Legislature(2001 - 2002)

04/12/2002 03:40 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                    
                   SENATE RESOURCES COMMITTEE                                                                                 
                         April 12, 2002                                                                                         
                            3:40 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator John Torgerson, Chair                                                                                                   
Senator Rick Halford                                                                                                            
Senator Ben Stevens                                                                                                             
Senator Kim Elton                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Gary Wilken, Vice Chair                                                                                                 
Senator Robin Taylor                                                                                                            
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
SENATE BILL NO. 14                                                                                                              
"An Act relating to pesticide use;  and providing for an effective                                                              
date."                                                                                                                          
                                                                                                                                
     HEARD AND HELD                                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 241(RES)                                                                                                  
"An Act relating  to a railroad utility corridor  for extension of                                                              
the  Alaska Railroad  to Canada  and  to extension  of the  Alaska                                                              
Railroad to Whitehorse, Yukon, Canada."                                                                                         
                                                                                                                                
     HEARD AND HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 420(title am)                                                                                                    
"An Act  repealing certain sunset  provisions relating to  the use                                                              
of water; and providing for an effective date."                                                                                 
                                                                                                                                
     MOVED HB 420(title am) OUT OF COMMITTEE                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 421(RES)(title am)                                                                                        
"An Act relating to requiring the  Department of Natural Resources                                                              
to develop  and maintain a  standardized procedure  for processing                                                              
applications    and   issuing    permits,   authorizations,    and                                                              
certifications  under  the Alaska  Water  Use Act  and  to make  a                                                              
record of  those items  and amendments  and orders affecting  them                                                              
available on the Internet."                                                                                                     
                                                                                                                                
     MOVED SCS CSHB 421(RES) OUT OF COMMITTEE                                                                                   
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                              
                                                                                                                                
SB 14 - No previous action to record.                                                                                           
                                                                                                                                
HB 241 - See Transportation minutes dates 1/31/02                                                                               
                                                                                                                                
HB 420 - No previous action to record.                                                                                          
                                                                                                                                
HB 421 - No previous action to record.                                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Ms. Geran Tarr                                                                                                                  
Staff to Senator Ellis                                                                                                          
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Presented SB 14 for the sponsor.                                                                          
                                                                                                                                
Mr. Roco Moschetti                                                                                                              
IPM of Alaska                                                                                                                   
POB 875006                                                                                                                      
Wasilla AK 99687                                                                                                                
POSITION STATEMENT: Commented on SB 14.                                                                                       
                                                                                                                                
Ms. Janice Adair, Director                                                                                                      
Division of Environmental Health                                                                                                
Department of Environmental Conservation                                                                                        
555 Cordova Street                                                                                                              
Anchorage AK 99501                                                                                                              
POSITION STATEMENT: Commented on SB 14.                                                                                       
                                                                                                                                
Mr. Chip Nordhoff                                                                                                               
No address provided                                                                                                             
Anchorage AK                                                                                                                    
POSITION STATEMENT: Commented on SB 14.                                                                                       
                                                                                                                                
Ms. Kate Bryson                                                                                                                 
No Address provided                                                                                                             
Anchorage AK                                                                                                                    
POSITION STATEMENT: Supported SB 14.                                                                                          
                                                                                                                                
Mr. Tom Macchia                                                                                                                 
POB 221285                                                                                                                      
Anchorage AK 99522                                                                                                              
POSITION STATEMENT: Supported SB 14.                                                                                        
                                                                                                                                
Mr. Randy Virgin, Director                                                                                                      
Alaska Center for the Environment                                                                                               
801 G St #100                                                                                                                   
Anchorage AK 99501                                                                                                              
POSITION STATEMENT: Supported SB 14.                                                                                          
                                                                                                                                
Ms. Taya Cummins                                                                                                                
807 G St #100                                                                                                                   
Anchorage AK 99501                                                                                                              
POSITION STATEMENT: Supported SB 14.                                                                                          
                                                                                                                                
Ms. Pamela Miller, Director                                                                                                     
Alaska Community Action                                                                                                         
505 W. Northern Lights                                                                                                          
Anchorage AK 99503                                                                                                              
POSITION STATEMENT: Supported SB 14.                                                                                          
                                                                                                                                
Ms. Carol Carnes                                                                                                                
Ketchikan AK                                                                                                                    
POSITION STATEMENT: Supported SB 14.                                                                                          
                                                                                                                                
Ms. Jewel Jacobs                                                                                                                
Ketchikan AK                                                                                                                    
POSITION STATEMENT: Supported SB 14.                                                                                          
                                                                                                                                
Ms. Emily Neiman                                                                                                                
Alaska Advocacy Manager                                                                                                         
American Cancer Society                                                                                                         
No address provided                                                                                                             
POSITION STATEMENT: Supported SB 14.                                                                                          
                                                                                                                                
Mr. Peter Fellman                                                                                                               
Delta Junction AK                                                                                                               
POSITION STATEMENT: Commented on SB 14.                                                                                       
                                                                                                                                
Representative Jeannette James                                                                                                  
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Sponsor of HB 241.                                                                                        
                                                                                                                                
Ms. Jennifer Yuhas                                                                                                              
Staff to Representative Masek                                                                                                   
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Presented HB 420 and HB 421 for sponsor.                                                                  
                                                                                                                                
Mr. Bob Loeffler, Director                                                                                                      
Division of Mining, Land and Water                                                                                              
Department of Natural Resources                                                                                                 
550 W 7th Ave., Ste 1070                                                                                                        
Anchorage AK 99501                                                                                                              
POSITION STATEMENT: Commented on HB 420 and HB 421.                                                                           
                                                                                                                                
Mr. Tadd Owens, Executive Director                                                                                              
Resource Development Council                                                                                                    
121 W. Fireweed #250                                                                                                            
Anchorage AK 99503                                                                                                              
POSITION STATEMENT: Supported HB 420.                                                                                         
                                                                                                                                
Ms. Marilyn Crockett, Deputy Director                                                                                           
Alaska Oil and Gas Association (AOGA)                                                                                           
121 W. Fireweed, #207                                                                                                           
Anchorage AK 99503                                                                                                              
POSITION STATEMENT: Supported HB 420.                                                                                         
                                                                                                                                
Mr. Jan Konigsberg                                                                                                              
Trout Unlimited                                                                                                                 
On behalf of/Alaska Public Waters Coalition                                                                                     
1399 W. 34th #205                                                                                                               
Anchorage AK 99517                                                                                                              
POSITION STATEMENT: Opposed HB 420.                                                                                           
                                                                                                                                
Mr. Keith Bayha, Chairman                                                                                                       
Alaska Public Waters Coalition                                                                                                  
10443 High Bluff                                                                                                                
Eagle River AK 99577                                                                                                            
POSITION STATEMENT: Supported HB 420 with proposed amendments.                                                                
                                                                                                                                
Mr. Chip Dennerlein, Director                                                                                                   
Division of Habitat and Restoration                                                                                             
Department of Fish and Game                                                                                                     
333 Raspberry Rd.                                                                                                               
Anchorage AK 99518                                                                                                              
POSITION STATEMENT: Supported HB 420 and HB 421.                                                                              
                                                                                                                              
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-12, SIDE A                                                                                                            
Number 001                                                                                                                      
                SB  14-TRACKING OF PESTICIDE USE                                                                            
                                                                                                                              
CHAIRMAN JOHN TORGERSON called the Senate Resources Committee                                                                 
meeting to order at 3:40 p.m. and announced SB 14 to be up for                                                                  
consideration.                                                                                                                  
                                                                                                                                
