HJR 9-CANADIAN MINES ON TRANSBOUNDARY RIVERS  5:03:21 PM CO-CHAIR JOSEPHSON announced that the first order of business would be HOUSE JOINT RESOLUTION NO. 9, Urging the United States government to continue to work with the government of Canada to investigate the long-term, region-wide downstream effects of proposed and existing industrial development and to develop measures to ensure that state resources are not harmed by upstream development in British Columbia. [Before the committee was CSHJR 9(FSH), Version J]. CO-CHAIR JOSEPHSON said invited testimony on HJR 9 was heard 4/12/17, and opened public testimony. 5:03:49 PM JODE SPARKS, spokesperson, Alaska Youth for Environmental Action (AYEA), informed the committee his organization is a group of diverse, politically-minded teenagers from across Alaska. He expressed support for HJR 9 because of his support for sustainable salmon. Other students in his biology class in Soldotna, and their teacher, also support the resolution. Mr. Sparks said the bill would have no impact on Alaska industry, but would help save Alaska salmon. Although Southeast Alaska is distant from the Kenai Peninsula, the two areas share cultural and economic dependence on salmon, and residents fish and work in commercial fishing. Fishing provides employment for over 10,000 workers in Southcentral Alaska and enhances tourism. The bill would benefit mostly salmon in Southeast, but all Alaskans support salmon and seek healthy salmon. Alaskans also want the state to have a say in its industries, and HJR 9 would provide Alaskans influence over mines that affect Alaska waters. Representing AYEA, students, salmon-lovers, and young Alaskans, Mr. Sparks urged the legislature to pass HJR 9. 5:05:39 PM TONY GALLEGOF, director, Cultural and Natural Resources, Ketchikan Indian Community (KIC), summarized from a resolution passed by KIC in support of HJR 9 as follows: 1. The Province of British Columbia (B.C.), Canada, says its mines can be developed responsibly but reports found this is not the case 2. KIC is concerned about the long-term health of fishes and rivers, and seeks enforceable measures to protect resources in the future 3. Binding, enforceable measures are needed to address Alaskans' concerns about transboundary mining activity 4. The [Statement of Cooperation on the Protection of Transboundary Waters (SOC) does not guarantee or ensure monitoring and does not provide funding 5. Monitoring without funding is not enough 6. Long-term cumulative impacts from existing and future mining projects in B.C. affect Alaska's natural resources 7. HJR 9 is proactive 8. B.C.'s current processes do not provide a mechanism or funds to ensure proper cleanup and compensation 9. Concerns are being dismissed 11. The federal Boundary Waters Treaty (BWT) should be honored 10. B.C. needs to implement a robust monitoring to ensure protection of waters in perpetuity Therefore, the Ketchikan Indian Community resolves that the KIC Tribal Council urge the U.S. government to work with Canada to investigate long-term downstream effects of existing and proposed industrial development in B.C. and develop measures to protect the state's resources. REPRESENTATIVE PARISH asked how many are represented by KIC. MR. GALLEGOF said KIC is the second largest Tribe in the state and represents over 6,000 members. 5:10:03 PM FREDERICK OLSEN JR, chairman, United Tribal Transboundary Mining Work Group, and Tribal vice president, Organized Village of Kasaan, said the Organized Village of Kasaan (Kasaan) passed a resolution in support of HJR 9, as Kasaan has a close and personal relationship to its region and the land. Mr. Olsen recalled previous testimony heard last year created HJR 9, and he restated Kasaan's support. The resolution could be stronger, and could stress the U.S. government's fiduciary trust responsibility in government-to-government relationships that do not recognize Tribes; on behalf of Alaska Native Tribal citizens, he called on the U.S. to enforce the formation of the International Joint Commission under the Boundary Waters Treaty (BWT) of 1909. Mr. Olsen noted BWT articles address harm and potential harm; however, the Tulsequah Chief mine is polluting the Taku River watershed, the Brucejack mine may be affecting the Unuk River, and the Red Chris mine is threatening the Stikine River. Mr. Olsen pointed out it is time to implement BWT on the Alaska/Canada border. Referring to testimony on 4/12/17 from misleading witnesses, he clarified that a treaty between two countries with federal governments requires federal enforcement, but that is not federal overreach. Mr. Olsen suggested greed leads to selling out the health of thousands of Alaskans. He concluded that the loss of a way of life on this side of the border should not merely be a cost of doing business. 