Legislature(1993 - 1994)
02/28/1994 08:15 AM House RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HJR 55 - Tongass National Forest Timber Harvests VICE CHAIRMAN HUDSON said there is a committee substitute before the committee. The changes from the original resolution include page one, line four, through page two, line nine, eight new WHEREAS clauses have been added. These clauses strengthen the resolution and recognize other multiple uses of the Tongass and laws in place to protect those uses. He added that the Alaska Forest Association does approve the changes. He stated another change is on page three, line 28, the words "under current laws" have been added. VICE CHAIRMAN HUDSON noted for the record that REPRESENTATIVE CARNEY joined the committee at 8:32 a.m. Number 035 REPRESENTATIVE JOHN DAVIES felt the changes made are good, but is concerned about the numbers contained in the resolution. He said he would feel better if someone could testify as to where the numbers came from. He also is concerned about page two, lines 30-32 where the resolution says "a decline in the availability of timber to harvest..." and on page two, lines eight and nine, where HJR 55 says "the economy of Southeast Alaska was built around an expected annual harvest level of 450,000,000 board feet;". He felt economies are not built. REPRESENTATIVE DAVIES read portions of a recent report which reviews the economic impact of the wilderness designation of the Tongass National Forest. The report is required by the Alaska National Interest Land Conservation Act (ANILCA) every two years. "A concern of Congress in passing ANILCA was the impact of the wilderness designation on three major industries in Southeast Alaska: Forest products, fisheries, and tourism. The changes in employment levels in these three major industries in Southeast Alaska are linked to changes in demand, supply and institution variables as well as changes in wilderness designations. Thus far, an economic effect on employment and personal earnings of designating this land as wilderness cannot be distinguished from the effects of other economic forces which have continued to change between 1981 and 1991." He pointed out that later in the report it shows that major changes in the industry were driven by the change in the price of the dollar on the world market in the early 1980s. REPRESENTATIVE DAVIES stressed there are considerations other than the availability of timber which cause significant changes and to date, the effects have not been determined between the availability and the actual production. He felt the report contradicted what is stated in HJR 55, page two, lines 30-32. Number 087 REPRESENTATIVE ELDON MULDER said, reality is a mill has been shut down and another mill is temporarily closed because of a lack of availability of timber. He felt the WHEREAS clause is quite appropriate for 1994 as opposed to 1991. He agreed with Representative Davies in regard to page two, lines eight and nine regarding "built around". He thought perhaps "relies upon" might be better language. VICE CHAIRMAN HUDSON noted for the record that REPRESENTATIVE GREEN joined the committee at 8:35 a.m. Number 105 REPRESENTATIVE JEANNETTE JAMES said she did not oppose the words "built around", especially since there are huge amounts of capital infused to build an industry. She also accepts using the words "relies upon." Regarding the report which Representative Davies referred to, she commented many events have happened since 1991 which have caused the price of lumber to skyrocket. She said the pulp mills situation is due to a balance between the lack of timber and worldwide pulp prices. She stated she is comfortable with the numbers contained in the resolution. VICE CHAIRMAN HUDSON reminded committee members that when the last hearing on HJR 55 concluded, the original draft was before the committee and there was a motion on the table. He stated the committee must vote on the amendment. He read the proposed amendment: Remove the language on page one, line 15, "and the near completion of the first harvest" and the second WHEREAS on page two. VICE CHAIRMAN HUDSON asked for a roll call vote. Voting in favor of the amendment was Representative Davies. Voting against the amendment were Representatives Carney, Bunde, Green, James, Mulder and Hudson. The motion was DEFEATED. REPRESENTATIVE PAT CARNEY made a motion to ADOPT CS HJR 55(RES). VICE CHAIRMAN HUDSON asked if there were any objections. Hearing none, the MOTION PASSED. REPRESENTATIVE DAVIES MOVED to AMEND CS HJR 55(RES) on page two, line eight, deleting the words "was built around" and insert the words "would benefit from." VICE CHAIRMAN HUDSON stated the most significant point regarding the work draft is the appeal for a timber harvest level which allows industries in Southeast Alaska to remain open. REPRESENTATIVE MULDER stated the only problem he has with the motion is that it almost insinuates "if we had it", as opposed to the fact that we have had 450 million board feet. He thought perhaps the statement was intended to say, this is what we are intending to have and this is what we are gearing toward. He asked if the harvest level is in fact 450 million board feet. THYES SHAUB, GOVERNMENT AFFAIRS DIRECTOR, ALASKA FOREST ASSOCIATION, INC., responded the harvest level has not been that high in the past couple of years. She stated she did not object to the proposed amendment. She commented that in 1978, when the compromise took place, because of the wilderness designation and the changes in the Tongass Land Management Plan at that time, written into the law was an intention there would be an average of 450 