Ms. Geran Tarr, staff to Senator Johnny Ellis, sponsor of the                                                                   
measure told members:                                                                                                           
                                                                                                                                
     This legislation  had been brought  forward as  a result                                                                   
     of  mounting scientific  evidence  that pesticides  have                                                                   
     the  potential  for  adverse   health  effects  such  as                                                                   
     cancer, developmental  disorders, reproductive  failure,                                                                   
     birth defects, allergies and  asthma. This, in fact, has                                                                   
     been the case of other pesticides  that were once widely                                                                   
     used, such  as DDT. More  recently, [indisc.],  once the                                                                   
     most  widely used  pesticide  in the  United States  was                                                                   
     banned. This  ban was a result of new  evidence acquired                                                                   
     after  the  passage of  a  federal  law, the  1996  Food                                                                   
     Quality  Protection Act,  which required  the EPA to  go                                                                   
     back and retest  pesticides for their safety.  Only this                                                                   
     time they were tasked with using  children's health as a                                                                   
     benchmark  for safety.  Although this  product was  used                                                                   
     for  years it  was  banned when  the  health effects  to                                                                   
     children were fully realized.                                                                                              
                                                                                                                                
     The   American  Medical   Association   has  urged   the                                                                   
     government  to support  improved  reporting systems  for                                                                   
     pesticide  usage and pesticide  related illnesses.  This                                                                   
     illustrates the  need for more information  on pesticide                                                                   
     use.  We  in  Alaska need  to  be  especially  concerned                                                                   
     because   of  our   unique   environment.  In   northern                                                                   
     latitudes  there is  a phenomenon  where chemicals  used                                                                   
     here  are transported  here  from other  places,  called                                                                   
     bioaccumulation, meaning  they do not break  down in the                                                                   
     environment  like  they  would elsewhere.  In  order  to                                                                   
     protect public health, particularly  children's' health,                                                                   
     we need to track the use of  pesticides in our state. SB
     14 is an  important first step in gathering  information                                                                   
     to  make  effective  policies   and  to  protect  public                                                                   
     health.                                                                                                                    
                                                                                                                                
MS. TARR  said a proposed  committee substitute (CS)  was drafted.                                                              
She explained the changes in the CS as follows.                                                                                 
                                                                                                                                
Section 1 places the registration  and licensing fees collected by                                                              
the Department  of Environmental Conservation (DEC)  under program                                                              
receipts so that  the fees collected are accounted  for separately                                                              
and do  not become part  of appropriations  made from  the general                                                              
fund. She  noted that  AS 37.05.146(b)(4) is  in their  packet for                                                              
reference. A  lot of other program  receipts are set up  this way,                                                              
like the Pioneers' Home.                                                                                                        
                                                                                                                                
Section 2  allows the department  to charge a registration  fee of                                                              
$150  to pesticide  manufacturers  to register  their product  for                                                              
commercial  sale  in  Alaska.  Of  the  4,571  pesticide  products                                                              
registered  for  sale  in  Alaska, all  are  produced  by  outside                                                              
companies. They would be charged  the registration fee. Currently,                                                              
Alaska is the only state that does  not charge a registration fee.                                                              
That fee would provide funding to  administer the tracking program                                                              
established in section 5 of SB 14.                                                                                              
                                                                                                                                
Section  3  allows  the  department  to collect  a  $25  per  year                                                              
licensing  fee  for certified  pesticide  applicators.  There  are                                                              
currently 620 certified  applicators in the state.  This fee would                                                              
help fund the tracking system.                                                                                                  
                                                                                                                                
Section  4  requires  users  to  notify  neighbors  of  commercial                                                              
pesticide spraying  at least 48 hours  and not more than  72 hours                                                              
before the spraying begins. This  is modeled after Municipality of                                                              
Anchorage (MOA) regulations.                                                                                                    
                                                                                                                                
Section  5   establishes  the   tracking  program  and   reporting                                                              
requirements.  It contains nine  reporting requirements  listed on                                                              
page 4. It does  not require that new information  be reported; it                                                              
requires information that is already  kept track of for accounting                                                              
records on  service reports  be sent  to DEC.  DEC could  use this                                                              
information  for policy  making. This section  also makes  someone                                                              
liable  to   DEC  for  failure   to  comply  with   the  reporting                                                              
requirement.                                                                                                                    
                                                                                                                                
Section  6 establishes  an advisory  board, which  is tasked  with                                                              
making  suggestions  regarding  implementation   of  the  tracking                                                              
system  and ways to  make reporting  as efficient,  easy and  user                                                              
friendly as possible.  The task force has broad  representation to                                                              
insure that  all areas of concern  have been addressed.  Section 6                                                              
also  states  that  DEC  will  provide   technical  assistance  as                                                              
necessary to applicators so they  can fulfill the new requirements                                                              
and a  burden isn't  placed upon  them. It  also outlines  ways in                                                              
which DEC  will make  this information  available to  researchers,                                                              
policy  makers  and  members  of the  public  while  insuring  the                                                              
privacy of individuals and applicators.                                                                                         
                                                                                                                                
MS. TARR informed members that DEC has proposed two amendments.                                                                 
                                                                                                                                
CHAIRMAN TORGERSON thanked her and  said the committee would begin                                                              
with testimony from the teleconference network.                                                                                 
                                                                                                                                
MR. ROCO  MOSCHETTI, IPM  of Alaska, said  he owns and  operates a                                                              
small  pest   control  business  and  specializes   in  biological                                                              
controls  to  protect greenhouse  plants  from  pests.  Biological                                                              
controls are beneficial organisms  that include ladybugs and green                                                              
lace  wings. To  stay  open during  the  winter  months, he  began                                                              
providing the same pest control for  homeowners in the valley that                                                              
he  brought to  the greenhouse  industry.  He uses  heat and  cold                                                              
treatments and  vacuums to control  pests such as  carpenter ants,                                                              
spiders  and  flies.  He  stated,  "My point  is  there  are  many                                                              
alternatives  to   pesticides  available…  The  bill   before  the                                                              
committee will not significantly  affect my business even though I                                                              
feel portions of it affect my business…"                                                                                        
                                                                                                                                
He  said the  bill seems  to  exclude the  general  public who  is                                                              
responsible  for  the  majority  of pesticide  use  in  homes  and                                                              
gardens in Alaska. He questioned  why sanitizers and disinfectants                                                              
were excluded  (page 2,  line 21)  as these  products make  up the                                                              
majority of registered pesticides in Alaska.                                                                                    
                                                                                                                                
MS. JANICE  ADAIR, Director,  Department of Environmental  Health,                                                              
DEC, said  the pesticide  program  is in her  division. She  noted                                                              
that  she   had  faxed  general   pesticide  information   to  the                                                              
committee. In essence,  she said, a pesticide is  any substance or                                                              
mixture of substances that is intended  to prevent, destroy, repel                                                              
or  mitigate  any pests.  Under  her program,  a  pest  can be  an                                                              
insect,   mite,  other   animals,   unwanted   plants,  fungi   or                                                              
microorganisms  like bacteria  or viruses.  She said further  that                                                              
pesticides  have  been regulated  in  the  United States  in  some                                                              
fashion for  about 100 years  with an  initial focus on  trade and                                                              
public health concerns  to environmental concerns. There  is now a                                                              
renewed  emphasis  on  children's  health  concerns.  Federal  law                                                              
requires registration of all pesticides  sold in the United States                                                              
and she  understands  there is a  process where  EPA examines  the                                                              
ingredients of the  pesticide, the crop it is supposed  to be used                                                              
on, the  amount, the  frequency and  the timing of  its use  to be                                                              
most  efficient  and  the  storage  and  disposal  means  of  that                                                              
particular pesticide. She explained:                                                                                            
                                                                                                                                
