00 HOUSE CS FOR CS FOR SENATE BILL NO. 310(FIN) 01 "An Act relating to the management and sale of state timber and relating to the 02 administration of forest land." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 38.05.112 is amended to read: 05  Sec. 38.05.112. FOREST LAND USE PLANS. (a) The department may not 06 sell or harvest timber, except for timber that must be removed for the purpose of 07 a permit, right-of-way, or easement issued under AS 38.05.850 or isolated sales of 08 less than 50,000 board feet [PERSONAL USE TIMBER HARVEST], until a 09 site-specific forest land use plan has been adopted. A forest land use plan is required 10 whether or not a regional or area land use plan under AS 38.04.065(a) or a forest 11 management plan under AS 41.17.230 has been adopted. 12  (b) The commissioner shall base a forest land use plan on the best available 13 data, including information provided by other agencies [DESCRIBING THE 14 IMMEDIATE AND LONG-TERM EFFECTS OF INDIVIDUAL AND COLLECTIVE 01 FOREST ACTIVITIES ON THE TIMBER BASE AND ON OTHER RESOURCES 02 AND USES]. 03  (c) A forest land use plan shall consider [IN ADDITION TO] the 04 requirements of AS 38.04.065(b) only for areas where a land use plan under 05 AS 38.04.065(a) or a forest management plan under AS 41.17.230 has not been 06 adopted. Regardless of whether there is a land use plan or a forest management 07 plan, each [, A] forest land use plan shall consider 08  (1) commercial timber harvesting, including related activities; 09  (2) harvesting of forest products for personal use; 10  (3) fish and wildlife habitat, including 11  (A) identification and protection of important wildlife habitat; 12  (B) retention of riparian, wetland, and ocean-shoreline 13 vegetation critical for fish and wildlife habitat; [AND] 14  (C) classification of water bodies according to physical 15 characteristics; and 16  (D) the use of silvicultural practices, commercial timber 17 harvest, and related activities to maintain and enhance the quantity and 18 quality of fish and wildlife habitat; 19  (4) uses of forest land for nontimber purposes, including 20  (A) recreation, tourism, and related activities; 21  (B) mining, mining claims, mineral leaseholds, and material 22 extraction; 23  (C) uses of fish and wildlife; 24  (D) agriculture, including grazing; and 25  (E) other resources and uses appropriate to the area, including 26 compatible traditional uses; 27  (5) soil characteristics and productivity; 28  (6) water quality; and 29  (7) watershed management. 30  (d) A management plan prepared by the commissioner under AS 41.17.230 31 or AS 38.04.065 must consider and permit the uses described in (c) of this section. 01 If the commissioner finds that a permitted use is incompatible with one or more other 02 uses in a portion of a state forest, the commissioner shall, consistent with 03 AS 41.17.200, affirmatively state in the management plan that finding of 04 incompatibility for the specific area where the incompatibility is anticipated to exist 05 and the time period when the incompatibility is anticipated to exist together with the 06 reasons for each finding. If the commissioner finds that the use described in (c)(1) 07 of this section is incompatible, or otherwise restricts that use, the commissioner 08 shall also describe the data used to justify the incompatibility and the benefits of 09 the restriction. 10 * Sec. 2. AS 38.05.113(c) is amended to read: 11  (c) Sales under 500,000 board feet [THE DEPARTMENT MAY ADOPT 12 REGULATIONS EXEMPTING SMALL] and emergency sales are exempt from the 13 requirements of this section if public notice of the proposed sale is provided in the 14 manner specified in AS 38.05.945(b). Exempt sales, other than emergency sales, 15 under this subsection may not exceed 1,000,000 board feet in a calendar year in 16 each region. 17 * Sec. 3. AS 38.05 is amended by adding a new section to article 4 to read: 18  Sec. 38.05.122. FOREST MANAGEMENT AGREEMENTS. (a) 19 Notwithstanding the requirements of AS 38.05.110 - 38.05.120 or another provision 20 of this chapter, the commissioner, subject to the approval of the legislature under (i) 21 of this section and under the procedures set out in this section and if not inconsistent 22 with a land use plan then in effect, may enter into a forest management agreement 23 with a person to authorize the person to enter on the state forest land covered by the 24 agreement for the purposes of selecting, harvesting, and regenerating timber in a 25 manner consistent with sustained yield. 26  (b) At least once each calendar year, the commissioner shall, unless the 27 commissioner provides a written finding to the governor that market or other 28 conditions make it unlikely that such a solicitation will be accepted, solicit proposals 29 for forest management agreements on state forest land. The commissioner shall identify 30 the forest land included in the solicitation of proposals. The land identified may 31 include land covered by a cooperative resource management or development agreement 01 under AS 38.05.027 subject to the approval of the owner of any land other than state 02 land. The commissioner shall provide notice of the solicitation to all persons who 03 have requested notification and may provide for any additional notice that the 04 commissioner determines is appropriate. Regardless of whether the commissioner has 05 solicited proposals under this subsection, a person may submit a proposal for a forest 06 management agreement to the commissioner at any time for consideration. The 07 commissioner may not consider unsolicited proposals for a parcel of land covered by 08 a solicited proposal until the commissioner has completed the review and determination 09 required under this section concerning the solicited proposals. 