Legislature(2023 - 2024)BARNES 124

02/08/2023 01:00 PM House RESOURCES

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Audio Topic
01:29:41 PM Start
01:30:45 PM Overview(s): Alaska Permitting Process
02:29:26 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 1:30 --
+ Overview: Alaska Permitting Process by Office of TELECONFERENCED
Permitting and Project Management
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                        February 8, 2023                                                                                        
                           1:29 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Tom McKay, Chair                                                                                                 
Representative George Rauscher, Vice Chair                                                                                      
Representative Kevin McCabe                                                                                                     
Representative Dan Saddler                                                                                                      
Representative Stanley Wright                                                                                                   
Representative Jennie Armstrong                                                                                                 
Representative Donna Mears                                                                                                      
Representative Maxine Dibert                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Josiah Patkotak                                                                                                  
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW(S):  ALASKA PERMITTING PROCESS                                                                                         
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ASHLEE ADOKO, Acting Executive Director                                                                                         
Office of Project Management & Permitting                                                                                       
Department of Natural Resources                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the overview of Alaska's                                                                 
permitting process.                                                                                                             
                                                                                                                                
JOHN CROWTHER, Deputy Commissioner                                                                                              
Department of Natural Resources                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the overview of Alaska's                                                                 
permitting process.                                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:29:41 PM                                                                                                                    
                                                                                                                                
CHAIR  TOM MCKAY  called the  House Resources  Standing Committee                                                             
meeting to order at 1:29  p.m.  Representatives Rauscher, McCabe,                                                               
Saddler,  Wright, Armstrong,  Mears, and  Dibert were  present at                                                               
the call to order.                                                                                                              
                                                                                                                                
^OVERVIEW(S):  ALASKA PERMITTING PROCESS                                                                                        
            OVERVIEW(S):  ALASKA PERMITTING PROCESS                                                                         
                                                                                                                              
1:30:45 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY  announced that the  only order of business  would be                                                               
the Alaska Permitting Process Overview.                                                                                         
                                                                                                                                
1:32:23 PM                                                                                                                    
                                                                                                                                
ASHLEE  ADOKO,  Acting  Executive  Director,  Office  of  Project                                                               
Management &  Permitting (OPMP), Department of  Natural Resources                                                               
(DNR),  began   the  Alaska   Permitting  Process   overview  via                                                               
PowerPoint   [hardcopy  included   in   the  committee   packet].                                                               
Following the  introduction on  slide 1,  she showed  slides 2-3,                                                               
which gave examples of mines  in Alaska currently operating under                                                               
some  form of  permitting  from DNR.    Slides 4  and  5 gave  an                                                               
example of an  onshore and offshore oil and  gas development that                                                               
are  operating under  a lease  permitted by  DNR.   She moved  to                                                               
slide 6, which described how  a proposed project or development's                                                               
required authorizations are to be  determined, and on to slide 7,                                                               
which  explained   the  different  levels  of   project  resource                                                               
management authority in Alaska.                                                                                                 
                                                                                                                                
1:37:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER asked  whether the  Office of  History &                                                               
Archaeology could stop or delay a project.                                                                                      
                                                                                                                                
JOHN  CROWTHER,   Deputy  Commissioner,  Department   of  Natural                                                               
Resources,  answered that  the Office  of  History &  Archaeology                                                               
(OHA)  and  the  [federal]  State  Historic  Preservation  Office                                                               
(SHPO)  fulfill both  the state  and federal  role of  protecting                                                               
historic properties  and cultural  artifacts.   In response  to a                                                               
follow-up  question, he  confirmed that  DNR does  work with  the                                                               
Department of  Transportation & Public  Facilities (DOT&PF)  on a                                                               
variety  of public  projects and  emphasized that  compliance and                                                               
cooperation with OHA and SHPO is required by law.                                                                               
                                                                                                                                
1:39:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER  asked what  projects are  being impacted                                                               
by the SHPO.                                                                                                                    
                                                                                                                                
MR.  CROWTHER offered  to provide  further information  after the                                                               
meeting.                                                                                                                        
                                                                                                                                
1:41:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked why  the Municipality  of Anchorage                                                               
doesn't have local land management authority.                                                                                   
                                                                                                                                
MS.  ADOKO  answered  that  the  list he  is  referencing  is  an                                                               
incomplete list and  said that the Municipality  of Anchorage has                                                               
local land management authority.                                                                                                
                                                                                                                                