     According  to EPA  this evaluation  during  registration                                                                   
     insures the  pesticide will not have adverse  affects on                                                                   
     humans, the  environment and non-target species  if it's                                                                   
     used  according  to  the  label.   There  are  extensive                                                                   
     requirements  at the federal  level for the  labeling of                                                                   
     pesticides  and EPA must approve  each and every  label.                                                                   
     EPA  will  also  conduct  special   reviews  of  certain                                                                   
     pesticides  to  determine  whether their  use  poses  an                                                                   
     unreasonable  risk to  human health  or the  environment                                                                   
     and they also will evaluate  potential new pesticides in                                                                   
     use  and  promote  reduced   risk  pesticides  and  non-                                                                   
     chemical  management,  such  as the  last  speaker  just                                                                   
     mentioned. EPA also sets exposure  standards for workers                                                                   
     that sets limits on how much  of a pesticide residue may                                                                   
     remain in or on food.                                                                                                      
                                                                                                                                
     EPA can  enter into  cooperative agreements with  states                                                                   
     to conduct inspection enforcement  activities related to                                                                   
     the  sale of  distribution of  pesticides, transfers  by                                                                   
     pesticide applicators of restricted  use pesticides, and                                                                   
     implement  a field-based outreach  program that  focuses                                                                   
     on   agricultural    worker   protection,    groundwater                                                                   
     protection  and the state's  species protection.  That's                                                                   
     where the state comes in.                                                                                                  
                                                                                                                                
     Alaska does  have a cooperative  agreement with  EPA and                                                                   
     we do conduct the work that  I just described. We have a                                                                   
     state registration  requirement also, as do  all states,                                                                   
     which means that in order for  a pesticide to be sold in                                                                   
     Alaska,  it has to  be registered  with the  department.                                                                   
     This allows us to know what  pesticides might be used in                                                                   
     Alaska  and it  allows  us to  deny  registration for  a                                                                   
     product  that  may  pose an  unreasonable  risk  to  our                                                                   
     particular environment. For  example, we recently denied                                                                   
     registration for  a product whose labels stated  that it                                                                   
     would contaminate groundwater.  Because so many areas of                                                                   
     the  state  depend  upon  groundwater  as  a  source  of                                                                   
     drinking water  and because  the product was  not needed                                                                   
     for any unique purpose, we denied this registration.                                                                       
                                                                                                                                
     We also have  a very small state permitting  requirement                                                                   
     for  projects  that are  conducted  by state  and  local                                                                   
     governmental entities or is  set on land owned by two or                                                                   
     more  people. Pesticide  application  by air  or to  the                                                                   
     water  must also  be  approved by  the  state. We  don't                                                                   
     issue a  whole lot of permits  in Alaska. The  ones that                                                                   
     get the most publicity are ones  that are applied for by                                                                   
     the  Railroad.  We will  issue  a pesticide  permit  for                                                                   
     control  of  biting flies  and  mosquitoes  on a  fairly                                                                   
     regularly basis to certain parts of the state.                                                                             
                                                                                                                                
     We provide technical assistance  to many groups, such as                                                                   
     the  Pribilof  Islands  for rat  eradication,  the  U.S.                                                                   
     Forest Service  on non-native species or what  they call                                                                   
     noxious  weed eradication  and Air  Force and others  on                                                                   
     statewide spruce bark beetle.                                                                                              
                                                                                                                                
     We have  regulations that just  went into effect  at the                                                                   
     end  of last  month  that  requires schools  to  provide                                                                   
     notice to  parents and  guardians before pesticides  are                                                                   
     used  at the school  and to  close the  area where  they                                                                   
     have  been used  until  it's safe  for  the children  to                                                                   
     access  it  again.  We  recognized   that  children  are                                                                   
     particularly  vulnerable to  pesticides and  we want  to                                                                   
     make sure the place where kids  spend most of their time                                                                   
     is safe for them.                                                                                                          
                                                                                                                                
     Pesticide  applicators  will also  be  required to  keep                                                                   
     records of  their general use  for pesticides.  To date,                                                                   
     they have  only been required  to keep records  of their                                                                   
     use  of restricted  use pesticides.  The restricted  use                                                                   
     pesticide is a certain classification  pesticide that is                                                                   
     identified  by EPA  [indisc.] that  even when it's  used                                                                   
     according  to its label  has such potential  predicative                                                                   
     affects, it  can only be  used by applicators  certified                                                                   
     by the state under a program approved by EPA.                                                                              
                                                                                                                                
MS.  ADAIR  said  the  bill  would   establish  fees  for  certain                                                              
pesticide  related activities  and  requires notice  be posted  on                                                              
certain  properties  before  a  pesticide   is  sprayed.  It  also                                                              
requires that a tracking system be  established for use of certain                                                              
pesticides  to be  determined by  regulation. DEC  would take  the                                                              
records from applicators and aggregate  them into the hydrological                                                              
units  established by  USGS and  present that  information to  the                                                              
public so  people can get  a sense of  where in the  state certain                                                              
types of pesticides are being used.  DEC would publish a report on                                                              
an  annual  basis  that  would provide  more  information  to  the                                                              
public.  It also  creates  a  seven-member advisory  board,  whose                                                              
members would not  be entitled to reimbursement for  any travel or                                                              
per diem. The advisory board would be a resource to DEC.                                                                        
                                                                                                                                
One  concern she  has besides  the amendment  that Senator  Ellis'                                                              
staff  referenced is  on page  4, line  15. The  reports that  DEC                                                              
receives that  would be disseminated  to the public  would include                                                              
the  location of  applications and  that  would include  someone's                                                              
address  in  many cases.  Concern  has  been expressed  that  that                                                              
information would  be subject to  the Freedom of  Information Act.                                                              
She recommended moving the bill forward,  but leaving the location                                                              
of application exempted from the Public Records Act.                                                                            
                                                                                                                                
MS. ADAIR  said DEC  supports the  intent of this  bill. It  is an                                                              
alternative  to  a permitting  program  that  allows DEC  to  make                                                              
information  about pesticides  available  to  the public.  Another                                                              
benefit would be  to the state drinking water  act, which requires                                                              
public water supplies be monitored  for certain pesticides. If DEC                                                              
can demonstrate  those sites  are not being  used, the  feds allow                                                              
them  to   exempt  those   water  systems   from  the   monitoring                                                              
requirement.  DEC has used  registration  information for  some of                                                              
that, but  this bill  would provide  better information  and allow                                                              
DEC to issue more monitoring waivers.                                                                                           
                                                                                                                                
SENATOR  ELTON said  if this is  a notification  bill, not  making                                                              
public  the area  where  a pesticide  is  applied eviscerates  the                                                              
purpose  of the  bill.  He  asked how  that  is handled  in  other                                                              
jurisdictions.                                                                                                                  
                                                                                                                                
MS. ADAIR said in her mind it is  not a notification bill; it is a                                                              
tracking  bill that  gives them  broad  information about  general                                                              
areas where pesticides are used.  The only state in the union that                                                              
has something even close is the State  of Oregon. Oregon's program                                                              
is quite a bit more extensive than this one.                                                                                    
                                                                                                                                
MR.  CHIP NORDHOFF,  an Anchorage  teacher, said  he has  followed                                                              
this  issue  for  years  and  has   noticed  applicators  spraying                                                              
pesticides at  all hours of  the day and  night. He has  talked to                                                              
the applicators  about spraying around  people and they  are nice,                                                              
but they are  not paying too much  attention to the people  in the                                                              
area.                                                                                                                           
                                                                                                                                
