Legislature(2003 - 2004)

03/12/2003 06:30 PM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 12, 2003                                                                                         
                           6:30 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bruce Weyhrauch, Chair                                                                                           
Representative Jim Holm, Vice Chair                                                                                             
Representative Nancy Dahlstrom                                                                                                  
Representative Bob Lynn                                                                                                         
Representative Paul Seaton                                                                                                      
Representative Ethan Berkowitz                                                                                                  
Representative Max Gruenberg                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
EXECUTIVE ORDER 107 - TRANSFER OF HABITAT FUNCTIONS FROM ADFG TO                                                                
DNR                                                                                                                             
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
OWEN GRAHAM, Executive Director                                                                                                 
Alaska Forest Association                                                                                                       
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of EO 107, and                                                                        
attempted to counter allegations that fish culverts were                                                                        
improperly installed on forest service land.                                                                                    
                                                                                                                                
GEORGE WOODBURY                                                                                                                 
Woodbury Enterprises                                                                                                            
Wrangell, Alaska                                                                                                                
POSITION STATEMENT:  Testified in support of EO 107 as a means                                                                  
to restore balance, develop resources, and boost the state's                                                                    
economy.                                                                                                                        
                                                                                                                                
DAVID PERSON, Ph.D.                                                                                                             
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Urged the committee to rescind EO 107, and                                                                 
provided the committee with comparisons between the permitting                                                                  
processes of ADF&G and DNR.                                                                                                     
                                                                                                                                
JACK GUSTAFSON                                                                                                                  
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Offered six reasons to oppose EO 107.                                                                      
                                                                                                                                
MIKE SALLEE                                                                                                                     
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to EO 107.                                                                         
                                                                                                                                
JASON GRAHAM                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided comments and asked the committee                                                                  
to take action to reject EO 107.                                                                                                
                                                                                                                                
CATHERINE SENUNGETUK                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to EO 107.                                                                         
                                                                                                                                
JAN KONIGSBERG                                                                                                                  
Trout Unlimited                                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to EO 107 on behalf                                                                
of the Alaska field office of Trout Unlimited.                                                                                  
                                                                                                                                
LEO KEELER                                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  His testimony opposing EO 107 was read by                                                                  
Dorothy Keeler.                                                                                                                 
                                                                                                                                
MEAGAN BOLTWOOD                                                                                                                 
Anchorage Waterways Council (AWC)                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to EO 107.                                                                         
                                                                                                                                
JIM STUBBS                                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to EO 107 and the                                                                  
transfer of habitat functions to DNR.                                                                                           
                                                                                                                                
BRUCE HARDING, Mayor                                                                                                            
City of Wrangell                                                                                                                
Wrangell, Alaska                                                                                                                
POSITION  STATEMENT:   Testified in  support  of EO  107 and  the                                                               
governor's efforts to improve the economy of the state.                                                                         
                                                                                                                                
SPENCER SEVERSON                                                                                                                
Sitka, Alaska                                                                                                                   
POSITION STATEMENT:   As  a member of  the Southeast  Alaska Dive                                                               
Fisheries Association (SARDFA),  objected to SARDFA's endorsement                                                               
of EO 107.                                                                                                                      
                                                                                                                                
LON GARRISON                                                                                                                    
Sitka, Alaska                                                                                                                   
POSITION STATEMENT:   Provided comments  and urged  the committee                                                               
to prohibit EO 107 from proceeding.                                                                                             
                                                                                                                                
KHRYS DUDDLESTON                                                                                                                
Girdwood, Alaska                                                                                                                
POSITION STATEMENT:   Provided comments  and asked that  steps be                                                               
taken to reject EO 107.                                                                                                         
                                                                                                                                
STEVE ALBERT                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in  opposition to EO 107 and asked                                                               
the committee to vote against it.                                                                                               
                                                                                                                                
CEVIN GILLELAND                                                                                                                 
Chugiak, Alaska                                                                                                                 
POSITION  STATEMENT:    During discussion  of  EO  107,  provided                                                               
comments  and a  description of  three projects  he was  involved                                                               
with as  a habitat biologist in  order to explain that  EO 107 is                                                               
based on faulty information, and  urged the committee to sign the                                                               
joint resolution and reject EO 107.                                                                                             
                                                                                                                                
EDWARD W. WEISS                                                                                                                 
Chugiak, Alaska                                                                                                                 
POSITION  STATEMENT:    During discussion  of  EO  107,  provided                                                               
comments and asked the committee to vote down EO 107 and EO 106.                                                                
                                                                                                                                
GEOFFREY Y. PARKER, Attorney at Law                                                                                             
Counsel, Alaska Sportfishing Association;                                                                                       
Vice President, State Council of Trout Unlimited                                                                                
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    During discussion  of  EO  107,  provided                                                               
comments regarding its budget and personnel aspects.                                                                            
                                                                                                                                
JOHN NELSON TRENT                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in  opposition to EO 107 and asked                                                               
the committee to prevent it from becoming law.                                                                                  
                                                                                                                                
BOB ZACHEL                                                                                                                      
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of EO 107.                                                                            
                                                                                                                                
ARTHUR HUSSEY, Executive Director                                                                                               
Northern Alaska Environmental Center                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in  opposition to EO 107 and asked                                                               
the committee to take action to oppose it.                                                                                      
                                                                                                                                
RUSSELL DEFOREST                                                                                                                
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Provided  comments that  EO 107  erodes the                                                               
public trust and asked the committee to not support EO 107.                                                                     
                                                                                                                                
DAVID P. JANKA, Owner/Operator                                                                                                  
Auklet Charter Services                                                                                                         
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in  opposition to EO 107 and urged                                                               
the committee to reject it.                                                                                                     
                                                                                                                                
JOHN SISK                                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified  that he did  not support  EO 107                                                               
and spoke  on the issue  of habitat  management as it  relates to                                                               
the fishing industry.                                                                                                           
                                                                                                                                
BEN KIRKPATRICK                                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   After noting that he  is habitat biologist,                                                               
relayed that there are several reasons for not approving EO 107.                                                                
                                                                                                                                
CATHERINE POHL                                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During discussion  of EO 107, noted that she                                                               
is  a habitat  biologist with  ADF&G  but testifying  on her  own                                                               
behalf that  among other things,  EO 107 will  not do what  it is                                                               
intended but will instead result  in a degradation of habitat and                                                               
loss of federal funds.                                                                                                          
                                                                                                                                
DALE KELLY, Executive Director                                                                                                  
Alaska Trollers Association (ATA)                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to EO 107.                                                                         
                                                                                                                                
MIKE ROBBINS                                                                                                                    
Alaska State Employees Association (ASEA) Local 52                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in  opposition to EO 107 and urged                                                               
the committee to take action to reject it.                                                                                      
                                                                                                                                
CELIA ROZEN                                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified during  discussion of EO  107 and                                                               
asked the committee to support  the special concurrent resolution                                                               
disapproving EO 107.                                                                                                            
                                                                                                                                
WADE WILLIS, Owner                                                                                                              
Vision Quest Adventures                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to EO 107.                                                                         
                                                                                                                                
SCOTT THORSON                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified in support of  moving the habitat                                                               
division to DNR.                                                                                                                
                                                                                                                                
JOE MEEHAN                                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Provided comments  and suggested  that the                                                               
committee should prevent EO 107 from being implemented.                                                                         
                                                                                                                                
JEANNE WALTER                                                                                                                   
Chugiak, Alaska                                                                                                                 
POSITION STATEMENT:   Provided comments  and asked  the committee                                                               
to disapprove both EO 107 and EO 106.                                                                                           
                                                                                                                                
AARON BENJAMIN                                                                                                                  
Talkeetna, Alaska                                                                                                               
POSITION STATEMENT:   Provided comments  during discussion  of EO                                                               
107.                                                                                                                            
                                                                                                                                
ERIC MUENCH                                                                                                                     
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:   Provided comments, testified  in support of                                                               
EO 107  and in opposition to  HSCR 1, and urged  the committee to                                                               
support EO 107.                                                                                                                 
                                                                                                                                
JILL JACOB                                                                                                                      
Ward Cove, Alaska                                                                                                               
POSITION  STATEMENT:   Provided comments  and requested  that the                                                               
committee vote in joint session to disapprove EO 107.                                                                           
                                                                                                                                
SHELLY STALLINGS                                                                                                                
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:   Provided comments  and asked  the committee                                                               
to deny EO 107.                                                                                                                 
                                                                                                                                
DAVID CARTER, Attorney at Law                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Provided comments, remarked that  EO 107 is                                                               
not a good  idea, and asked the committee to  keep habitat issues                                                               
under the purview of the ADF&G.                                                                                                 
                                                                                                                                
JOSEPH R. SULLIVAN, Ph.D., Program Director                                                                                     
Yukon River Drainage Fisheries Association (YRDFA)                                                                              
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Provided comments  and requested  that the                                                               
legislature block EO 107.                                                                                                       
                                                                                                                                
PAULA TERRELL                                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   During discussion  of EO 107,  testified on                                                               
her own behalf as a commercial  fisherman that EO 107 ought to be                                                               
overturned.                                                                                                                     
                                                                                                                                
GINNA PURRINGTON                                                                                                                
Alaska Wildlife Alliance (AWA)                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    During discussion  of  EO  107,  provided                                                               
comments, spoke  of the DNR's  current backlog of over  700 water                                                               
rights  applications, and  asked the  committee to  disapprove of                                                               
the  executive  order  switching permitting  authority  from  the                                                               
ADF&G to the DNR.                                                                                                               
                                                                                                                                
JOSH PEIRCE                                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    During discussion  of  EO  107,  provided                                                               
comments, listed  some specific  applications that  are currently                                                               
in  DNR's  backlog,  and  suggested  that  EO  107  will  neither                                                               
streamline the process nor save the state money.                                                                                
                                                                                                                                
RUTH BAUMAN                                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided comments  and said she supports the                                                               
concept of EO 107.                                                                                                              
                                                                                                                                
DAMIAN WALTER                                                                                                                   
Chugiak, Alaska                                                                                                                 
POSITION STATEMENT:  Testified that he disapproves of EO 107.                                                                   
                                                                                                                                
MARK FINK                                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Provided Comments  and urged  the committee                                                               
to disapprove EO 107.                                                                                                           
                                                                                                                                
WILLIAM H. DENNERLEIN                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    During discussion  of  EO  107,  provided                                                               
comments,  noted  that  the governor's  habitat  transition  team                                                               
never  met with  the  Division of  Habitat  and Restoration,  and                                                               
urged the committee to oppose EO 107.                                                                                           
                                                                                                                                
MARYELLEN OMAN, President                                                                                                       
Anchorage Audubon Society                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Provided comments  during discussion  of EO                                                               
107  and stated  that  the Anchorage  Audubon  Society is  firmly                                                               
opposed to Executive Order 107 and supports SSCR 1 and HSCR 1.                                                                  
                                                                                                                                
VALANNE GLOOSCHENKO, MSc.                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in  opposition to EO 107 and asked                                                               
the committee to disapprove it.                                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 03-23, SIDE A                                                                                                            
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  BRUCE WEYHRAUCH  called the  House State  Affairs Standing                                                             
Committee meeting,  which had  been recessed  on March  11, 2003,                                                               
back to order  at 6:30 p.m.  Representatives  Holm, Seaton, Lynn,                                                               
and   Weyhrauch   were   present    at   the   call   to   order.                                                               
Representatives  Dahlstrom, Berkowitz,  and Gruenberg  arrived as                                                               
the meeting was in progress.                                                                                                    
                                                                                                                                
EXECUTIVE ORDER 107 - TRANSFER  OF HABITAT FUNCTIONS FROM ADFG TO                                                             
DNR                                                                                                                           
                                                                                                                                
Number 0033                                                                                                                     
                                                                                                                                
CHAIR WEYHRAUCH announced  that the only order  of business would                                                               
be Executive Order (EO) 107,  transferring habitat functions from                                                               
ADF&G to DNR.                                                                                                                   
                                                                                                                                
Number 0080                                                                                                                     
                                                                                                                                
OWEN  GRAHAM,  Executive  Director,  Alaska  Forest  Association,                                                               
testified in  support of  [EO 107].   He  stated his  belief that                                                               
having  one agency  acting to  ensure that  there is  responsible                                                               
development will  adequately protect  the environment  and reduce                                                               
the cost of government.                                                                                                         
                                                                                                                                
OWEN GRAHAM referred  to recent allegations that  some 70 percent                                                               
of  the fish  culverts  on forest  service  land were  improperly                                                               
installed and now  block fish passage.  He opined  that the truth                                                               
is  that  most   of  the  culverts  in   question  were  properly                                                               
installed,  following the  standards that  were in  place at  the                                                               
time.   He  explained that  the forest  service had  informed him                                                               
that the  old standard  was in conformance  with a  memorandum of                                                               
understanding  (MOU) between  the state  and the  forest service.                                                               
Then, when the  current standard was adopted,  the forest service                                                               
also  adopted  it and,  at  that  time,  estimated that  some  70                                                               
percent of its  existing culverts might need to be  upgraded.  He                                                               
told the committee that the  forest service is currently spending                                                               
approximately $2  million a year examining  and, where necessary,                                                               
upgrading the older culverts.                                                                                                   
                                                                                                                                
OWEN GRAHAM stated  that he thinks it is unfair  and dishonest to                                                               
use misinformation to  try to block the  proposed streamlining of                                                               
state government, and he encouraged  the committee to contact the                                                               
forest service for confirmation what he'd just told them.                                                                       
                                                                                                                                
Number 0185                                                                                                                     
                                                                                                                                
GEORGE  WOODBURY, Woodbury  Enterprises, indicated  that he  is a                                                               
forest consultant from  Wrangell, Alaska.  He  stated his support                                                               
of [EO  107] and whatever  else the governor thinks  is necessary                                                               
to  streamline  and restore  balance  to  the management  of  the                                                               
state's   resources  in   order  to   once  again   see  resource                                                               
development and the resulting economy.                                                                                          
                                                                                                                                
Number 0253                                                                                                                     
                                                                                                                                
DAVID  PERSON,  Ph.D.,  after  noting   that  he  is  a  research                                                               
biologist  with the  Division  of  Wildlife Conservation,  Alaska                                                               
Department of Fish & Game (ADF&G),  told the committee that he is                                                               
testifying on  his own behalf.   He stated  that he has  not seen                                                               
any   compelling  evidence   or  information   provided  by   the                                                               
governor's staff  that justifies  [EO 107],  adding that  all the                                                               
allegations  and innuendo  put forward  by the  governor and  his                                                               
staff fall  flat when investigated.   Furthermore, examination of                                                               
the   [Division  of   Habitat  and   Restoration  ("Division   of                                                               
Habitat")] reveals a dedicated,  professional staff doing the job                                                               
expected of it.                                                                                                                 
                                                                                                                                
DR. PERSON opined that the  statements "blasting" the Division of                                                               
Habitat and Restoration say more  about the mindset and character                                                               
of  the   governor's  administration  than  they   do  about  the                                                               
division.   Furthermore, he relayed,  [EO 107] appears to  him to                                                               
be nothing  more than  a punitive effort  to punish  the division                                                               
and staff for doing their job.                                                                                                  
                                                                                                                                
DR. PERSON continued:                                                                                                           
                                                                                                                                
     Last  Friday,  Commissioners  [Kevin] Duffy  and  [Tom]                                                                    
     Irwin  refused  to  discuss any  of  the  charges  made                                                                    
     against  the division.   They  said  that those  issues                                                                    
     were  in the  past and  ...  [that] it's  time to  move                                                                    
     forward.    That  is the  same  dysfunctional  behavior                                                                    
     displayed by  a man who  beats his wife and  then tells                                                                    
     her the  next day, "Honey,  never mind the  black eyes,                                                                    
     forget the past, it's time to move on."                                                                                    
                                                                                                                                
DR. PERSON stated that every  habitat biologist whom he knows has                                                               
been  chronically overworked  trying  to  protect Alaska's  vital                                                               
fish and  wildlife habitats.  He  said that there are  not enough                                                               
habitat  biologists now  to do  the  job effectively;  therefore,                                                               
scaling  down   staff  and  moving  the   division  into  another                                                               
department  will  not  create   greater  efficiency  or  maintain                                                               
quality.   He emphasized  that quality,  not efficiency,  is what                                                               
matters,  and suggested  that EO  107 will  result in  a "rubber-                                                               
stamp proposal."                                                                                                                
                                                                                                                                
DR. PERSON said that many of  the comments he has heard come from                                                               
those who  do not understand  the laws of protecting  the state's                                                               
fish  and wildlife  resources,  or  who have  no  clue about  the                                                               
process  of getting  permits.   He  suggested that  the place  to                                                               
start  gaining   efficiencies  -  rather  than   dismantling  the                                                               
Division of  Habitat - would  be to educate the  public regarding                                                               
its  responsibilities  and  help  it be  prepared  to  enter  the                                                               
process of  getting permits.  He  added, "Of course, if  the goal                                                               
is really  to gut the  laws and  rubber stamp the  projects, then                                                               
the  administration doesn't  need any  habitat biologists  - just                                                               
lawyers."                                                                                                                       
                                                                                                                                
Number 0409                                                                                                                     
                                                                                                                                
DR. PERSON relayed the following:                                                                                               
                                                                                                                                
     A few years ago, my colleagues  and I needed to build a                                                                    
     cabin on a  remote island, to create a base  camp for a                                                                    
     research project.   We selected  unused state  land for                                                                    
     the project  and applied for  a permit to build.   [The                                                                    
     Department  of  Natural  Resources (DNR)]  informed  us                                                                    
     that it would take three  (indisc. - coughing) years to                                                                    
     process our application.                                                                                                   
                                                                                                                                
DR. PERSON  also relayed  that a few  years ago,  timber planters                                                               
for DNR  drafted a project  proposal for timberland on  Prince of                                                               
Wales  Island.   They  described  populations  of red  squirrels,                                                               
porcupines, and  snowshoe hare.   Mr. Person stated that  none of                                                               
those species  live on the island.   He added:   "Apparently, DNR                                                               
staff writing the sections ...  of the proposal never visited the                                                               
site  or did  their homework.   It  took a  habitat biologist  to                                                               
point out their mistake."                                                                                                       
                                                                                                                                
DR. PERSON, in conclusion, urged the committee to reject EO 107.                                                                
                                                                                                                                
Number 0482                                                                                                                     
                                                                                                                                
JACK GUSTAFSON told  the committee that although he  is a habitat                                                               
biologist employed by ADF&G, he  is testifying on his own behalf.                                                               
He listed  the following  reasons for his  opposition to  EO 107:                                                               
First, the  Division of Habitat  is mostly federally funded.   He                                                               
asked, "Why  decrease their staff  and eliminate  federal funding                                                               
that currently (indisc.)?"  Second,  the executive order will not                                                               
streamline the  process because most  of the work  [the division]                                                               
does requires  coordination of other employees  within ADF&G, not                                                               
DNR.  He said that involving  DNR in all that [the division] does                                                               
will  complicate  the  process  and  compromise  efficiency,  and                                                               
provided an example.                                                                                                            
                                                                                                                                
MR. GUSTAFSON continued listing his  reasons for opposing EO 107:                                                               
Third,  valuable fish  and wildlife  habitat  will be  needlessly                                                               
damaged.   He warned that the  impacts on fish and  wildlife as a                                                               
result of [EO  107] will be much greater than  the average person                                                               
might imagine.   Fourth,  the plan may  backfire because,  as the                                                               
state backs  out of resource  protection, the  federal government                                                               
will  start playing  a  more  authoritative role.    He told  the                                                               
committee  that  [the  division]  currently  works  with  several                                                               
federal  agencies,  adding that  everyone  benefits  from such  a                                                               
cooperative  approach.    He  said   that  there  could  be  many                                                               
unintended consequences  of eliminating the Division  of Habitat,                                                               
and offered an example.                                                                                                         
                                                                                                                                