10  (c) The commissioner shall solicit comments from the public and from state 11 agencies, including the commissioner of fish and game, for a proposed agreement 12 unless the evaluation under (d) of this section indicates it is unlikely that the proposed 13 agreement will be selected as a tentatively successful proposed agreement. The 14 comment period under this subsection may not be less than 30 days nor more than 60 15 days. 16  (d) The commissioner shall evaluate proposed agreements submitted under (b) 17 of this section. In evaluating a proposed agreement, the commissioner shall consider 18 the 19  (1) effect of the agreement on the following: 20  (A) commercial timber harvesting, including related activities; 21  (B) harvesting of forest products for personal use; 22  (C) fish and wildlife habitat, including 23  (i) identification and protection of important wildlife 24 habitat; 25  (ii) retention of riparian, wetland, and ocean shoreline 26 vegetation critical for fish and wildlife habitat; 27  (iii) classification of water bodies according to physical 28 characteristics; and 29  (iv) the use of silvicultural practices, commercial timber 30 harvest, and related activities to maintain and enhance the quantity and 31 quality of fish and wildlife habitat; 01  (D) uses of forest land for nontimber purposes, including 02  (i) subsistence, personal, recreational, and commercial 03 uses of fish and wildlife; 04  (ii) recreation, tourism, and related activities; 05  (iii) mining, mining claims, mineral leaseholds, and 06 material extraction; 07  (iv) agriculture, including grazing; and 08  (v) other resources and uses appropriate to the area, 09 including compatible traditional uses; 10  (E) soil characteristics and productivity; 11  (F) water quality; and 12  (G) watershed management; 13  (2) value of the area for the long-term production of timber; 14  (3) commitments of the proposer to hire Alaskans; 15  (4) intent of the proposer to process a value added product within the 16 state; 17  (5) experience of the proposer in the forest products industry; 18  (6) necessary public access for uses described in (1) of this subsection; 19  (7) financial feasibility of the proposal; 20  (8) technical and financial qualifications of the proposer; 21  (9) stumpage payments offered to be paid; 22  (10) economic benefits and liabilities from the proposed agreement to 23 the region in which the land that is to be covered by the agreement is located; 24  (11) extent to which the proposed agreement provides for processing 25 in the state of the timber harvested, to the extent permitted by law; 26  (12) economic benefits and liabilities to the state and to the state forest 27 land under the proposed agreement; 28  (13) timber inventory; and 29  (14) other factors that the commissioner determines are relevant and 30 appropriate. 31  (e) After evaluating proposed agreements under (d) of this section, the 01 commissioner may designate a tentatively successful proposed agreement. A proposed 02 agreement may not be designated under this subsection until public comment has been 03 solicited and evaluated under (c) of this section. A tentatively successful proposed 04 agreement may not be designated unless the commissioner includes, and makes a 05 written finding that sets out facts and applicable law to support the commissioner's 06 conclusion, that 07  (1) land or timber covered by the tentatively successful proposed 08 agreement is not reasonably necessary to provide sustained harvest for a sawmill or 09 wood processing facility using that land or timber at the time the proposed agreement 10 was evaluated, or that a final agreement can adequately address those needs; 11  (2) the tentatively successful proposed agreement covers no more land 12 or timber than is necessary to make the proposed agreement economically sustainable 13 over the life of the proposed agreement; 14  (3) the revenue to be received from the tentatively successful proposed 15 agreement will exceed the direct costs of the proposed agreement to the state and that 16 the sale of timber under the proposed agreement is not for less than fair market value; 17 and 18  (4) the tentatively successful proposed agreement will best serve the 19 interests of the state and is consistent with applicable land use and management plans 20 then in effect. 21  (f) The commissioner shall provide notice under AS 38.05.945(b) and (c) of 22 a finding under (e) of this section and designation of a tentatively successful proposed 23 agreement at least 90 days prior to entering into a final agreement. The commissioner 24 shall solicit comments from the public and from state and local government agencies, 25 including the commissioner of fish and game, on a tentatively successful proposed 26 agreement for at least 90 days after the provision of notice under this section. The 27 tentatively successful proposed agreement for which the commissioner solicits 28 comments from the public under this subsection must contain the proposed terms, 29 conditions, limitations, and information that are required to be contained in the 30 proposed final agreement and the final agreement set out in (g) of this section. If a 31 tentatively successful proposed agreement includes land within a municipality, the 01 commissioner shall submit the tentatively successful proposed agreement to the 02 municipality to determine if the agreement is consistent with municipal land use plans. 