MS. KATIE  BRYSON, an Anchorage high  school senior, said  she had                                                              
been  working  on pesticide  issues  since  1998 when  she  became                                                              
involved in the  community effort to limit the  use of potentially                                                              
harmful  chemicals.  She  said  that  SB 14  is  not  designed  to                                                              
restrict the use  of specific pesticides or  unreasonably regulate                                                              
Alaskan  businesses.   She  said  Alaska  needs   a  comprehensive                                                              
tracking system  or there will be  no way of recognizing  chemical                                                              
effects. Ignorance can only prevent  us from identifying potential                                                              
causes of  problems and these matters  impact the public  and they                                                              
have a right to know.                                                                                                           
                                                                                                                                
MR. TOM MACCHIA,  physician's assistant, said he  was speaking for                                                              
himself. He has  practiced medicine for about 23  years and a good                                                              
deal of his practice has been in  industrial medicine where he has                                                              
been exposed to issues like the workers' right to know. He said:                                                                
                                                                                                                                
     I want you to know I worked  on the Slope and it makes a                                                                   
     tremendous difference in terms  of being able to prevent                                                                   
     problems  with   chemicals  that  are   not  necessarily                                                                   
     designed to be  toxic. So, I urge you to  pass this bill                                                                   
     forward  favorably.  I  think  especially  when  we  are                                                                   
     dealing with  chemicals that are toxic, the  more people                                                                   
     we have  understanding and knowing  that they're  in the                                                                   
     atmosphere,  the better chance  that we'll see  problems                                                                   
     come up and we'll know how to deal with them.                                                                              
                                                                                                                                
MR. RANDY  VIRGIN, Director,  Alaska Center  for the  Environment,                                                              
said this bill is about empowering  individuals by providing basic                                                              
health information  so  people can make  informed decisions  about                                                              
exposure  to toxins.  Fees  assessed  on manufacturers  fund  this                                                              
program and this  is done in every other state. This  is a cost of                                                              
doing business  for companies  like Monsanto.  Mr. Virgin  is also                                                              
the  parent of  two  children and  believes  the  ability to  make                                                              
informed choices is important for his family's health.                                                                          
                                                                                                                                
MS. TAYA  CUMMINS, Anchorage  resident, supported  SB 14.  She has                                                              
seen  chemicals   used   that  have  caused   people  harm.   This                                                              
information  would help  protect  people and  establish  knowledge                                                              
about what pesticides are harmful.                                                                                              
                                                                                                                                
MS.  PAMELA MILLER,  Director, Alaska  Community Action,  strongly                                                              
supported SB  14 saying she had  submitted written comments.  As a                                                              
biologist,  she   emphasized  that  this  bill   is  critical  for                                                              
scientific understanding and as a  basis to protect public health.                                                              
She explained:                                                                                                                  
                                                                                                                                
     The bill is fiscally positive  and provides a direct and                                                                   
     measurable  benefit  to  the   public.  The  information                                                                   
     provided by a pesticide use  tracking system is vital to                                                                   
     any  credible contaminants  research  program.  Accurate                                                                   
     information  about  pesticide use  will  be helpful  for                                                                   
     pesticide  applicators  and  companies because  it  will                                                                   
     dispel any speculation and misrepresentation of fact.                                                                      
                                                                                                                                
     Many  industrial  chemicals, including  pesticides,  are                                                                   
     transported  from  distant  sources via  ocean  and  air                                                                   
     currents  and  now  are  accumulating  in  our  northern                                                                   
     environment. A pesticide-use  tracking bill will provide                                                                   
     researchers  with information  necessary  to assess  the                                                                   
     relative  contribution of  these  long-range sources  of                                                                   
     pesticide  contaminants   pared  with  those   generated                                                                   
     within the  state. Such a  system is necessary  for good                                                                   
     research  and to protect  water quality, our  fisheries,                                                                   
     [indisc.] food and our health  and I would just add that                                                                   
     we  would  like to  see  the additional  requirement  of                                                                   
     reporting  from  all applicators  including  government,                                                                   
     agriculture and household. Thank  you very much for your                                                                   
     time this afternoon.                                                                                                       
                                                                                                                                
MS. CAROL CARNES,  Ketchikan resident, supported SB  14 because it                                                              
will increase  the public's awareness  of less toxic  alternatives                                                              
to pesticides.                                                                                                                  
                                                                                                                                
MS. JEWEL JACOBS, Ketchikan, said  she is the mother of four sons.                                                              
She has worked  in five different school districts  in the past 21                                                              
years. She  has been  told that  the cost  of health insurance  is                                                              
rising  astronomically   and  has  seen  the  direct   effects  of                                                              
pesticides  on  the  neurosystems  of  children  and  adults.  Her                                                              
children never get  sick, she thinks, because they  stay away from                                                              
a lot  of commercially produced  foods. She thought  manufacturers                                                              
should  bear  the financial  burden  of  the toxic  products  they                                                              
manufacture.  Pesticide  use is  harmful in  her  opinion and  the                                                              
least we should do is have it regulated  and make sure people know                                                              
where  it  is  and  have  the  manufacturers   pay  some  kind  of                                                              
regulatory fees.                                                                                                                
                                                                                                                                
MS.  EMILY  NEIMAN,  Alaska  Advocacy   Manager,  American  Cancer                                                              
Society (ACS),  supported SB 14 and  said ACS recognizes  that the                                                              
estimation of  safe pesticide  exposure levels involves  difficult                                                              
risk assessment calculations so more  research is needed. Accurate                                                              
recording of sales and use will facilitate  more reliable research                                                              
regarding the cancer causing potential of many pesticides.                                                                      
                                                                                                                                
MR. PETER FELLMAN,  Delta Junction dairy farmer, said  he had some                                                              
concerns with the  title of the bill and the contents.  On line 9,                                                              
he thinks the broadcast chemicals  can include wetting agents, hay                                                              
treatment, lime and other benign  agents that registration will be                                                              
required for. Another concern is  if you don't follow the labeling                                                              
instructions  as  stated  on  the  back  of  the  bottles  of  the                                                              
pesticides,  which is  federal law,  it is a  federal offense.  He                                                              
knows  the definition  used  for "pesticide"  includes  everything                                                              
from killing  plants to  rats, but  the reality  is there's  a big                                                              
difference  between herbicides  and pesticides.  He said  there is                                                              
also a half-life  of chemicals or  how much time it takes  them to                                                              
break down  to organic matter. He  said a posting time  is already                                                              
required in state law. Last, he didn't  know how they could really                                                              
control use  of some  of the  chemicals because  they are  sold in                                                              
stores everywhere.                                                                                                              
                                                                                                                                
SENATOR ELTON  informed him that  broadcast chemicals  are already                                                              
covered in  state law, but  this bill  would make them  subject to                                                              
the same reporting requirements as other chemicals.                                                                             
                                                                                                                                
SENATOR ELTON moved to adopt the  proposed CS to SB 14 (version C)                                                              
as  the  working   document  of  the  committee.   There  were  no                                                              
objections and it was so ordered.                                                                                               
                                                                                                                                
SENATOR ELTON moved to adopt amendment 1, which reads:                                                                          
                                                                                                                                
                      A M E N D M E N T  1                                                                                  
                                                                                                                                
OFFERED IN THE SENATE                                                                                                           
     TO:  CSSB 14(   ), Draft Version "C"                                                                                       
                                                                                                                                
Page 2, lines 17 - 18:                                                                                                          
     Delete "commercial building"                                                                                               
     Insert "business premises"                                                                                                 
                                                                                                                                