MR.  GUSTAFSON  stated  his  fifth   point:    EO  107  is  being                                                               
implemented through  intimidation and misinformation  rather than                                                               
through fair and  balanced dialogue.  He told  the committee that                                                               
habitat biologists  were placed  under a  gag order  in December;                                                               
when  they  received   any  calls  from  the   media,  they  were                                                               
instructed  to tell  the reporters  that they  would get  back to                                                               
them regarding their  questions.  Those questions,  he said, were                                                               
then sent up to the governor's  office for a response.  He stated                                                               
that the gag  order on political appointees has  been lifted, but                                                               
the gag order on habitat biologists is still in effect.                                                                         
                                                                                                                                
MR.  GUSTAFSON offered  his final  reason:   The public  has been                                                               
mislead as  to why this action  is being taken.   He relayed that                                                               
in his  state of the  state address,  the governor had  said that                                                               
[EO 107] is necessary because  the Division of Habitat delayed or                                                               
opposed certain developmental projects.   Mr. Gustafson explained                                                               
that one  of the examples given  was a review that  he'd handled,                                                               
and  the division  did  not delay  or oppose  that  project.   He                                                               
stated  that the  governor's  characterization, broadcast  across                                                               
statewide television, was erroneous.                                                                                            
                                                                                                                                
Number 0700                                                                                                                     
                                                                                                                                
CHAIR  WEYHRAUCH   requested  that   Mr.  Gustafson   submit  the                                                               
remainder of his  testimony in writing and include  copies of the                                                               
gag orders that were received.                                                                                                  
                                                                                                                                
Number 0775                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  remarked that  he  would  like to  see                                                               
whose gag order  it was and why  it was imposed.   He opined that                                                               
someone from  the administration should  be present to  listen to                                                               
the testimony regarding the executive  order.  He emphasized that                                                               
when the  [administration] support bills or  executive orders, it                                                               
ought to be present.                                                                                                            
                                                                                                                                
CHAIR   WEYHRAUCH  relayed   that   he'd   previously  told   DNR                                                               
representatives  that they  did not  have to  come.   He said  he                                                               
would  make  certain  that  Mr.  Gustafson's  comments  would  be                                                               
forwarded to them, and that he would get comments in response.                                                                  
                                                                                                                                
Number 0905                                                                                                                     
                                                                                                                                
MIKE  SALLEE testified  that he  was  born in  Ketchikan and  has                                                               
resided there most  of his life.   He said that for  the past two                                                               
decades,  he  has worked  on  boats  up  and  down the  coast  of                                                               
Southeast Alaska  as a longline fisherman.   He noted that  he is                                                               
represented  by  the   Alaska  Longline  Fishermen's  Association                                                               
(ALFA), which opposes EO 107.                                                                                                   
                                                                                                                                
MR. SALLEE told  the committee that he has also  been involved in                                                               
harvest  diving for  the past  two  decades.   He indicated  that                                                               
there  is an  organization of  harvest divers  and, while  it has                                                               
come out  in support of  EO 107, the  support is not  unanimous -                                                               
many divers are incensed by the executive order.                                                                                
                                                                                                                                
MR.  SALLEE said  that he  has also  owned and  operated a  small                                                               
sawmill  for the  last 20  years, providing  lumber for  over 100                                                               
clients, including neighbors, people  in other parts of Southeast                                                               
Alaska, and clients outside of the state.  He continued:                                                                        
                                                                                                                                
     The  governor  has   surrounded  himself  with  several                                                                    
     former  timber  industry   lobbyists,  timber  industry                                                                    
     legal  counsel, a  former pulp  mill  manager, [and]  a                                                                    
     former regional forester.  In  short, a corporate green                                                                    
     team heavily  weighted toward the timber  industry.  In                                                                    
     noting the habitat biologists laid  off, it appears the                                                                    
     Murkowski team  did not like  the message  delivered by                                                                    
     those biologists and is responding  by disposing of the                                                                    
     messengers.                                                                                                                
                                                                                                                                
     Reducing habitat  personnel, as  the governor  has done                                                                    
     in Ketchikan, Sitka,  Anchorage, Juneau, and elsewhere,                                                                    
     will  mean fewer  hours in  the  field and,  therefore,                                                                    
     less  data upon  which to  base enforcement.   From  my                                                                    
     layman's perspective, there are two  parts to law:  the                                                                    
     written   statute    and,   equally    important,   the                                                                    
     enforcement  part.   We can  have  great statutes,  but                                                                    
     they're utterly  useless if  activities in  [the] field                                                                    
     are not monitored and enforced.                                                                                            
                                                                                                                                
     Over  the  last  several  days,  I've  heard  and  read                                                                    
     numerous innuendos  and complaints about  [the Division                                                                    
     of   Habitat].     Every   complaint   that  has   been                                                                    
     significant,  or  specifically   identified,  has  been                                                                    
     thoroughly explained  and rebutted by  ADF&G personnel.                                                                    
     I can only  conclude that [the] executive  order is not                                                                    
     about   streamlining,  it's   about  rubber   stamping.                                                                    
     Please bring to a floor  vote a resolution to reject EO                                                                    
     107.   Our  fish and  wildlife  is too  valuable to  be                                                                    
       making a decision geared primarily toward tending                                                                        
     favors from those in power.                                                                                                
                                                                                                                                
Number 0967                                                                                                                     
                                                                                                                                
JASON GRAHAM  asked that the  committee take action to  reject EO                                                               
107 and  keep the  authority and  responsibility to  protect fish                                                               
within  the  ADF&G.    He  opined that  the  ADF&G  is  the  most                                                               
appropriate  agency  to manage  the  state's  permit system  that                                                               
protects the habitat which produces  the fisheries resources that                                                               
benefit Alaskans.   He noted  that the ADF&G's  statutory purpose                                                               
is to manage, protect, maintain,  and, where possible, extend the                                                               
fish  and game  resources  in  the interest  of  the economy  and                                                               
general well being of  the state.  He said that  the value of the                                                               
state's commercial, sport, and  subsistence fisheries exceed that                                                               
of all other industries except the oil industry.                                                                                
                                                                                                                                
JASON  GRAHAM  stated  that fish  habitat  loss  and  migrational                                                               
blockages  are  the  number one  reason  [that]  anadromous  fish                                                               
populations  have declined  to disastrous  levels  in the  United                                                               
States.  He said:  "Habitat  loss is forever.  Habitat protection                                                               
is relatively inexpensive compared  to restoration.  Please don't                                                               
change a system that is efficient and works."                                                                                   
                                                                                                                                
Number 1026                                                                                                                     
                                                                                                                                
CATHERINE SENUNGETUK,  testifying on behalf of  herself, told the                                                               
committee that she has lived in  Alaska for 27 years and works as                                                               
an elementary  school nurse.   She stated that she  is testifying                                                               
because  she cares  about the  state  and its  future beyond  the                                                               
current  generation.    She  asked  the  committee  to  accept  a                                                               
resolution to disapprove EO 107,  and that the executive order be                                                               
allowed onto the floor for a vote in joint session.                                                                             
                                                                                                                                
MS. SENUNGETUK  said that one reason  to override EO 107  is that                                                               
there is  a high risk that  it will negatively impact  fishing in                                                               
Alaska,  including sport,  commercial,  and subsistence  fishing.                                                               
She stated that  fish are Alaska's greatest  and most sustainable                                                               
renewable resource.   She  asked, Why would  the state  risk this                                                               
renewable resource in an act  which would undo the oversight that                                                               
has  been in  place since  statehood  and which  was integral  to                                                               
Alaska  becoming a  state?   She  said that  if  the Division  of                                                               
Habitat is gutted, there will be  no safeguards in place for fish                                                               
and fish  habitat.  She added  that DNR's mission is  to develop,                                                               
rather than manage, protect, and maintain.                                                                                      
                                                                                                                                
MS.  SENUNGETUK, noting  that  she has  heard  many promises  and                                                               
assurances from  DNR and  those who support  EO 107,  said, "Just                                                               
because  someone  gives  us  careful  verbal  reassurances,  once                                                               
authority is in place, anything  can happen."  To illustrate this                                                               
point,  she   noted  that  when  Governor   Frank  Murkowski  was                                                               
criticized recently  regarding his proposed  $10 tax on  each new                                                               
studded tire,  although he'd  run for office  "on no  new taxes,"                                                               
his response  was, "Well, you don't  have to drive."   She asked,                                                               
"Are we also going to say, 'You don't have to fish'?"                                                                           
                                                                                                                                
Number 1119                                                                                                                     
                                                                                                                                
MS. SENUNGETUK proffered  that another reason to  override EO 107                                                               
is that loss of habitat will  have a [negative] impact on tourism                                                               
too - another  of Alaska's most renewable resources.   She stated                                                               
that EO  107 will essentially take  away the ability of  ADF&G to                                                               
uphold its  mission to protect,  maintain, and improve  the fish,                                                               
game, and  aquatic plant  resources of Alaska.   She  opined that                                                               
[EO 107] does not show good  stewardship; if Alaska ever wants to                                                               
attempt to  solve the subsistence issue,  [EO 107] is not  a good                                                               
first step, neither towards the  state's example of leadership to                                                               
the federal government,  nor in the actions of  the state towards                                                               
the Alaska Native  peoples and anyone who fishes in  Alaska.  She                                                               
reiterated her  request that the committee  accept the resolution                                                               
to disapprove  EO 107, and  that EO 107 be  allowed to come  to a                                                               
vote in joint session.                                                                                                          
                                                                                                                                
Number 1157                                                                                                                     
                                                                                                                                
JAN KONIGSBERG  said he  was testifying on  behalf of  the Alaska                                                               
field office of  Trout Unlimited, adding that  Trout Unlimited is                                                               
the largest  coldwater fish and  watershed conservation  group in                                                               
the  country.   He referred  to  a recent  press conference  when                                                               
Commissioners Duffy  and Irwin were asked  about habitat division                                                               
personnel  refuting the  governor's allegations.   He  noted that                                                               
Commissioner Duffy  had said that  those statements  refuting the                                                               
governor's   allegations   were   simply   opinions,   and   that                                                               
Commissioner   Irwin  said   something   about,  "Perception   is                                                               
reality."   Mr.  Konigsberg  suggested that  such statements,  as                                                               
were made by the commissioners, is  "a very convenient way to run                                                               
a government."                                                                                                                  
                                                                                                                                
MR.  KONIGSBERG  noted  that yesterday,  Commissioner  Duffy,  in                                                               
response to Representative Berkowitz's  question about whose idea                                                               
this was,  acted like  he didn't know.   Mr.  Konigsberg remarked                                                               
that  if EO  107  is really  such  a great  idea,  the person  or                                                               
persons who thought  it up should take credit;  likewise, if it's                                                               
really a bad  idea, they ought to accept the  responsibility.  He                                                               
posited that the  Division of Habitat is not the  only thing that                                                               
is being transferred out of  the commissioner's office at ADF&G -                                                               
integrity is also being transferred out.                                                                                        
                                                                                                                                
MR. KONIGSBERG turned to the  subject of efficiency.  He referred                                                               
to getting rid  of half the positions in the  Division of Habitat                                                               
and transferring  them to  DNR for  the sake  of efficiency.   He                                                               
suggested that  if efficiency in  government is prized  above all                                                               
else,  wouldn't  downsizing  the  legislature  by  one  half  and                                                               
consolidating  it into  a unicameral  body be  worth considering?                                                               
On the same note, he said he  would like an explanation as to why                                                               
DNR has  taken more  than six  months to decide  what it  will do                                                               
about  Afognak Native  Corporation loggers  having cut  trees all                                                               
the way  down to the  stream bank.  He  clarified that he  is not                                                               
saying  that DNR  is  shirking  its duty  or  abusing its  public                                                               
trust; rather,  DNR is responding  slowly, and perhaps  there are                                                               
reasons for  that.  In  other words, he explained,  efficiency is                                                               
not necessarily  the paramount  value.  He  opined that  the only                                                               
type of  government that  values efficiency above  all else  is a                                                               
Fascist government,  adding that  a representative  government is                                                               
supposed to take its time and be deliberative.                                                                                  
                                                                                                                                
MR. KONIGSBERG concluded by suggesting  that everyone agrees with                                                               
former President  Reagan when he  said, "Trust, but verify."   He                                                               
told the  committee that if  EO 107 is accepted,  Trout Unlimited                                                               
has plans  to set  up a monitoring  program to  evaluate specific                                                               
projects  to ascertain  how well  those projects  conform to  the                                                               
law.  He  stated that [Trout Unlimited] opposes EO  107 and hopes                                                               
that the legislature will turn it down.                                                                                         
                                                                                                                                
CHAIR WEYHRAUCH told Mr. Konigsberg  that he will be particularly                                                               
interested  in  the  results   of  Trout  Unlimited's  monitoring                                                               
efforts.                                                                                                                        
                                                                                                                                
Number 1316                                                                                                                     
                                                                                                                                
LEO KEELER  had his  testimony read by  Dorothy Keeler,  who said                                                               
that although  Mr. Keeler's  testimony is  on behalf  of himself,                                                               
she thinks  it is important  that the  committee know that  he is                                                               
the real estate  specialist for the Chugach  National Forest; has                                                               
served as  the operations  and logistics  chief during  the Exxon                                                               
Valdez Oil  Spill and testified  as an expert witness  during the                                                               
trial; and  has two decades  of work  experience as an  expert in                                                               
federal permitting and easement.                                                                                                
                                                                                                                                
MR. KEELER'S testimony read in part:                                                                                            
                                                                                                                                
     I  am  writing  to  oppose passage  of  the  governor's                                                                    
     Executive  Order  107,  directing  the  combination  of                                                                    
     "Habitat" and  DNR.   I've been in  Alaska for  over 20                                                                    
     years and,  through my federal  job dealing  with land,                                                                    
     have had  numerous opportunities to work  with both the                                                                    
     habitat  division of  ADF&G  and [with]  DNR.   I  have                                                                    
     always found  DNR extremely difficult to  work with and                                                                    
     never  responsive to  problems.   The  long history  of                                                                    
     DNR's budget  being reduced has  only made  the problem                                                                    
     worse.                                                                                                                     
                                                                                                                                
     Recently,  I was  told if  I wanted  DNR to  act on  my                                                                    
     request for  road access, ...  I would need  to provide                                                                    
     the  funding to  hire  someone to  do their  paperwork.                                                                    
     With their attitude that "those  that pay get service,"                                                                    
     only large  companies will gain the  attention of DNR's                                                                    
     staff and  thus the  permits they  need.   This process                                                                    
     will  prevent diversification  of  our economy  through                                                                    
     developing small business.                                                                                                 
                                                                                                                                
     The  logging of  Native  lands throughout  Alaska is  a                                                                    
     prime example  of poor  environmental oversight  by DNR                                                                    
     staff.     The   DNR  forester   from  Glennallen   was                                                                    
     responsible   for  assuring   the  Iyak   Corporation's                                                                    
     logging near Cordova was done improperly.                                                                                  
                                                                                                                                
CHAIR WEYHRAUCH, noting that the committee had time restraints,                                                                 
interrupted Mrs. Keeler to make certain she would send Mr.                                                                      
Keeler's complete testimony to his office.                                                                                      
                                                                                                                                
Number 1430                                                                                                                     
                                                                                                                                
MEAGAN  BOLTWOOD, Anchorage  Waterways Council  (AWC), said  that                                                               
the AWC  is opposed to  EO 107 because it  believes it is  not in                                                               
the public's best  interest.  She noted that the  full version of                                                               
her  testimony  had  been  submitted   to  the  committee.    She                                                               
continued:                                                                                                                      
                                                                                                                                
     [The]  AWC  has  worked  with both  ADF&G  and  DNR  to                                                                    
     initiate  and  complete  several  restoration  projects                                                                    
     throughout  Anchorage.   In our  experience, ADF&G  has                                                                    
     taken  a  proactive  approach to  protecting  fish  and                                                                    
     wildlife,  by working  with us  to restore  Ship Creek.                                                                    
     [The] ADF&G's  [Division of Habitat] has  been helpful,                                                                    
     knowledgeable, and supportive of  our efforts.  The gag                                                                    
     order imposed by the  Murkowski administration has hurt                                                                    
     our  relationship with  ADF&G's habitat  biologists and                                                                    
     stalled several restoration projects.                                                                                      
                                                                                                                                
     [The] AWC has had difficulties  working with DNR.  When                                                                    
     we  urged  DNR  to adjudicate  decade-old  water  right                                                                    
     applications  on Ship  Creek, DNR  responded that  they                                                                    
     had neither the staff nor  the funding to process these                                                                    
     applications.    Thanks  to the  assistance  of  ADF&G,                                                                    
     these  applications  are  now   being  processed.    My                                                                    
     question is this:  Why  would the state give additional                                                                    
     responsibility  to an  agency that  is unable  to carry                                                                    
     out its existing mandate?   Nowhere in its mission does                                                                    
     DNR adequately  address fish and wildlife  concerns and                                                                    
     the protection of the public's  use of these resources.                                                                    
     Unless  DNR changes  its mission,  it is  unlikely that                                                                    
     fish  and wildlife  will  receive  the same  protection                                                                    
     under EO 107.                                                                                                              
                                                                                                                                
     Even with the promises  of restructuring and commitment                                                                    
     to   the  environment,   this   transfer  will   create                                                                    
     disturbance,  confusion,   and  unnecessary  hostility.                                                                    
     The [Division of Habitat]  has successfully worked with                                                                    
     industries,   agencies,  organizations,   and  citizens                                                                    
     within its  existing permitting authority.   [Executive                                                                    
     Order 107]  is designed to  fix a problem  that doesn't                                                                    
     exist.   This transfer  is a waste  of time  and money.                                                                    
     This  so-called  agency  streamlining  led  to  habitat                                                                    
     destruction in  the Lower 48. ...  Support the existing                                                                    
     checks  and balances  that have  established Alaska  as                                                                    
     the  model   for  fisheries   management.     Keep  the                                                                    
     endangered  species act  out of  Alaska by  opposing EO                                                                    
     107.                                                                                                                       
                                                                                                                                
Number 1553                                                                                                                     
                                                                                                                                
JIM STUBBS  told the committee that  he is a 32-year  resident of                                                               
Alaska and a constituent of  Representative Bob Lynn, and that he                                                               
has worked  from Prudhoe Bay  to Ketchikan.   He stated  that his                                                               
reason for  coming to  Alaska was because  of the  state's rugged                                                               
beauty  and hunting  and fishing  opportunities,  adding that  he                                                               
wanted to  raise his family  in this  environment.  He  said that                                                               
the  use  of  the  state's  hunting  and  fishing  resources  are                                                               
important to  his family, as  well as to  "all the people  of the                                                               
state  of Alaska."   He  opined that  habitat is  the key  to the                                                               
production of  Alaska's salmon stock,  adding that proof  of this                                                               
is in  the states  of Washington  and Oregon,  where the  loss of                                                               
habitat  has  taken  away  the  wild fish,  and  fish  (are  now)                                                               
produced in plastic buckets.                                                                                                    
                                                                                                                                