REPRESENTATIVE  MCCABE  asked  what  OHA and  SHPO  define  as  a                                                               
cultural or historical artifact.                                                                                                
                                                                                                                                
1:42:19 PM                                                                                                                    
                                                                                                                                
MR.  CROWTHER  responded  that  DNR  would  do  a  work-up  about                                                               
existing regulations and guidance surrounding OHA and SHPO.                                                                     
                                                                                                                                
REPRESENTATIVE RAUSCHER asked  how much money it  costs the state                                                               
to chase artifacts.                                                                                                             
                                                                                                                                
MR.  CROWTHER  answered  that  DNR  would  follow  up  with  more                                                               
information following the committee meeting.                                                                                    
                                                                                                                                
1:44:02 PM                                                                                                                    
                                                                                                                                
CHAIR  MCKAY  requested  a  further   meeting  on  the  topic  of                                                               
archaeology.                                                                                                                    
                                                                                                                                
MS. ADOKO resumed the overview on  slide 12, which gave a general                                                               
list of major state, federal,  and local agencies that would take                                                               
part  in a  project's planning.   She  moved to  slide 13,  which                                                               
explained the  potential required  authorizations that  a project                                                               
might have to receive before it may move forward.                                                                               
                                                                                                                                
1:45:50 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY asked why the Willow Project was delayed.                                                                           
                                                                                                                                
MR. CROWTHER  explained that  the proposed  Willow Project  is in                                                               
the National  Petroleum Reserve of  Alaska (NPR-A) and  said that                                                               
its  initial  environmental  impact statement  (EIS)  required  a                                                               
supplemental EIS due to local  community concerns.  He emphasized                                                               
that the  project is "in its  final days of initiation"  and said                                                               
that  DNR is  expecting  to see  a decision  made  in the  coming                                                               
weeks.                                                                                                                          
                                                                                                                                
1:49:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  what the  term "authorization  and                                                               
regulatory oversight" meant.                                                                                                    
                                                                                                                                
MS. ADOKO  answered that  an authorization  is the  document that                                                               
allows the  entity to  proceed with  the activities  described in                                                               
said document.                                                                                                                  
                                                                                                                                
REPRESENTATIVE   MCCABE   asked   how  current   regulation   and                                                               
requirements of authorization came to be law.                                                                                   
                                                                                                                                
MR.  CROWTHER replied  that  state statutes  are  created by  the                                                               
legislature  and  enacted  by  the  departments  with  which  the                                                               
legislature interacts.                                                                                                          
                                                                                                                                
REPRESENTATIVE  MCCABE asked  what the  basis for  the amount  of                                                               
regulation in Alaska is.                                                                                                        
                                                                                                                                
MR.  CROWTHER explained  the obligations  that  the Alaska  State                                                               
Constitution  outlines   and  described  how   those  obligations                                                               
influence regulatory evolution and growth.                                                                                      
                                                                                                                                
1:54:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER asked if it  would be plausible to create                                                               
legislation to go around federal regulation.                                                                                    
                                                                                                                                
MR. CROWTHER  replied that  there has  been an  effort by  DNR to                                                               
address  the  problem  of duplicity  between  state  and  federal                                                               
statutes.                                                                                                                       
                                                                                                                                
CHAIR  MCKAY explained  a brief  history  of federal  regulations                                                               
that have affected the development of Alaska's resources.                                                                       
                                                                                                                                
1:58:43 PM                                                                                                                    
                                                                                                                                
MS.  ADOKO   continued  the  overview  on   slides  15-16,  which                                                               
displayed  a map  of the  Fort Knox  mine in  Alaska and  gave an                                                               
overview of its history of authorizations and permits.                                                                          
                                                                                                                                
REPRESENTATIVE MCCABE asked what  the current statutory structure                                                               
is as  it relates to  the Alaska Railroad  Corporation's (ARRC's)                                                               
right-of-way entitlement.                                                                                                       
                                                                                                                                
MR. CROWTHER answered that DNR doesn't control the ARRC's land.                                                                 
                                                                                                                                
MS. ADOKO continued through slide  20, which detailed a number of                                                               
funding sources DNR  may utilize for certain  projects, and slide                                                               
21,  which gave  background to  the  steps an  entity wishing  to                                                               
acquire an authorization must take in order to obtain one.                                                                      
                                                                                                                                