Page 2, line 19:                                                                                                                
     Delete "commercial building"                                                                                               
     Insert "business premises"                                                                                                 
                                                                                                                                
There were no objections and it was adopted.                                                                                    
                                                                                                                                
SENATOR ELTON moved to adopt Amendment 2, which reads:                                                                          
                                                                                                                                
                       A M E N D M E N T 2                                                                                  
                                                                                                                              
OFFERED IN THE SENATE                                                                                                           
     TO:  CSSB 14(   ), Draft Version "C"                                                                                       
                                                                                                                                
Page 4, lines 27 - 28:                                                                                                          
     Delete "licensed custom, commercial, or contract pesticide                                                                 
applicator"                                                                                                                     
     Insert "person who is 18 years of age or older"                                                                            
                                                                                                                                
There were no objections and it was adopted.                                                                                    
                                                                                                                                
CHAIRMAN TORGERSON  said they would  set the bill aside  and bring                                                              
it up at a later date.                                                                                                          
                                                                                                                                
   CSHB 241(RES)(Title am)-RAIL AND UTILITY CORRIDOR TO CANADA                                                              
                                                                                                                                
CHAIRMAN TORGERSON announced CSHB  241(RES)(Title am) to be up for                                                              
consideration and noted that a proposed  committee substitute (CS)                                                              
was prepared to address concerns  expressed at a previous hearing.                                                              
                                                                                                                                
SENATOR  STEVENS  moved  to  adopt  the CS,  version  P,  to  CSHB
241(RES)(Title  am)  as the  working  document of  the  committee.                                                              
There were no objections and it was so ordered.                                                                                 
                                                                                                                                
CHAIRMAN  TORGERSON said  the committee  was  concerned about  the                                                              
Alaska  Railroad  Corporation  (ARRC)  getting  the  land  without                                                              
legislative  approval so  the CS  requires ARRC  to delineate  the                                                              
land  and  the  legislature  will  make the  offer.  The  CS  also                                                              
contains  language  that  leaves  the  subsurface  rights  to  the                                                              
mineral estate, except  gravel, with the state and  gives ARRC the                                                              
right to  extract sand  and gravel  to build  a roadbed.  He noted                                                              
that Representative  James talked  about ARRC doing  a feasibility                                                              
study. He  believes ARRC  received $2.5  million from the  federal                                                              
government  to do one.  The study  would determine  what land  and                                                              
width  of land  would be  needed, either  fee simple  or a  lesser                                                              
interest. That  eliminated Senator Taylor's concern  about turning                                                              
all the  land over to  ARRC.  He  noted that Representative  James                                                              
had one more amendment she would like the committee to consider.                                                                
                                                                                                                                
REPRESENTATIVE JAMES commented that  she wasn't aware of any money                                                              
that is  available at  this time from  the federal government  for                                                              
this work.                                                                                                                      
                                                                                                                                
CHAIRMAN  TORGERSON  asked what  Senator  Murkowski  got the  $2.5                                                              
million for.                                                                                                                    
                                                                                                                                
REPRESENTATIVE JAMES stated:                                                                                                    
                                                                                                                                
      It is for a feasibility study. However, until we get                                                                      
         cooperation with the Canadian folks to have the                                                                        
     bilateral part of the commission  established, it's just                                                                   
     sitting  there with  no authorization  to  be using  it.                                                                   
     It's only an authorization for  the bilateral commission                                                                   
     to do a feasibility study.                                                                                                 
                                                                                                                                
CHAIRMAN  TORGERSON  said that  we  need  the cooperation  of  the                                                              
Canadians anyway to do the Railroad.                                                                                            
                                                                                                                                
REPRESENTATIVE JAMES  said that is true. She clarified  the fiscal                                                              
note for  the bilateral commission  was $6 million and  $4 million                                                              
had  been authorized  so far,  but  it's sitting  there until  the                                                              
bilateral commission is appointed.                                                                                              
                                                                                                                                
CHAIRMAN TORGERSON  said the first  amendment for  the committee's                                                              
consideration  is  labeled  Utermohle  P.3. It  will  removed  the                                                              
language  regarding the  feasibility study,  which he believes  is                                                              
important because  he doesn't know  how anything will get  done if                                                              
the project is not studied first. That amendment reads:                                                                         
                                                                                                                                
                      A M E N D M E N T  1                                                                                  
                                                                                                                                
OFFERED IN THE SENATE                                                                                                           
                                                                                                                                
     TO:  SCS CSHB 241(RES), Draft Version "P"                                                                                  
                                                                                                                                
                                                                                                                                
Page 2, lines 25 - 26:                                                                                                          
                                                                                                                                
     Delete ", after completion of a feasibility study on linking                                                               
                                                                                                                                
the rail system  in Alaska to the North American  continental rail                                                              
                                                                                                                                
system,"                                                                                                                        
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  JAMES  said  she  agrees  but  does  not  want  to                                                              
restrict  this   opportunity  to   the  feasibility   study  being                                                              
completed.  She noted in  the state  may get  some funds  from the                                                              
federal government in the near future  just to get the railroad as                                                              
far as Delta.                                                                                                                   
                                                                                                                                
TAPE 02-12, SIDE B                                                                                                            
                                                                                                                                
4:30 p.m.                                                                                                                     
                                                                                                                              
REPRESENTATIVE  JAMES  said going  that  far would  be  authorized                                                              
under this  legislation.  She pointed  out the  money has to  come                                                              
from somewhere because a corridor  has been on the ground for over                                                              
20 years. She said she assumes this  will go in the same area, but                                                              
there  may be  some existing  rights  that have  occurred in  that                                                              
area. In addition,  the gas line is also preparing  a right of way                                                              
into the area, which is another reason  to have the legislation in                                                              
place so that the  ARRC can address any concerns.  She said no one                                                              
intends to override the gasline.  The purpose is to protect ARRC's                                                              
interests  over  the long  term,  as well  as  assist  in any  way                                                              
possible.                                                                                                                       
                                                                                                                                
SENATOR HALFORD moved to adopt Amendment 1 (P.3).                                                                               
                                                                                                                                
CHAIRMAN TORGERSON objected.                                                                                                    
                                                                                                                                
SENATOR  ELTON said  he finds  the Chairman's  concern that  there                                                              
ought  to  be  a  feasibility  study  prior  to  selection  and/or                                                              
transferring  of  land  for  a railroad  utility  corridor  to  be                                                              
compelling.  He  thought  the  sponsor   was  concerned  that  the                                                              
feasibility study is about linking  the rail system from Alaska to                                                              
Canada. He wondered  if both concerns would be  covered by saying,                                                              
"The corporation  shall  after completion  of a feasibility  study                                                              
determine…"  and strike the  linking of  the feasibility  study to                                                              
the Canadian corridor.                                                                                                          
                                                                                                                                
CHAIRMAN  TORGERSON said  he  would be  more  inclined to  support                                                              
that. He repeated  that he didn't want to just turn  the land over                                                              
and said there should be a study  somewhere along the line even if                                                              
the railroad  only goes as far  as Delta. He asked  Representative                                                              
James  to comment  on striking  the  words, "on  linking the  rail                                                              
system in Alaska  to the North American continental  rail system,"                                                              
from the amendment.                                                                                                             
                                                                                                                                
REPRESENTATIVE  JAMES  said  she  would  not be  happy  with  that                                                              
because so many  feasibility studies aren't descriptive.  She said                                                              
it is  problematic for her  also because  ARRC could come  back to                                                              
the  legislature  next year  and  ask  for  land that  is  already                                                              
identified in the  corridor. The legislature will  have to approve                                                              
a land transfer  but it will base its decision  on the information                                                              
brought forward. She  said removing that language  would mean ARRC                                                              
could not  come forward until the  feasibility study is  done. She                                                              
commented, "I think this is a real breaker."                                                                                    
                                                                                                                                
