SRES - 3/22/95 HB 169 DEPT. NAT RES. IS LEAD AGENCY FOR MINING  The committee took up HB 169. ROD MOURANT, legislative assistant to Representative Kott, testified for the sponsor. HB 169 defines the Department of Natural Resources (DNR) as the lead agency for permit processing and development of the mining industry. DNR will act as a coordinating and contact agency for mining companies to obtain information on the status and requirements of their activities. This measure was recommendation number five in the Alaska Minerals Commission 1995 report. The applicant would meet with DNR and define the project; DNR would appoint a team leader who defines the scope of the project and determine participating agencies, who then appoint agency coordinators. The applicant would then meet with personnel to develop a work plan and time frame. This method will be less expensive for the applicant, but should the applicant not meet the work plan requirements, the project would revert to the normal project process, and would no longer be handled on an expedited basis. MR. MOURANT explained the committee substitute addresses department concerns that the legislation implied that DNR would take over statutory requirements of other departments. That was not the intent of the sponsor, therefore the language, "and, in its capacity as lead agency, shall coordinate all regulatory matters concerning mineral resource exploration, development mining and associated activities," on lines 6-8, page 1, was added. LEN VERELLI, Director of the Air and Water Quality Management Sections at the DEC, stated the language added to the committee substitute is satisfactory to DEC. NEIL MACKINNON stated CSHB 169 (RES) is one of the AMC's recommendations. He commented as a small mine operator, he would prefer to go to one agency for information, and to have one person accountable for that information. Number 523 JULES TILESTON, Director of Mining and Water Management, DNR, gave the following testimony. The administration has not yet taken a position on CSHB 169(RES), but he believes the amendments will resolve the administration's concerns. The Alaska Minerals Policy Commission reviewed the Fort Knox project in Fairbanks and determined the effectiveness of the project was due to the fact that DNR assigned a senior staff member, familiar with the permitting process and agencies, to coordinate the process. DNR has expertise in mining, water management, and reclamation, statewide; the Division of Governmental Coordination (DGS) provides technical expertise on mining related issues; the Division of Lands deals with tidelands; and the Plants Materials Center contains the state's reclamation experts. The word "coordinate" will not mean that DNR will take on the permitting or regulatory authorities of other entities; nor can it arbitrarily or capriciously direct another entity to do something against its laws or regulations. The term does imply that evaluations, decisions, and processes be uniformly applied to mining operations throughout Alaska. He noted AS 27.19.010(d) is another way of solving the problem; it prevents DNR's ability to usurp or modify other agencies' authorities and responsibilities. Number 570 SENATOR TAYLOR asked how the bill could be redrafted to usurp the authority of the other departments. MR. TILESTON remarked he has worked on the permit process of major projects in the state for 25 years and believes it is critical to provide strong leadership and a consistent approach to the permitting process. TAPE 95-24, SIDE B SENATOR TAYLOR commented he believes when the competing entities are forced to sit with, and justify, their capricious activities to their colleagues, they have to acknowledge the rules and regulations of the other entities involved. Number 570 SENATOR LINCOLN asked what the DGC's function is. GLEN GRAY, project analyst with the DGC, stated DGC plays a similar coordinating role with coastal zone projects as DNR would under CSHB 169 (RES) with mining projects. If two or more state permits, or one federal permit, are required for coastal zone projects, DGC coordinates those reviews. Number 557 SENATOR PEARCE asked what "hammer" DGC has when an agency is being obstructive. MR. GRAY replied final deference is given to the specific agency that has responsibility for that resource. If an agreement is not reached, the DGC makes its best guess and writes a consistency determination which can be appealed by the agencies. SENATOR PEARCE commented the Shepard's Point road project that was mandated by Judge Holland in an agreement between the federal government, the state, and the Alyeska plaintiffs, is not progressing. She stated permits are not forthcoming; part of the problem is the U.S. Corps of Engineers, but the DF&G is unwilling to issue permits because they feel the project is unnecessary. She questioned the need for DGC if they cannot fulfill the requirements of a court ordered project. MR. GRAY responded he was not familiar with that project. Number 518 SENATOR LINCOLN asked if the coordinating functions of DGC and DNR will overlap if CSHB 169(RES) passes. MR. GRAY answered the bill would require that DGC, when it coordinates such a review, would involve DNR. DNR would act as the lead agency; DGC would coordinate the review. SENATOR LINCOLN asked for clarification of the agency roles. MR. GRAY explained DGC would still provide the permitting coordination; and would work closely with the lead agency regarding DNR's concerns. Number 518 SENATOR LINCOLN questioned Mr. Gray's opinion of CSHB 169(RES). MR. GRAY felt the word "coordinate" created confusion. To his understanding, this bill would not affect the authority of any other agency, therefore it would not create a problem for DGC because DGC would still coordinate reviews within the coastal zone. The bill would ensure that DGC work with DNR in the permitting process. SENATOR LINCOLN requested the committee provide a letter of intent to clarify that CSHB 169(RES) was not designed to permit DNR to function for other departments. SENATOR TAYLOR stated the legislation implies DNR will be the lead agency, therefore they need to lead other agencies. SENATOR LINCOLN did not feel CSHB 169(RES) clarifies the situation described by Senator Taylor. She stated the testimony differed. SENATOR HOFFMAN asked for Mr. Mourant's understanding of the delineation of functions under CSHB 169(RES). MR. MOURANT explained the word "coordinate" means just that; there is no change of authority intended by the measure. The regulatory and statutory authorities of DEC, DF&G, DGS, and DNR will remain in those agencies as specified in regulation and statute. The only purpose of CSHB 169(RES) is to provide a single contact point for mining applicants to get advice, coordinate, and find out the status of their projects. It is a method of expediting a bureaucratic process. Number 488 SENATOR HOFFMAN questioned DF&G's comments on the fiscal note. MR. MOURANT replied the fiscal note was not provided to the sponsor, therefore he was unable to comment. Number 458 SENATOR TAYLOR remarked in both British Columbia and Alberta, the government decides whether the project will occur, and directs its agencies to provide solutions to any problems. In Alaska, the agencies are asked to bring all problems to the table to shut the project down. He felt Alaska to be approaching the problem in a backward manner. He added if CSHB 169(RES) creates a "one stop shopping" system for mining applicants, that system will not be expeditious if every agency creates blocks to the process. He noted it has taken longer to obtain the initial permits on the AJ mine than it took to win World War II. Number 443 MR. MOURANT indicated there are many matters regulated by DF&G that are of no interest to the mining community. DF&G would coordinate its regulatory authority with DNR on only those matters affected by the application. SENATOR LINCOLN asked if there would be committee objection to DEC's recommended language that further states that Section 1 does not alter or diminish the authority of another state agency under its laws and regulations. SENATOR LEMAN did not believe the language to be necessary. MR. MOURANT explained HB 169 was initially amended because of that concern, and that language was developed in coordination with the affected agencies, who now seem to feel further clarification is necessary. SENATOR LEMAN announced CSHB 169(RES) would be held until Monday. He also announced the next Senate Resources Committee meeting would be held on Friday; SB 69 and SJR 20 are scheduled. The subcommittee on SB 130 will meet on Thursday at 1:00 p.m. in the Beltz Room. He adjourned the meeting at 4:50 p.m.