5:15:50 PM BRIAN LYNCH, spokesperson, Rivers Without Borders, stated his support for HJR 9. He said he is a retired Alaska Department of Fish & Game (ADFG) commercial fisheries management biologist with 30 years' experience in Southeast Alaska, and is now working part-time for Rivers Without Borders. He said the issue addressed by HJR 9 is not about the management of Alaska's resources, but is one of ensuring that activities on the other side of the international border do not harm Alaska's resources and industries. Furthermore, "HJR 9 has nothing to do with the Alaska mining industry or how we manage our resources," he said. Federal involvement would complement the SOC and, although the Alaska congressional delegation has strongly opposed federal overreach on other issues, Alaska's senators and congressman support federal intervention in this issue. Mr. Lynch recalled testimony during previous hearings expressing greater concern for the B.C. and Canadian mining industry, than for the Alaska seafood industry and thousands of existing jobs. In fact, the economic lifeblood of Petersburg is the seafood industry, and mine contamination from any of the transboundary watersheds would have significant and devastating impacts on Petersburg, all Southeast Alaska, and beyond. Mr. Lynch pointed out river estuaries support crab and halibut fisheries which, if contaminated by toxic materials from a mine disaster, would be difficult or impossible to clean up as demonstrated following the 2015 Samarco mine disaster in Brazil. He described how fisheries in the Gulf of Alaska and Bering Sea could be impacted if any transboundary king salmon stocks are listed under the Endangered Species Act (ESA) as a result of a mining disaster. Mr. Lynch urged the committee to remember that the financial impacts of a mine disaster could be very extensive, which explains why enforceable financial assurances, backed by federal involvement, are absolutely necessary. 5:19:23 PM KAREN MATTHIAS, executive director, Council of Alaska Producers (CAP), informed the committee CAP is a statewide business association representing large metal mines and some advanced projects in Alaska; CAP promotes economic opportunity and environmentally sound mining practices. Ms. Matthias said she also represents CAP on the [State of Alaska Transboundary Working Group]. Recognizing the need to protect and enhance the shared environment, CAP supports dialogue between Alaska and B.C. on development in B.C. along rivers flowing from B.C. to Alaska. The state has sought to deepen the existing levels of communication and cooperation between Alaska and B.C. through outreach to stakeholder groups, which has resulted in a Memorandum of Understanding (MOU) and SOC, which she characterized as "the starting point for greater collaboration between the province and the state, in fact, the technical work has already begun." Ms. Matthias encouraged the committee to request an update from the Department of Environmental Conservation (DEC), the Department of Natural Resources (DNR), and ADFG on this subject, and to obtain comparisons of B.C. and Alaska [mine] permitting. She stated CAP is not opposed to federal involvement, but questioned whether federal involvement would provide timely or meaningful results, and urged for the committee to amend the resolution to recognize the value of the SOC, the work of the technical group, and the efforts of Lieutenant Governor Mallott to ensure Alaska state regulators have meaningful access to and influence on the regulatory process in B.C. 5:21:38 PM GRAHAM NEALE said he is a miner, an educator, and a volunteer who has been involved in resources in Alaska and B.C. for 20 years. As a Canadian, he lives in Southeast Alaska, works in a dynamic industry, and enjoys fishing. He stressed that Canada is generally respected worldwide as a responsible nation; regarding this issue, there exists a working relationship, an open dialogue, and an MOU and SOC between B.C. and Alaska which were culminated in two years. Furthermore, the Minister of Energy and Mines, B.C., Bill Bennett, and some proponents of projects in B.C., have studied modifications and have stated that they care what Alaskans think even though they don't have to. Mr. Neale said members of his family were affected by [the tailings dam failure at] Mount Polley, which caused concern and disgust, however, the response to the event was a stop to work, an investigation, repercussions, and a commitment "to be better, which you can't ask much more from, from your neighboring country." From an historical perspective, he opined the aforementioned response was an improvement over past patterns of mining that were accepted - on both sides of the border - one hundred years ago. Mr. Neale said his most important point is that as a father who hopes to fish with his son, he would not work in an industry or a jurisdiction that would put his values at risk." In response to Representative Birch, he said he would submit his written testimony to the committee. 