MR.  STUBBS  told the  committee  that  he  is  a member  of  the                                                               
Anchorage  Fish and  Game  Advisory  Committee, which  represents                                                               
nearly 50 percent  of the population of Alaska.   He relayed that                                                               
at the advisory committee's February  meeting, it's members voted                                                               
unanimously against  the transfer of  the Division of  Habitat to                                                               
the DNR, and  sent a letter to the governor  voicing its concern.                                                               
He  emphasized  that  the  advisory  committee  takes  the  issue                                                               
seriously, as well as do  the members of the Anchorage community.                                                               
He also  relayed that he  has traveled  to various job  sites for                                                               
his  work, where  he  has  heard various  members  of the  voting                                                               
public voice their concern and  disbelief at the perceived attack                                                               
on the  habitat of Alaska.   Most of those people,  he said, have                                                               
come to the state because of  their love for the outdoors, and he                                                               
suggested that they don't want  to see their enjoyment of hunting                                                               
and  fishing diminished.   He  said, "This  is the  hottest topic                                                               
I've seen since the discussions of the Exxon Valdez fiasco."                                                                    
                                                                                                                                
MR.  STUBBS   noted  that  extensive  research   in  the  Pacific                                                               
Northwest has shown  that the loss of habitat is  disastrous.  He                                                               
asked the  committee to consider  the value of fish  and wildlife                                                               
to  generations  to come,  as  a  resource  that belongs  to  all                                                               
Alaskans, not  just a chosen  few.   He stated his  opposition to                                                               
the transfer  [of the Division of  Habitat to DNR] and  said that                                                               
he hopes the committee will reject EO 107.                                                                                      
                                                                                                                                
Number 1688                                                                                                                     
                                                                                                                                
BRUCE  HARDING,  Mayor,  City  of  Wrangell,  testified  that  he                                                               
supports EO  107.   He stated  that it makes  good sense  to have                                                               
fish habitat,  game protection,  stream preservation,  and forest                                                               
stewardship as  part of  DNR's Division of  Forestry.   He opined                                                               
that  in  the  future,  having   these  responsibilities  in  one                                                               
department will  allow for improved  planning and  more efficient                                                               
and  effective management  of the  state's natural  and renewable                                                               
resources.     In  addition,  he   said,  he   supports  Governor                                                               
Murkowski's willingness to look at  the state's issues with fresh                                                               
eyes and bring new and  creative solutions to [the] current state                                                               
of affairs.   He said  that these solutions will  help reenergize                                                               
the state's  economic engine,  particularly in  Southeast Alaska.                                                               
Noting that  Wrangell is a  resource-based community with  a very                                                               
depressed  economy, he  said that  he feels  there is  sufficient                                                               
opportunity  to rebuild  Wrangell's economy  using the  renewable                                                               
resources  available  in  Southeast Alaska,  without  endangering                                                               
environmental  habitat.    In conclusion,  he  opined,  "A  sound                                                               
environment is impossible without a sound economy."                                                                             
                                                                                                                                
Number 1758                                                                                                                     
                                                                                                                                
SPENCER SEVERSON  testified that he  has been a harvest  diver in                                                               
Alaska since 1981.   He reminded the committee  that when ADF&G's                                                               
budget "began to  slip in the mid-90s," a suggestion  was made to                                                               
form the  Southeast Alaska Regional [Dive  Fisheries] Association                                                               
(SARDFA), so  that the  divers could  tax themselves  and finance                                                               
their own fishery.   Since that time, he  noted, the organization                                                               
seems to  have come under  the control  of a few  individuals who                                                               
seem intent  on using the membership  roll as a lobbying  tool to                                                               
advance  their own  agenda.   He  stated his  opinion that  since                                                               
membership in the organization is  not optional, it should not be                                                               
endorsing policies or candidates, adding  that that no one he has                                                               
spoken to  within the organization has  been consulted concerning                                                               
his/her opinion on [EO 107].                                                                                                    
                                                                                                                                
MR. SPENCER opined that moving the  Division of Habitat to DNR is                                                               
a huge mistake  that will lead to chaos  and habitat destruction.                                                               
He continued:                                                                                                                   
                                                                                                                                
     DNR's  mission  as  an   industry  advocacy  agency  is                                                                    
     legitimate;   [however,]  putting   habitat  protection                                                                    
     under [DNR's] purview is anathema.   To use my name and                                                                    
     the names of 600 others  who ... were not consulted, to                                                                    
     advance the  policy of  three individuals  who comprise                                                                    
     the  executive committee  is to  blatantly misrepresent                                                                    
     our membership.  I ask  you to please disregard the so-                                                                    
     called  SARDFA   endorsement.    And  speaking   as  an                                                                    
     individual, I  ask you to  do everything in  your power                                                                    
     to  keep   habitat  viable  and   in  the   purview  of                                                                    
     environmental professionals.                                                                                               
                                                                                                                                
Number 1832                                                                                                                     
                                                                                                                                
LON  GARRISON noted  that he  has  been employed  as a  fisheries                                                               
biologist  for  the  past  15 years  in  the  private,  nonprofit                                                               
sector,  working on  salmon enhancement.   Through  his work,  he                                                               
noted, he  has dealt with ADF&G  on a regular basis,  and many of                                                               
the projects  he is involved with  require Title 16 permits.   He                                                               
mentioned  that  he  has  never   had  difficulty  obtaining  the                                                               
necessary permits  in a  timely manner, nor  been regulated  to a                                                               
degree  that seemed  excessive.   Furthermore, he  said that  the                                                               
system has worked well.                                                                                                         
                                                                                                                                
MR. GARRISON stated that he has  had the opportunity to work with                                                               
habitat  biologists on  several  projects, involving  potentially                                                               
large  impacts  to anadromous  [salmon]  habitat.   He  said  two                                                               
examples of this  mitigation work were conducted  when the Haines                                                               
airport was improved  and expanded and, most  recently, along the                                                               
realignment of the Haines highway.  He continued:                                                                               
                                                                                                                                
     Without   the  support   and  persistence   of  habitat                                                                    
     biologists   in   the   Haines  area,   the   extensive                                                                    
     mitigation work  carried out along the  Haines highway,                                                                    
     from mile 31 to mile 38,  may not have taken place, and                                                                    
     certainly  would not  have been  successful.   We could                                                                    
     have lost  nearly eight miles  of complex  and valuable                                                                    
     chum and coho salmon  spawning habitat, with nothing to                                                                    
     show  for it,  except a  bunch of  gravel pits  full of                                                                    
     water and [of] no use to ... any fish in the area.                                                                         
                                                                                                                                
MR. GARRISON said  that he fortunately does not have  to focus on                                                               
rehabilitation  as  many  of  his  counterparts  in  the  Pacific                                                               
Northwest do.  He explained that  this is because Alaska has been                                                               
"jealous"  about   its  protection   of  fisheries   habitat  and                                                               
associated riparian  areas.  He  said that  EO 107 is  an obvious                                                               
play by the  governor and his administration that  is designed to                                                               
forfeit the health of some  of Alaska's natural resources for the                                                               
short-term monetary gain  of a selected few.  He  said that while                                                               
he agrees  that [the state] must  do more to develop  its natural                                                               
resources for  the long-term health  of its economy, he  views EO                                                               
107  as a  short-sighted  maneuver, clearly  aimed  at those  who                                                               
helped finance the governor's election to office.  He continued:                                                                
                                                                                                                                
     This  order  removes  a necessary  set  of  checks  and                                                                    
     balances  that  the  founding  legislature  saw  as  an                                                                    
     important   process  to   ensure  the   wide  use   and                                                                    
     development  of  our  many natural  resources  and  the                                                                    
     protection of our fish and wildlife.                                                                                       
                                                                                                                                
     In conclusion,  at a  time when  this governor  and his                                                                    
     administration  should   be  working   to  legitimately                                                                    
     support,  protect, and  promote  the sustainability  of                                                                    
     Alaska's salmon  fisheries, he is kowtowing  to special                                                                    
     interests at  the expense of  the people of  Alaska and                                                                    
     their resources.  ... If we cannot  trust this governor                                                                    
     to  uphold  his  campaign  pledges to  ...  fully  fund                                                                    
     education and not  impose new taxes, are  we to believe                                                                    
     his  administration will  be any  more honest  than he?                                                                    
     Can we trust the new  commissioner of the Department of                                                                    
     Natural Resources  to be fully objective  in developing                                                                    
     and regulating  our natural resources  widely?   I have                                                                    
     serious  doubts.    I  urge you  to  ...  prohibit  the                                                                    
     executive order from proceeding.                                                                                           
                                                                                                                                
Number 1974                                                                                                                     
                                                                                                                                
KHRYS  DUDDLESTON  told the  committee  that  she is  an  Alaskan                                                               
resident and an assistant professor  of biology in the Department                                                               
of  Biological Sciences  at the  University of  Alaska Anchorage.                                                               
She  told the  committee that  she is  testifying as  a concerned                                                               
citizen in  opposition to  EO 107 and  will be  submitting longer                                                               
written testimony.  She continued:                                                                                              
                                                                                                                                
     Our fish and wildlife  resources are critical to sport,                                                                    
     commercial,   and  subsistence   users,   as  well   as                                                                    
     supporting  many  businesses  based  on  tourism.    In                                                                    
     addition, our  salmon runs directly effect  hundreds of                                                                    
     species  of wildlife.   Residents  of Alaska  depend on                                                                    
     fish and  wildlife, either directly or  indirectly, for                                                                    
     their  livelihood  and  wellbeing.   Consequently,  the                                                                    
     protection   of    habitat   that    supports   healthy                                                                    
     populations   of  fish   and  wildlife   is  not   only                                                                    
     necessary, but should be a priority to the state.                                                                          
                                                                                                                                
     The Alaska  Department of Fish  & Game  has effectively                                                                    
     protected fish and wildlife habitat  for over 40 years.                                                                    
     It  is   because  of  the  dedication   and  scientific                                                                    
     expertise  of its  staff  and  its statutory  authority                                                                    
     granted under  Title 16 that  our salmon runs  have not                                                                    
     disappeared  at the  hands  of  development.   Contrast                                                                    
     this to  salmon runs in  the Pacific Northwest,  and it                                                                    
     is clear that our present system works well.                                                                               
                                                                                                                                
     Yesterday  I   wrote  a  letter  to   my  Senator,  the                                                                    
     Honorable  Con  Bundy.    He  replied  via  email  this                                                                    
     morning saying  ..., "Alaska's fiscal gap  is a primary                                                                    
     concern these days, and a  large number of Alaskans are                                                                    
     demanding more  efficiency from their government."   He                                                                    
     also  stated  that:    "As   I  did  with  the  Knowles                                                                    
     administration,  I  prefer  to allow  the  governor  to                                                                    
     develop his  own administration.   Afterward,  if there                                                                    
     are  problems  that  arise,  we can  then  work  for  a                                                                    
     legislative fix."                                                                                                          
                                                                                                                                
     I  take issue  with these  statements for  two reasons.                                                                    
     First, time immemorial has  proven that being proactive                                                                    
     costs  less  in  the  long  run  than  being  reactive.                                                                    
     Examining habitat  and fish  populations in  Oregon and                                                                    
     Washington  and those  states' desperate  and expensive                                                                    
     attempts  to restore  habitat and  wild salmon  runs is                                                                    
     [a]   modern   testament   to   this.      Second,   if                                                                    
     reorganization   of  government   in  this   manner  is                                                                    
     followed by  the need for  legislative fixes,  then how                                                                    
     can that  be viewed as streamlining  and increasing the                                                                    
     efficiency of government?                                                                                                  
                                                                                                                                
     If EO  107 is  allowed to stand,  it will  haunt Alaska                                                                    
     forever.  ...  Please  keep  the  future  of  our  most                                                                    
     precious resource - fish, and  those whose lives depend                                                                    
     on fish  - foremost in your  mind.  Their future  is at                                                                    
     stake  ... and  you  have  the power  to  save them  by                                                                    
     keeping permitting  authority under  Title 16  where it                                                                    
     belongs  - in  the hands  of the  Alaska Department  of                                                                    
     Fish & Game.   Please request a joint  session and vote                                                                    
     to reject EO 107.                                                                                                          
                                                                                                                                
Number 2096                                                                                                                     
                                                                                                                                
STEVE  ALBERT stated  that  he fully  respects  the Alaska  State                                                               
Constitution  and   the  ability  it  affords   the  governor  to                                                               
reorganize the executive  branch.  However, he opined,  EO 107 is                                                               
poor public policy and represents  a punitive action initiated by                                                               
a  segment  of  the  timber  industry  and  its  friends  in  the                                                               
administration.     He   said  that   the  implications   of  the                                                               
reorganization  have many  far-reaching impacts  beyond those  to                                                               
the Division of Habitat and Restoration ("Division of Habitat").                                                                
                                                                                                                                
MR. ALBERT  indicated that he  is reminded of DNR's  state timber                                                               
sale program on the Kenai  Peninsula wherein the cost of bringing                                                               
a timber  sale to bid exceeds  the receipts to the  general fund.                                                               
He  predicted  that  the  cost to  the  government,  the  public,                                                               
industry, developers  both large and small,  and landowners, will                                                               
be huge.   He asked:   Where are the  benefits, and who  will pay                                                               
for all  the computers, field  equipment, and extra  office space                                                               
associated with this reorganization?   Presently, habitat permits                                                               
are  free  and  expedient,  he  noted,  and  asked,  how  project                                                               
proponents  will view  DNR's  $200-$500 permit  fees.   How  will                                                               
developers respond to  absorbing the cost of having  to wait even                                                               
longer  for their  permits?   He pointed  out that  an individual                                                               
putting in  a culvert  will be  paying the same  for a  permit as                                                               
would a large timber company.                                                                                                   
                                                                                                                                
Number 2169                                                                                                                     
                                                                                                                                
MR.  ALBERT  opined that  any  reasonable  manager would  request                                                               
completion  of  a  long-term,   cost-benefit  analysis  before  a                                                               
reorganization  of  this  magnitude  is  implemented,  and  would                                                               
identify the standards by which  to measure increased efficiency.                                                               
In addition,  a rate comparison  between DNR and ADF&G  should be                                                               
done.   The legislature  and the public  need in  formation about                                                               
these elements in order to make an informed management decision.                                                                
                                                                                                                                
MR.  ALBERT  pointed out  that  Section  45  of EO  107  includes                                                               
language  that states  that ADF&G  employees  with peace  officer                                                               
status delegated  before June 23,  1983, will continue  to accrue                                                               
service  credit as  a  peace  officer under  AS  39.35 after  the                                                               
transfer, as long as employees  remain in a position described in                                                               
that subsection.   He relayed that he  opposes the reorganization                                                               
[described in EO 107], and that  he hopes that the committee will                                                               
bring a  resolution to  the floor  and have  the courage  to vote                                                               
against [EO 107].                                                                                                               
                                                                                                                                
Number 2210                                                                                                                     
                                                                                                                                
CEVIN GILLELAND  told the committee  that he is the  area habitat                                                               
biologist  for  the  Matanuska-Susitna  ("Mat-Su")  area,  Prince                                                               
William Sound,  and the Copper  River Basin.   He said he  is not                                                               
testifying  as a  representative of  the state.   He  added, "And                                                               
contrary to what  some may want to believe, this  is not about my                                                               
job, it's about  the future of fish and wildlife  in Alaska."  He                                                               
stated that it  is Alaska's fish and wildlife that  are being put                                                               
in extreme danger  and that will suffer as a  direst result of EO                                                               
107.                                                                                                                            
                                                                                                                                
MR. GILLELAND relayed  that he has been involved in  three of the                                                               
projects  proffered by  the governor  as the  reason why  ADF&G's                                                               
permitting functions should be moved to  DNR.  He stated that the                                                               
effect of  such a move  will be  to eliminate ADF&G's  ability to                                                               
protect  fish  and game,  not  only  because permitting  will  be                                                               
[removed  from] ADF&G's  expertise, but  also because  ADF&G will                                                               
have no mechanism  by which to have input on  projects that don't                                                               
require fish habitat permits but  which may still affect fish and                                                               
game resources, such as requests  from local government, the U.S.                                                               
Army Corps of Engineers, and  the Environmental Protection Agency                                                               
(EPA).  He said that  the previously mentioned projects "are real                                                               
projects,  but the  information presented  to the  press and  the                                                               
public  is not."   He  listed the  projects as:   The  Tok cutoff                                                               
highway  upgrade,  the  Glenn-Parks interchange,  and  the  Power                                                               
Creek hydroelectric project in Cordova.                                                                                         
                                                                                                                                
MR.  GILLELAND went  on to  say that  on the  Tok cutoff,  it was                                                               
alleged that  ADF&G had at  first no objection, but  then changed                                                               
its comments,  which resulted in  project delays.   However, when                                                               
the  Department of  Transportation &  Public Facilities  (DOT&PF)                                                               
requested "scoping  comments" on  the highway upgrade,  there was                                                               
no   mention   of   stream    diversion   or   wetlands   impact.                                                               
Approximately a  year later, the  ADF&G was notified by  the U.S.                                                               
Army  Corp of  Engineers  that there  was going  to  be a  stream                                                               
diversion of a  clearwater tributary to the Copper  River, and 24                                                               
acres  of wetlands  next  to the  Copper River  was  going to  be                                                               
filled.  In  light of those changes, if the  ADF&G hadn't changed                                                               
its comment, it wouldn't have been doing its job.                                                                               
                                                                                                                                
MR.  GILLELAND  noted  that  with   regard  to  the  Glenn  Parks                                                               
interchange,   the  governor   said  that   the  Alaska   Coastal                                                               
Management  Program  (ACMP)  consistency finding  was  issued  in                                                               
March 2001,  and that ADF&G  didn't issue permits for  16 months.                                                               
However, this statement  by the governor is  simply incorrect, he                                                               
opined, pointing  out that  the first  discussions of  the Glenn-                                                               
Parks  interchange project  didn't  take place  until June  2001,                                                               
after DOT&PF hired  its consultant.  The  consistency finding was                                                               
issued on March  27, 2002 - not  2001 - and it  required that the                                                               
plans and specifications be submitted  by the contractor at least                                                               
30 days before construction.                                                                                                    
                                                                                                                                
MR. GILLELAND,  in response to a  notice from the chair  that his                                                               
time  was up,  summarized by  urging  the committee  to sign  the                                                               
joint resolution and reject EO 107.                                                                                             
                                                                                                                                
Number 2312                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  stated  that although  he  appreciates                                                               
that  there are  many people  who  want to  testify, because  Mr.                                                               
Gilleland  is  apparently  one  of  the  individuals  who's  been                                                               
"singled out,"  he thinks  it's only fair  that Mr.  Gilleland be                                                               
allowed to respond  to the allegations against  him by completing                                                               
his testimony regarding the three [projects].                                                                                   
                                                                                                                                
Number 2370                                                                                                                     
                                                                                                                                
MR. GILLELAND, referring to the  previously mentioned Power Creek                                                               
hydroelectric  project,  indicated   that  the  governor's  press                                                               
[release] showing  a picture  of the  contractor washing  a rock,                                                               
and  implying that  ADF&G was  responsible, was  inaccurate.   He                                                               
clarified that ADF&G had not  required the contractor to wash the                                                               
rock; instead, a  contract employee for Cordova  Electric took it                                                               
upon himself to wash that rock.                                                                                                 
                                                                                                                                
MR.   GILLELAND   explained   that  ADF&G's   permit   prohibited                                                               
downstream  pollution  of   important  anadromous  fish  spawning                                                               
habitat  in Power  Creek, Hatchery  Creek, and  Iyak   Lake.   He                                                               
continued:                                                                                                                      
                                                                                                                                
