,   Department   of   Environmental                                                               
Conservation (DEC),  introduced other management team  members of                                                               
the Department  of Environmental  Conservation (DEC).   He stated                                                               
that  the   DEC  mission,  "to   protect  human  health   in  the                                                               
environment," was  driven by good science,  good engineering, and                                                               
a  good public  process.   He explained  that his  measurement of                                                               
departmental success  was for healthy air,  clean drinking water,                                                               
good  sanitation, and  good management  for timely,  proper clean                                                               
ups.   He commented  that these  were all  systems in  the living                                                               
environment that  people expected to  be protected.   He declared                                                               
that DEC  worked closely  with local  communities.   He clarified                                                               
that  a  lot   of  the  DEC  programs   originated  from  federal                                                               
government programs, such  as the Clean Air Act,  the Clean Water                                                               
Act  (CWA),  and  the  Safe  Drinking Water  Act,  and  that  the                                                               
authority to  run the programs  had been delegated to  the state.                                                               
He  reported  that  Alaska  was  now  authorized  to  manage  the                                                               
National  Pollutant  Discharge  Elimination System  (NPDES),  the                                                               
wastewater   discharge    permitting   program,    although   the                                                               
Environmental  Protection Agency  (EPA) maintained  oversight for                                                               
the program.                                                                                                                    
                                                                                                                                
1:09:31 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HARTIG reported  that the  Division of  Air Quality                                                               
also issued permits,  through the Clean Air Act and  the EPA, and                                                               
had done so  for several decades.  He then  directed attention to                                                               
proposed HB  78, which  would seek to  obtain primacy  for Alaska                                                               
from the EPA for the Section  404 program of the Clean Water Act;                                                               
the program  which regulated  the discharge  of dredged  and fill                                                               
material  currently  administered  by  the  U.S.  Army  Corps  of                                                               
Engineers.   He reviewed  other programs  in which  Alaska shared                                                               
authority  with the  federal government:    spill prevention  and                                                               
response, discharge to land, and oil and gas infrastructure.                                                                    
                                                                                                                                
1:11:19 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HARTIG   affirmed  that,   as  there   were  budget                                                               
challenges  due  to  the  decline  of  oil  revenue  and  federal                                                               
dollars,  it was  necessary for  DEC  to be  more efficient  when                                                               
reviewing priorities.   He referenced an early  initiative by the                                                               
governor for  permit reform, which necessitated  efficiency and a                                                               
focus  on the  priorities  for  basic needs:    clean air,  clean                                                               
water, and good  sanitation.  He offered as an  example of permit                                                               
reform:   less regulation on  foods that  don't pose any  risk to                                                               
the public.   He  reported that,  as the  federal budget  for the                                                               
village  safe water  program was  down 60  percent over  the last                                                               
eight  years,  it  was  necessary to  review  other  systems  and                                                               
structures  to  deliver  good  water   and  sanitation  to  rural                                                               
communities.   He  pointed out  that the  current capital  budget                                                               
listed a pilot program for a new water and sewer system.                                                                        
                                                                                                                                
1:14:08 PM                                                                                                                    
                                                                                                                                
COMMISSIONER HARTIG  acknowledged that the opening  of the Arctic                                                               
was both a  challenge and an opportunity.  He  defined the Arctic                                                               
area  to include  the  Chukchi  Sea, the  Beaufort  Sea, and  the                                                               
Aleutians.   He  pointed  to the  interest  for exploration  from                                                               
Shell and Conoco  Phillips Alaska, Inc. on  the Outer Continental                                                               
Shelf (OCS).  He reported that  there was more marine traffic, as                                                               
ships were  moving along the  Great Circle route,  bringing goods                                                               
to  the western  ports  before they  were shipped  to  Asia.   He                                                               
pointed out  that it was not  unusual for ships to  lose power or                                                               
steerage and ground  out on the rocks.  He  confirmed that Alaska                                                               
was   discussing  partnerships   with  other   jurisdictions  and                                                               
industries for mutual aid agreements.                                                                                           
                                                                                                                                
1:16:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked which  foods were determined to be                                                               
safe without any regulation.                                                                                                    
                                                                                                                                
COMMISSIONER HARTIG  established that  many discussions  with the                                                               
public, consumers, and legislators  interested in food safety had                                                               
resulted in  a list of  food items  considered less risky.   This                                                               
informed, science-based decision was  determined by the amount of                                                               
opportunities  for food  contamination.   He gave  an example  of                                                               
bake sales, which  allowed for easy tracking,  should any problem                                                               
arise, to prevent any wide spread crisis.                                                                                       
                                                                                                                                
1:18:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  to clarify  that primacy  on issues                                                               
ensured  that state  standards would  not be  lower than  federal                                                               
standards, and if so, what was the benefit of primacy.                                                                          
                                                                                                                                
COMMISSIONER HARTIG  explained that  primacy would only  occur if                                                               
the federal  agency determined that the  state program, including                                                               
the public  process, equal  access to  challenge, and  the public                                                               
right to appeal,  was comparable.  He said that,  under the Clean                                                               
Water  Act, all  states  were responsible  for setting  standards                                                               
which had to  be approved by the  EPA.  He pointed  out that this                                                               
was a very  rigorous process, and subject to  court review before                                                               
EPA approval.   He  shared that this  complex process  could take                                                               
four years or more, and that it was the same for all states.                                                                    
                                                                                                                                
1:20:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked  if the state standards had  to be as                                                               
restrictive as the federal standards.                                                                                           
                                                                                                                                
COMMISSIONER HARTIG  replied that the  standards had been  set by                                                               
the Clean  Water Act, but that  the EPA did protect  the settings                                                               
of standards  with requirements for  designated uses.   He shared                                                               
that the proposal  of any standard which did not  comply with the                                                               
provisions of the  Clean Water Act would not be  approved for use                                                               
in any  of the  permits.   He said that,  although EPA  would set                                                               
guidance  standards, it  would  not dictate  a  standard to  each                                                               
state.                                                                                                                          
                                                                                                                                
1:22:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  asked if  Alaska, with  primacy, could                                                               
move more quickly than the federal government.                                                                                  
                                                                                                                                
COMMISSIONER   HARTIG   explained   that  the   governor   wanted                                                               
Department of  Natural Resources and Department  of Environmental                                                               
Conservation to  explore and possibly pursue  primacy for Section                                                               
404, the  dredge and fill  program, of the  Clean Water Act.   He                                                               
shared  that, with  primacy, Alaska  would attempt  to provide  a                                                               
more efficient and better service to  the public.  He stated that                                                               
local permit  writers were more  accountable and  more accessible                                                               
to  the   local  public,  which  encouraged   more  attention  to                                                               
productivity and customer service.                                                                                              
                                                                                                                                