5:24:20 PMs REPRESENTATIVE PARISH observed most of the miners working at two of the five biggest mines in Alaska live in his district, and they work hard for environmental protection. However, he said he is troubled by some of the egregious mistakes made in Canada, such as at the Tulsequah Chief and Mount Polley mines, when compared to practices at Kensington and Greens Creek mines. He directed attention to [a document in the committee packet entitled, "Auditor General's Comments," and dated May 2016]. Representative Parish asked what is being done to strengthen the committee's level of confidence [in Canada's policies]. MR. NEALE said he cannot testify on behalf of a nation or a province; however, early mining practices left legacy concerns from activities that occurred while the industry provided modern conveniences, and before environmental regulations were established. What was learned from Mount Polley is that there are repercussions and a commitment to improve. In response to Co-Chair Tarr, he said he is in favor of the diplomatic policies that are currently in place between Alaska and B.C., and is neutral on HJR 9. 5:27:10 PM LAURA STATS said she is representing herself, her family, and extended family members who work in the commercial fishing industry in Southeast Alaska. She opined an Alaskan need not be a fisherman to understand the bounty of salmon, and the marine ecosystem. Residents of Alaska witness returning salmon, seals, sea lions, whales, and other marine life, and in Southeast, residents witness rare sights. A generation ago, Lynn Canal and Chatham Strait were filled with herring, and herring roe was harvested - but no longer. She stressed the importance of stewardship of Alaska's rare and abundant environment, and urged the committee to vote in favor of HJR 9. Due to budget deficits, Alaska is at a crossroad, and it is in Alaskans' best interest to protect the environment and thereby encourage the robust continuation of salmon stocks and the economy. 5:29:29 PM GUY ARCHIBALD, Coordinator, Mining and Clean Water, Southeast Alaska Conservation Council (SEACC), said he is an environmental chemist and microbiologist with 20 years of experience. He referred to a 2016 report by Bowker and Chambers [document not provided] and said the report shows that "these very types of modern mines, due to exploiting very low-grade ores and having to go at an economy of scale, actually fail at a higher rate and more catastrophically than smaller, older legacy mines." Further, BC Hydro and Power Authority (BC Hydro), which was built to power certain mines, is $18 billion in debt, and he posited the Province of B.C. is "betting the bank on these mines being developed and, and going into production." Referring to expert testimony and [a document in the committee packet entitled, "Auditor General's Comments," and dated May 2016], Mr. Archibald opined B.C. was to move away from watered tailings facilities, but six months after the Mount Polley [tailings dam] disaster, B.C. permitted the Red Chris [mine] tailings facility, which is a watered tailings facility, and the Brucejack [gold mine project] that will store tailings underwater. Other proposed mines, including the Kerr-Sulpherets-Mitchell (KSM), Schaft Creek, and Galore Creek mines, have not changed their plans of operation to move away from watered tailings facilities. Mr. Archibald acknowledged B.C. has modified some of its practices as follows: formed a nonbinding review board to review tailings designs; now requires mines to submit a management plan; now requires mines to give an annual report; created a web site. He closed, expressing concern about the idea that federal involvement might be too little/too late, and pointed out that the KSM mine, proposed to mine the largest ore- body in the world, has a post-closure operating plan covering 200 years. He said, "I think the federal government can have an impact sometime between now and 200 hundred years from now." 5:33:06 PM CO-CHAIR JOSEPHSON questioned whether the KSM mine has a 200- year lifespan. MR. ARCHIBALD explained the operating plan is mining for 52 years, and