     Despite  assurances   from  the  contractor   that  the                                                                    
     diversion channel  would carry the  flow - up  to 4,000                                                                    
     [cubic  feet per  second (cfs)]  - when  they tried  to                                                                    
     divert  300 cfs,  the channel  failed in  an hour.   It                                                                    
     polluted  miles  of   spawning  habitat  where  sockeye                                                                    
     salmon had just  begun to spawn.  I sent  you photos of                                                                    
     that in my comments  yesterday.  Despite the assurances                                                                    
     of  the contractor  that if  anything  went wrong  they                                                                    
     could  immediately  re-divert   Power  Creek  into  the                                                                    
     natural  channel, it  took  them 16  days  to do  that.                                                                    
     They blamed us for slowing this project down.                                                                              
                                                                                                                                
MR.  GILLELAND indicated  that when  [the contractor]  redesigned                                                               
the diversion channel, he himself  had talked to the southcentral                                                               
regional hydraulic engineer at DOT&PF.                                                                                          
                                                                                                                                
TAPE 03-23, SIDE B                                                                                                            
Number 2370                                                                                                                     
                                                                                                                                
MR.  GILLELAND indicated  that plans  were finally  submitted for                                                               
"re-diversion"  and   the  project  went  smoothly.     He  said:                                                               
"Despite what the governor and  his press secretary have said, we                                                               
helped  on  all these  projects;  they  would have  gone  nowhere                                                               
without  us -  and we  saved  the contractor  on the  Glenn-Parks                                                               
project over $1 million."                                                                                                       
                                                                                                                                
Number 2342                                                                                                                     
                                                                                                                                
EDWARD  W. WEISS  remarked  that there  are  numerous reasons  to                                                               
reject EO 107,  including:  increased cost to  the state, private                                                               
citizens,  and industry;  inefficiencies in  government; and  the                                                               
loss of  fish and wildlife  habitat.   Most of these  points have                                                               
been previously mentioned by other  testifiers, he noted, and are                                                               
outlined in his written testimony.   Mr. Weiss said that he would                                                               
like  to reiterate  some of  the previously  stated testimony  of                                                               
former commissioners Carl  Rosier and Frank Rue, as  well as that                                                               
of Mr.  Gilleland and Mr.  Persons, and  of Mr. Hannon  from last                                                               
night.   He  said that  [their testimony]  contained all  factual                                                               
information.                                                                                                                    
                                                                                                                                
MR. WEISS continued:                                                                                                            
                                                                                                                                
     From   the  start,   this  has   been  a   campaign  of                                                                    
     retribution  and   misinformation  put  forth   by  the                                                                    
     governor's chief  of staff, the governor  himself, and,                                                                    
     more silently,  by industry representatives.   This has                                                                    
     been  fueled by  misinformation  from various  sources,                                                                    
     including the  DNR commissioner's  misinterpretation of                                                                    
     "the Frasier  (ph) report."   It's also been  fueled by                                                                    
     the apparent indifference on the  part of the [ADF&G's]                                                                    
     commissioner,  while   his  staff's   credibility  [is]                                                                    
     attacked and  his responsibilities to protect  fish and                                                                    
     wildlife  are sold  down the  river.   I  am a  habitat                                                                    
     biologist, and  it's been a  privilege and an  honor to                                                                    
     work with  the staff of  the [Division of  Habitat], as                                                                    
     well as the other divisions within the [ADF&G].                                                                            
                                                                                                                                
MR. WEISS  said that the  above-mentioned staff  is made up  of a                                                               
dedicated  group  of  highly  skilled  Alaskans  with  a  lot  of                                                               
integrity, and  with a  belief in serving  the people  of Alaska.                                                               
He asked that  the committee vote down not only  EO 107, but also                                                               
EO  106,   because  they  jointly  [affect]   fish  and  wildlife                                                               
protection for  the state.  He  referred to the testimony  of Mr.                                                               
Sturgeon on  the previous  night stating that  he has  to receive                                                               
two culvert permits for every culvert.   Mr. Weiss said that that                                                               
is not  true:   Mr. Sturgeon  receives one  permit, and  it comes                                                               
from ADF&G.                                                                                                                     
                                                                                                                                
Number 2200                                                                                                                     
                                                                                                                                
GEOFFREY   Y.   PARKER,   Attorney  at   Law,   Counsel,   Alaska                                                               
Sportfishing Association; Vice President,  State Council of Trout                                                               
Unlimited, offered the following:                                                                                               
                                                                                                                                
     One of  the things that strikes  all of us here  ... is                                                                    
     that the  facts are not  on the side  of this EO.   The                                                                    
     facts have  clearly demonstrated  that the  governor is                                                                    
     in error with every one of  the examples he uses.  When                                                                    
     the governor  has his facts  wrong, how can  the public                                                                    
     trust  the assertion  that the  protection of  fish and                                                                    
     game will  remain the  same once it  goes over  to DNR?                                                                    
     Here's  why it  won't:   Take a  look at  the budget  -                                                                    
     ADF&G's habitat  budget is $12.4 million  of which $2.2                                                                    
     million is general funds [GF].                                                                                             
                                                                                                                                
     The   governor's   proposed   operating   budget   will                                                                    
     eliminate  the division  totally  and  replace it  with                                                                    
     only  $3.5 million  of [GF]  in the  habitat management                                                                    
     and permitting function in DNR.   This difference is $9                                                                    
     million less,  so DNR will not  do the same job.   Then                                                                    
     ask,  "What  will DNR  use  to  do  the job?    [Alaska                                                                    
     Department of  Fish and Game, Division  of Habitat] has                                                                    
     boats,  computers, and  other  equipment  all paid  for                                                                    
     with  "federal   Dingle-Johnson,  Wallop-Breaux,  [and]                                                                    
     Pittman-Robertson  funds."    They   can't  go  to  DNR                                                                    
     because of the financial  restrictions that go in those                                                                    
     statutes; they have to remain in [ADF&G].                                                                                  
                                                                                                                                
     So now start  thinking about other costs.   With vastly                                                                    
     less money  and apparently  no equipment, DNR  will not                                                                    
     and cannot be in the field.   The budget tells you also                                                                    
     that  you can't  trust the  governor's assertions.   We                                                                    
     hear about a  lot about "efficiency."  You  all know by                                                                    
     now that  it's an average  14 days to process  a permit                                                                    
     in ADF&G,  [and] 99  percent are  granted.   The report                                                                    
     from the  mineral industry, to which  Mr. Irwin refers,                                                                    
     actually ...  says that Alaska  is rated very  high for                                                                    
     its present  regulatory scheme.   Then you  hear again,                                                                    
     as  the  previous  spokesman   just  said,  [that]  Mr.                                                                    
     Sturgeon misled  you into believing that  there are two                                                                    
     permits required, when in fact there's only one. ...                                                                       
                                                                                                                                
     Please think  also about the  staff.  You will  not get                                                                    
     the same  quality of  staff in  an agency  that doesn't                                                                    
     manage fish and  wildlife.  These will  be analogous to                                                                    
     biologists that  you have  in the  [U.S. Army]  Corp of                                                                    
     Engineers or the Federal  Highway Administration.  They                                                                    
     won't publish; there's  no professional advancement for                                                                    
     biologists in that kind of  field.  Lastly, think about                                                                    
     the impact.   It's going  to be in  Southcentral Alaska                                                                    
     because  that's where  most of  the permitting  occurs.                                                                    
     It doesn't occur  from timber, mining, or  oil and gas;                                                                    
     it occurs from ordinary  activities.  Finally, what you                                                                    
     should ask,  as has been  asked, "Whose idea  is this?"                                                                    
     That's the person you should have in front of you.                                                                         
                                                                                                                                
Number 2073                                                                                                                     
                                                                                                                                
JOHN NELSON TRENT relayed that he is testifying on his own                                                                      
behalf, and went on to say:                                                                                                     
                                                                                                                                
     I am a  wildlife biologist in the  Division of Wildlife                                                                    
     Conservation   I have also  been a  continuous resident                                                                    
     of this state  for 50 years.  I am  strongly opposed to                                                                    
     Executive  Order 107  because it  offers no  reasonable                                                                    
     assurance that  the quality of habitat  protection that                                                                    
     we now  have can be  maintained under the  proposed new                                                                    
     organizational structure.  I  know that Executive Order                                                                    
     107  is intended  to  "fix"  certain communication  and                                                                    
     coordination   problems   in    terms   of   permitting                                                                    
     efficiency.  However,  what is not broken  and does not                                                                    
     need  to be  fixed is  the  high standard  of fish  and                                                                    
     wildlife habitat  protection that has been  achieved in                                                                    
     Alaska for over the last four decades.                                                                                     
                                                                                                                                
     I  am  also concerned  that  it  may take  many  years,                                                                    
     possibly decades,  before we can fully  assess the true                                                                    
     consequences  of this  administrative  action.   In  my                                                                    
     experience,  wildlife and  fisheries habitat  condition                                                                    
     is  generally  difficult  to assess  from  the  outset.                                                                    
     Human-caused   habitat  degradation   can  be   equally                                                                    
     difficult  to detect,  let alone  rectify or  mitigate.                                                                    
     The  permanent  loss  of  anadromous  fish  habitat  in                                                                    
     states  like Washington  and  Oregon  is the  nightmare                                                                    
     example of what  we do not want to have  happen here in                                                                    
     Alaska.                                                                                                                    
                                                                                                                                
     In summary,  I urge you to  act in a manner  that would                                                                    
     either prevent  this executive order from  becoming law                                                                    
     or  to find  a way  to significantly  re-craft it.   If                                                                    
     neither of these options is  feasible, then at the very                                                                    
     least,  there   need  to  be   long-term,  quantitative                                                                    
     evaluation measures,  operated by  a neutral  party, to                                                                    
     evaluate  the effects  of this  reorganization.   Thank                                                                    
     you for this opportunity to speak before you.                                                                              
                                                                                                                                
Number 1996                                                                                                                     
                                                                                                                                
BOB ZACHEL said he supports moving the Division of Habitat and                                                                  
Restoration ("Division of Habitat") out of ADF&G.  He                                                                           
elaborated:                                                                                                                     
                                                                                                                                
     I think there  is a good parallel  between the Division                                                                    
     of Oil  & Gas  and the [Division  of Mining,  Land, and                                                                    
     Water] -  who do  permitting -  [and] the  [Division of                                                                    
     Geological  &   Geophysical  Surveys]  -  who   do  the                                                                    
     research, the science.  These  three divisions are kept                                                                    
     separate so the politics of  permitting do not take the                                                                    
     [place] of  science.  It  is vitally important  to have                                                                    
     good, clean information to which  we as people add such                                                                    
     factors   as    economy,   environment,    and   social                                                                    
     considerations to  come up with a  decision. ... Having                                                                    
     [the Division  of] Habitat, the permitting  branch, and                                                                    
     [the  ADF&G],  the research  branch,  all  in the  same                                                                    
     [department]  allow  for  a  relationship  that  in  my                                                                    
     opinion presents many chances to skew the science.                                                                         
                                                                                                                                
     Federal funding of the [Division  of Habitat] has taken                                                                    
     away  the legislature's,  and  therefore the  people's,                                                                    
     ability to hold the  division accountable.  I encourage                                                                    
     you to put "Habitat" in  its own division and appoint a                                                                    
     director  who does  not see  resource development  as a                                                                    
     threat  to the  environment, and  [who] operates  under                                                                    
     the philosophy  that the environment is  best protected                                                                    
     when the  legitimate consumptive  needs of  society are                                                                    
     met in orderly fashion.  It  is my opinion that ... not                                                                    
     protecting  the  environment   will  likely  cost  [the                                                                    
     governor] a  second term.   Protecting  the environment                                                                    
     and promoting development at the  same time will likely                                                                    
     earn him a second term.  Thank you.                                                                                        
                                                                                                                                
REPRESENTATIVE SEATON asked for a clarification.                                                                                
                                                                                                                                
MR. ZACHEL replied:                                                                                                             
                                                                                                                                
     It's  my  understanding  that  [ADF&G]  does  primarily                                                                    
     scientific research.   [With the Division  of] Habitat,                                                                    
     one of  their main  responsibilities is permitting.   I                                                                    
     think permitting gets political.   I think having those                                                                    
     two organizations  ... under  the same umbrella  ... --                                                                    
     I'd  like  to  see   those  broken  out  into  separate                                                                    
     divisions.                                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON remarked, however, that EO 107 puts the                                                                   
research in the Division of Habitat under DNR, so everything                                                                    
will still be under one organization.                                                                                           
                                                                                                                                
Number 1937                                                                                                                     
                                                                                                                                
ARTHUR HUSSEY, Executive Director, Northern Alaska Environmental                                                                
Center, said that his organization does not support EO 107.  He                                                                 
elaborated:                                                                                                                     
                                                                                                                                
     While  we   understand  some   of  the   (indisc.)  for                                                                    
     permitting,   we   believe   that    EO   107   is   an                                                                    
     insufficiently  thought  out  policy and  sets  a  poor                                                                    
     precedent  for  effectiveness  and management  of  both                                                                    
     [DNR] and  [ADF&G].  [The  Alaska Department of  Fish &                                                                    
     Game]  and DNR  serve different  although complimentary                                                                    
     purposes, and blurring their roles  will result, or may                                                                    
     result,   in   persistent  legal   and   constitutional                                                                    
     difficulties.   The proposal to transfer  [the Division                                                                    
     of  Habitat and  Restoration]  to  DNR would  seriously                                                                    
     weaken the  state's ability to manage  salmon and other                                                                    
     fish  and  wildlife  on  a  sustained  yield  basis  as                                                                    
     mandated in the [Alaska State Constitution].                                                                               
                                                                                                                                
     [The Department of Natural Resources]  has a mandate to                                                                    
     promote,  develop, and  permit development  of Alaska's                                                                    
     natural resources.   [The Alaska  Department of  Fish &                                                                    
     Game],  on the  other hand,  has a  mandate to  manage,                                                                    
     protect, maintain,  and preserve the fish  and game and                                                                    
     aquatic  plant  resources of  the  state.   We  have  a                                                                    
     system, currently,  of checks and balances  that places                                                                    
     fish and wildlife habitat  protection on equal standing                                                                    
     with development  interests, and allows  an opportunity                                                                    
     to  debate   issues.    [Executive  Order   107]  would                                                                    
     inappropriately alter  this delicate balance.   We also                                                                    
     agree  with statements  [regarding]  the efficiency  of                                                                    
     [ADF&G]  in the  permitting  process, and  urge you  to                                                                    
     adopt measures to oppose EO 107.                                                                                           
                                                                                                                                
Number 1807                                                                                                                     
                                                                                                                                
RUSSELL DEFOREST said he is concerned that this proposal, when                                                                  
passed as an executive order, will further erode public trust in                                                                
the public process.  He elaborated:                                                                                             
                                                                                                                                
     I think  that if this  proposal were to  accomplish the                                                                    
     goals  that  the  governor  claims  they  would  -  ...                                                                    
     streamlining  permitting  and  increasing  transparency                                                                    
     and  accountability in  the process  -  it should  have                                                                    
     been submitted as a bill,  where it would be subject to                                                                    
     the full  process.  The  governor, in his  campaign for                                                                    
     election,  used a  great deal  of anti-environmentalist                                                                    
     rhetoric, and  I think that  this proposal is  born out                                                                    
     of that kind of  rhetoric, which places the environment                                                                    
     and economy on  opposite sides of the spectrum.   And I                                                                    
     think that  passing this executive order  furthers that                                                                    
     myth.                                                                                                                      
                                                                                                                                
     We  really   need  to   be  working   toward  resolving                                                                    
     environment and resource  development difficulties in a                                                                    
     more round-table  and respectful manner, so  people can                                                                    
     understand that  environment and  economy need  to work                                                                    
     together  in this  state. ...  We're all  familiar with                                                                    
     the amount that this  administration has already eroded                                                                    
     the  public's  trust  through a  number  of  proposals.                                                                    
     This is just one more brick  in that wall, and it comes                                                                    
     across very easily  to the public as  nothing more than                                                                    
     political grandstanding,  and I ask you  to not support                                                                    
     it.  Thank you.                                                                                                            
                                                                                                                                
Number 1733                                                                                                                     
                                                                                                                                
DAVID P. JANKA, Owner/Operator, Auklet Charter Services, said                                                                   
that he does not support EO 107, and urged the committee to                                                                     
reject it.  He elaborated:                                                                                                      
                                                                                                                                
     This change does  not come from the  people, it doesn't                                                                    
     come  from   an  agency,  it  doesn't   come  from  the                                                                    
     legislature.    It's  an   executive  order,  and  this                                                                    
     executive is no  friend to the environment  and in turn                                                                    
     no  friend  to  the  protection  of  habitat.    I  can                                                                    
     understand that some streamlining  can make things more                                                                    
     efficient, but  this is a  substantial change  and it's                                                                    
     outrageous.     With  all   the  plans   that  Governor                                                                    
     Murkowski has spoken of for  roads, and mining, and oil                                                                    
     development, to  make a change  like this  is insulting                                                                    
     to Alaskans.                                                                                                               
                                                                                                                                
     I, like  so many of  Alaskans, have taken  offense with                                                                    
     the badmouthing  of [ADF&G] that  has taken  place from                                                                    
     the  governor's  office and  recently  on  a ...  local                                                                    
     radio  talk  show  by  Representative  John  Harris  of                                                                    
     Valdez in  reference to a  Power Creek project  here in                                                                    
     Cordova.   That  project had  tremendous cost  overruns                                                                    
     and construction  delays and even  a tragic death  of a                                                                    
     worker - none  of that had anything to  do with [ADF&G,                                                                    
     Division  of Habitat  and  Restoration].   And  another                                                                    
     thing:   if it wasn't  for [ADF&G], that  project would                                                                    
     not  be what  it  is  today, which  is  a project  that                                                                    
     everyone  in  this town  is  extremely  proud of  -  an                                                                    
     incredible facility,  and everything  is taken  care of                                                                    
     perfectly there - and [it's all] thanks to [ADF&G].                                                                        
                                                                                                                                
     And what I worry about  are projects now on the eastern                                                                    
     side of the  Copper River delta - home  of ... Alaska's                                                                    
     premier wild  salmon, the  Copper River  Red -  for oil                                                                    
     exploration.   With  this  change,  I'm really,  really                                                                    
     concerned [with]  how our fish and  wildlife protection                                                                    
     will take place ....   If we're looking at efficiencies                                                                    
     and streamlining  things, why don't we  keep the Senate                                                                    
     and eliminate  the House, and  we can get  through with                                                                    
     this process quicker.   I thank you very  much for your                                                                    
     time  and  for your  keeping  us  all  on task.    Good                                                                    
     evening.                                                                                                                   
                                                                                                                                
Number 1632                                                                                                                     
                                                                                                                                
JOHN  SISK relayed  that he  has  a background  in fisheries  and                                                               
wildlife  biology, has  a master's  degree in  forestry, and  has                                                               
recently  worked  for the  Knowles  Administration  as a  special                                                               
assistant, both in  ADF&G and in the governor's office.   He said                                                               
he  does not  support  EO  107.   He  then  paraphrased from  his                                                               
written  testimony,  which  said in  part  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Strong  fish  passage  and habitat  programs,  combined                                                                    
     with  abundance  based   harvest  management,  have  an                                                                    
     economic  dimension  that   helps  us  provide  fishing                                                                    
     opportunities and explore & develop  new markets.  Fish                                                                    
     in the  hold and money  in the  bank.  Two  examples in                                                                    
     which I  have experience are the  Pacific Salmon Treaty                                                                    
     (PST)   and  the   Marine  Stewardship   Council  (MSC)                                                                    
     Sustainable Fishery label.                                                                                                 
                                                                                                                                