03 The municipality shall make a consistency determination within 60 days of receipt of 04 the tentatively successful proposed agreement and, if the agreement is not consistent 05 with municipal land use plans, specifically set forth the provisions of the agreement 06 that are not consistent. 07  (g) If a tentatively successful proposed agreement is designated under (e) of 08 this section, the commissioner, after considering comments and recommendations 09 received under (f) of this section, may proceed to develop a proposed final agreement 10 between the proposer and the state. A tentatively successful proposed agreement, a 11 proposed final agreement, and the final agreement 12  (1) shall provide for terms, conditions, and limitations determined by 13 the commissioner to be in the public interest; 14  (2) must be consistent to the maximum extent practicable with 15 municipal land use plans if the agreement includes land within a municipality; 16  (3) must contain 17  (A) the initial term of the agreement, which may not exceed 20 18 years; 19  (B) provisions requiring sale of the timber for at least fair 20 market value as evidenced by an appraisal and provisions requiring periodic 21 reappraisal of the value of the timber; 22  (C) provisions requiring the proposer to pay the full cost of the 23 state scaling services necessary to account for timber sold under the agreement; 24  (D) provisions requiring the proposer to pay for state services 25 necessary for permitting, planning, monitoring, administering, and 26 implementing the agreement; 27  (E) provisions requiring the proposer, at the discretion of the 28 state, to pay for the construction and maintenance of access roads necessary to 29 manage the land that is to be covered by the agreement; 30  (F) provisions guaranteeing necessary public access for uses 31 described in (d)(1) of this section; 01  (G) provisions requiring that, at the discretion of the state, the 02 surface of the access roads shall be removed and the access roads shall be 03 reforested, with the costs paid by the proposer; 04  (H) provisions for the location and construction standards of 05 necessary harvest access roads within the area covered by the agreement; 06  (I) provisions requiring the processing of the timber in the state 07 if that is the highest and best use of the timber as determined by the 08 commissioner and if permitted by law; 09  (J) provisions requiring the proposer, at the discretion of the 10 state, to pay for the purchase of material obtained from state land for the 11 construction of access roads on the land that is to be covered by the agreement; 12  (K) provisions requiring the proposer to perform reforestation 13 and silvicultural practices on state land that is to be covered by the agreement; 14  (L) a statement that activities under the agreement are governed 15 by the provisions of AS 41.17 and regulations adopted under AS 41.17 16 applicable to operations on state land; 17  (M) provisions requiring the submission and approval of 18 biennial operational plans for activities authorized or required by the 19 agreement; 20  (N) requirements for reports and submission of information to 21 the department regarding performance under the agreement; 22  (O) procedures for enforcement and termination of the 23 agreement; 24  (P) provisions requiring an operational level forest inventory 25 every two years; and 26  (Q) provisions requiring the proposer to reforest, stabilize, 27 monitor, and meet other obligations; these provisions shall include bonding, 28 letter of credit or standby letter of credit, or other security that the 29 commissioner determines to be adequate to protect the public interest. 30  (h) The commissioner shall solicit a final review of the proposed final 31 agreement from state agencies, including the commissioner of fish and game. State 01 agency review under this subsection to be considered by the commissioner must be 02 submitted within 10 days of receipt of the solicitation. 03  (i) Within 10 days of the convening of a regular legislative session, the 04 governor shall transmit to the president of the senate and the speaker of the house of 05 representatives any proposed final forest management agreements. If the legislature, 06 by joint resolution, fails to disapprove a final forest management agreement within 45 07 days, it is considered approved. 08  (j) The form of the proposed final agreement developed under (g) of this 09 section must be approved by the attorney general before the agreement is signed by 10 the commissioner. If the forest management agreement covers nonstate land under an 11 agreement authorized under AS 38.05.027, the owner of the land must approve the 12 agreement. After approval by the attorney general under this subsection and 13 consideration of the final agency review under (h) of this section, the commissioner 14 and the proposer may sign the proposed final agreement. 15  (k) When the commissioner solicits public comment under (c) of this section, 16 and at all times thereafter, the proposed agreements are public records and are open 17 to public inspection and disclosure under AS 09.25.120. Prior to solicitation of public 18 comment under (c) of this section, proposed agreements submitted under this section 19 are confidential and are not open to public inspection or disclosure under 20 AS 09.25.120. 