SENATOR ELTON called for the question.                                                                                          
                                                                                                                                
SENATOR HALFORD  said he  would withdraw his  motion to  adopt the                                                              
amendment and save the trouble.                                                                                                 
                                                                                                                                
SENATOR ELTON withdrew his call for the question.                                                                               
                                                                                                                                
REPRESENTATIVE  JAMES said  that it  is not  imperative that  this                                                              
bill pass this year and she would wait until next year.                                                                         
                                                                                                                                
CHAIRMAN  TORGERSON  asked if  there  was any  further  testimony.                                                              
There was none. He put HB 241 aside.                                                                                            
                                                                                                                                
    HB 420(title am)-REPEAL SUNSET FOR TEMP WATER USE PERMITS                                                               
   CSHB 421(RES)(title am)-WATER USE ACT PROCEDURES & RECORDS                                                               
                                                                                                                                
CHAIRMAN TORGERSON  announced that HB  421 and HB 420  are closely                                                              
related and  that the committee  would hear the  sponsor statement                                                              
for HB 420 first but hear both simultaneously.                                                                                  
                                                                                                                                
MS. JENNIFER  YUHAS, staff  to Representative  Masek, said  HB 420                                                              
deals with temporary  water use permits and HB 421  deals with the                                                              
permanent water rights adjudication  process. HB 420 was sponsored                                                              
by the  House Resources Committee  to repeal a sunset  clause that                                                              
was added last year  into HB 185. HB 420 will  help the state with                                                              
some pending lawsuits on the issue.                                                                                             
                                                                                                                                
She explained that  last year Representative Masek  learned that a                                                              
lot of  members from  the general public  were not satisfied  with                                                              
the  process for  water  rights  adjudication, from  testimony  at                                                              
hearings  about temporary  water  permits. People  were unable  to                                                              
access records  they thought  they should have  access to  and the                                                              
procedure  was  ambiguous  and  not   standardized.  HB  421  will                                                              
standardize the  procedures for the  adjudication of  water rights                                                              
and provide better  access to records. She said  the sponsor would                                                              
be  amenable to  anything  that would  clarify  which records  the                                                              
public could access, what areas have  water rights pending and the                                                              
status of one's application.                                                                                                    
                                                                                                                                
MR. BOB  LOEFFLER, Director, Division  of Mining, Land  and Water,                                                              
described the division's temporary water use program as follows.                                                                
                                                                                                                                
     Water rights is for permanent  water uses, for permanent                                                                   
     water needs. It  is a property right to the  water. Once                                                                   
     you get it,  you get to use it until you  no longer need                                                                   
     it. That  program is not light  on its feet.  Because of                                                                   
     public notice and  other things, it takes 60  days to do                                                                   
     a non-controversial application,  a lot longer before HB
     185 solved some of our problems.                                                                                           
                                                                                                                                
     The temporary  water use program  is a program  which is                                                                   
     much lighter on its feet, if  you will. It is for short-                                                                   
     term water  needs, that being  less than five  years and                                                                   
     it's typically  used during Alaska's short  construction                                                                   
     season by  a variety of  construction users. It's  not a                                                                   
     property right. It is revocable if we have a problem.                                                                      
                                                                                                                                
     The  procedures  to  issue  it  are:  agency  notice  is                                                                   
     required,  a Title  16  permit is  required  if it's  an                                                                   
     anadromous   water   body,    plus   there's   effective                                                                   
     concurrence by  the Department of  Fish and Game  on our                                                                   
     most   important   water  bodies.   Public   notice   is                                                                   
     discretionary  and, in fact,  not usually done,  because                                                                   
     for a  short construction season,  public notice  is not                                                                   
     usually done.  Of the 39 temporary water  use permits we                                                                   
     issued on  the North Slope,  we did do public  notice on                                                                   
     25 of those so far this year.  Staff, before issuing it,                                                                   
     staff  analyzes those  permits  for effect  on fish  and                                                                   
     wildlife and  other water uses. We don't  issue them for                                                                   
     significant effect.                                                                                                        
                                                                                                                                
     What I'd  like to  do is give  you a  sense of who  gets                                                                   
     them,  how much  they're  for and  how  long. There's  a                                                                   
     perception that temporary water  use permits are for the                                                                   
     North  Slope.   North  Slope  is  a  big   part  of  our                                                                   
     clientele, but it's certainly  not the only one. We went                                                                   
     back over the FY01 permits and  roughly a third of those                                                                   
     were in  the North Slope. The  rest of them  were spread                                                                   
     throughout   the   rest   of    the   northern   region,                                                                   
     Southcentral  and Southeast,  with a  majority being  in                                                                   
     Southcentral.  So, two-thirds  of  them are  not on  the                                                                   
     North Slope.                                                                                                               
                                                                                                                                
     With respect  to who  gets them, in  FY01, we issued  90                                                                   
     permits,  of which  41 were  oil  and gas,  17 were  for                                                                   
     roads, 3 for  mining and 29 for miscellaneous  uses - be                                                                   
     they lodges, cross-country travel,  exploration, needing                                                                   
     to test  a pipeline or whatever.  So, roughly 60%  or so                                                                   
     are not for oil and gas.                                                                                                   
                                                                                                                                
     With  respect  to how  long  they  are,  we have  25%  -                                                                   
     roughly a third  of them are for 4 - 5  years. Those are                                                                   
     mostly on the North Slope. A  third of them are for less                                                                   
     than three  months and the median,  which is to  say the                                                                   
     average permit, is for less  than a year. So, throughout                                                                   
     Alaska,  we have permits  that are  on average for  less                                                                   
     than a year. Except for the  North Slope, the average is                                                                   
     50,000  gallons a  day.  They're spread  throughout  the                                                                   
     state and they're for a variety of uses.                                                                                   
                                                                                                                                
     I  would like  to  give you  just  two examples  of  how                                                                   
     they're typically  used. One  is Icicle Seafoods  out on                                                                   
     the Aleutians; their water source  dried up. They needed                                                                   
     water to  get through the  season. We gave  them 200,000                                                                   
     gallons per day  after comment by Fish and  Game so they                                                                   
     could get through  the season and then they  now applied                                                                   
     for permanent water rights.  Our hydro-seeding company -                                                                   
     one applied a few years ago  for 10 sources. We approved                                                                   
     five, because  of fishery  concerns after comments  from                                                                   
     Fish  and  Game.  And  then  we  revoked  one,  actually                                                                   
     because the public felt it was  too noisy pulling out of                                                                   
     one particular lake.                                                                                                       
                                                                                                                                
     So,  what I'm  trying to  leave is  the impression  that                                                                   
     they  are widely  used by  construction  industry -  not                                                                   
     just  on  the  North Slope  and  they're  important  for                                                                   
     people in  our short seasons. We've been  criticized for                                                                   
     giving  these without  public notice  and I believe,  of                                                                   
     course,  that government  should  tell  the people  what                                                                   
     it's  doing.  Because  of  the  devastating  effects  of                                                                   
     putting  a 30 to  60 day delay  during our  construction                                                                   
     season,  I don't believe  we can  do this for  temporary                                                                   
     water use permits.                                                                                                         
                                                                                                                                