     During the PST, our  neighbors in the Pacific Northwest                                                                    
     and  British  Columbia  attempted to  misrepresent  the                                                                    
     Southeast  Alaska  salmon  fisheries as  "pirates"  who                                                                    
     were  "over harvesting"  the northern  migrating salmon                                                                    
     that spawn  in rivers  in B.C., Washington  and Oregon.                                                                    
     The real story, however, was  that dams on the Columbia                                                                    
     and  Snake  Rivers,  combined   with  lack  of  "buffer                                                                    
     strips" of  timber along salmon streams,  depleted some                                                                    
     of the northwest  runs.  Habitat and  fish passage, not                                                                    
     fishing, are their challenges.   One of their proposals                                                                    
     would have closed entire  Alaska salmon fisheries, with                                                                    
     little  or no  benefit  to the  salmon  runs listed  as                                                                    
     "threatened" or endangered" in the Pacific Northwest.                                                                      
                                                                                                                                
     Thanks  to  Alaska's  history  of  commitment  to  fish                                                                    
     passage  ("Title 16"),  buffer strips  on spawning  and                                                                    
     rearing  streams, and  harvest management  that assures                                                                    
     plenty of fish  return to the rivers to  spawn, we were                                                                    
     able  to rebut  the Outside  misrepresentations of  our                                                                    
     fisheries,  and  redefine   the  negotiations  more  to                                                                    
     Alaska's advantage.   As a  result in 1999  we achieved                                                                    
     10-year  harvest  sharing  agreements that,  while  not                                                                    
     ideal,  are much  more  favorable  to Alaska  fishermen                                                                    
     than  many  thought  possible  to  achieve.  Today  our                                                                    
     fishermen   -   sport,  commercial,   subsistence   and                                                                    
     recreational  -  enjoy   an  abundance  of  harvestable                                                                    
     salmon.   Food on the  table, fish  on the line  and in                                                                    
     the hold, and money in the bank.                                                                                           
                                                                                                                                
MR.  FISK went  on to  say  that without  the integrated  program                                                               
currently in place,  Alaska would not have the  abundance of fish                                                               
for harvesters  today.  That  same program allowed Alaska  to get                                                               
certified  as  sustainable  by the  Marine  Stewardship  Council.                                                               
This certification is  really paying off, he opined,  in terms of                                                               
niche  high-end   markets,  which  a  number   of  fishermen  and                                                               
processors are  taking advantage of.   Although no  panacea, this                                                               
certification  helps members  of  the industry  make  money.   He                                                               
suggested that EO 107 will  weaken the current program, and urged                                                               
members to consider carefully the  impact on working Alaskans the                                                               
current program has.                                                                                                            
                                                                                                                                
Number 1476                                                                                                                     
                                                                                                                                
BEN KIRKPATRICK relayed  that he has worked  for "the department"                                                               
as  a "fish  tech" and  a fish  biologist, and  is currently  the                                                               
"Haines area habitat  biologist."  He said that  with the current                                                               
departmental  reorganization that  is taking  place, most  of the                                                               
research aspects  will stay in  ADF&G rather than moving  to DNR.                                                               
He said that there are a lot  of good reasons for not going along                                                               
with EO 107 or EO 106, and he elaborated:                                                                                       
                                                                                                                                
     One of  the main  things that I've  seen over  my years                                                                    
     working  for  the  department is,  almost  everybody  -                                                                    
     whether   it's  a   commercial  fisherman,   [a]  sport                                                                    
     fisherman,  a   developer  -  ...  really   values  our                                                                    
     resources. ...  One of the  things I have noticed  is -                                                                    
     whether it's human nature, greed,  "the American Way" -                                                                    
     ... it  does seem  that we  do need to  keep on  eye on                                                                    
     people, at least  have the threat that  that's going to                                                                    
     happen.  And I think with  the 30 percent cut, it least                                                                    
     in Southeast,  of the permitting biologists,  that that                                                                    
     is  going to  be a  serious thing  we're going  lose if                                                                    
     this current structure is carried  forth.  And just one                                                                    
     last  thing to  wrap  up is,  I will  be  very glad  to                                                                    
     provide ... a  copy of the, quote  unquote, "gag order"                                                                    
     that was  passed on to us,  in an e-mail version  - I'd                                                                    
     be glad to send that to you.                                                                                               
                                                                                                                                
REPRESENTATIVE SEATON  asked whether currently, a  biologist goes                                                               
on site before a permit is issued.                                                                                              
                                                                                                                                
MR. KIRKPATRICK estimated  that such is done at  least 90 percent                                                               
of  the  time,  and  remarked  that that  has  been  one  of  the                                                               
division's strengths  and keys to  its success, since  its sister                                                               
agencies as  well as federal  agencies depend on  the information                                                               
gathered.                                                                                                                       
                                                                                                                                
Number 1337                                                                                                                     
                                                                                                                                
CATHERINE POHL testified on her own  behalf but noted that she is                                                               
a habitat  biologist with ADF&G.   She mentioned that  she agrees                                                               
with everything that  prior ADF&G personnel have said.   She went                                                               
on to say:                                                                                                                      
                                                                                                                                
     One of the challenges you  have, I think, in looking at                                                                    
     this  is  that the  world  of  project review  and  the                                                                    
     language of  the regulation  involved is  very complex,                                                                    
     and it's kind  of hard to understand  how the substance                                                                    
     of  habitat protection  happens.   I mean,  how do  you                                                                    
     protect  this  habitat?   You  read  the  statutes  and                                                                    
     they're extremely  general, and  [so] you  don't really                                                                    
     know how you get  from "A" to "B" - how  do you get the                                                                    
     on-the-ground protection  - and what assurance  are you                                                                    
     going  to  have  that    ...  a  reasonable  amount  of                                                                    
     protection is what you're going  have, or that anything                                                                    
     like  our current  protection is  what you're  going to                                                                    
     have.                                                                                                                      
                                                                                                                                
     And I guess  I would say, from my  knowledge of habitat                                                                    
     permitting  and  project  review,  I  am  confident  in                                                                    
     saying  that Executive  Order 107  will  not result  in                                                                    
     streamlined   permitting.      It  will   gut   habitat                                                                    
     protection and degrade habitat.   It will discredit the                                                                    
     state; create chaos, inefficiency,  and delays; and may                                                                    
     endanger emerging and  economically important programs.                                                                    
     ...  [Executive Order  107] will  result in  a loss  of                                                                    
     state  credibility,  perhaps  handicapping  subsistence                                                                    
     and  development negotiations.    Right  now, we  don't                                                                    
     have  hydro review  -  the  [Federal Energy  Regulatory                                                                    
     Commission (FERC)]  person was  among the five  of nine                                                                    
     habitat biologists laid off in Southeast.                                                                                  
                                                                                                                                
     ...  There   will  be  other  effects   down  the  road                                                                    
     including  liability to  ADF&G  for expanding  wildlife                                                                    
     programs related  to tourism  and recreation;  even the                                                                    
     "SWG/CARA"  funds   come  with  an  umbrella   goal  of                                                                    
     conservation  planning  for  non-game  species.    That                                                                    
     means looking  at habitat. ...  There are all  kinds of                                                                    
     considerations that I have not  heard brought up; there                                                                    
     are going to be  regulatory confusions, there are going                                                                    
     to be [losses]  of federal funding.  It will  just be a                                                                    
     disaster in  addition to  all the  on-the-ground damage                                                                    
     that will  occur because  of loss  of field  review and                                                                    
     loss  of  site  presence   and  loss  of  institutional                                                                    
     support for habitat protection.  Thanks very much.                                                                         
                                                                                                                                
Number 1168                                                                                                                     
                                                                                                                                
DALE KELLY, Executive Director, Alaska Trollers Association                                                                     
(ATA), said that the ATA opposes EO 107 and agrees with many of                                                                 
the previous comments.  She went on to say:                                                                                     
                                                                                                                                
     I feel  that my  ... job  here tonight  is [to]  try to                                                                    
     engage  you  in  a  conversation and  persuade  you  to                                                                    
     discuss with  the governor ...  other options  that may                                                                    
     exist  to  Executive Order  107.    [The ATA]  strongly                                                                    
     encourages streamlining  government [and]  cost savings                                                                    
     measures   that  will   benefit  the   state  and   its                                                                    
     residents;  we applaud  the  governor  for looking  for                                                                    
     options to  do just that.   But we also point  out that                                                                    
     other  governors have  looked at  these options  in the                                                                    
     past  and  have  turned  away   from  them:    Governor                                                                    
     Sheffield,  Governor Hickel.    Governor  Hickel had  a                                                                    
     review done of  [the Division of Habitat]  in 1992, and                                                                    
     decided that  it really wasn't in  the state's interest                                                                    
     to do this.                                                                                                                
                                                                                                                                
     Former   [Department   of  Environmental   Conservation                                                                    
     (DEC)] commissioner, John  Sandor, recently submitted a                                                                    
     letter  on HB  78 discussing  the three  commissioners'                                                                    
     permit authorities and how  he strongly suggested those                                                                    
     remain intact.  I think that  there are a lot of folks,                                                                    
     including  five  commissioners  of  [ADF&G],  that  are                                                                    
     telling  you  that  there are  significant  flaws  with                                                                    
     Executive Order  107.  That  said, I've spend a  lot of                                                                    
     time  talking to  ... past  governors, division  heads,                                                                    
     [and] commissioners  of [ADF&G] about this  matter, and                                                                    
     I do  believe that  there can  be improvements  made to                                                                    
     the system of permitting as we now know it.                                                                                
                                                                                                                                
     And  I  think that  we  can  accomplish the  governor's                                                                    
     goals,  and the  goals of  the people  of the  state to                                                                    
     protect  our resources,  by engaging  in  some sort  of                                                                    
     forum  that   brings  all  the  affected   ...  parties                                                                    
     together to  come up with  some ideas.   And we  have a                                                                    
     few for you.   What I've found in talking  to folks is,                                                                    
     number one, I  think a lot of the  charges made against                                                                    
     [ADF&G]  are  really  better laid  on  other  types  of                                                                    
     permitting;  many  of  the concerns  that  we've  heard                                                                    
     raised here in the last  three nights have involved the                                                                    
     Alaska Coastal  Management Program  [ACMP].  That  is a                                                                    
     system  that's   been  in  place   for  30   years  and                                                                    
     definitely  is in  need of  an overhaul,  and you  will                                                                    
     hear  that  from  any  number   of  sources,  from  the                                                                    
     governor's office to the  environmental community - ...                                                                    
     everybody in  between admits  that the  appeals process                                                                    
     in the ACMP is a nightmare and needs to be fixed.                                                                          
                                                                                                                                
Number 1013                                                                                                                     
                                                                                                                                
MS. KELLEY continued:                                                                                                           
                                                                                                                                
     There  are no  Title 16  implementing [regulations]  in                                                                    
     place at this  point in time, and a lot  of time you'll                                                                    
     hear  concerns  about   inconsistencies  in  permitting                                                                    
     processes.   Well, it's true.   But one of  the reasons                                                                    
     the inconsistencies exist in  the permitting process is                                                                    
     that it  has allowed  developers to negotiate  with the                                                                    
     [ADF&G]  to   sometimes  get   a  better   process  for                                                                    
     everybody.   My understanding, from members  of the oil                                                                    
     industry,  is [that]  in fact  they've  kind of  veered                                                                    
     away  from wanting  implementing [regulations]  because                                                                    
     they fear that they might  be in position where they'll                                                                    
     have less flexibility with their permitting process.                                                                       
                                                                                                                                
     And  I  don't  want  to speak  on  the  oil  industry's                                                                    
     behalf,  certainly, but  we're  just hearing  different                                                                    
     things  from different  people that  perhaps there  are                                                                    
     other ways  of going about  this.  So we  would suggest                                                                    
     ...  putting together  a  legislative package,  working                                                                    
     with  affected   public;  crucial  elements   would  be                                                                    
     maintaining  Title  16   authority  and  due  deference                                                                    
     provisions for  the [commissioner of ADF&G].   We truly                                                                    
     believe  that that's  an important  process for  checks                                                                    
     and balances.                                                                                                              
                                                                                                                                
MS. KELLEY, in response to a question, said she would be happy                                                                  
to assist legislators with putting together the aforementioned                                                                  
legislative package.  In summary, she said:                                                                                     
                                                                                                                                
     This  is  of  huge  concern  to  our  association.    I                                                                    
     represent  the  only salmon  fishery  in  the state  of                                                                    
     Alaska  that's presently  managed under  the Endangered                                                                    
     Species Act,  directly relative to  habitat destruction                                                                    
     in the Columbia River basin.   We know what it means to                                                                    
     lose  a resource  that we  rely  on.   It's a  business                                                                    
     decision  that's  been  made,  in  that  state,  that's                                                                    
     affected  not   only  their   own  residents   but  our                                                                    
     residents.                                                                                                                 
                                                                                                                                
     We're proud  of the system that  we've established here                                                                    
     in our state,  and ... we think the  structure was very                                                                    
     well thought  out by the  makers of our  [Alaska State]                                                                    
     Constitution and  the original  legislature.   We think                                                                    
     there's always  improvements that  can be made,  and we                                                                    
     want to be  part of that; we would like  to make Alaska                                                                    
     a friendly  place to  do business  but also  tough with                                                                    
     respect  to maintaining  the  important habitat  values                                                                    
     that  we have.   We  think that's  a business  decision                                                                    
     that will  pay off in the  long run as it  has to date.                                                                    
     Anything that  we can  do to further  that and  get the                                                                    
     different interest  groups talking  together to  have a                                                                    
     better business climate, ... we stand willing to help.                                                                     
                                                                                                                                
Number 0765                                                                                                                     
                                                                                                                                
MIKE  ROBBINS, Alaska  State Employees  Association (ASEA)  Local                                                               
52, after  noting that he is  an attorney with a  master's degree                                                               
in ocean/marine affairs,  stated that the union is  opposed to EO                                                               
107 and  urges the  committee to  take action to  reject it.   He                                                               
went on to say:                                                                                                                 
                                                                                                                                
     A  couple  of  constitutional   issues  come  to  mind:                                                                    
     separation of powers  doctrine.  Article II  ... of the                                                                    
     Alaska    [State]    Constitution   says    that    the                                                                    
     legislature's  empowered  to  enact   the  laws.    The                                                                    
     executive branch  is to carry  out and  implement those                                                                    
     laws according  to Article III ....   Forty-three years                                                                    
     ago,  the legislature  established the  [ADF&G and  the                                                                    
     DNR], each  with a role  designed to  balance different                                                                    
     public  interest   objectives.    In  the   1970s,  the                                                                    
     legislature    passed   statutes    concerning   public                                                                    
     employees  and the  retirement system.   In  1983, [the                                                                    
     legislature] passed a  statute giving [ADF&G] employees                                                                    
     a 20-year retirement package.                                                                                              
                                                                                                                                
     The executive order attempts to  amend and repeal these                                                                    
     laws.   This  is an  unconstitutional violation  of the                                                                    
     separation  of powers  doctrine  as well  as the  merit                                                                    
     principle,  which  is  also recognized  by  the  Alaska                                                                    
     [State]  Constitution,   and  the  right  to   have  an                                                                    
     unimpaired retirement system,  which is also recognized                                                                    
     by  the Alaska  [State]  Constitution.   Unfortunately,                                                                    
     the  governor's  state of  the  state  speech made  the                                                                    
     statement that,  quote, "the  habitat division  was the                                                                    
     sole agency  opposing and delaying  legitimate projects                                                                    
     important to the state."                                                                                                   
                                                                                                                                
     We already know from  prior testimony here, from people                                                                    
     who  were referred  to  in  the governor's  statements,                                                                    
     that only  a very small percentage  of applications are                                                                    
     actually denied, and  none of those had to  do with the                                                                    
     projects   mentioned.      At  the   governor's   press                                                                    
     conference  on February  3,  other unfortunate  remarks                                                                    
     were  made  alleging  that  [Division  of  Habitat  and                                                                    
     Restoration]  employees dragged  their feet,  they were                                                                    
     inflexible,  and  they  made open,  quote,  "protection                                                                    
     input  on the  basis  of personal  viewpoints."   Those                                                                    
     remarks  [are] unfortunate  in that  apparently they're                                                                    
     not based on facts. ...                                                                                                    
                                                                                                                                
Number 0587                                                                                                                     
                                                                                                                                
     I'll  summarize   by  pointing   out  that   the  merit                                                                    
     principle  is  also  incorporated into  the  collective                                                                    
     bargaining agreement involving  Article 14, and Article                                                                    
     12 suggests that reorganization  cannot be used for the                                                                    
     purpose   of   eliminating   jobs   or   constructively                                                                    
     discharging  employees.   Both of  those articles  have                                                                    
     been violated by Executive Order  107.  The union would                                                                    
     urge you to do the  right thing, which is to disapprove                                                                    
     Executive Order 107.  Thank you.                                                                                           
                                                                                                                                
REPRESENTATIVE BERKOWITZ asked Mr. Robbins whether he or anyone                                                                 
he knew is considering taking legal action.                                                                                     
                                                                                                                                
MR. ROBBINS replied:  "It depends on whether filing lawsuits and                                                                
grievances are legal actions."                                                                                                  
                                                                                                                                
REPRESENTATIVE BERKOWITZ remarked, "Well, they're not illegal as                                                                
far as I'm concerned."                                                                                                          
                                                                                                                                
MR. ROBBINS stated that a grievance will definitely be filed,                                                                   
and that the final decision on whether to file a lawsuit has not                                                                
been made though it is being strongly considered.                                                                               
                                                                                                                                
Number 0473                                                                                                                     
                                                                                                                                
CELIA ROZEN, after noting that she works for ADF&G, said she is                                                                 
speaking on her own behalf.  She went on to say:                                                                                
                                                                                                                                
     I'm  here to  speak as  a private  citizen who  is very                                                                    
     interested  in  sustaining  the  legal  and  historical                                                                    
     precedents in  this state.  Reading  through the Alaska                                                                    
     constitutional convention  this weekend, I  saw similar                                                                    
     arguments flying through College,  Alaska, in 1956 that                                                                    
     I  hear from  Juneau  in 2003  as to  how  to divvy  up                                                                    
     natural  resources management.    These lawmakers  were                                                                    
     equally concerned  about growing  the state  and making                                                                    
     the most of  our natural resources.  In  the end, these                                                                    
     lawmakers  left  the  first legislature  with  all  the                                                                    
     decisions  regarding  the  structure of  government  to                                                                    
     oversee the  natural riches of  our state.   Repeatedly                                                                    
     at the convention, the answer  was:  "Let's leave it up                                                                    
     to the  legislature."   Nowhere did it  say:   "Oh, let                                                                    
     the governor decide."                                                                                                      
                                                                                                                                
     To  put it  simply,  the first  legislature decided  to                                                                    
     have  a  separate  department  of   fish  and  game  to                                                                    
     conserve  according  to  the  principles  of  sustained                                                                    
     yield,  and  a  department   of  natural  resources  to                                                                    
     oversee  the  common  use of  these  resources.    This                                                                    
     responsibility  of sustained  yield,  which flows  from                                                                    
     the  constitution,  was  vested in  the  newly  created                                                                    
     department  of fish  and game.   The  founders of  this                                                                    
     state were  especially concerned with  the perpetuation                                                                    
     of  fisheries.    We  all  know  that  preservation  of                                                                    
     habitat is integral  to fishery management.   I want to                                                                    
     make  the   argument  that  [ADF&G's]   authority  over                                                                    
     sustained  yield flows  from  a constitutional  mandate                                                                    
     that was sealed  by legislative action.  I  see this as                                                                    
     a  very vivid  continuum  of  legal authority  stemming                                                                    
     from the action of these founders.                                                                                         
                                                                                                                                