1:23:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE offered  his belief  that permittees  would agree                                                               
that state  primacy was an  operational benefit to the  state and                                                               
its industries  which used  the permitting system.   He  asked if                                                               
this would  result in  a cost savings  to the  federal government                                                               
for program administration.                                                                                                     
                                                                                                                                
COMMISSIONER HARTIG  replied that this  was hard to  quantify, as                                                               
the  federal  programs would  have  to  maintain oversight.    He                                                               
reported that the state and  federal programs would work together                                                               
on training  and permits  during the transition  to primacy.   He                                                               
opined  that, in  the  long term,  it would  save  money for  the                                                               
federal programs.                                                                                                               
                                                                                                                                
1:25:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER  asked for an  approximate time line  for Alaska                                                               
to assume this primacy.                                                                                                         
                                                                                                                                
COMMISSIONER  HARTIG  explained  that  this  was  a  longer  term                                                               
proposition,  and would  require initial  consultations with  the                                                               
U.S.  Army  Corps  of  Engineers   regarding  resources  for  the                                                               
program.   He  pointed  out that  the  regulations, the  guidance                                                               
documents,  and the  hiring and  training for  the people  in the                                                               
program, all  needed to be in  order before the program  would be                                                               
transferred  to  Alaska.   He  offered  his  belief that  it  was                                                               
necessary to develop a schedule,  with milestones that identified                                                               
the specific  issues, and that  it would  be at least  five years                                                               
for "a total handoff of the program."                                                                                           
                                                                                                                                
1:27:52 PM                                                                                                                    
                                                                                                                                
ALICE EDWARDS,  Director, Division of Air  Quality, Department of                                                               
Environmental   Conservation  (DEC),   introduced  a   PowerPoint                                                               
presentation,  and  directed  attention to  slide  2,  "Mission,"                                                               
which read:  "To conserve,  improve, and protect Alaska's natural                                                               
resources and environment and control  air pollution, in order to                                                               
enhance  the health,  safety, and  welfare of  the people  of the                                                               
state and  their overall  economic and social  well being."   She                                                               
said that  her division  worked with  outdoor air  pollution, but                                                               
not indoor air pollution.                                                                                                       
                                                                                                                                
MS. EDWARDS  offered slide  3, "Core  Services," and  stated that                                                               
her division issued air quality  permits, and provided compliance                                                               
assistance  and   enforcement  with  regard  to   those  permits;                                                               
provided assistance  to communities  to protect air  quality; and                                                               
conducted  air  monitoring and  reviews  of  federal air  quality                                                               
rulemaking  with  Alaska's  perspectives.   She  added  that  her                                                               
division also  developed air quality  plans and  helped implement                                                               
them  for  areas  that  were   out  of  compliance  with  federal                                                               
standards.                                                                                                                      
                                                                                                                                
1:30:00 PM                                                                                                                    
                                                                                                                                
MS. EDWARDS explained  the organizational chart on  slide 4, "Air                                                               
Quality  Division  Structure," noting  that  more  than half  the                                                               
staff was involved with air permits.                                                                                            
                                                                                                                                
MS.  EDWARDS moved  on to  slide  5, "Air  Permits Program,"  and                                                               
pointed  out  that  this  program  ensured  that  emissions  from                                                               
industrial  operations  did  not   create  unhealthy  air.    She                                                               
reported  that Construction  Permits authorized  construction for                                                               
new  and modified  facilities, while  Title  V Operating  Permits                                                               
gathered all  the permits  into one operating  permit.   She said                                                               
that  this   group  also   conducted  the   compliance  assurance                                                               
inspections and  follow ups.   She stated  that there was  an on-                                                               
going process  for improvement to consistency  and timeliness for                                                               
permitting.                                                                                                                     
                                                                                                                                
1:32:36 PM                                                                                                                    
                                                                                                                                
MS.  EDWARDS directed  attention  to slide  6,  "Air Non-Point  &                                                               
Mobile Source Program," explaining  that this program worked with                                                               
non-industrial  facilities   and  communities  to   maintain  and                                                               
achieve the  ambient air quality  standards.  She  described that                                                               
the work  included education and  outreach on air  quality issues                                                               
to  raise  awareness  and  encourage  behaviors  to  improve  air                                                               
quality.   This division also  developed the air  quality control                                                               
plans  for   communities  and  ensured  that   these  plans  were                                                               
incorporated into the state air quality control plan.                                                                           
                                                                                                                                
1:33:46 PM                                                                                                                    
                                                                                                                                
MS.  EDWARDS  introduced slide  7,  "Air  Monitoring and  Quality                                                               
Assurance Program," and explained  that this program operated the                                                               
air monitoring  network, which assessed  compliance with  the EPA                                                               
national ambient air quality  standards for pollutants, typically                                                               
particulate matter  and carbon  monoxide in  Alaska.   She listed                                                               
the  required air  monitoring  sites,  which included  Anchorage,                                                               
Fairbanks,  Juneau, and  the Mat-Su  Valley, for  compliance with                                                               
the standards.  She said  that special studies in Seward, Galena,                                                               
and Soldotna required  monitoring, as well.   This program issued                                                               
air  quality  advisories  for hazardous  air  conditions  to  the                                                               
public.                                                                                                                         
                                                                                                                                
1:36:01 PM                                                                                                                    
                                                                                                                                
MS.  EDWARDS   discussed  slide  8,  "Division   of  Air  Quality                                                               
Initiatives and Challenges," and pointed  to the link between air                                                               
quality and energy, as the  efficiency of burning fuel determined                                                               
the air  pollution emissions.  She  moved on to slide  9, "Energy                                                               
Choices and Air Quality," and shared  that the high price of fuel                                                               
oil had pushed residents toward  wood heat, which produced smoke,                                                               
and  often  unacceptable  levels  of  particulate  matter.    She                                                               
offered Fairbanks  as a key  example for not meeting  ambient air                                                               
quality standards,  primarily as a  result of burning wood.   She                                                               
summarized  by  saying  that   cleaner  burning,  more  efficient                                                               
devices  were  "very helpful  in  improving  air quality."    She                                                               
stated  that cleaner  burning and  affordable  fuel options  were                                                               
important  for  maintaining  healthy  air  quality,  noting  that                                                               
supplying  economical natural  gas for  interior Alaska  would be                                                               
very beneficial.                                                                                                                
                                                                                                                                
1:38:01 PM                                                                                                                    
                                                                                                                                
MS.  EDWARDS  moved  to  slide  10  "Fairbanks  Fine  Particulate                                                               
Matter," and said that the  division was working extensively with                                                               
the community to  develop an air quality plan.   She shared that,                                                               
although  it was  challenging to  find  acceptable solutions  and                                                               
control options,  the proposed  plan had  been submitted  to EPA.                                                               
Although there  were multiple sources  of poor air  quality, home                                                               
heating from wood and coal  were major contributors.  She pointed                                                               
out that, as  the more stringent annual  standards replaced daily                                                               
standards, this could create more issues for Fairbanks.                                                                         
                                                                                                                                