active water treatment and post-closure activities for 200 years, which is the maximum time-period for the plan's predictive model. The rate of water treatment would be 119,000 gallons per minute discharged into the Unuk River for 200 years. He said he wondered why industry associations are opposed to the tools and expertise federal agencies would provide. REPRESENTATIVE DRUMMOND asked for an alternative to watered tailings storage. MR. ARCHIBALD said one alternative is a dry stack as utilized by Greens Creek mine on Admiralty Island. The "technical panel" recommended that safety, and not economics, should be the "driver" behind tailings dam design; currently, tailings dam design is based on three considerations: economics and financial feasibility, environmental impacts, and impacts to society. Although water did not cause the dam failure at Mount Polley, the water mobilized the tailings, thus more damage was caused than if the tailings were dry stacked. 5:36:06 PM DEANTHA CROCKETT, Executive Director, Alaska Miners Association (AMA), informed the committee AMA is the professional trade association for Alaska's mineral industry, mines large and small, and has branches in eight locations statewide. She directed attention to a letter in the committee packet from AMA dated 3/15/17, which addressed "the first version" of HJR 9, and that noted the collaboration between the state and B.C. led to the MOU and SOC agreed upon by the two governments, and to the beginning of technical work to further collaboration. At the time of the letter, AMA suggested the resolution reflect the aforementioned advancements by which to address any concerns regarding transboundary mining. However, HJR 9, Version B, includes new language insisting on federal government intervention, in addition to the ongoing collaboration. Ms. Crockett expressed surprise that the legislature would be requesting federal overreach into the management of Alaska's natural resources, and the regulatory management of its resources. Instead, she said, the legislature should support Alaska's collaboration and the regulatory mission of state agencies, and thereby avoid compromising the formalized collaboration. Results from collaboration by Lieutenant Governor Mallott and B.C. officials include the state's participation on the mining review committee for the Brucejack and KSM projects, and demonstrates that the two governments are working to address common interests and to protect waters and fisheries. Ms. Crockett concluded that asking for federal involvement is unnecessary and cedes Alaska's authority to manage its resources to the federal government. 5:38:25 PM CO-CHAIR JOSEPHSON, after ascertaining no one else wished to testify, closed public testimony, and before the committee was CSHJR 9(FSH). REPRESENTATIVE PARISH expressed his support for the resolution and opined the resolution does not undercut the efforts of Lieutenant Governor Mallott, nor of the State of Alaska Transboundary Working Group. Returning attention to a document [in the committee packet entitled, "Auditor General's Comments," and dated May 2016], that revealed B.C. regulatory failures such as the catastrophe at Mount Polley and the ongoing contamination of salmon waters by the Tulsequah Chief mine, he said Alaska has stringent expectations of its mines, and its expectations are met because of robust regulatory authority. Representative Parish cautioned that lower bonding, lower expectations, and lax enforcement from Alaska's Canadian neighbors puts Alaska fisheries at risk. REPRESENTATIVE BIRCH urged the committee to recognize that government officials from Alaska and B.C. are working closely together toward resolving the issues under discussion; furthermore, Alaska and B.C. share a large economic component in a successful river system. He said he agreed with previous testimony from those expressing concern about inviting the federal government to take the lead in the management of Alaska's resources. REPRESENTATIVE JOHNSON asked if there are any rivers flowing from Alaska into Canada that would be affected by transboundary issues. CO-CHAIR JOSEPHSON said no. CO-CHAIR TARR expressed her support for the resolution, which she characterized as a preventative measure. She agreed that the resolution would not detract from ongoing collaboration, and pointed out the only legally binding agreement between Alaska and B.C. must come from the federal governments. REPRESENTATIVE DRUMMOND expressed her support for the resolution. 