HOUSE BILL NO. 360 "An Act enacting the Interstate Mining Compact and relating to the compact; relating to the Interstate Mining Commission; and providing for an effective date." 9:35:29 AM REPRESENTATIVE BOB LYNN, introduced HB 360. He explained that the legislation would give Alaska a full vote in the Interstate Mining Compact Commission (IMCC). He noted that the state had been a member of the compact for 6 years but as an associate member, never had a vote. The legislation would give Alaska full voting rights in a formal vote in the state compact while maintaining state sovereignty in mining issues. He furthered that mining was a growing for in the state's economy, and broadened the state's revenue base beyond oil and gas. He shared that there were 45 direct mining jobs in Alaska and 9,000 indirect jobs attributed to mining. He said mining generated approximately $150 million in state revenue, $17 million in local government revenue, and over $179 million in payments for Alaska Native Corporations. He said that a voting voice in the IMCC would give Alaska a stronger voice on the federal level. 9:37:26 AM Co-Chair Hoffman noted the one fiscal note from the House Finance Committee which eliminated $20 thousand in travel cost from the original note from the Department of Natural Resources. Co-Chair Hoffman OPENED public testimony. 9:37:57 AM ED FOGELS, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES, urged support of HB 360. He stated that mining was an important aspect of Alaska's economy. He testified that due to the streamlined permitting and regulatory process of the state there were currently had 7 operating mines that were contributing to the treasury. He relayed that mining had become controversial in recent years, bringing the strength of the permitting process into question. He said that, under the direction of the governor, the department was examining the permitting process in an effort to better protect the environment. He asserted that by joining the commission the state would gain leverage on the federal level. 9:40:07 AM Senator Thomas wondered what practical effect the commission would have on existing mining operations. Mr. Fogels replied that the Environmental Protection Agency (EPA) was currently considering taking over bonding for hard-rock mining in the nation. He said that every mining state in the nation was concerned that once the bonding was taken over the EPA could take over the entire mine regulatory process for each state. He stated that the commission was currently in discussion with the EPA to educate them on the bonding programs already in existence, with the hope that it would prompt the EPA to rethink their initiative. He concluded that this was a case of the commission voicing collective states concerns to the EPA. 9:41:41 AM GREGORY CONRAD, EXECUTIVE DIRECTOR, INTERSTATE MINING COMPACT COMMISSION, WASHINGTON D.C. (via teleconference), urged committee support of HB 360. He explained the present legislative and regulatory climate in Washington D.C. demanded that state governments have a strong voice in order to be heard. He said that the commission was recognized on the federal level for their expertise on mining issues, and had been invited to testify on behalf of the state in six congressional hearings in the house and senate in 2012. He stressed that it was the active participation and commitment of the full member state that carried the organization forward in terms of support and leadership. He expounded that upon the enactment of the legislation the state would have a formal vote in guiding the direction of the compact, and the ability to chair committees of the compact. He concluded that the passage of the legislation was in the best interest for the state. 9:45:09 AM Senator Olson noted some tension between the fisheries and the mining industry in relation to the Pebble Mine project. He queried the commission's position on the Pebble mine project. Mr. Conrad replied that the commission held no official position. He believed that the commission could offer direction in discussions of the types of issues associated with the development of the Pebble Mine. 9:46:26 AM Senator Egan noted that many of the member states were on the East Coast. He wondered if there was a plan to encourage more Western states to participate. Mr. Conrad replied that Colorado, Utah, New Mexico, Wyoming were associate members that were pursuing legislation to become full members. He added that the commission was in the process of working with Nevada, the newest associate member state. He said that discussions were also underway with Montana and Arizona. He explained that when the commission was formed in 1970 the focus had been on Eastern coal mining states as a result of legislation before congress at the time. He shared that since that time the commission had expanded the scope of its issues, initiatives, and priorities beyond coal. Co-Chair Hoffman CLOSED public testimony. HB 360 was HEARD and HELD in committee for further consideration.