MS. EDWARDS  referred to slide 11,  "On-going Permit Streamlining                                                               
and Process  Improvement."   She announced  a goal  for improving                                                               
consistency  and  timeliness  of  permitting  through  a  quality                                                               
management system,  with greater  standardization, predictability                                                               
and flexibility.  She reported  that the division worked with the                                                               
stakeholders  in identifying  issues  and solutions.   She  noted                                                               
that  pre-application  assistance  for construction  permits  had                                                               
allowed for quicker, more efficient  processing.  She shared that                                                               
the division was already assessing  air quality data on the North                                                               
Slope in preparation for more efficient permitting.                                                                             
                                                                                                                                
1:41:22 PM                                                                                                                    
                                                                                                                                
MS. EDWARDS  noted that there  were also air quality  concerns in                                                               
rural  Alaska, slide  12, "Rural  Alaska  Air Quality  Concerns."                                                               
She said  that dust,  wood smoke, and  open burning  in landfills                                                               
could all be  problematic for air quality, and  that the division                                                               
was working to respond to the needs of the communities.                                                                         
                                                                                                                                
MS.  EDWARDS directed  attention to  slide 13,  "New and  Revised                                                               
Federal Standards  and Rules."   She reported that the  Clean Air                                                               
Act determined the  ambient air quality standards,  and the rules                                                               
for  implementing these  standards.   She said  that it  could be                                                               
difficult to keep up with the  reviews of the EPA proposals.  She                                                               
shared that  the division focused  on the technical  concerns for                                                               
Alaska  specific  issues,  and   would  adjust  its  programs  as                                                               
necessary.    She  listed  engine  standards,  lead  in  aviation                                                               
gasoline, and  nitrogen dioxide ambient air  quality standards as                                                               
Alaska specific issues on which DEC was working with EPA.                                                                       
                                                                                                                                
1:44:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON asked how  dangerous it was to  live in                                                               
Fairbanks with the current air quality.                                                                                         
                                                                                                                                
MS. EDWARDS, in response, said  that the air quality in Fairbanks                                                               
failed to meet the 24  hour fine particulate matter standard, and                                                               
that some groups  of people, those with  existing respiratory and                                                               
cardiac  conditions, were  more sensitive  to its  effects.   She                                                               
reported that  health studies had  shown there were  health risks                                                               
to  exposure to  fine particulate  matter, including  respiratory                                                               
issues and pre-mature death.                                                                                                    
                                                                                                                                
1:46:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  asked for clarification  whether Bush  Alaska had                                                               
been  granted an  extension for  conversion to  "ultra-low sulfur                                                               
diesel."                                                                                                                        
                                                                                                                                
MS.  EDWARDS,  in  response  to Co-Chair  Feige,  said  that  the                                                               
federal rules had  been phased in over time; in  Alaska, this was                                                               
first  implemented in  the motor  vehicle  sector, then  non-road                                                               
heavy equipment,  and then  locomotive and  marine.   She offered                                                               
her  belief that  Rural Alaska  had transitioned  all engines  to                                                               
this fuel  in 2010, which was  several years later than  the rest                                                               
of  the country,  as  it  was recognized  that  Rural Alaska  had                                                               
unique distribution  and storage  systems.   She opined  that the                                                               
industrial  facilities were  transitioning  into the  use of  new                                                               
engines.                                                                                                                        
                                                                                                                                
1:48:38 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  echoed a concern  of his constituents  that there                                                               
was  not enough  lubricity in  the fuel  for older  engines.   He                                                               
asked if there had been  equipment failures due to the transition                                                               
of fuel.                                                                                                                        
                                                                                                                                
MS. EDWARDS replied that she  was not aware of significant issues                                                               
with  older  equipment,  especially as  fuel  distributors  often                                                               
added  a lubricant  to the  fuel.   She stated  that DEC  did not                                                               
track  this,  however.    In  response  to  Co-Chair  Feige,  she                                                               
explained that  nitrogen dioxide  standards had been  updated, as                                                               
the Clean  Air Act  required this  every five  years.   The prior                                                               
standard had been an annual standard,  but was now based on a one                                                               
hour  standard.    She  stated  that nitro  dioxide  was  an  air                                                               
pollutant  and had  health effects,  most likely  for respiratory                                                               
issues.                                                                                                                         
                                                                                                                                
1:51:38 PM                                                                                                                    
                                                                                                                                
MS. EDWARDS,  in response to  Representative Tuck, said  that DEC                                                               
had  issued the  air quality  permit for  the Healy  Power Plant.                                                               
She clarified  that the plant  had been permitted to  operate for                                                               
many years; however,  there was a concern that  its startup would                                                               
trigger  an EPA  re-start  policy.   She said  that  EPA and  the                                                               
company had  reached an agreement  to allow  the plant to  be re-                                                               
opened.                                                                                                                         
                                                                                                                                
REPRESENTATIVE TUCK asked  if the closure of the  power plant was                                                               
because it had not met the previous air permitting process.                                                                     
                                                                                                                                
MS. EDWARDS replied  that there were other  issues preventing the                                                               
restart, which was not due to air permitting issues.                                                                            
                                                                                                                                
1:53:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR asked  how many staff in the  Division of Air                                                               
Quality  was working  on  compliance, and  if  this was  adequate                                                               
staffing given the  number of permit requests.  She  asked if DEC                                                               
coordinated with Department of Health  and Social Services on the                                                               
lead in aviation fuel programs.                                                                                                 
                                                                                                                                
MS. EDWARDS  said that about  half of  the staff in  her division                                                               
worked  on compliance,  with  regular  inspection schedules,  and                                                               
that  this  staffing  allowed   for  compliance  evaluations  and                                                               
reviews  of the  permits.   She  said that  the  Division of  Air                                                               
Quality often  coordinated with Department  of Health  and Social                                                               
Services on  the health related  aspects of rulings and  with the                                                               
Department of  Transportation & Public  Facilities on  this issue                                                               
of aviation.                                                                                                                    
                                                                                                                                
1:55:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  if Alaska  had primacy,  or whether                                                               
the state enforced  federal standards, as it did  not have Alaska                                                               
specific standards.                                                                                                             
                                                                                                                                
MS. EDWARDS,  in response,  stated that  Alaska did  have primacy                                                               
for  air quality,  and  that  many of  the  Alaska standards  and                                                               
programs were  aligned with the  federal program.   She clarified                                                               
that,  although  Alaska  could  have  its  own  more  restrictive                                                               
standard, the state had adopted the federal standards.                                                                          
                                                                                                                                
1:56:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  to  clarify  that Alaska  standards                                                               
needed to  be at least  as restrictive as the  federal standards.                                                               
He asked  if the  time frame  to issue  permits had  changed with                                                               
primacy.                                                                                                                        
                                                                                                                                