Number 0345                                                                                                                     
                                                                                                                                
MS. ROZEN continued:                                                                                                            
                                                                                                                                
     How   can   one   hastily-conceived   and   politically                                                                    
     motivated executive  order trump the combined  power of                                                                    
     constitutional law  and legislative action in  one fell                                                                    
     swoop?  The  executive branch does not  have the muscle                                                                    
     to bulldoze down the state's  legal foundations - an EO                                                                    
     is  a midget  among these  legal giants.   We  are also                                                                    
     left with  Article III, Section  22, which  states that                                                                    
     state agencies  and their  functions must  be according                                                                    
     to  major  purposes.    Sustained  yield  in  terms  of                                                                    
     fisheries  would  be  a  major  purpose  of  a  fishery                                                                    
     agency,  not  a  natural resource  development  agency.                                                                    
     The   state's  founders   said,   "Leave   it  to   the                                                                    
     legislature."  Now you are  the lawmakers; now you have                                                                    
     [the]  responsibility  to  create   laws  that  can  be                                                                    
     justified  and make sense.                                                                                                 
                                                                                                                                
     Remember  the  words of  Bob  Bartlett  in his  keynote                                                                    
     speech to the constitutional  convention:  "Fifty years                                                                    
     from now, the people of  Alaska may very well judge the                                                                    
     product of  this convention not by  the decisions taken                                                                    
     upon  issues like  local government  and apportionment,                                                                    
     but rather by the decisions  taken upon the vital issue                                                                    
     of resources policy."  Those  50 years have not run out                                                                    
     yet, but we're getting close.   Let's not sacrifice the                                                                    
     hard work,  careful thought, and sheer  brilliance that                                                                    
     went  into  the  forming   of  this  state  government,                                                                    
     (indisc.)  by  current  political  fancy.    Please  do                                                                    
     what's  right for  this state  and  leave the  complete                                                                    
     power  over  sustained  yield  of  fisheries  with  the                                                                    
     [ADF&G]  and leave  your own  legacy of  good lawmaking                                                                    
     for  our future  generations.   Please  get behind  the                                                                    
     special  concurrent resolution  in  your committee  and                                                                    
     allow  a  floor debate  of  the  entire legislature  to                                                                    
     occur.  Thank you [for] this opportunity to testify.                                                                       
                                                                                                                                
Number 0218                                                                                                                     
                                                                                                                                
WADE WILLIS,  Owner, Vision Quest  Adventures, mentioned  that he                                                               
is  a  current  permit  holder for  activities  governed  by  the                                                               
Division  of Habitat  and Restoration,  and that  he has  permits                                                               
acquired  under   "the  DNR  system";   therefore,  he   has  had                                                               
experience  regarding the  permitting process  of both  entities.                                                               
He  also noted  that  he is  a member  of  the Alaska  Wilderness                                                               
Recreation &  Tourism Association (AWRTA).   He said  he strongly                                                               
opposes EO 107.  He went on to say:                                                                                             
                                                                                                                                
     The permitting  process is obviously working.   We have                                                                    
     43 years to  evaluate how it has been working.   It has                                                                    
     gone from  a ... fisheries resource  that was destitute                                                                    
     to one  that now supports  a huge tourism  ... industry                                                                    
     and  it   also  supports   a  commercial   fishing  and                                                                    
     subsistence  industry.    So,  the  current  permitting                                                                    
     process  has  been  proven  to work.    Why  would  the                                                                    
     legislature  want   to  use   an  executive   order  to                                                                    
     dismantle  such  a  successful, proven  doctrine?    An                                                                    
     executive  order is  not  necessary  to streamline  the                                                                    
     permitting process.                                                                                                        
                                                                                                                                
     Murkowski is  boldly trying  to force  his pro-business                                                                    
     stance down  the throat of Alaska  residents by denying                                                                    
     public  involvement and  legislative oversight.   Small                                                                    
     businesses have  not been  involved in  his closed-door                                                                    
     meetings.   We were not  there.   It was a  closed door                                                                    
     decision by a small  group of Murkowski "groupies" that                                                                    
     represent only  big business  interests at  the expense                                                                    
     of  the   citizens  of  Alaska.  ...   It  indeed  only                                                                    
     represented  the  Department of  Fish  &  Game and  the                                                                    
     commissioner, [who] ... wouldn't  even tell you whether                                                                    
     or not  he supported it  ... - he doesn't  believe that                                                                    
     the  legislature is  important enough  to be  told that                                                                    
     ....                                                                                                                       
                                                                                                                                
Number 0055                                                                                                                     
                                                                                                                                
SCOTT THORSON said he supports moving the habitat division over                                                                 
to DNR.  He went on to say:                                                                                                     
                                                                                                                                
     The one  group of  people that  we've been  missing has                                                                    
     been industry.  I think you  really need to kind of ask                                                                    
     yourself why that  is, and ... I think that  there is a                                                                    
     fair amount of ... concern  among industry that if they                                                                    
     really speak up,  that ... they'll kind of  have to pay                                                                    
     for  it later  if this  ...  move over  to DNR  doesn't                                                                    
     really take place.                                                                                                         
                                                                                                                                
TAPE 03-24, SIDE A                                                                                                            
Number 0001                                                                                                                     
                                                                                                                                
MR.  THORSON  opined that  the  governor  ought  to be  given  an                                                               
opportunity to manage  the executive branch the way  that he sees                                                               
fit, and suggested  that others should get  behind the governor's                                                               
decision to move  the Division of Habitat and  Restoration to the                                                               
DNR.                                                                                                                            
                                                                                                                                
Number 0059                                                                                                                     
                                                                                                                                
JOE MEEHAN thanked the committee for the opportunity to testify                                                                 
on EO 107.  He went on to say:                                                                                                  
                                                                                                                                
     I'm  sure everyone  here  this  evening recognizes  the                                                                    
     importance  of our  natural resources.   Alaska's  fish                                                                    
     and  wildlife are  the lifeblood  of  our history,  our                                                                    
     economy,  our  recreation,  and   our  lives.    As  an                                                                    
     Alaskan, I  expect my  elected and  appointed officials                                                                    
     to create  and enforce  laws that protect  and conserve                                                                    
     fish  and  wildlife  populations  and  their  habitats.                                                                    
     When  it   comes  to  conserving  and   managing  these                                                                    
     resources,   we  do   not  settle   for  anything   but                                                                    
     perfection.                                                                                                                
                                                                                                                                
     The governor  has stated that this  restructuring is in                                                                    
     an   effort  to   streamline  the   state's  permitting                                                                    
     process,  but   his  repeated  justification   is  that                                                                    
     certain   habitat  biologists   in  the   [ADF&G]  were                                                                    
     unreasonably blocking  legitimate development projects.                                                                    
     If the  governor thinks  his staff is  out of  line, he                                                                    
     should simply address these  concerns through his chain                                                                    
     of  command,  down to  the  offices  or individuals  of                                                                    
     concern.   If  he thinks  the state  permitting process                                                                    
     needs an evaluation and  restructuring, he should start                                                                    
     an  honest evaluation  of the  program,  and allow  for                                                                    
     ample public debate on the issue.                                                                                          
                                                                                                                                
     While these hearings provide  for limited public input,                                                                    
     the timeline of the  executive order and the propaganda                                                                    
     the  governor  has  released  to   the  media  are  not                                                                    
     adequate for a legitimate  public debate on this issue.                                                                    
     The  founders  of   our  state  government  consciously                                                                    
     created two  different natural resource agencies:   one                                                                    
     for  managing  our  fish and  wildlife  resources,  the                                                                    
     other for  managing resources such  as land  and water.                                                                    
     This  structure  allowed  for  the  proper  checks  and                                                                    
     balances that  our fish and  wildlife deserve,  and has                                                                    
     proven  to be  an  efficient and  effective method  for                                                                    
     assuring  the  protection  of  our  fish  and  wildlife                                                                    
     resources.   The  system isn't  broken;  it works  just                                                                    
     fine and doesn't need fixing.                                                                                              
                                                                                                                                
Number 0179                                                                                                                     
                                                                                                                                
MR. MEEHAN continued:                                                                                                           
                                                                                                                                
     The proper place for biologists  to be making decisions                                                                    
     about potential  impacts to  fish and  wildlife habitat                                                                    
     is  in  the  agency  that  manages  and  studies  these                                                                    
     resources.   These permitters should be  surrounded and                                                                    
     supervised  by  other   professionals  who  posses  the                                                                    
     knowledge and  skills that  they can  draw from,  in an                                                                    
     agency  that  has   the  administrative  and  political                                                                    
     support to  make the tough  decisions when it  comes to                                                                    
     habitat  conservation.   This  support  will not  exist                                                                    
     within  the Department  of  Natural  Resources, and  we                                                                    
     will see a long-term  chronic erosion of the safeguards                                                                    
     designed to conserve our resources.                                                                                        
                                                                                                                                
     Additionally,  placing  the  permitting  authority  for                                                                    
     fish and game  resources in DNR will not  only make the                                                                    
     process  less  effective,  it   will  make  the  entire                                                                    
     process  less  efficient.     It  not  only  physically                                                                    
     removes  the permitters  from the  other fish  and game                                                                    
     professionals,  but it  adds a  buffer as  they try  to                                                                    
     communicate  with  other  fish and  game  professionals                                                                    
     back over [agency lines]. ...                                                                                              
                                                                                                                                
     The  Governor's  proposal   will  simply  diminish  the                                                                    
     environmental safeguards  that have protected  our fish                                                                    
     and wildlife resources since statehood,  and [do it] in                                                                    
     the interest  of lowering [the] habitat  protection bar                                                                    
     for industry interests.  This  proposal is bad for fish                                                                    
     and wildlife,  [and] bad  for Alaskans.   It is  not in                                                                    
     the  best   interest  of  the   state.    It   is  your                                                                    
     responsibility,  as the  representatives of  the people                                                                    
     of this  state, to  assure the  protection of  our fish                                                                    
     and  wildlife  resources.    You can  do  this  now  by                                                                    
     preventing Executive Order  107 from being implemented.                                                                    
     Thank you.                                                                                                                 
                                                                                                                                
Number 0320                                                                                                                     
                                                                                                                                
JEANNE WALTER thanked the committee for the opportunity to                                                                      
comment on Executive Order 107.  She went on to say:                                                                            
                                                                                                                                
     I  am  speaking  as  a  resident of  Alaska  and  as  a                                                                    
     registered  voter.   My  background  is toxicology  and                                                                    
     biology and, as such, I  have worked for the Department                                                                    
     of   Interior,   [the]   State   of   Alaska,   several                                                                    
     universities, and  industry - in particular,  the paper                                                                    
     industry.   I am  also a board  member for  the Pacific                                                                    
     Northwest  International  Erosion Control  Association,                                                                    
     and  [that] board  is presently  preparing a  letter to                                                                    
     submit to  the committee.   I view  this transfer  as a                                                                    
     paramount  issue in  the compliance  of  state law  for                                                                    
     fish and  wildlife resources.   The original  intent of                                                                    
     Executive  Order  107,  as stated,  was  to  streamline                                                                    
     permitting  while   protecting  (indisc.   -  equipment                                                                    
     malfunction).                                                                                                              
                                                                                                                                
     [Not on  tape, but in the  witness's written testimony,                                                                    
     was:   This will not be  possible under EO 107  for the                                                                    
     following reasons:   Alaska Department  of Fish  & Game                                                                    
     (ADF&G) Habitat and  Restoration Division staff process                                                                    
     2000  permits a  year averaging]  a 14-day  turnaround.                                                                    
     Only  0.5  percent of  these  permits  [were denied  in                                                                    
     2002].   I urge you  to acquire these records  and view                                                                    
     them  for  yourself.   The  turnaround  time  described                                                                    
     includes the  time from when a  complete application is                                                                    
     submitted,  to  when  the  permit   is  issued.    This                                                                    
     turnaround  time  average  includes all  projects,  not                                                                    
     just a  select few as  has been suggested.   The Alaska                                                                    
     Department  of Natural  Resources  [DNR] water  permits                                                                    
     take much  longer, with  as many  as 700  permits being                                                                    
     backlogged; the  backlog is expected to  be finished by                                                                    
     2007 at the earliest.                                                                                                      
                                                                                                                                
Number 0469                                                                                                                     
                                                                                                                                
     The [ADF&G]  and DNR have  different missions,  and the                                                                    
     checks  and  balances  of   these  two  departments  to                                                                    
     protect  fish habitat  will not  occur under  Executive                                                                    
     Order 107.  Commissioner  Irwin and acting Commissioner                                                                    
     Duffy stated  that 22  habitat division  staff received                                                                    
     pink  slips  on  March  7, releasing  them  from  state                                                                    
     employment  as  of  May  1,  2003.    Additionally,  12                                                                    
     currently   vacant   positions  will   be   eliminated.                                                                    
     Decreasing the  staff by 30 percent  will decrease site                                                                    
     inspection,   monitoring,   restoration  efforts,   and                                                                    
     mitigation   suggestions,  and   will  slow   down  the                                                                    
     permitting  process.   The  only way  to  speed up  the                                                                    
     permitting process  under these cuts will  be to rubber                                                                    
     stamp permit acceptance ... without proper review.                                                                         
                                                                                                                                
MS. WALTER concluded:                                                                                                           
                                                                                                                                
     ...  I would  just  like  to point  out  that the  ANWR                                                                    
     [Arctic National  Wildlife Refuge] development  vote is                                                                    
     presently  very close  in our  nation's capital.   Many                                                                    
     members  have been  swayed  to vote  in  favor of  ANWR                                                                    
     development  due   to  the  success   and  professional                                                                    
     integrity  of  the  [ADF&G's] habitat  and  restoration                                                                    
     division's permitting  responsiveness.  I  believe with                                                                    
     such   a  drastic   change   in   permitting  and   the                                                                    
     dismantling   in   the    [ADF&G]   habitat   division,                                                                    
     Representatives and Senators  will vote against opening                                                                    
     ANWR to  exploration drilling.  If  ... Executive Order                                                                    
     107  passes, I  will spend  all my  time educating  our                                                                    
     nation's  Leaders  on  the effects  of  this  executive                                                                    
     order.   Is it worth  risking ANWR development  under a                                                                    
     new  and  questionable  permitting  section?    I  will                                                                    
     assure you,  many people believe  it is not,  and these                                                                    
     people vote.   Please  note that  I am  for responsible                                                                    
     development, and I will finish  by summarizing:  Please                                                                    
     bring  Executive Order  107  to the  floor  of a  joint                                                                    
     session and vote to disapprove it and EO 106.                                                                              
                                                                                                                                
Number 0550                                                                                                                     
                                                                                                                                
AARON BENJAMIN said he wished to speak about the ADF&G and what                                                                 
he referred to as an abuse of the department's power.  He                                                                       
elaborated:                                                                                                                     
                                                                                                                                
     I  have  been  accused  of  environmental  crimes,  and                                                                    
     threatened with  fines and litigations for  things that                                                                    
     I  didn't even  do, having  to  do with  a permit  that                                                                    
     [ADF&G's]  sport fish  access division  had.   And they                                                                    
     knew  full well  exactly  everything that  I was  doing                                                                    
     there; I  was dredging  out a boat  launch, and  then a                                                                    
     habitat biologist  came in and  threatened me  with all                                                                    
     this stuff.   And then  he had  to find out  later that                                                                    
     [ADF&G] was  the ... permit  holder, so the  guy didn't                                                                    
     even do  the homework there.   But what  really torqued                                                                    
     me was  the idea that this  man was going to  use these                                                                    
     draconian efforts  to turn me  into a criminal  on this                                                                    
     thing.   And ...  I wrote  letters to  Commissioner Rue                                                                    
     about it,  ... which were not  very well -- I  think he                                                                    
     wrote some letters back  that weren't really addressing                                                                    
     what I asked him about.                                                                                                    
                                                                                                                                
     But  anyway, this  same  habitat  biologist pulled  the                                                                    
     same stunt  on Mark  O'Brien (ph) with  [the Department                                                                    
     of Transportation & Public Facilities]  on a project up                                                                    
     here  after  the thing  had  already  gone through  the                                                                    
     public  process and  gone through  all the  permitting.                                                                    
     The job  went out to bid  with a contractor and  was in                                                                    
     the middle of  being constructed on the  road, and this                                                                    
     same biologist  pulled the same stunt  with threats and                                                                    
     litigation and fines,  and this man never  even went to                                                                    
     any of  the public  meetings, which I  went to  for two                                                                    
     years here.                                                                                                                
                                                                                                                                
     And ...  this has  just gotten out  of hand  that these                                                                    
     guys  could just  jump out  and bypass  all the  public                                                                    
     stuff that  everybody else  has to  abide by,  and this                                                                    
     threatening  with fines  and litigation  and strong-arm                                                                    
     tactics. ... To summarize it,  these guys need a collar                                                                    
     put  on them  and to  be held  accountable for  extreme                                                                    
     environmental viewpoints  and for interpreting  the law                                                                    
     as they  see fit,  ... and  no American  citizen should                                                                    
     ever have to put up with  the kind of stuff that I went                                                                    
     through, and Mark O'Brien.                                                                                                 
                                                                                                                                
Number 0697                                                                                                                     
                                                                                                                                
ERIC MUENCH said that he supports Executive Order 107.  He went                                                                 
on to say:                                                                                                                      
                                                                                                                                
     The charges  that transferring habitat concerns  to DNR                                                                    
     will leave fish and game  unprotected and that DNR will                                                                    
     simply  act as  an advocate  for development  is simply                                                                    
     wrong.   As a  40-year Alaska  forest engineer,  I have                                                                    
     been on  a great many Forest  [Resources and Practices]                                                                    
     Act inspections,  some with DNR, Division  of Forestry,                                                                    
     people, as well as [ADF&G]  people and DEC people; some                                                                    
     with  just the  Division of  Forestry and  [ADF&G] when                                                                    
     DEC  lost their  personnel; and  some simply  with [the                                                                    
     Division of  Forestry] people.   And I have  found that                                                                    
     [the]  Division  of  Forestry  personnel  that  I  have                                                                    
     associated with  on these projects have  been every bit                                                                    
     as  concerned  and  protective  of  water  quality  and                                                                    
     anadromous habitat as the people from other agencies.                                                                      
                                                                                                                                
     [The]  DNR is  the state's  land and  permitting agency                                                                    
     for almost  all purposes:   water rights,  land leases,                                                                    
     land sale, tideland  permits.  rights of  way and other                                                                    
     similar  actions  are  all  under  DNR  administration.                                                                    
     Only habitat  permits for  stream crossings  fall under                                                                    
     [ADF&G].    With  qualified engineers,  foresters,  and                                                                    
     biologists on staff,  DNR can do that job  just as well                                                                    
     and a  great deal  more efficiently.   So I  would urge                                                                    
     you to support Executive Order 107.   And by the way, I                                                                    
     oppose [HSCR 1].  Thank you.                                                                                               
                                                                                                                                
Number 0822                                                                                                                     
                                                                                                                                
JILL JACOB thanked the committee for the opportunity to comment.                                                                
She went to say:                                                                                                                
                                                                                                                                