     But  the  concern  that  people   can't  view  what  the                                                                   
     Department  of Natural Resources  is doing is  a concern                                                                   
     that  I would  like  to address  and  I believe  HB  421                                                                   
     addresses that  concern. That is,  it says that  we need                                                                   
     to  put everything  we do on  the Web  such that  normal                                                                   
     humans who  have access to  the Web can understand  what                                                                   
     we  do, see  where we're  getting  it. If  they need  to                                                                   
     appeal one  or ask  for one to be  revoked, they  can do                                                                   
     that. If they  want to see the cumulative  impacts, they                                                                   
     can  see that,  but it is  public information  in a  way                                                                   
     that doesn't  get in  the way of  our short seasons  for                                                                   
     revocable  temporary permits. So,  I'm hoping that  that                                                                   
     solves  the concern  over public  notice  and that  lets                                                                   
     people assess what I think of  as the good work that the                                                                   
     Department of Natural Resources does.                                                                                      
                                                                                                                                
     One last  point, as I'm not  going to go over  the North                                                                   
     Slope  water use.  I believe  you've  discussed this  in                                                                   
     committee  before  and  I'm  confident  that  we  do  an                                                                   
     excellent  job there  of protecting  the resources.  I'm                                                                   
     happy to answer any questions you might have.                                                                              
                                                                                                                                
SENATOR ELTON asked what process  an applicant goes through to get                                                              
a temporary water use permit.                                                                                                   
                                                                                                                                
MR. LOEFFLER  replied that an applicant  works with DNR  until DNR                                                              
is satisfied  with the  permit application. DNR  then sends  it to                                                              
the Department  of Fish and Game  for comment; they  almost always                                                              
comment if  there's any  fish involved;  they send  it to  DEC who                                                              
rarely   comments.  If   there's   a  hydrologic   question,   the                                                              
hydrologist looks  at it. If DNR  believes there is  enough water,                                                              
there will  be no impacts on fish  and wildlife or on  other water                                                              
uses, then it issues the permit for up to five years.                                                                           
                                                                                                                                
SENATOR ELTON asked if applicants  fill out a form or whether they                                                              
just walk into the office.                                                                                                      
                                                                                                                                
MR.  LOEFFLER  replied   that  DNR  has  a  temporary   water  use                                                              
application form.                                                                                                               
                                                                                                                                
SENATOR ELTON asked how long the process takes.                                                                                 
                                                                                                                                
MR. LOEFFLER  replied that  it can take  many months to  process a                                                              
controversial  large project, but  an easy one  where there  is no                                                              
other  water  use  can be  issued  in  one  day.  If there  is  an                                                              
emergency,  DNR can  call  Fish and  Game  and  be confident  that                                                              
issuing a permit won't be hurting a resource.                                                                                   
                                                                                                                                
SENATOR ELTON  asked what type of  an application would  take five                                                              
years  and   whether  the  time   period  would   be  considerably                                                              
foreshortened if an applicant needed to reapply.                                                                                
                                                                                                                                
MR.  LOEFFLER  replied  that  DNR doesn't  like  to  issue  serial                                                              
temporary water  use permits.  The law changed  and says  they are                                                              
non-renewable.  If someone  needs multiple  permits, DNR  tries to                                                              
issue the  permit for the  length of  time the applicant  needs it                                                              
for. If  it's over five  years, the  applicant should  be applying                                                              
for a water right.                                                                                                              
                                                                                                                                
CHAIRMAN  TORGERSON   asked  him  to  review  the   public  notice                                                              
procedure.                                                                                                                      
                                                                                                                                
MR. LOEFFLER replied for water rights,  a permanent property right                                                              
to the  water, DNR  does public  notice. For  temporary water  use                                                              
permits are typically used during  a construction season, which is                                                              
short so  DNR typically does not  do public notice,  although they                                                              
have on  25 of  the 39 North  Slope permits  issued this  year. He                                                              
pointed out:                                                                                                                    
                                                                                                                                
     But people  have concerns that  DNR is not doing  a good                                                                   
     job and  for them to assess  those concerns, I  think HB
     421 is  a solution,  because while it  doesn't put  a 30                                                                   
     day  delay  during  the  construction  season,  it  puts                                                                   
     information on the Web so people  can see it, appeal the                                                                   
     permit, ask for it to be revoked  or see them in concert                                                                   
     with all  the others  so they  can assess whether  their                                                                   
     government is doing the work it should.                                                                                    
                                                                                                                                
SENATOR HALFORD asked  how far behind DNR is in  issuing permanent                                                              
water rights permits.                                                                                                           
                                                                                                                                
MR. LOEFFLER  replied that DNR is  very far behind. He  expects to                                                              
get the backlog cleaned up within five years.                                                                                   
                                                                                                                                
SENATOR HALFORD asked if DNR is more than five years behind.                                                                    
                                                                                                                                
MR. LOEFFLER  said he thought  5 to 6 years  is a good  number for                                                              
some types.                                                                                                                     
                                                                                                                                
SENATOR HALFORD said  for the permanent process, DNR  is more than                                                              
five years  behind; for the  temporary process DNR  issues permits                                                              
for as long as five years. He has  heard complaints that DNR can't                                                              
seem to  get to the  long-term process  because it is  overwhelmed                                                              
with the short-term process. He asked:                                                                                          
                                                                                                                                
     The temporary  process can  be on  top of the  long-term                                                                   
     process, can  it not? I  mean it isn't traditional,  the                                                                   
     uses  you're talking  about,  particularly North  Slope,                                                                   
     but it can be.                                                                                                             
                                                                                                                                
MR. LOEFFLER said that is correct.                                                                                              
                                                                                                                                
SENATOR HALFORD continued:                                                                                                      
                                                                                                                                
        Somebody who has five years ago applied for water                                                                       
      rights can lose the effective use of water because a                                                                      
     temporary permit took it away.                                                                                             
                                                                                                                                
MR. LOEFFLER replied, "A water right  always takes precedence over                                                              
a temporary water use permit."                                                                                                  
                                                                                                                                
SENATOR HALFORD  interrupted, "You don't  have the water  right if                                                              
you haven't acted on their water right application, do you?"                                                                    
                                                                                                                                
MR.  LOEFFLER  responded,  "Their  water  right  is  good  to  the                                                              
priority date that they applied.  The priority date is the date it                                                              
comes in."                                                                                                                      
                                                                                                                                
SENATOR HALFORD  asked how DNR knows  that when it is  assessing a                                                              
temporary permit and is five years behind in the permitting.                                                                    
                                                                                                                                
MR. LOEFFLER  explained, "Once  that water right  comes in,  we do                                                              
put those on the Web. So, when we're  looking at a temporary water                                                              
-- that is  we put it on our  status plats. So when  we're looking                                                              
at  a temporary  water  use permit  application,  we'll know  that                                                              
there are applications for water rights in the vicinity."                                                                       
                                                                                                                                
CHAIRMAN TORGERSON asked how many  temporary water use permits DNR                                                              
issues per year.                                                                                                                
                                                                                                                                
MR. LOEFFLER replied that DNR did  39 this year. This year will be                                                              
an unusually  active year  and he  expects there  to be  about 150                                                              
applications.  Most   of  those  are   on  the  North   Slope  for                                                              
construction, mining,  testing a pipeline. They  try to prioritize                                                              
the water right adjudication to those who have immediate need.                                                                  
                                                                                                                                
CHAIRMAN TORGERSON asked whether  DNR or the applicant selects the                                                              
source.                                                                                                                         
                                                                                                                                
MR. LOEFFLER  replied that  the applicants  select the  source and                                                              
then  there's some  give and  take if  DNR thinks  that source  is                                                              
inappropriate.                                                                                                                  
                                                                                                                                