MS. EDWARDS  expressed her  agreement with  Representative Seaton                                                               
that  the Alaska  standards needed  to be  as restrictive  as the                                                               
federal  standards.   She offered  her  belief that  it would  be                                                               
difficult to assess  the time frame for permitting,  as the state                                                               
had  primacy for  more  than  20 years,  and  the permit  program                                                               
structure had  changed significantly since  the Clean Air  Act in                                                               
1990.                                                                                                                           
                                                                                                                                
1:58:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HAWKER  asked   which  specific   industries  or                                                               
businesses  in  Alaska  would  be  compromised  by  the  recently                                                               
adopted one hour standard for  nitrogen dioxide versus the former                                                               
annual standard.                                                                                                                
                                                                                                                                
MS. EDWARDS replied that the  majority of permitting activity was                                                               
for the industrial  facilities in the oil and gas  sector and the                                                               
electrical utilities.  She stated  that there would be challenges                                                               
to  demonstrate that  the industry  operations would  comply with                                                               
the standards.                                                                                                                  
                                                                                                                                
1:59:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  asked  if  there was  an  air  permit  backlog                                                               
analogous to  that backlog  in the Division  of Mining,  Land and                                                               
Water in the Department of Natural Resources.                                                                                   
                                                                                                                                
MS. EDWARDS  determined that  there was a  slight backlog  in the                                                               
EPA  Title V  operating permits,  which were  reviewed on  a five                                                               
year  cycle.   She  clarified  that  this  renewal did  not  stop                                                               
operations, and that there was not a backlog for other permits.                                                                 
                                                                                                                                
2:00:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER  asked how much of  the work in Division  of Air                                                               
Quality  was  enforcement  in  compliance and  how  much  was  in                                                               
assistance for the standards.                                                                                                   
                                                                                                                                
MS.  EDWARDS  replied that  there  was  a greater  effort  toward                                                               
inspections   and   compliance   assistance   than   for   formal                                                               
enforcement.                                                                                                                    
                                                                                                                                
2:01:50 PM                                                                                                                    
                                                                                                                                
ELAINE BUSSE  FLOYD, Acting  Director, Division  of Environmental                                                               
Health,   Department   of   Environmental   Conservation   (DEC),                                                               
presented  a PowerPoint  entitled, "Environmental  Health."   She                                                               
directed  attention to  slide 1,  "Division  Mission," and  read:                                                               
"Our goal is  to provide businesses with clear  standards so they                                                               
can protect  our environment and  provide safe food  and drinking                                                               
water to Alaskans."                                                                                                             
                                                                                                                                
MS.  FLOYD  moved  on  to  slide  2,  "Organization  Chart,"  and                                                               
clarified  that the  State  Veterinarian,  although a  standalone                                                               
program, was  housed for  budgetary reasons  with the  other four                                                               
Environmental  Health  components.    She pointed  out  that  the                                                               
division   also   managed   the  Recreational   Shellfish   Beach                                                               
Monitoring  Pilot program,  and  coordinated  the tsunami  debris                                                               
cleanup efforts for the state.                                                                                                  
                                                                                                                                
2:03:15 PM                                                                                                                    
                                                                                                                                
MS.  FLOYD  reviewed  slide  4, "Drinking  Water  and  DEC,"  and                                                               
explained that it maintained state  primacy for regulating public                                                               
drinking water  systems, as well  as reviewing  the construction,                                                               
installation,  and operation  plans for  public water  systems to                                                               
protect  public   health  and   meet  Safe  Water   Drinking  Act                                                               
requirements.                                                                                                                   
                                                                                                                                
MS.  FLOYD  identified  slide  5,  "Federally-  Designated,"  and                                                               
reported  that, although  Alaska  had primacy  for Safe  Drinking                                                               
Water since 1978, it was an  increasing challenge "to stay on top                                                               
of the rule  requirements," as there were 19  federal rules, with                                                               
2 pending  adoption, and  5 other proposed  rules.   She reported                                                               
there  were  1,515  federally  designated  water  systems,  which                                                               
served 25 or more people.                                                                                                       
                                                                                                                                
2:04:37 PM                                                                                                                    
                                                                                                                                
MS. FLOYD  explained slide 6, "State-Regulated,"  and stated that                                                               
there  were 5,000  systems serving  25 people  or less,  although                                                               
larger   than   a  private   well.      These  systems   required                                                               
registration,  quarterly  and  annual testing,  and  construction                                                               
approval.                                                                                                                       
                                                                                                                                
MS.  FLOYD  shared slide  7,  "Successes  and Challenges."    She                                                               
stated  that  the   division  had  61  employees   in  5  offices                                                               
throughout  the   state.    She  declared   that  the  increasing                                                               
complexity for  federal rules  was a  challenge, so  the division                                                               
used  a  technical  assistance providers  group,  which  included                                                               
people from the drinking water,  village safe water, and operator                                                               
certification and assistance programs.                                                                                          
                                                                                                                                
2:06:28 PM                                                                                                                    
                                                                                                                                
MS. FLOYD explained  that the pesticide program  was a standalone                                                               
program with five  employees in one office,  slide 10, "Pesticide                                                               
Control  and DEC."   She  shared that  this program  had primacy,                                                               
that the  program conducted inspections to  ensure that pesticide                                                               
applications  complied  with  regulations and  worker  protection                                                               
standards, and that it registered  and monitored the distribution                                                               
and sale  of more than  5,000 registered pesticides  and products                                                               
in Alaska.                                                                                                                      
                                                                                                                                
MS.  FLOYD explained  slide 11,  "Successes and  Challenges," and                                                               
said  that   implementing  the  integrated  pest   management  of                                                               
invasive species, standardizing the  permitting process for state                                                               
agencies,  and improving  the on-line  product registration  were                                                               
some of the successes.                                                                                                          
                                                                                                                                
2:09:38 PM                                                                                                                    
                                                                                                                                
MS. FLOYD  summarized slides 13  and 14, "Solid  Waste Management                                                               
and  DEC," stating  that the  division reviewed  all solid  waste                                                               
permit  applications,  issued  permits  for  disposal,  inspected                                                               
landfills  to verify  compliance, and  monitored closed  landfill                                                               
sites.   She reported that there  were 15 employees in  3 offices                                                               
around the  state.  She  announced that  all 23 of  the landfills                                                               
that accepted  5 tons or more  per day, all 35  of the industrial                                                               
landfills,  all 11  of the  industrial treatment  facilities, and                                                               
33.5 percent of  the 188 rural landfills that  accepted less than                                                               
5 tons per day, were permitted.                                                                                                 
                                                                                                                                
MS.   FLOYD  declared   that   the   division  was   implementing                                                               
regulations to  simplify the  permitting application  process for                                                               
village  landfills,  slide  15, "Rural  Landfill  Challenges  and                                                               
Successes."   She  said that  an  expansion to  the outreach  and                                                               
technical  assistance   had  resulted  in  an   increased  permit                                                               
percentage.                                                                                                                     
                                                                                                                                