5:44:25 PM REPRESENTATIVE JOHNSON directed attention to the resolution on page 2, lines 15-17, which read: WHEREAS the federal-provincial environmental assessment process does not address the long-term, cumulative effects of industrial development in the transboundary region; and REPRESENTATIVE JOHNSON asked for more information on "the federal-provincial environmental assessment process." 5:45:46 PM JILL WEITZ, spokesperson, Salmon Beyond Borders, explained in 2012, the Harper Administration [Stephen Harper, Prime Minister of Canada from 2/6/06 to 11/4/15] removed a stipulation within Canada's environmental assessment process that suggested a project leaving its jurisdictional boundaries would require a federal environmental assessment. REPRESENTATIVE JOHNSON asked for a reference to said assessment process. MS. WEITZ said she believed the relevant reference is to section 36 of the Canadian Environmental Assessment Act; section 36 was removed from the Act during the Harper Administration. REPRESENTATIVE JOHNSON directed attention to the resolution on page 2, lines 5-9, which read: WHEREAS the proposed mines would generate billions of tons of acid-generating tailings, which would be held behind huge dams and could pose the threat of acid rock drainage for centuries, if not in perpetuity; and WHEREAS the tailings would need monitoring, maintenance, water treatment, and possible remediation for centuries, if not in perpetuity; and REPRESENTATIVE JOHNSON asked whether the mine plans are on file. In response to a request to clarify her question, Representative Johnson remarked: So, it's the State of Alaska making a statement saying that ... [the mines] would generate billions of tons of acid-generating tailings, ... and I'm wondering where the facts come from. 5:50:25 PM MS. WEITZ confirmed that the projects have plans that have been reviewed by the Department of Natural Resources (DNR) - as well as independent scientists - regarding the permitting review process and mines in operation. CO-CHAIR JOSEPHSON inquired as to whether Ms. Weitz can attest to have reviewed evidence supporting the resolution on page 2, lines 5-7, and that many mines would generate billions of tons of acid-generating tailings. MS. WEITZ said yes. CO-CHAIR JOSEPHSON understood it is "well-known" that a large- scale, open-pit mine poses some threat of acid-rock drainage and must be monitored for a long period of time, which is acknowledged in mine operating plans. MS. WEITZ advised every mining plan is different and thus she would not generalize. Mining plans identify mine life and the proposed water treatment; for example, the KSM Project has projected 200 years of water treatment. REPRESENTATIVE JOHNSON remarked: ... I have to be aware that what we expect from upstream in Canada we should be very much prepared to do upstream ... in Alaska as far as any drainage. ... I understand ... this is just a resolution, but I think it's important to remember it's a statement that, that is ... still action of the legislature. ... It seems like, a little bit like hyperbole when we say, when we start talking about what could happen. We know a lot of things could happen. REPRESENTATIVE JOHNSON asked Representative Ortiz if Alaska would want the resolution applied to it as well [as to Canada]. 5:53:55 PM REPRESENTATIVE ORTIZ said absolutely. He agreed that international water treaties and agreements work both ways, and potential cooperation leading to agreements between the governments of Canada and the U.S. would be binding, which is commonly accepted. REPRESENTATIVE JOHNSON directed attention to the resolution on page 1, lines 12 and 13, which read: WHEREAS large-scale mining in British Columbia is experiencing unprecedented and rapid expansion within the Taku, Stikine, and Unuk watersheds; and REPRESENTATIVE JOHNSON questioned whether the foregoing statement is true. REPRESENTATIVE ORTIZ said the mines are now being proposed in large numbers, and they are big mines that did not exist before. The specific purpose of building [BC Hydro] is to provide energy to the new mines, and he said, "On the Canadian side, they're at this point now where they see it's to their benefit economically to develop, to develop these mines now ...." In further response to Representative Johnson, he stressed the resolution addresses proposed mines that would potentially affect the Taku, Stikine, and Unuk watersheds. There followed a brief discussion on the character of resolutions in general. REPRESENTATIVE PARISH clarified that a few rivers in the Arctic National Wildlife Refuge flow northeast, but they are outside the scope of HJR 9. 5:58:30 PM CO-CHAIR TARR moved to report [CSHJR 9(FSH)] out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, CSHJR 9(FHS) was reported from the House Resources Standing Committee.