CHAIRMAN TORGERSON  asked about DNR's  procedure for  streams that                                                              
are catalogued as having fish in them versus a glacial lake.                                                                    
                                                                                                                                
MR. LEOFFLER  replied that  DNR will work  with Fish and  Game but                                                              
the applicant will need a Title 16  permit on all anadromous water                                                              
bodies.                                                                                                                         
                                                                                                                                
CHAIRMAN TORGERSON  asked if he tells  that to everyone  who comes                                                              
in.                                                                                                                             
                                                                                                                                
MR. LOEFFLER  replied yes, and  that he couldn't  always guarantee                                                              
that his staff does, but they should be.                                                                                        
                                                                                                                                
SENATOR  HALFORD  asked  Mr.  Loeffler   is  he  would  object  to                                                              
requiring that  the applicant  have a Title  16 permit  before the                                                              
DNR permit can be valid.                                                                                                        
                                                                                                                                
MR. LOEFFLER said he wouldn't.                                                                                                  
                                                                                                                                
CHAIRMAN TORGERSON  announced that will  be amendment 1  and asked                                                              
Mr. Loeffler if he was okay with that amendment.                                                                                
                                                                                                                                
MR. LOEFFLER replied that he was okay with amendment 1.                                                                         
                                                                                                                                
CHAIRMAN TORGERSON asked him about the second amendment.                                                                        
                                                                                                                                
MR. LOEFFLER  responded  that the second  amendment requires  that                                                              
temporary water use applications  once they're completed be put on                                                              
the Web so  people can see them.  He felt that is  consistent with                                                              
his previous statement that the public  would be able to view what                                                              
DNR is doing but it will not create  a time delay during the short                                                              
construction season.                                                                                                            
                                                                                                                                
CHAIRMAN TORGERSON took public testimony.                                                                                       
                                                                                                                                
MR. TADD OWENS,  Executive Director, Resource  Development Council                                                              
(RDC),  strongly  supported  HB  420.  The  RDC  believes  that  a                                                              
permanent repeal  of the sunset  clause that applies  to temporary                                                              
water  use authorizations  and  retention  of DNR's  authority  to                                                              
assess  fees  for administration  of  the  water program  is  very                                                              
important.   DNR's   ability   to  issue   temporary   water   use                                                              
authorizations is  important for a host of commercial  and private                                                              
activities throughout Alaska that  don't require a permanent water                                                              
right.  DNR has  issued  temporary  water use  authorizations  for                                                              
almost 20  years for a variety  of projects across the  state. DNR                                                              
has always consulted  with DEC and ADF&G before  issuing water use                                                              
authorizations and there has been  no evidence of harm to Alaska's                                                              
fish  and  wildlife resources  or  any  significant  environmental                                                              
impact due to temporary water use  authorization. The RDC believes                                                              
this  is a  regulatory  program  that  works to  support  economic                                                              
development without compromising environmental protection.                                                                      
                                                                                                                                
MS.  MARILYN  CROCKETT,  Deputy   Director,  Alaska  Oil  and  Gas                                                              
Association  (AOGA),  fully  supported Tadd  Owens'  comments  and                                                              
supported HB 420.                                                                                                               
                                                                                                                                
MR.  JAN KONIGSBERG,  Trout  Unlimited, said  he  was speaking  on                                                              
behalf  of the  Alaska  Public  Waters Coalition,  which  includes                                                              
sport fishing  groups, conservation organizations,  former members                                                              
of  the  Alaska  Water  Board  and   other  individuals.  All  are                                                              
concerned  about  the  executive   branch  actions  affecting  the                                                              
disposition of  Alaska's water resources.  They do not  support HB
420 and believe  the temporary water use program  should sunset on                                                              
July 2002 as  provided in the original enabling  legislation. They                                                              
don't  object to  a temporary  water  use program  to provide  for                                                              
truly temporary  and truly  unanticipated water  use for  a period                                                              
less  than one  year.  Otherwise the  public  deserves notice  and                                                              
determination of public interest. He stated:                                                                                    
                                                                                                                                
     The beneficial use of Alaska's  public waters has always                                                                   
     been free.  Even though water  is every bit  as valuable                                                                   
     as  other public  resources such  as gravel,  industrial                                                                   
     users  aren't  charged  for   the  water,  but  now  the                                                                   
     temporary  water use  program  offers an  extra bonus  -                                                                   
     freedom  from the  public interest  determination  under                                                                   
     the statute. Since there is  no public notice, and since                                                                   
     no public  interest determination is required,  there is                                                                   
     really no  way other than  agency discretion  that users                                                                   
     will know  how they  might be  affected until after  the                                                                   
     temporary water  use permit is authorized  and similarly                                                                   
     there  is  no  way  to know  the  impacts  to  fish  and                                                                   
     wildlife and their habitats until after the fact…                                                                          
                                                                                                                                
MR. KONIGSBERG  noted that they  submitted proposed  amendments to                                                              
the committee  that insure public  notice, require  that [indisc.]                                                              
restrict the  water source, restore  the definition  of hydrologic                                                              
[indisc.]  that is used  by the  other 49  states and the  federal                                                              
government and require due diligence in resource monitoring.                                                                    
                                                                                                                                
MR. KEITH  BAYHA, Chairman, Alaska  Public Waters  Coalition, said                                                              
everyone he represents is, "concerned  about executive actions and                                                              
legislative  and regulatory initiatives  affecting Alaska's  water                                                              
resources that would  further special interests at  the expense of                                                              
public interest."                                                                                                               
                                                                                                                                
He said  they are generally  pleased with  the changes in  HB 421,                                                              
but  believe  there   is  room  for  further   improvement.  Their                                                              
principal concern is that the term  'standardized procedure' lacks                                                              
definition.  He said  there  is no  procedure  for evaluating  and                                                              
determining  public  interest  criteria.   By  establishing  these                                                              
procedures  in regulation  they will  be formalized,  standardized                                                              
and clear to the  public as well as to agency  staff. He supported                                                              
HB 421,  especially if their  proposed amendments are  adopted. He                                                              
offered to read  them to the committee, but they  already had them                                                              
in writing.                                                                                                                     
                                                                                                                                
MR.   CHIP  DENNERLEIN,   Director,   Division   of  Habitat   and                                                              
Restoration, ADF&G,  said he was  available to address  questions.                                                              
He  concurred with  Mr.  Loeffler's  description  of the  process,                                                              
particularly  with   the  North  Slope.  He  also   supported  the                                                              
amendments.                                                                                                                     
                                                                                                                                
SENATOR  HALFORD  moved  to  adopt  amendments  1  and  2  as  one                                                              
amendment to HB 421.                                                                                                            
                                                                                                                                
CHAIRMAN TORGERSON  asked Mr. Loeffler if the  amendment would add                                                              
an extra burden for him.                                                                                                        
                                                                                                                                
MR. LOEFFLER replied  that they are already doing  part 1 and part                                                              
2. They  are minor burdens, but  give transparency to  the program                                                              
and he didn't object.                                                                                                           
                                                                                                                                
CHAIRMAN  TORGERSON  noted  that  there  were  no  objections  and                                                              
amendment 1 was adopted.                                                                                                        
                                                                                                                                
SENATOR HALFORD  moved to pass  SCS CSHB 421(RES)  from committee.                                                              
There were no objections and it was so ordered.                                                                                 
                                                                                                                                
SENATOR  HALFORD moved  to pass  HB 420(Title  am) from  committee                                                              
with individual  recommendations. There were no  objections and it                                                              
was so ordered.                                                                                                                 
                                                                                                                                
CHAIRMAN TORGERSON adjourned the meeting at 5:10 pm.                                                                            

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