2:11:49 PM                                                                                                                    
                                                                                                                                
MS.   FLOYD  identified   slides   17  -20,   "Food  Safety   and                                                               
Sanitation,"   and  confirmed   that  the   division  established                                                               
standards, permitted,  inspected and enforced standards  for food                                                               
processing  and  food service  facilities.    They also  provided                                                               
education and training on the safe  handling of food.  She shared                                                               
that there  were 40  employees in 10  offices around  Alaska, and                                                               
they were  responsible for more than  4,600 restaurants, markets,                                                               
and food processors, nearly 800  seafood processors and shellfish                                                               
harvesters, and almost 3,800 public facilities.                                                                                 
                                                                                                                                
MS. FLOYD analyzed  slide 21, "By the numbers,"  and detailed the                                                               
inspections in  FY 2012,  which included 47  percent of  the high                                                               
risk retail food  establishments and 85 percent of  the high risk                                                               
seafood  establishments.    She  said  that  73  percent  of  the                                                               
facilities had  trained staff, and  the manager  training program                                                               
was the result of a  collaborative program with the University of                                                               
Alaska Fairbanks Co-op Extension.   She relayed that the low risk                                                               
foods  which did  not support  the growth  of dangerous  bacteria                                                               
included   bake  goods,   political   fundraisers,  and   pickled                                                               
vegetables, and were exempt from permits and inspections.                                                                       
                                                                                                                                
2:16:12 PM                                                                                                                    
                                                                                                                                
MS. FLOYD referenced the picture  labeled "Germ City" on slide 22                                                               
and  described  this  interactive  science  based  program  which                                                               
illustrated  the  importance  of  hand  washing  and  food  borne                                                               
illness.                                                                                                                        
                                                                                                                                
MS. FLOYD  moved on  to slides  24-25, "State  Veterinarian," and                                                               
said they  had 5 employees  in 2 offices, which  were responsible                                                               
for  permitting, inspection,  and technical  assistance to  dairy                                                               
and livestock producers.   They also permitted  and monitored the                                                               
movement  of animals  and animal  biological products,  including                                                               
vaccines.    They responded  to  animal  health emergencies,  and                                                               
collected fish samples to evaluate for contaminants.                                                                            
                                                                                                                                
2:19:24 PM                                                                                                                    
                                                                                                                                
MS. FLOYD commented on slides  26-27, "Successes and Challenges,"                                                               
and said that the State  Veterinarian had maintained disease-free                                                               
status  for Alaska,  allowed  easy  international and  interstate                                                               
animal  transport,  and  helped  commercial  and  private  animal                                                               
owners keep animals healthy.  She  pointed out that the new dairy                                                               
processing facility in the Matanuska Valley had been permitted.                                                                 
                                                                                                                                
MS. FLOYD furnished slide  29, "Environmental Health Laboratory,"                                                               
and  reported that  the laboratory  had 23  employees at  its one                                                               
location.     She   detailed  that   it   certified  88   private                                                               
laboratories  to perform  compliance and  regulatory testing  for                                                               
drinking water,  contaminated sites,  and dairy.   The laboratory                                                               
also provided more than 60,000  testing processes on a variety of                                                               
things, including  air filter  contaminant monitoring  and animal                                                               
health.    She reported  that,  although  there were  only  three                                                               
federal agencies to be directly  responsible to, there were seven                                                               
separate federal programs for certification.                                                                                    
                                                                                                                                
MS.  FLOYD indicated  slide 30,  "Successes and  Challenges," and                                                               
confirmed that in-state testing avoided  time delays and the cost                                                               
of shipping, and  offered services that were not  provided by the                                                               
private sector.   She  explained the five  year grant  that would                                                               
bring  the laboratory  to the  international  standards for  food                                                               
testing.                                                                                                                        
                                                                                                                                
2:21:43 PM                                                                                                                    
                                                                                                                                
MS. FLOYD  concluded her PowerPoint  with slides  31-33, "Tsunami                                                               
Marine  Debris," and  reported that  the governor  had designated                                                               
DEC as the lead agency  for coordinating "the multi-agency effort                                                               
related to tsunami generated marine  debris.  We are seeing large                                                               
quantities of debris that we  haven't seen before in this state."                                                               
She  expressed   concern  for  the  potential   toxicity  of  the                                                               
components,  the  smothering  of   sensitive  habitats,  and  the                                                               
effects  of  styrofoam  on  marine and  terrestrial  life.    She                                                               
announced  that a  recent aerial  survey had  produced more  than                                                               
8,000 pictures on 2,000 miles  of Alaska coastline, and that each                                                               
picture had  been graded for  debris density and type  of debris.                                                               
She  declared that  this  confirmed there  was  more debris  than                                                               
originally forecast,  and it demonstrated a  significant need for                                                               
funding.   She reported that  the $5 million allocation  from the                                                               
government of Japan  would be distributed, after  a small initial                                                               
allotment to  five states  and two  territories, by  the National                                                               
Oceanic  & Atmospheric  Administration (NOAA)  on a  needs basis,                                                               
which would be better for Alaska.                                                                                               
                                                                                                                                
2:24:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  asked about  if  there  were any  air  quality                                                               
issues with burning styrofoam on the beach.                                                                                     
                                                                                                                                
MS. FLOYD replied  that burning styrofoam was not  allowed, as it                                                               
was bad for the air.                                                                                                            
                                                                                                                                
2:24:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON asked  where  was  the most  prevalent                                                               
tsunami debris, and if any radioactivity had been detected.                                                                     
                                                                                                                                
MS. FLOYD replied that no  radioactivity had been detected in any                                                               
of the  debris.  She  reported the  greatest prevalence to  be in                                                               
the Gulf of Alaska and Southeast Alaska.                                                                                        
                                                                                                                                
2:25:41 PM                                                                                                                    
                                                                                                                                
MS.  FLOYD, in  response to  Representative P.  Wilson, confirmed                                                               
that the remaining inspections would  be completed first, and, as                                                               
the division  worked with the  U.S. Food and  Drug Administration                                                               
(FDA), all the inspections would be covered.                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON asked  about  the  waiting period  for                                                               
tuberculosis and blood tests for reindeer.                                                                                      
                                                                                                                                
MS. FLOYD said that she would report back with the answer.                                                                      
                                                                                                                                
2:27:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TUCK  asked   if  fish   had  been   tested  for                                                               
radioactivity from the tsunami debris.                                                                                          
                                                                                                                                
MS.  FLOYD   replied  that   there  was   not  any   evidence  of                                                               
radioactivity in fish in Alaska.                                                                                                
                                                                                                                                
2:28:05 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE asked if pesticides  and herbicides were regulated                                                               
together.                                                                                                                       
                                                                                                                                
MS. FLOYD confirmed this.                                                                                                       
                                                                                                                                