2:04:49 PM                                                                                                                    
                                                                                                                                
MS.  ADOKO  moved  to  slide 22,  which  described  timeline  and                                                               
situational challenges faced by developments in Alaska.                                                                         
                                                                                                                                
2:06:51 PM                                                                                                                    
                                                                                                                                
MR. CROWTHER  gave specific explanation  for each  mine mentioned                                                               
in  the overview  and  explained their  permitting  process.   He                                                               
touched  on the  Pikka  and Willow  projects  and their  expected                                                               
development timelines  and explained that their  parent companies                                                               
are  actively  involved  with DNR  to  advance  their  permitting                                                               
process.                                                                                                                        
                                                                                                                                
MS.  ADOKO,  in  response  to  Representative  Dibert,  gave  the                                                               
committee an update on the status of the Manh Choh project.                                                                     
                                                                                                                                
REPRESENTATIVE  SADDLER  asked  whether  the  permitting  process                                                               
might take away  time with which the company  could be developing                                                               
the resources under its lease.                                                                                                  
                                                                                                                                
MR. CROWTHER confirmed that the  permitting process might detract                                                               
from a project's lease time.                                                                                                    
                                                                                                                                
2:13:54 PM                                                                                                                    
                                                                                                                                
MS.  ADOKO  resumed the  overview  on  slide  25, which  gave  an                                                               
overview of  timelines set in  law by  federal grants and  gave a                                                               
list of  certain federal  grants in which  this set  timeline law                                                               
applies.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  RAUSCHER  asked  whether  the  state  or  federal                                                               
government  has  more  authority  in how  the  National  Historic                                                               
Preservation Act (NHPA) is applied to projects.                                                                                 
                                                                                                                                
MR. CROWTHER,  in response, described  how the federal  and state                                                               
governments  interact with  and  enforce NHPA  as  it relates  to                                                               
resource development projects.                                                                                                  
                                                                                                                                
2:17:00 PM                                                                                                                    
                                                                                                                                
CHAIR  MCKAY asked   whether  the State  of Alaska  is trying  to                                                               
remove the primacy clause of Section 404 of the Clean Water Act.                                                                
                                                                                                                                
MR. CROWTHER  answered that Alaska  is actively trying  to change                                                               
who has the authority to make  decisions under Section 404 of the                                                               
Act.                                                                                                                            
                                                                                                                                
MS. ADOKO  continued through  slides 26-28.   Slide  26 described                                                               
the  National  Environmental  Policy  Act  (NEPA)  and  NHPA  and                                                               
explained how they interact with  both state and federal agencies                                                               
in  relation  to  a  resource  development  project.    Slide  27                                                               
explained the  different levels  of review  that a  project might                                                               
face  under NEPA  laws  and  slide 28  gave  an  overview of  the                                                               
multitude of challenges  that a project might face  under NEPA or                                                               
NHPA.                                                                                                                           
                                                                                                                                
2:21:19 PM                                                                                                                    
                                                                                                                                
MR.  CROWTHER skipped  to slide  31, which  described how  DNR is                                                               
making   efforts  to   streamline  the   permitting/authorization                                                               
process for  resource development  projects in  Alaska.   He gave                                                               
specific examples of certain advances in that effort.                                                                           
                                                                                                                                
REPRESENTATIVE  SADDLER asked  why a  large resource  development                                                               
project would not want to utilize the services of [OPMP].                                                                       
                                                                                                                                
MR. CROWTHER  explained the services  that OPMP provides  and the                                                               
resources it uses within the agency to provide services.                                                                        
                                                                                                                                
REPRESENTATIVE RAUSCHER  asked why  the permitting process  for a                                                               
gravel extraction operation takes as long as it currently does.                                                                 
                                                                                                                                
MR.   CROWTHER   answered   that    he   would   follow-up   with                                                               
Representative Rauscher with that information later.                                                                            
                                                                                                                                
2:25:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DIBERT asked  for an online list  of agencies with                                                               
which DNR collaborates.                                                                                                         
                                                                                                                                
MS. ADOKO  replied by giving  a directory  on the DNR  website to                                                               
reach a list of projects that  DNR is involved with and explained                                                               
where within  that directory Representative  Dibert may  find the                                                               
list of agencies that the DNR  works with in relation to resource                                                               
development projects.                                                                                                           
                                                                                                                                
2:29:26 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 2:29 p.m.                                                                 

Document Name Date/Time Subjects
HRES OPMP Alaska Permitting Process Presentation 2.8.23.pdf HRES 2/8/2023 1:00:00 PM