21  (l) All right, title, and interest in or to timber or material in or on land covered 22 by a final forest management agreement remains with the state until the timber or 23 material has been cut or severed, determined as to volume, removed from the site, and 24 paid for in compliance with the agreement. Timber or material that is not removed 25 from land covered by a final forest management agreement within the period specified 26 by the agreement or by an extension of the agreement remains the property of the 27 state. 28  (m) An interest in a final forest management agreement may not be assigned 29 without the prior written consent of the commissioner. An assignment without the 30 prior written consent of the commissioner is void. The commissioner may not consent 31 under this subsection unless the assignment is of the entire interest in the final forest 01 management agreement. The commissioner shall consider all of the factors of this 02 section when making a determination concerning an assignment. 03  (n) The commissioner shall strictly enforce the provisions of the final 04 agreement. The commissioner shall perform a review of the operator's performance 05 under the agreement as part of the biennial operating plan approval process. Upon the 06 completion of three-quarters of the total term of the agreement, the commissioner shall 07 review the operation and performance of the agreement and determine whether it is in 08 the best interest of the state to renew the agreement. If the commissioner determines 09 that it is in the best interest of the state, the commissioner shall solicit and evaluate 10 proposals, as provided in this section, for renewal of the agreement, including a 11 proposal from the current operator. 12  (o) The activities conducted under a final forest management agreement are 13 governed by AS 41.17 and regulations adopted under AS 41.17 applicable to 14 operations on state land. 15  (p) In this section, 16  (1) "agreement" means a forest management agreement; 17  (2) "proposer" means the person who submitted a proposed forest 18 management agreement under (b) of this section; 19  (3) "sustained yield" has the meaning given in AS 38.04.910. 20 * Sec. 4. AS 41.17.060(c) is amended to read: 21  (c) With respect to state and municipal forest land only, the following 22 standards also apply: 23  (1) forest land shall be administered for the multiple use of the 24 renewable and nonrenewable resources and for the sustained yield of the renewable 25 resources of the land in the manner that best provides for the present needs and 26 preserves the future options of the people of the state; 27  (2) a system of allocating predominant uses or values to particular units 28 within a contiguous area of land shall reflect in reasonable proportion the various 29 resources and values present in that area; 30  (3) to the extent its capacity permits, forest land shall be administered 31 so as to provide for the continuation and expansion of businesses, activities, and 01 lifestyles that are dependent upon or derived from forest resources; 02  (4) timber harvesting is limited to areas where data and information 03 demonstrate that natural or artificial reforestation techniques will result in the 04 production of a sustained yield of merchantable timber from that area; 05  (5) there may not be significant impairment of the productivity of the 06 land and water with respect to renewable resources; 07  (6) allowance shall be made for scenic quality in or adjacent to areas 08 of substantial importance to the tourism and recreation industry; [AND] 09  (7) allowance shall be made for important fish and wildlife habitat; and 10  (8) to the fullest extent practicable, harvested forest land shall be 11 reforested, naturally or artificially, so as to result in a sustained yield of 12 merchantable timber from that land; if artificial planting is required, 13 silviculturally acceptable seedlings must first be available for planting at an 14 economically fair price. 15 * Sec. 5. AS 41.17.060 is amended by adding a new subsection to read: 16  (d) With respect to private forest land only, to the fullest extent practicable, 17 harvested forest land shall be reforested, naturally or artificially. If artificial planting 18 is required, silviculturally acceptable seedlings must first be available for planting at 19 an economically fair price. 20 * Sec. 6. AS 41.17.200 is amended to read: 21  Sec. 41.17.200. STATE FOREST PURPOSES. The purpose of AS 41.17.200 22 - 41.17.230 is to permit the establishment of designated state-owned or acquired land 23 and water areas as state forests. The primary purpose in the establishment of state 24 forests is the perpetuation of personal, commercial, including encouraging the 25 development of commercial forest land under the principles of sustained and 26 multiple use, and other beneficial uses of resources through multiple-use management. 27 * Sec. 7. AS 41.17.200 is amended by adding a new subsection to read: 28  (b) In managing a state forest the commissioner shall 29  (1) allow for the fullest possible access to, and the multiple use of, the 30 natural resources, including timber, fish, game, and minerals; the allowance under this 31 paragraph shall take into account the interests of private landowners; 01  (2) maintain forest growth at a high level of productivity; and 02  (3) restrict the public use of the land and its resources only when 03 necessary to carry out the purposes of this chapter. 04 * Sec. 8. AS 41.17.060(b)(4) is repealed.