CO-CHAIR FEIGE asked about a  list of herbicides approved for use                                                               
in Alaska,  and inquired about  the process to add  herbicides to                                                               
the approved list.                                                                                                              
                                                                                                                                
MS. FLOYD replied that she would find this information.                                                                         
                                                                                                                                
CO-CHAIR FEIGE suggested,  as the same testing was  used in other                                                               
states, to adopt the approved list from these other states.                                                                     
                                                                                                                                
2:29:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  shared that  the chemical  manufacturers had                                                               
to apply to be  added to the approved list, and,  as Alaska had a                                                               
low  sales volume,  the manufacturers  had chosen  not to  apply.                                                               
She asked  if any of the  landfills were being monitored  for off                                                               
gassing.   She  then asked  how  many additional  staff would  be                                                               
required  to  do  an  annual  food  inspection  on  each  of  the                                                               
facilities.                                                                                                                     
                                                                                                                                
MS. FLOYD  replied that she would  report back about the  off gas                                                               
in the  land fill.   She  shared that the  division would  need a                                                               
significant number  of inspectors; however, they  were working to                                                               
better streamline, and make do with the current inspectors.                                                                     
                                                                                                                                
2:31:18 PM                                                                                                                    
                                                                                                                                
LARRY  DIETRICK,   Director,  Division  of  Spill   Prevention  &                                                               
Response, Department of  Environmental Conservation (DEC), shared                                                               
that  the  "Mission,"  slide  2,  of  the  Spill  Prevention  and                                                               
Response (SPAR)  program was  to "protect  public health  and the                                                               
environment  through prevention,  preparedness,  and response  to                                                               
oil and hazardous substance releases.                                                                                           
                                                                                                                                
MR.  DIETRICK moved  on  to  slide 3,  which  he  described as  a                                                               
continuum of the  overall responsibilities, including prevention,                                                               
preparedness, response, and contaminated sites cleanup.                                                                         
                                                                                                                                
2:32:45 PM                                                                                                                    
                                                                                                                                
MR. DIETRICK  explained slide 4, "Organization,"  and stated that                                                               
there  were four  programs in  the division,  structured to  meet                                                               
each of the aforementioned responsibilities.                                                                                    
                                                                                                                                
MR.  DIETRICK observed  that the  program senior  leadership, the                                                               
director and the four program  managers, had 159 collective years                                                               
of experience, slide 5, Qualifications."                                                                                        
                                                                                                                                
MR.  DIETRICK  indicated  slide   6,  "Prevention  and  Emergency                                                               
Response Program  Mission," and  said that this  program actually                                                               
responded to  releases of oil  and hazardous substances,  as well                                                               
as dealing  with the cleanup,  the mitigation of impact,  and the                                                               
restoration of damaged resources.                                                                                               
                                                                                                                                
2:33:54 PM                                                                                                                    
                                                                                                                                
MR. DIETRICK  shared slide 7,  "Total Number of Spills  by Fiscal                                                               
Year," observing  that there had  been a downward trend  over the                                                               
last three years.                                                                                                               
                                                                                                                                
MR.  DIETRICK  disclosed  that   diesel  was  the  biggest  spill                                                               
product, followed by aviation fuel,  gasoline, and hydraulic oil,                                                               
slide 8, "Volume  Released by Product."  He  clarified that crude                                                               
oil was in the "Other" category, and its spill volume was low.                                                                  
                                                                                                                                
MR. DIETRICK  explained that the program  did emergency response,                                                               
managed  the  statewide  Hazmat response,  conducted  drills  and                                                               
exercises,  prepared the  government  oil  spill response  plans,                                                               
maintained  local spill  response agreements  for first  response                                                               
capability, and  coordinated the disaster response  by DEC, slide                                                               
9, "Responsibilities."                                                                                                          
                                                                                                                                
2:35:07 PM                                                                                                                    
                                                                                                                                
MR.  DIETRICK  indicated  slide   10,  "Emergency  Response  Team                                                               
Areas,"  and   noted  that  there  were   three  response  teams:                                                               
Northern Alaska, Central Alaska, and Southeast Alaska.                                                                          
                                                                                                                                
MR.  DIETRICK reported  on slide  11, "Statewide  Hazmat Response                                                               
Teams," that this  team had been started in 1997  and was capable                                                               
of dealing  with worst case  releases.   It was now  comprised of                                                               
more  than  26  organizations   in  Alaska,  including  military,                                                               
civilian,  and  fire  service,  and  the  team  had  standardized                                                               
protocols.                                                                                                                      
                                                                                                                                
MR. DIETRICK  pointed to  slide 12,  "Oil Spill  Response Plans,"                                                               
which  reflected the  structure to  unify the  federal and  state                                                               
response plans with the industry contingency plans.                                                                             
                                                                                                                                
MR.  DIETRICK  commented  on  slide  13,  "Local  Spill  Response                                                               
Agreements and Equipment," which  mapped the remote locations for                                                               
pre-positioned  equipment and  response agreements,  in order  to                                                               
facilitate  local   knowledge  and  resource  for   an  immediate                                                               
response.                                                                                                                       
                                                                                                                                
2:37:13 PM                                                                                                                    
                                                                                                                                
MR.  DIETRICK commented  on slide  14,  "Activities," and  shared                                                               
that the program had 821  responses out of 1,888 reported spills,                                                               
with  23 significant  oil  and hazardous  substance  spills.   He                                                               
noted that were  also vessel risk assessments for  Cook Inlet and                                                               
the  Aleutians,  as  well as  preparedness  for  Arctic  offshore                                                               
drilling and Arctic  shipping.  Slide 15,  "Alaska's Ocean Area,"                                                               
depicted  a  map  identifying the  ocean  response  program  area                                                               
compared to the ocean area for the continental United States.                                                                   
                                                                                                                                
MR. DIETRICK  analyzed slide 16, "Shipping  Regions," and pointed                                                               
out that  maritime incidents were a  big risk in Alaska,  as much                                                               
of the  maritime traffic  did not  comply with  U.S. requirements                                                               
and therefore, did not have the capability to respond.                                                                          
                                                                                                                                
2:40:06 PM                                                                                                                    
                                                                                                                                
MR.  DIETRICK said  that the  operational conditions,  logistics,                                                               
risks,  and expectations  were detailed  on  slide 17,  "Response                                                               
Challenges."                                                                                                                    
                                                                                                                                
MR.  DIETRICK declared  that the  SPAR program  was working  on a                                                               
conceptual vessel  rescue system  because of the  maritime risks,                                                               
as the components  were shown on slide 19,  "Alaska Vessel Rescue                                                               
System."   He  explained that  the loss  of power  often lead  to                                                               
drift  groundings and  spills,  so the  state  now had  emergency                                                               
towing  systems,  and  was  designating  places  of  refuge  with                                                               
mooring buoys.                                                                                                                  
                                                                                                                                