     How  efficient is  it to  gut our  state of  the brains                                                                    
     behind the  state's habitat division  of the  [ADF&G] -                                                                    
     its  biologists?   How  efficient will  it  be to  have                                                                    
     habitat  review   performed  by  [the]   Department  of                                                                    
     Natural  Resources personnel,  who have  no foundation,                                                                    
     training,  or background  in  wildlife  science?   [The                                                                    
     ADF&G] biologists  are the  people actively  working in                                                                    
     the field.   They are  the ones who have  the expertise                                                                    
     to gauge  the effects,  of a project,  on habitat.   If                                                                    
     you  allow this  administration to  the cut  the brains                                                                    
     out of our state agencies,  you will be cutting out the                                                                    
     heart  of  Alaska.    Our   state  is  its  wildlife  -                                                                    
     something  lost  to  the rest  of  our  country  [and],                                                                    
     indeed, to a great deal of the rest of the world.                                                                          
                                                                                                                                
     [You can]  streamline development anywhere, and  end up                                                                    
     with  irreversible loss  of habitat  and, consequently,                                                                    
     the  wildlife  it supports.    Try  fishing in  one  of                                                                    
     California's  anadromous fish  streams, or  finding the                                                                    
     bear  [portrayed] on  its state  flag.   Joseph  Krutch                                                                    
     (ph)   once   said,   "If  people   destroy   something                                                                    
     replaceable made  by mankind, they are  called vandals;                                                                    
     if  they   destroy  something  irreplaceable   made  by                                                                    
     nature, they are called developers."   Why would anyone                                                                    
     agree  to jeopardize  the quality  of  life in  Alaska:                                                                    
     our hunting,  fishing, or subsistence gathering?   Most                                                                    
     of  us  can't afford,  nor  do  we  choose, to  do  our                                                                    
     hunting and fishing in Scotland  or Texas.  Please vote                                                                    
     in  joint  session   to  disapprove  this  shortsighted                                                                    
     Executive Order 107.  Thank you.                                                                                           
                                                                                                                                
Number 0921                                                                                                                     
                                                                                                                                
SHELLY STALLINGS, after remarking that he has lived in Alaska                                                                   
for 26 years and has two children and three grandchildren that                                                                  
were born in Alaska, went on to say:                                                                                            
                                                                                                                                
     I  want  our  current   generation  to  leave  Alaska's                                                                    
     wildlife  as healthy  as it  is now,  for these  future                                                                    
     generations.  We  live in Alaska, the  largest state in                                                                    
     the union  with the largest amount  of wildlife habitat                                                                    
     and,  unarguably,  the  largest  numbers  of  wildlife:                                                                    
     fish,  which swim  in our  ocean,  lakes, and  streams;                                                                    
     birds, which fly  in our skies and roost  in our trees;                                                                    
     and other  animals, large and small,  which depend upon                                                                    
     adequate habitat  to live in  our state.   The governor                                                                    
     of  this  state  proposes   to  dismantle  the  habitat                                                                    
     division of  [the ADF&G].   This  change does  not make                                                                    
     sense.  It  is a poorly thought-out proposal.   It is a                                                                    
     proposal  which   should  be   opposed  by   the  state                                                                    
     legislature.                                                                                                               
                                                                                                                                
     Mr.  Murkowski was  not forthright  when he  campaigned                                                                    
     for the office  of governor of Alaska on  a platform of                                                                    
     not taxing  the people of  Alaska to solve  the state's                                                                    
     budget  problems.   Mr.  Murkowski  was not  forthright                                                                    
     when  he  campaigned  on  a   platform  where  he  said                                                                    
     education would be his number  one priority as governor                                                                    
     and that he would ensure  education in this state would                                                                    
     be fully  funded.  It  is my belief that  Mr. Murkowski                                                                    
     is not  being forthright when he  claims that Executive                                                                    
     Order  107   is  primarily  to  make   government  more                                                                    
     efficient.   I  believe  he is  attempting  to gut  the                                                                    
     protection  of  wildlife  in  Alaska  provided  by  the                                                                    
     [ADF&G]  habitat   division.    [The  ADF&G]   and,  in                                                                    
     particular, the  [Division of Habitat  and Restoration]                                                                    
     is not broken; it does not  need to be fixed. I ask you                                                                    
     to  deny  this executive  order.    Thank you  for  the                                                                    
     opportunity to speak.                                                                                                      
                                                                                                                                
Number 1053                                                                                                                     
                                                                                                                                
DAVID  CARTER,  Attorney  at  Law, indicated  that  he  would  be                                                               
testifying on  his own  behalf.  He  remarked that  although he's                                                               
heard  a lot  ADF&G employees  testify in  opposition to  EO 107,                                                               
he's not heard any DNR employees  testify at all, either in favor                                                               
or  in opposition.   He  opined that  placing habitat  protection                                                               
under  the purview  of DNR  would  be as  incongruous as  placing                                                               
timber sales  under the  purview of  ADF&G.  He  said that  as an                                                               
attorney, he knows that checks  and balances are important and it                                                               
is  therefore important  to  leave the  Division  of Habitat  and                                                               
Restoration under the  ADF&G.  If DNR doesn't do  a proper job of                                                               
addressing  the  issues  and  thus winds  up  in  litigation,  he                                                               
remarked,  since litigation  is not  synonymous with  efficiency,                                                               
the legislature would  be helping the governor  out by overriding                                                               
EO 107.   He added that EO 107 "is  special interest tinkering by                                                               
forestry and  timber interests," and  that EO  107 is not  a good                                                               
idea.   He concluded by  saying that as  elected representatives,                                                               
the legislature  should not allow  EO 107 to stand,  adding, "Put                                                               
habitat issues  back where  they have been  and belong,  with the                                                               
[ADF&G]."                                                                                                                       
                                                                                                                                
Number 1130                                                                                                                     
                                                                                                                                
JOSEPH  R.   SULLIVAN,  Ph.D.,  Program  Director,   Yukon  River                                                               
Drainage Fisheries  Association (YRDFA), indicated that  he would                                                               
be reading excerpts from a  letter the YRDFA's executive director                                                               
recently sent to Governor Murkowski.  He began:                                                                                 
                                                                                                                                
     Dear  Governor  Murkowski, commercial  and  subsistence                                                                    
     fishers,  (indisc.) constitute  the  membership of  the                                                                    
     Yukon  River  Drainage  Fisheries  Association,  depend                                                                    
     upon  good returns  of salmon  to the  Yukon River  for                                                                    
     their  livelihood,  their  lifestyle,  and  traditional                                                                    
     culture.    We  feel  that  your  intent  to  move  the                                                                    
     permitting  functions  of   the  [ADF&G's  Division  of                                                                    
     Habitat and  Restoration] into  the [DNR]  threatens to                                                                    
     diminish this livelihood, lifestyle,  and culture.  The                                                                    
     past  several  years  have seen  seriously  low  salmon                                                                    
     returns that threaten these things  if they continue in                                                                    
     to  the  future.   Most  recently,  the  primary  cause                                                                    
     (indisc.)  seems to  have been  poor ocean  conditions,                                                                    
     but it is  survival at all stages of  the salmon's life                                                                    
     cycle that ultimately determines  whether there will be                                                                    
     sustainable harvests in  the future for us  and for our                                                                    
     children.                                                                                                                  
                                                                                                                                
DR. SULLIVAN went on to say:                                                                                                    
                                                                                                                                
     The   missions  of   the  [ADF&G   and  the   DNR]  are                                                                    
     fundamentally  different, as  you  can  see from  their                                                                    
     respective  Internet  web  pages.   The  ADF&G  mission                                                                    
     reads:    "The Alaska  Department  of  Fish and  Game's                                                                    
     mission is  to manage,  protect, maintain,  and improve                                                                    
     the fish,  game and aquatic plant  resources of Alaska.                                                                    
     The  primary   goals  are   to  ensure   that  Alaska's                                                                    
     renewable  fish   and  wildlife  resources   and  their                                                                    
     habitats  are conserved  and managed  on the  sustained                                                                    
     yield principle,  and the use and  development of these                                                                    
     resources are in  the best interest of  the economy and                                                                    
     well-being of the people of the state."                                                                                    
                                                                                                                                
DR. SULLIVAN pointed out that  in contrast, the mission statement                                                               
of  the DNR  reads:   "To develop,  conserve and  enhance natural                                                               
resources for  present and  future Alaskans."   He said  that the                                                               
YRDFA would  like the governor  to withdraw Executive  Order 107.                                                               
In lieu  of that,  however, YRDFA  requests that  the legislature                                                               
block EO 107.                                                                                                                   
                                                                                                                                
Number 1279                                                                                                                     
                                                                                                                                
PAULA TERRELL indicated that she is testifying on her own behalf                                                                
as a commercial fisherman.  She said:                                                                                           
                                                                                                                                
     My husband and I have  been Alaska trollers for over 20                                                                    
     years; we're  some of  the small  guys, and  I'm asking                                                                    
     you to  overturn Executive  Order 107.   It  might look                                                                    
     good in the  short term, but in the long  term, I think                                                                    
     ...  this   could  have  devastating  effects   on  our                                                                    
     habitat.   And the trollers,  which we are  one, really                                                                    
     rely on  habitat protection,  as do  all fishermen.   I                                                                    
     think  the  witness to  that  is  when ...  the  Forest                                                                    
     [Resources   and  Practices]   Act   was  first   being                                                                    
     proposed, the fishermen, who generally  do not weigh in                                                                    
     on things, ...  came out in droves to help  make that a                                                                    
     good Act with habitat protection.   We rely on [ADF&G],                                                                    
     we have supported  [ADF&G], we do not  always like what                                                                    
     they do,  but they  are basically  the bulwark  for us.                                                                    
     And  I   fear  that  putting  ...   habitat  permitting                                                                    
     functions over  in DNR will  really erode that,  and it                                                                    
     will erode the trust.                                                                                                      
                                                                                                                                
     I was very  grateful to hear Commissioner  Irwin say to                                                                    
     the United  Fishermen of Alaska board  that the habitat                                                                    
     division  and  their  input  ...  with  the  Fort  Knox                                                                    
     permitting was  probably one of the  major reasons that                                                                    
     that mine was permitted  and there weren't lawsuits for                                                                    
     it.  That was probably  extremely true. ... I would ask                                                                    
     one question  of the DNR  commissioner ...:   If indeed                                                                    
     this is  going to  be done,  and there  is going  to be                                                                    
     separation, ... then  would he consider -  or would the                                                                    
     administration consider - having  them do a mandate for                                                                    
     that  office   which  would   put  fish   and  wildlife                                                                    
     protection  as  their  top priority  mandate  for  that                                                                    
     office?   That is not  the mandate [of] DNR,  but would                                                                    
     they  do  that?     Then  I  would  feel   a  lot  more                                                                    
     comfortable.    And  I would  also  support  what  Dale                                                                    
     Kelley said,  that I think there  is a lot that  can be                                                                    
     done from  a management and  a regulatory basis,  but I                                                                    
     would like it  to be done after you voted  down the ...                                                                    
     executive order ....                                                                                                       
                                                                                                                                
Number 1430                                                                                                                     
                                                                                                                                
GINNA PURRINGTON, Alaska Wildlife Alliance (AWA), noted that she                                                                
was speaking on her own behalf as well as that of the AWA.  She                                                                 
said:                                                                                                                           
                                                                                                                                
     Alaska has [a]  wealth of state and  national parks and                                                                    
     preserves.   It's obvious that we  Alaskans realize the                                                                    
     value   of  unspoiled   habitat   and  preserving   our                                                                    
     priceless wildlife.  Ultimately,  Alaska may succeed in                                                                    
     wildlife  and fishery  conservation  efforts where  the                                                                    
     Lower  48 has  failed.   Executive Order  107, however,                                                                    
     has the  potential to permanently undermine  that goal.                                                                    
     There's   a  fundamental   inconsistency  in   granting                                                                    
     habitat  permitting  authority  to  the  Department  of                                                                    
     Natural  Resources -  the department  charged with  the                                                                    
     responsibility to develop  resources, not protect them.                                                                    
     The  [ADF&G] has  held permit  issuing authority  since                                                                    
     statehood for  good reason.  They  provide an essential                                                                    
     system   of  checks   and  balances   that  result   in                                                                    
     responsible development decisions.                                                                                         
                                                                                                                                
     Furthermore,  Executive Order  107  is  a solution  for                                                                    
     which  Governor  Murkowski  has failed  to  identify  a                                                                    
     legitimate problem.  The  [ADF&G] has proven remarkably                                                                    
     efficient as a permitting  process in comparison to the                                                                    
     [DNR].   Last  year,  the average  time  ADF&G took  to                                                                    
     issue Title 16  permits was only 14 days.   The DNR, on                                                                    
     the other  hand, currently has  a backlog of  700 water                                                                    
     rights applications,  which are 20 years  old or older.                                                                    
     Removing  permitting authority  from the  capable hands                                                                    
     of the [ADF&G] to the [DNR]  is a not a viable solution                                                                    
     to expedite  habitat permits.   It's likely  to instead                                                                    
     only cause  further delays and  unforeseeable detriment                                                                    
     to  critical fish  and wildlife  habitat.   The  Alaska                                                                    
     Wildlife Alliance,  of course,  is very  concerned with                                                                    
     wildlife habitat.                                                                                                          
                                                                                                                                
     I  urge you,  and  the Alaska  Wildlife Alliance  urges                                                                    
     you,  to vote  in joint  session to  disapprove of  the                                                                    
     executive  order  switching permitting  authority  from                                                                    
     the  [ADF&G]  to the  [DNR].    That's  the end  of  my                                                                    
     testimony, thank you.                                                                                                      
                                                                                                                                
MS. PURRINGTON, in response to a question, said that the AWA                                                                    
considers the ADF&G's Title 16 permits to be comparable to the                                                                  
DNR's water rights applications.                                                                                                
                                                                                                                                
Number 1574                                                                                                                     
                                                                                                                                
JOSH PEIRCE thanked the committee for the opportunity to                                                                        
comment.  He went on to say:                                                                                                    
                                                                                                                                
     As we  have heard  over the last  two nights,  there is                                                                    
     overwhelming  opposition to  Executive  order 107.  ...                                                                    
     Commissioner Irwin  has assured us that  critical field                                                                    
     inspections  will continue  with this  transfer.   I am                                                                    
     curious how  this will happen  with the closing  of two                                                                    
     district  offices   in  Ketchikan   and  Sitka   and  a                                                                    
     reduction  in  staff of  22  people.   Will  the  state                                                                    
     really  save  money   flying  habitat  biologists  from                                                                    
     Juneau to Ketchikan  and Sitka?  Of course  not.  There                                                                    
     is no money for this,  and these field inspections will                                                                    
     simply not  occur. ... We  have heard over and  over in                                                                    
     testimony   how   incredibly  efficient   the   habitat                                                                    
     permitting  process   already  is.     The   facts  are                                                                    
     impressive  with most  permits  currently being  issued                                                                    
     within 2 weeks.                                                                                                            
                                                                                                                                
     For  comparison  I conducted  a  very  brief search  of                                                                    
     DNR's  public   web  site,  and   I  found   some  very                                                                    
     interesting things.  I'll give  you five examples:  ...                                                                    
     an application for a grazing  permit dated 1993; ... an                                                                    
     application for  a public  easement permit  dated 1980;                                                                    
     an  application  for a  land  disposal  dated 1994;  an                                                                    
     application  for a  water right  dated 1998;  and, most                                                                    
     impressively,  ...  ADL   [Alaska  Division  of  Lands]                                                                    
     68071,  a  1974  application  for  a  coal  prospecting                                                                    
     permit - this  application was filed 29 years  ago.  It                                                                    
     seems  Commissioner  Irwin  should be  busy  addressing                                                                    
     this backlog and not worrying  about how he is going to                                                                    
     take   an   already   extremely  efficient   group   of                                                                    
     permitters   from  ADF&G   [Division  of   Habitat  and                                                                    
     Restoration], reduce  their staff by 22,  and magically                                                                    
     make them more effective. ...                                                                                              
                                                                                                                                
     Commissioner Irwin and  industry representatives assure                                                                    
     us habitat will  be protected.  I am  curious what they                                                                    
     are basing  these assurances  on.   What we  have heard                                                                    
     the last two nights,  from highly educated experts with                                                                    
     many  years of  experience  in  wildlife and  fisheries                                                                    
     management,  is  a  very  different  story.    Governor                                                                    
     Murkowski  speaks of  making decisions  based on  sound                                                                    
     science, yet a  move such as this flies in  the face of                                                                    
     sound science. ...                                                                                                         
                                                                                                                                
     The  experts are  here and  have  testified before  you                                                                    
     that ...  this move will  have a detrimental  effect on                                                                    
     salmon.  In conclusion:   if allowed to take effect, EO                                                                    
     107 would  strip an extremely valuable  management tool                                                                    
     from the  ADF&G.   This proposed  move has  been poorly                                                                    
     planned  and   we  can  expect  [it]   will  be  poorly                                                                    
     executed.   There are no  efficiencies to be  gained in                                                                    
     such  a  move.   The  habitat  division has  a  stellar                                                                    
     record  of efficiency  and we  should  not dismantle  a                                                                    
     system which  has served Alaskans  so well.   There are                                                                    
     no streamlining  benefits in  this (indisc  - equipment                                                                    
     malfunction).                                                                                                              
                                                                                                                                
     [Not on  tape, but in the  witness's written testimony,                                                                    
     was:   I am here  tonight to urge  you to pass  a joint                                                                    
     resolution rescinding EO 107.]                                                                                             
                                                                                                                                
Number 1710                                                                                                                     
                                                                                                                                
RUTH BAUMAN relayed that she and her husband own a home in                                                                      
Anchorage and a remote parcel of land in the interior.  She went                                                                
on to say:                                                                                                                      
                                                                                                                                
     We  very much  enjoy  Alaska's  pristine outdoors,  and                                                                    
     would like  to see  the state remain  this way  now and                                                                    
     for  future generations.   I  am not  speaking for  any                                                                    
     former or  present employer;  I am  speaking on  my own                                                                    
     behalf, and I  would like to share with you  some of my                                                                    
     direct experience on the issue  of Executive Order 107.                                                                    
     I was  staff to  the Alaska Board  of Forestry  for six                                                                    
     years  during  the  1990s.   The  [Board  of  Forestry]                                                                    
     includes  representatives  from  all  of  the  interest                                                                    
     groups:   commercial  fisheries;  ... organizations  in                                                                    
     the  environmental, mining,  ... recreational,  and ...                                                                    
     forest   industry;   natives;   a  fish   or   wildlife                                                                    
     biologist; and a professional forester.                                                                                    
                                                                                                                                
     These  professionals took  unpaid time  off from  their                                                                    
     regular  jobs  to travel  to  meetings  to address  the                                                                    
     issues   covered  under   the   Forest  Resources   and                                                                    
     Practices  Act  [FRPA].   Naturally,  agency  employees                                                                    
     were paid  and their travel  costs were covered  by the                                                                    
     state.   The primary agenda items  included discussions                                                                    
     of  issues  concerning   sound  forest  management  and                                                                    
     established land use planning  procedures.  During that                                                                    
     period   of  time,   the  [Division   of  Habitat   and                                                                    
     Restoration  ("Division  of Habitat")],  among  others,                                                                    
     presented   their  perspectives   on  proposed   timber                                                                    
     harvests on private, federal, and state land.                                                                              
                                                                                                                                
