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SJR 51 AM H: Expressing support for the development of a fiberboard plant in Sitka; encouraging the Alaska Industrial Development and Export Authority to continue its efforts to assist with that development; and requesting the United States Forest Service to continue a long-term timber purchase contract necessary to supply material to the plant.

00SENATE JOINT RESOLUTION NO. 51 am H 01 Expressing support for the development of a fiberboard plant in Sitka; 02 encouraging the Alaska Industrial Development and Export Authority to continue 03 its efforts to assist with that development; and requesting the United States Forest 04 Service to continue a long-term timber purchase contract necessary to supply 05 material to the plant. 06 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 WHEREAS the Alaska Industrial Development and Export Authority and the Alaska 08 Pulp Corporation have explored the possibility of constructing a medium density fiberboard 09 plant in Sitka; and 10 WHEREAS the proposed plant would restore economic activity and create 11 employment opportunities that were lost with the closure of the Sitka pulp mill; and 12 WHEREAS the proposed plant would, to the maximum extent feasible, make use of 13 existing facilities in Sitka; and 14 WHEREAS it is the purpose of the Alaska Industrial Development and Export

01 Authority to promote the development of industry and to encourage economic growth within 02 the state; and 03 WHEREAS the Alaska Industrial Development and Export Authority proposes to 04 continue to assist the Alaska Pulp Corporation to explore the viability of the proposed 05 fiberboard plant by conducting feasibility and other studies, and, if the proposed plant proves 06 to be viable, the Alaska Industrial Development and Export Authority will consider providing 07 financial assistance for the development of the proposed plant, including financial assistance 08 through the issuance of bonds of the Alaska Industrial Development and Export Authority; and 09 WHEREAS the issuance of bonds by the Alaska Industrial Development and Export 10 Authority for the financing of the proposed plant will require further action by the legislature; 11 and 12 WHEREAS assistance provided by the Alaska Industrial Development and Export 13 Authority in the proposed restoration and conversion of the Sitka pulp mill to a medium 14 density fiberboard plant will further the purposes of promoting the development of industry 15 and encouraging economic growth in the state and will improve the quality of life in Southeast 16 Alaska by providing jobs and improving the local economy; and 17 WHEREAS it is essential to the viability of the proposed plant that the Alaska Pulp 18 Corporation be able to maintain an adequate supply of timber; and 19 WHEREAS the Tongass National Forest is the only adequate, sustainable timber 20 source in Southeast Alaska; and 21 WHEREAS potential financing of the proposed plant will require a contract between 22 the federal government and the Alaska Pulp Corporation that provides a firm commitment for 23 adequate timber sales from the Tongass National Forest; 24 BE IT RESOLVED that the Alaska State Legislature supports the continued effort to 25 construct and otherwise develop the proposed medium density fiberboard plant in Sitka and, 26 upon conclusion of any feasibility studies the Alaska Industrial Development and Export 27 Authority considers appropriate, and assuming the results of those feasibility studies are 28 satisfactory, the Alaska State Legislature encourages the Alaska Industrial Development and 29 Export Authority to seek the legislative approval necessary to proceed with the financing of 30 the proposed plant; and be it 31 FURTHER RESOLVED that the Alaska State legislature encourages the Alaska

01 Industrial Development and Export Authority to continue to work with, and provide assistance 02 to, the Alaska Pulp Corporation, to the extent of its ability under AS 44.88, for the 03 development of the proposed fiberboard plant in Sitka; and be it 04 FURTHER RESOLVED that the Forest Service of the United States Department of 05 Agriculture is respectfully requested to reconsider its decision to cancel its long-term timber 06 contract with the Alaska Pulp Corporation. 07 COPIES of this resolution shall be sent to the Honorable Jack Ward Thomas, Chief 08 of the United States Forest Service; and to William R. Snell, Executive Director of the Alaska 09 Industrial Development and Export Authority; and to the Honorable Ted Stevens and the 10 Honorable Frank Murkowski, U.S. Senators, and the Honorable Don Young, U.S. 11 Representative, members of the Alaska delegation in Congress.