2:42:16 PM                                                                                                                    
                                                                                                                                
MR.  DIETRICK moved  on to  the "Industry  Preparedness Program,"                                                               
slide  22,   and  explained  that   this  program   ensured  that                                                               
producers,  transporters,  and   distributors  of  oil  prevented                                                               
spills,  and were  prepared materially  and financially  to clean                                                               
them up.   He explained  that slide 23, "Oil  Production, Storage                                                               
and  Transportation  Infrastructure,"  was  a  schematic  of  the                                                               
regulated oil community.                                                                                                        
                                                                                                                                
MR. DIETRICK  remarked that, as  pipelines were about  80 percent                                                               
of the  oil and  gas infrastructure, the  state now  reviewed and                                                               
regulated the  flow lines as  they were  the highest risk  of the                                                               
pipeline, slide 24, "Pipelines of Interest."                                                                                    
                                                                                                                                
MR. DIETRICK commented  on slide 26, "Spills  at Regulated versus                                                               
Unregulated  Facilities,"  stating  that  unregulated  facilities                                                               
caused  73 percent  of the  spills, which  he declared  to be  an                                                               
indicator of  the industry  performance in  Alaska.   He declared                                                               
that the  responsibilities of the "Industry  Preparedness," slide                                                               
27,  included oil  spill  contingency  plans, inspections,  spill                                                               
drills,  review   of  the  best  technology,   and  approval  for                                                               
financial responsibility.                                                                                                       
                                                                                                                                
2:44:28 PM                                                                                                                    
                                                                                                                                
MR.   DIETRICK  explained   that   there  were   six  oil   spill                                                               
cooperatives, slide 29.                                                                                                         
                                                                                                                                
MR.  DIETRICK,   directing  attention   to  slide   30  "Offshore                                                               
Drilling," opined that there would  be new federal regulations to                                                               
apply for offshore drilling.                                                                                                    
                                                                                                                                
MR. DIETRICK  shared that the  Industry Preparedness  program had                                                               
633 contingency plan  actions in the last year,  and he mentioned                                                               
the  Pipeline Leak  Detection  Technology  conference, slide  31,                                                               
"Activities."                                                                                                                   
                                                                                                                                
MR. DIETRICK said  that frozen pipelines and  old technology were                                                               
some of the problems with an "Aging Infrastructure," slide 32.                                                                  
                                                                                                                                
MR. DIETRICK moved on to  slide 33, "Contaminated Sites Program,"                                                               
and  declared that  its mission  included "assessment,  clean up,                                                               
monitoring  and   redevelopment  of  contaminated  sites."     He                                                               
analyzed  the graph  on  slide 34,  "Open  versus Closed  Sites,"                                                               
noting that many were legacy sites.                                                                                             
                                                                                                                                
2:46:13 PM                                                                                                                    
                                                                                                                                
MR.  DIETRICK explained  slide 35,  "Spills to  Land and  Water,"                                                               
which  graphed the  relative numbers  of each,  and he  said that                                                               
many  spills   which  become   subsurface  then   became  project                                                               
management in the  later clean ups.  He cited  that 97 percent of                                                               
contamination,  including  mining,  logging,  fuel  storage,  and                                                               
leaky  underground  storage tanks  was  from  activity at  legacy                                                               
sites, slide 37, "Legacy of Contamination."                                                                                     
                                                                                                                                
MR. DIETRICK said that 50  percent of the contaminated sites were                                                               
owned by the federal government,  either civilian or military, 33                                                               
percent were  private, and the  remainder was owned by  state and                                                               
local governments,  slide 38,  "Contaminate Type  and Ownership."                                                               
He clarified that  the federal civilian agencies, as  well as the                                                               
Department  of Defense,  managed cleanup  programs in  Alaska, as                                                               
shown on slide 39, "Federal Facilities."                                                                                        
                                                                                                                                
MR.  DIETRICK  moved  on to  slide  40,  "Responsibilities,"  and                                                               
declared that  the programs had established  standards, used risk                                                               
based cleanups,  and were responsible  for site  management, with                                                               
clean up to  the site and, if necessary, the  area.  He mentioned                                                               
the focus  on reuse and  redevelopment of the sites,  noting that                                                               
some  of  the "big  box"  stores  in  Fairbanks were  built  over                                                               
previously contaminated sites.                                                                                                  
                                                                                                                                
2:48:20 PM                                                                                                                    
                                                                                                                                
MR. DIETRICK explained slide 41,  "Risk Continuum," and said that                                                               
the subsurface contaminated  sites often did not pose  as acute a                                                               
public health problem, instead posing  a chronic ecological risk,                                                               
or  a risk  to  natural  resources.   He  described  that it  was                                                               
necessary to first find the  contamination, then find its pathway                                                               
to the environment  or the public health, before  you could sever                                                               
that pathway  and provide  protection, if  it was  technically or                                                               
economically  not  possible  to  clean up  the  site,  slide  42,                                                               
"Exposure Pathways."                                                                                                            
                                                                                                                                
MR. DIETRICK  offered slide 44, "Contaminated  Sites Activities,"                                                               
and noted  that the program  had taken  action at more  than 1200                                                               
sites, and  risk reduction measures  had been implemented  at 154                                                               
sites.                                                                                                                          
                                                                                                                                
MR. DIETRICK  described that the  response fund was managed  on a                                                               
sustainable  basis as  intended by  statute, which  included cost                                                               
recovery and  contract management,  slides 47-48,  "Response Fund                                                               
Administration."                                                                                                                
                                                                                                                                
2:50:56 PM                                                                                                                    
                                                                                                                                
MR. DIETRICK spoke about slide  50, "Activities," and shared that                                                               
there were $4.2  million in state contracts  to private companies                                                               
for cleanup.   He expanded that  there were 11 term  contracts in                                                               
place  and 100  notices  to  proceed during  the  past year  with                                                               
private contractors.                                                                                                            
                                                                                                                                
MR.  DIETRICK concluded  his PowerPoint  presentation with  slide                                                               
51, "SPAR  Initiatives," and reported  on some of  the highlights                                                               
of   the  previous   year  for   the  division,   which  included                                                               
participation in  the Arctic  Council that  resulted in  a mutual                                                               
response  agreement for  the Arctic  among eight  Arctic nations.                                                               
He  added that  the  division had  participated  in the  incident                                                               
review  for the  Gulf of  Mexico spill,  and was  conducting risk                                                               
assessments in four Arctic areas.                                                                                               
                                                                                                                                
2:53:05 PM                                                                                                                    
                                                                                                                                
MICHELLE BONNET HALE, Director,  Division of Water, Department of                                                               
Environmental Conservation (DEC), directed  attention to slide 1,                                                               
"Mission," and  stated that the  mission of the division  was to:                                                               
"protect  water  quality  and  assist  communities  in  improving                                                               
sanitation conditions."   She pointed  out that her  division did                                                               
everything  with water,  except regulate  drinking water  or deal                                                               
with water quantity  and water rights.  She moved  on to slide 3,                                                               
"Division  Structure," and  explained that  the division  had two                                                               
main parts, the Facilities and the Water Quality.                                                                               
                                                                                                                                