     [The Division  of Habitat] issued a  report that caused                                                                    
     an uproar  in the media  because they claimed  FRPA was                                                                    
     not working.   Consequently, the board  was required to                                                                    
     hold  public  forums  much   more  often  than  usually                                                                    
     considered under  FRPA.  It  added more to  the process                                                                    
     of planned  timber sales.   I have  a sense of  deja vu                                                                    
     here now  in this  meeting; it seems  these discussions                                                                    
     have not gone  very far.  By the time  the timber sales                                                                    
     were finally  through that  process, it  often resulted                                                                    
     in the  state offering  smaller timber sales,  and many                                                                    
     of the (indisc. - equipment malfunction).                                                                                  
                                                                                                                                
Number 1813                                                                                                                     
                                                                                                                                
KEN ADAMS thanked the committee for the opportunity to comment.                                                                 
He went on to say:                                                                                                              
                                                                                                                                
     I'm with a  small group of concerned fishermen.   I'm a                                                                    
     commercial [salmon]  fisherman and  I have been  so for                                                                    
     about 30 years; I've lived  in Cordova for more than 22                                                                    
     years.    And  we're adamantly  opposed  to  [Executive                                                                    
     Order 107].   I  think this is  more than  a permitting                                                                    
     issue.   There  is a  flip side  to this,  and I  think                                                                    
     equally  important  is  the  reduction  [in]  oversight                                                                    
     capability that  the transfer  of the  habitat division                                                                    
     to  DNR  presents.   We've  read  in  the press:    the                                                                    
     reduction  of 22  positions, [which]  would be  lost in                                                                    
     the transfer,  and some of  these are  field positions.                                                                    
     I recall  speaking several years  ago with  the habitat                                                                    
     biologists; there were  three habitat biologists within                                                                    
     the  ADF&G   who  were   responsible  for   the  entire                                                                    
     Southcentral  area, so  we're  looking  at even  [more]                                                                    
     reduced  capabilities   there  with  the  loss   of  22                                                                    
     positions. ...                                                                                                             
                                                                                                                                
     I ... and my fellow  fishermen ... are highly regulated                                                                    
     - I'm not looking for  less regulation - this system we                                                                    
     have  in  place   works  fine.    The   result  of  the                                                                    
     regulation we have is  resource and habitat protection.                                                                    
     ... I've lived  [in Cordova] prior to the  EVOS - Exxon                                                                    
     Valdez oil  spill - the  spill event.  I've  lived here                                                                    
     during  and afterwards,  and  I am  well  aware of  the                                                                    
     laxity which preceded EVOS. ...  There's a laxity here,                                                                    
     and  I don't  like what  I'm seeing.   This  climate of                                                                    
     laxity  that resulted  in the  EVOS  event, I'm  afraid                                                                    
     we're  running  a  parallel  because  of  [a]  lack  of                                                                    
     vigilance  that  this  transfer may  result  in.    So,                                                                    
     rather than  lose our  oversight capabilities,  we need                                                                    
     to hold  the line here.   If Murkowski needs  funds, he                                                                    
     better find other sources.                                                                                                 
                                                                                                                                
Number 1913                                                                                                                     
                                                                                                                                
DAMIAN WALTER said that he disapproves of EO 107 on four points.                                                                
He elaborated:                                                                                                                  
                                                                                                                                
     One, on  the basis of  the basics of government:   one,                                                                    
     that we  have checks  and balances,  and by  doing this                                                                    
     move  or merger  with DNR,  you're removing  that basic                                                                    
     standard  of  checks  and   balances.    Second,  every                                                                    
     differing  interest has  the right  for representation;                                                                    
     each  individual,   organization,  minority,  majority,                                                                    
     race, creed, et cetera have  the right to have an equal                                                                    
     voice.    That's  what [the  Division  of  Habitat  and                                                                    
     Restoration]  helps provide.   [Third],  we the  public                                                                    
     have not been  provided all sides and all  the facts on                                                                    
     these cases, accusations, and  claims that the governor                                                                    
     has made that the Division  of Habitat and [ADF&G] have                                                                    
     done.                                                                                                                      
                                                                                                                                
     Without this  proof, this  is only  rumor, and  this is                                                                    
     not  what our  government  is based  on  and built  on.                                                                    
     Proof of this  is in these testimonies  that I've heard                                                                    
     this evening  and other evenings.   Fourth, I challenge                                                                    
     our legislators to seek out  the truth on this issue of                                                                    
     EO 107,  and investigate to prove  or disprove Governor                                                                    
     Murkowski's claims and rumors.   You all have the power                                                                    
     to do  this.   And last,  representatives, you  are our                                                                    
     voice  and  are  responsible  for  seeking  the  truth.                                                                    
     Thank you  for your time,  and I believe that  you guys                                                                    
     can do this.  Thank you.                                                                                                   
                                                                                                                                
MS. BAUMAN, after being reconnected, continued her testimony:                                                                   
                                                                                                                                
     [From]  what  I've  seen and  experienced,  moving  the                                                                    
     Habitat permitting  process under DNR's  commission ...                                                                    
     would  be  more   productive,  more  streamlined,  more                                                                    
     efficient,  and it  would save  the state  money.   For                                                                    
     these  reasons, I  support the  intent contained  in EO                                                                    
     107.  I recognize the  order is not altogether popular,                                                                    
     but I appreciate the strong,  hard look that EO 107 has                                                                    
     forced  [upon] Alaskans  to find  better ways  of doing                                                                    
     business.  Thank you for holding this hearing ....                                                                         
                                                                                                                                
Number 2015                                                                                                                     
                                                                                                                                
MARK FINK relayed that he is employed as a habitat biologist for                                                                
the ADF&G but is speaking on his own behalf.  He went on to say:                                                                
                                                                                                                                
     I urge  you to disapprove Executive  Order 107, thereby                                                                    
     retaining  within [ADF&G]  the  function of  conserving                                                                    
     fish and  wildlife habitat.   To save time, ...  I will                                                                    
     not repeat  many of the  things that have  already been                                                                    
     mentioned; I do  concur with them.   The governor [has]                                                                    
     stated  a   need  to  streamline  permitting   and  has                                                                    
     suggested   that   the   [Division   of   Habitat   and                                                                    
     Restoration]  is a  bottleneck  in this  process.   The                                                                    
     facts do not support this  assertion.  If, however, the                                                                    
     governor  wants  to  shift [the]  balance  ...  towards                                                                    
     resource  development,  the  more  reasonable  approach                                                                    
     would be  to appoint  a like-minded  ADF&G commissioner                                                                    
     and   [Division   of   Habitat]  director   that   will                                                                    
     vigorously pursue the administration's programs.                                                                           
                                                                                                                                
     Dissecting  out the  habitat  protection function  from                                                                    
     [the  ADF&G] would  hamper efforts  to manage  fish and                                                                    
     wildlife under the sustained  yield principle.  Animals                                                                    
     need habitat.   [Executive  Order] 107 makes  no better                                                                    
     sense than if someone proposed  to move the Division of                                                                    
     Oil  & Gas  into [the  ADF&G]; it  doesn't make  sense.                                                                    
     One quick thought.   Often, [on issues  such as these,]                                                                    
     I  go to  someone very  near and  dear to  me ...  - my                                                                    
     father, Tom  Fink.   I must  admit we've  had numerous,                                                                    
     spirited  discussions on  habitat  and  the effects  of                                                                    
     development.   But  on this  issue of  EO 107,  even my                                                                    
     father -  the very conservative Republican,  Tom Fink -                                                                    
     believes  moving   the  permitting  functions   of  the                                                                    
     habitat division  to DNR is  a bad  idea.  Ask  him for                                                                    
     yourself.  Again, I urge you  to do the right thing for                                                                    
     the  people  who elected  you  and  disapprove EO  107.                                                                    
     Thank you.                                                                                                                 
                                                                                                                                
Number 2085                                                                                                                     
                                                                                                                                
WILLIAM H. DENNERLEIN  relayed that although he  is the immediate                                                               
former director  of the Division  of Habitat and  Restoration, he                                                               
would be  speaking on his  own behalf  as a 30-year  Alaskan with                                                               
more  than 25  years in  the field  of resource  management.   He                                                               
mentioned that  he has  spent more  time in the  DNR than  in the                                                               
ADF&G, and more time working  outside government than inside.  He                                                               
went on to say:                                                                                                                 
                                                                                                                                
     I  would like  to put  six  points on  the record  very                                                                    
     quickly.  ...  One,  this  is  not  about  the  habitat                                                                    
     division; EO 107 transfers the  two core authorities of                                                                    
     the  [ADF&G],  and  for  the  first  time  in  Alaska's                                                                    
     history,  the  commissioner  of [ADF&G]  will  have  no                                                                    
     legal  authority to  protect  fish  habitat in  Alaska.                                                                    
     Number   two,   the  governor's   characterization   of                                                                    
     projects used  [as] examples to justify  this order are                                                                    
     so inaccurate as  to be ludicrous.  I  do not recognize                                                                    
     projects   that  my   signature  is   on  the   project                                                                    
     agreement.                                                                                                                 
                                                                                                                                
     Number three, EO  107 will not enhance  good science in                                                                    
     decision  making.     It  will  weaken   it.    Habitat                                                                    
     permitters   will   be   separated,   by   agency   and                                                                    
     physically,  from colleague  biologists  in ADF&G  with                                                                    
     whom  they  work  on  a  daily  basis  and  from  best-                                                                    
     practices  ongoing research  in which  they participate                                                                    
     now.   Point number four,  the states used  as examples                                                                    
     are  apple/orange  comparisons  in law,  staffing,  and                                                                    
     resources.   I  just recently  returned from  Oregon; I                                                                    
     would be happy to discuss Oregon with the governor.                                                                        
                                                                                                                                
     Point number  five, if EO  107 produces  efficiency, it                                                                    
     will  be  at the  cost  of  effectiveness.   But  don't                                                                    
     expect efficiency.   Reduced staff will not  be able to                                                                    
     get out  into the  field and  respond to  project needs                                                                    
     that  inevitably  come   up  -  unexpected  challenges.                                                                    
     Secondly,  no one  has talked  about  the word  "design                                                                    
     build," a  major trend in  project management  in which                                                                    
     many  important design  and  construction elements  are                                                                    
     not known up  front and the issues are  worked [out] in                                                                    
     the field  by biologists and project  managers.  Glenn-                                                                    
     Parks interchange is a "design  build" project - that's                                                                    
     an example.                                                                                                                
                                                                                                                                
Number 2180                                                                                                                     
                                                                                                                                
MR. DENNERLEIN concluded:                                                                                                       
                                                                                                                                
     And finally,  the federal agencies such  as [U.S.] Fish                                                                    
     and  Wildlife Services  and the  [U.S. Army]  Corps [of                                                                    
     Engineers]  are  required  by federal  law  to  consult                                                                    
     directly   with  the   recognized  fish   and  wildlife                                                                    
     agencies of  the state; they  usually defer to  us, but                                                                    
     we  should expect  them  to become  more  active.   And                                                                    
     every single  project in the governor's  EO example and                                                                    
     his  "get   Alaska  moving"  speech  are   federal  aid                                                                    
     projects   with   federal  requirements   and   federal                                                                    
     handles.  In closing, I  would just say, if the process                                                                    
     is  terrible,  the  transition   team  never  met  with                                                                    
     [ADF&G] directors  - the habitat transition  team never                                                                    
     met  with [the  Division of  Habitat and  Restoration].                                                                    
     There's been  no public consideration or  discussion by                                                                    
     the  administration [of]  any  other  steps that  could                                                                    
     improve [the]  process.   So I urge  you to  oppose [EO                                                                    
     107].                                                                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG, turning to Mr. Dennerlein's second                                                                    
point, asked him to clarify what he meant.                                                                                      
                                                                                                                                
MR. DENNERLEIN replied:                                                                                                         
                                                                                                                                
     I spent an  enormous amount of time  on the Glenn-Parks                                                                    
     highway  project  with my  staff;  it  was elevated  to                                                                    
     directors.    It's  a difficult  project,  it  required                                                                    
     elevation, it required going  to the commissioners, and                                                                    
     Joe Perkins would  tell you today if he  were here that                                                                    
     we did  the right thing to  push them and it  had to go                                                                    
     to  him -  he  was  the only  person  who could  commit                                                                    
     federal highway  money to solve the  fisheries problem.                                                                    
     ...  That's  the   way  the  system  works.     And  my                                                                    
     signature's   on  letters   and  agreements,   and  the                                                                    
     description that has been given  of that process by the                                                                    
     governor, I couldn't even recognize it.                                                                                    
                                                                                                                                
Number 2268                                                                                                                     
                                                                                                                                
MARYELLEN OMAN,  President, Anchorage Audubon Society,  said that                                                               
the  Anchorage Audubon  Society  is firmly  opposed to  Executive                                                               
Order 107 because  the society believes that  the executive order                                                               
will  seriously   weaken  protections  for  important   fish  and                                                               
wildlife habitats around the state.  She went on to say:                                                                        
                                                                                                                                
     Title  16  -  Fish  and   Game  -  was  promulgated  at                                                                    
     statehood and, indeed,  protection of fishery resources                                                                    
     was a  driving force behind statehood.   Responsibility                                                                    
     for fisheries  was assigned to  ADF&G for  good reason:                                                                    
     We  need  to  protect   the  vital  fish  and  wildlife                                                                    
     resources of  this state.   [The]  ADF&G and  [the] DNR                                                                    
     have different  and conflicting missions, and  are both                                                                    
     necessary.   [The] ADF&G's priority is  fish, wildlife,                                                                    
     and  their habitats.   [The]  DNR is  the state's  lead                                                                    
     development agency.   Responsibility for fish  and game                                                                    
     is not part of the DNR mission.                                                                                            
                                                                                                                                
     The  commissioner   of  ADF&G   is  required   to  have                                                                    
     knowledge   of  the   protection  of   fish  and   game                                                                    
     resources, and one  of the functions of  that office is                                                                    
     to  protect  fish  and  game  resources  and  have  the                                                                    
     necessary power  to accomplish this.   [Executive Order                                                                    
     107]  strips  the  commissioner  of  this  power.    No                                                                    
         specific job qualifications for making habitat-                                                                        
     permitting determinations  at DNR  are specified  in EO                                                                    
     107.    As habitat  biologists  retired  or took  other                                                                    
     positions,  these duties  could  be  delegated to  low-                                                                    
     level  non-professionals with  little or  no biological                                                                    
     training.                                                                                                                  
                                                                                                                                
     At ADF&G,  professional biologists are  responsible for                                                                    
     evaluating  permit  applications  and  issuing  habitat                                                                    
     permits.   If  EO 107  is allowed  to stand,  executive                                                                    
     branch  checks  and  balances  will  no  longer  exist.                                                                    
     Habitat produces  wealth for  the state of  Alaska, and                                                                    
     fish habitat  loss will affect the  currently lucrative                                                                    
     industries  of tourism  and fishing.    There are  many                                                                    
     more points  I could  make, but  you've heard  them all                                                                    
     before  my  testimony  and  I  would  simply  say  that                                                                    
     Anchorage  Audubon [Society]  supports  the Senate  and                                                                    
     House resolutions  - SSCR  1 and HSCR  1 -  which would                                                                    
     override the governor's unwise Executive Order 107.                                                                        
                                                                                                                                
Number 2353                                                                                                                     
                                                                                                                                
VALANNE GLOOSCHENKO, MSc., thanked the committee for the                                                                        
opportunity to address this topic.  She went on to say:                                                                         
                                                                                                                                
     As  a  biologist  with a  master's  degree  in  aquatic                                                                    
     biology, I  have worked  for many  years as  a wetlands                                                                    
     specialist, and most recently  in the (indisc.) federal                                                                    
     regulatory  capacity.   I strongly  object to  Governor                                                                    
     Murkowski's  proposal to  move habitat  permitting from                                                                    
     the  [ADF&G]  to  the  [DNR].   I  believe  this  would                                                                    
     seriously  impair  our  habitat protection  as  it  now                                                                    
     exists  and  cause  grievous environmental  impacts  to                                                                    
     Alaska's  fisheries  and  wildlife.     My  duties  are                                                                    
     predominantly  in Southeast  Alaska, and  I must  say I                                                                    
     support  Mr. Dennerlein  supposition  that the  federal                                                                    
     regulatory handle  absolutely depends on  those [ADF&G]                                                                    
     biologists.   I  am extremely  dependent on  colleagues                                                                    
     from  [ADF&G] who  essentially are  my eyes  [and ears,                                                                    
     telling  me   where  eelgrass  is,  telling   me  where                                                                    
     projects  are likely  to  ground at  low  tide.]   [The                                                                    
     previous  bracketed portion  was not  on tape,  but was                                                                    
     taken  from  the  Gavel  to   Gavel  recording  on  the                                                                    
     Internet.]                                                                                                                 
                                                                                                                                
TAPE 03-24, SIDE B                                                                                                            
Number 2373                                                                                                                     
                                                                                                                                
MS. GLOOSCHENKO continued:                                                                                                      
                                                                                                                                
     And I  particularly work with biologists  in Ketchikan,                                                                    
     Craig, Sitka,  and Juneau.   They are a bulwark  in all                                                                    
     of  our  programs.    I'm here  tonight  as  a  private                                                                    
     individual,  but  I also  have  a  letter from  another                                                                    
     colleague who works ... in  the same area ... who could                                                                    
     not be  here this evening.   I would like to  also make                                                                    
     the point, and you've  heard this already this evening,                                                                    
     that the Governor has claimed  [that the ADF&G Division                                                                    
     of  Habitat  and  Restoration]  permit  biologists  are                                                                    
     inefficient.   However,  the facts,  as we  have heard,                                                                    
     prove  just  the  opposite:     the  average  time  for                                                                    
     processing is - at no  direct cost to the applicant and                                                                    
     may likely be  if it's moved to DNR,  which charges for                                                                    
     permits -  ... only 14  days.   Our concern is,  if DNR                                                                    
     takes over  permitting, there'll be fewer  personnel to                                                                    
     process  permits  and  the workload  will  be  greater.                                                                    
     This will  significantly affect the state's  ability to                                                                    
     protect fish and  fish habitat.  So we  ask you, please                                                                    
     disapprove Governor Frank  Murkowski's [Executive Order                                                                    
     107]  for the  benefit of  now and  future generations.                                                                    
     Thank you.                                                                                                                 
                                                                                                                                
CHAIR WEYHRAUCH closed public testimony on EO 107 for the                                                                       
evening.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  BERKOWITZ made  note that  a representative  from                                                               
the  administration,   Mr.  Phelps,   had  been   present  during                                                               
testimony.   He  asked Mr.  Phelps to  investigate a  Wall Street                                                             
Journal article, which  said the issue of state  oversight of the                                                             
environment  has  become  a  part of  the  national  debate  over                                                               
whether congress  should allow drilling in  ANWR.  Representative                                                               
Berkowitz  said he  would like  to  know whether  there were  any                                                               
discussions  or anything  written, prior  to the  promulgation of                                                               
EO 107, regarding the impact that  moving the habitat division to                                                               
DNR would  have on  efforts to  open ANWR  - "whether  this might                                                               
provide  fodder for  those opposed  to  opening ANWR."   He  also                                                               
relayed that he  would like to know who the  driving force behind                                                               
EO 107 is.                                                                                                                      
                                                                                                                                
CHAIR WEYHRAUCH indicated that  information would be forthcoming.                                                               
[EO 107 was held over.]                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
Number 2289                                                                                                                     
                                                                                                                                
There being no  further business before the  committee, the House                                                               
State Affairs  Standing Committee  meeting was adjourned  at 8:56                                                               
p.m.                                                                                                                            

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