2:55:33 PM                                                                                                                    
                                                                                                                                
MS. BONNET HALE  pointed to slide 9, "Village  Safe Water (VSW),"                                                               
and  stated  that  the  VSW program  also  built  facilities  and                                                               
provided  grants   to  communities  for  planning,   design,  and                                                               
construction.                                                                                                                   
                                                                                                                                
MS. BONNET  HALE reported that  funding sources included  EPA and                                                               
the  state, with  federal funding  shares of  75 percent  and the                                                               
state  funding of  25 percent,  slide 10,  "VSW-Funding Sources."                                                               
She noted that  currently there were grants  totaling $40 million                                                               
each year.   She pointed to a growing gap  in the availability of                                                               
funding and the actual cost of the projects.                                                                                    
                                                                                                                                
2:56:34 PM                                                                                                                    
                                                                                                                                
MS. BONNET HALE,  in response to Co-Chair Saddler,  said that she                                                               
was unsure  if the grant total  was for total federal  dollars or                                                               
the total dollars, and she offered to research this.                                                                            
                                                                                                                                
MS.  BONNET HALE  spoke about  slide 11,  "VSW Projects,"  saying                                                               
that an important aspect to the  grants were for the job training                                                               
and hiring on  the projects.  She pointed out  the graph on slide                                                               
12,  "VSW-  Key  Issues,"  which  illustrated  the  widening  gap                                                               
between funding and need, currently about $667 million.                                                                         
                                                                                                                                
2:57:32 PM                                                                                                                    
                                                                                                                                
MS.  BONNET HALE  indicated  slide  13, "Operations  Assistance,"                                                               
explaining that  this program ensured  that the operators  of the                                                               
drinking  water and  sewer waste  treatment systems  were trained                                                               
and certified.   She mentioned slides  14-16, "Remote Maintenance                                                               
Worker Program," explaining that  this program brought workers to                                                               
the communities to support and  train local workers.  She briefly                                                               
mentioned  the remote  monitoring pilot,  which allowed  internet                                                               
connection  to monitor  treatment plants  in remote  communities.                                                               
She presented a  list of communities throughout  Alaska where the                                                               
division had supplied emergency response during 2012.                                                                           
                                                                                                                                
2:59:13 PM                                                                                                                    
                                                                                                                                
MS.  BONNET  HALE explained  that  there  were four  major  water                                                               
quality  programs, including  cruise ship,  wastewater discharge,                                                               
water  quality  standards,  and compliance,  "Division  of  Water                                                               
Programs," slide 17.                                                                                                            
                                                                                                                                
MS. BONNET HALE  presented slide 18, "Core  Services," and listed                                                               
the  core   services  to  include:     establish   water  quality                                                               
standards, and then use those  standards to assess the quality of                                                               
water and  to issue permits and  set limits.  She  explained that                                                               
there was also a compliance assistance program.                                                                                 
                                                                                                                                
2:59:55 PM                                                                                                                    
                                                                                                                                
MS. BONNET  HALE listed the  four major components of  the cruise                                                               
ship program  to be:   ocean  rangers, air  emissions, wastewater                                                               
permits,  and  the  science advisory  panel,  slide  19,  "Cruise                                                               
Ships."   She furnished slide  20, "Ocean Rangers,"  and observed                                                               
that ocean  rangers were on  88 percent  of the voyages  in 2012,                                                               
submitting more  than 1,500  total reports.   She  announced that                                                               
there was  an emphasis  on hiring Alaskan  ocean rangers,  and in                                                               
2012, 7 of the 21 ocean rangers were Alaskans.                                                                                  
                                                                                                                                
MS. BONNET HALE  moved on to slide 21,  "Science Advisory Panel,"                                                               
and shared that the eleven  member panel was established in 2009,                                                               
and  that  it  reviewed  the effectiveness  of  current  and  new                                                               
treatment technologies.                                                                                                         
                                                                                                                                
3:01:03 PM                                                                                                                    
                                                                                                                                
MS.  BONNET HALE  explained slides  22-25, "Wastewater  Discharge                                                               
Permitting," and stated  that any discharge of  wastewater in the                                                               
state required a  permit.  She noted that  the primary permittees                                                               
were  industry and  domestic wastewater  treatment  plants.   She                                                               
expressed  pride in  the Alaska  Pollutant Discharge  Elimination                                                               
System program for  which full primacy had been  assumed from the                                                               
EPA, although  the EPA  retained its  oversight for  the program.                                                               
She  said that  almost 1,300  general permit  authorizations were                                                               
issued in 2012.   She reported that an  online application system                                                               
had been  in place for six  years, which added to  the permitting                                                               
efficiency.    She noted  that  the  construction general  permit                                                               
could also be applied for online.                                                                                               
                                                                                                                                
3:03:14 PM                                                                                                                    
                                                                                                                                
MS.   BONNET  HALE   commented  on   slide  26,   "Water  Quality                                                               
Standards," and shared  that the standards were  developed by DEC                                                               
and  approved  by  EPA.    She  stated  that  the  water  quality                                                               
standards  were used  to assess  and evaluate  the health  of the                                                               
water and to establish discharge  limits in permits.  She pointed                                                               
out that these were routinely reviewed and updated.                                                                             
                                                                                                                                
MS. BONNET  HALE declared that baseline  water quality monitoring                                                               
for marine and  freshwater, and targeted assessment  were part of                                                               
the "Water Quality Assessment," slide 27.                                                                                       
                                                                                                                                
MS. BONNET HALE presented slide  28, "Water Quality Restoration,"                                                               
and  praised the  Alaska Clean  Water Actions  grant program  for                                                               
monitoring,  for  local  ordinances,   and  for  restoration  and                                                               
education projects.                                                                                                             
                                                                                                                                
MS. BONNET HALE assessed slide  29, "Compliance," noting that the                                                               
facilities  self-reported, and  then  the  division reviewed  the                                                               
data.   The  division  would inspect  the  facilities for  permit                                                               
compliance, as well  as site construction and  storm water sites.                                                               
She  explained  that  the   enforcement  policy  would  escalate,                                                               
becoming  more stringent  as  warranted.   She  pointed out  that                                                               
there were 154  DEC inspections, with 24 notices  of violation in                                                               
2012, slide 30, "DEC Inspections."                                                                                              
                                                                                                                                
3:06:01 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 3:06 p.m.                                                                 

Document Name Date/Time Subjects
AQ Division Overview FINAL.pdf HRES 1/23/2013 1:00:00 PM
EH Overview (H) RES FINAL.pdf HRES 1/23/2013 1:00:00 PM
Water Overview (H) RES FINAL.pdf HRES 1/23/2013 1:00:00 PM
SPAR Division Overview FINAL.pdf HRES 1/23/2013 1:00:00 PM