million board feet provided. Going back to the 1950s, the economy was built around that figure. Number 221 REPRESENTATIVE CON BUNDE felt it is more a level of intensity. REPRESENTATIVE JAMES said she liked the words "built around", especially because the word built indicates that money has been invested. REPRESENTATIVE DAVIES pointed out that the report he referred to earlier, lists the harvests from 1981 to 1991 and aggregates both the saw log and the utility in terms of million board feet harvested. The figures contained in that report are 387 million, 372 million, 250 million, 280 million, 232 million, 290 million, 336 million, 396 million, 444 million, 471 million, 364 million and 345 million board feet. He said in that decade, there appears to be only two years that approach the level called for in the resolution. Therefore, it is difficult for him to see when the economy has relied healthily on the timber industry for a decade since the harvest levels have been far below the 450 million board feet. REPRESENTATIVE CARNEY suggested amending CS HJR 55(RES), page two, lines eight and nine to read: "WHEREAS the timber industry of Southeast Alaska was developed based on an expected annual harvest level of 450,000,000 board feet;" REPRESENTATIVE JAMES felt it is important to understand why the resolution is at hand. If there is a desire to say that the timber industry is not needed, then it is easy to single out the timber industry and say that is what is being talked about. She felt there is a need to emphasize that the economy of Southeast is based on the timber industry. If the committee focuses on the timber industry only and the 450 million board feet, the committee is saying it is not a problem, the industry can be lost and picked up in tourism and fishing. She did not feel that is true. She stressed the economy in Southeast is definitely dependent upon the timber industry, and if the timber industry was eliminated, Southeast would feel a deficit. REPRESENTATIVE JAMES supported the words "developed around," but stated she wants it understood there has been a lot of economic input over the years in developing an economy which is very important to Southeast. REPRESENTATIVE MULDER speaking to the amendment suggested by Representative Carney, stated the amendment is quite appropriate when the following four WHEREAS clauses are considered because they do talk about how many jobs are created, what type of employment is created, how much the annual income is, what the payroll does for the overall region. He supported the proposed amendment. Number 296 REPRESENTATIVE CARNEY felt it is important to stress that action was taken by the timber industry based on expectations. He thought the term "economy" is a stretch of the imagination to think the economy of Southeast Alaska is totally dependent upon the timber industry. He said by stressing the industry was developed based on expectations will indicate to people reading the resolution that the Alaska timber industry extended itself based on federal promises and that could be important to how the resolution is viewed. REPRESENTATIVE JAMES pointed out the two previous WHEREAS clauses are related to the economy and felt if the committee changes the term economy to the timber industry, the intent of the resolution is destroyed. REPRESENTATIVE DAVIES noted the two previous WHEREAS clauses refer to the broader economy. He said he would accept Representative Carney's amendment as a substitute for his. REPRESENTATIVE DAVIES WITHDREW his motion to amend CS HJR 55(RES). REPRESENTATIVE CARNEY MOVED to AMEND CS HJR 55(RES) on page two, lines eight and nine to read, "WHEREAS the timber industry of Southeast Alaska was developed based upon an expected annual harvest level of 450,000,000 board feet;" VICE CHAIRMAN HUDSON asked for a roll call vote. Voting in favor of the amendment were Representatives Green, Carney, Hudson, Bunde, Davies, and Mulder. Voting against the amendment was Representative James. The AMENDMENT was ADOPTED on a vote of six to one. Number 384 REPRESENTATIVE DAVIES commented in regard to page two, lines 27-29, part of the problem with the resolution is the push for 450 million board feet. He said one of the basic issues is what the Tongass can really yield on a sustained yield basis. The assessment of what is truly available in that forest has changed in the past decade. He noted there had been testimony indicating that the original inventory was significantly overstated. He said while it may be true the industry was developed based on that expectation, he felt that expectation may have been an error due to the inventory being incorrect. REPRESENTATIVE DAVIES felt uncomfortable voting to support the resolution because there is no reliable testimony as to what the current inventory is in the Tongass, and thought it is quite possible that production on private land was far in excess of the sustained yield. He stated for the committee, to make up a cut rate which was beyond sustained yield principles on private land and increasing resources from public lands is not good. REPRESENTATIVE JAMES stated resolutions are made up of WHEREAS and RESOLVE clauses and felt the RESOLVE clauses are the most important. She said in this resolution, it indicates in a RESOLVE clause to manage the Tongass National Forest in order to provide maximum opportunity for timber harvest under current law. She felt that particular RESOLVE protects the committee from anything the committee is asking for and the problems referred to by Representative Davies will be admitted in that statement. She said disagreeing with the WHEREAS clauses is not as critical as disagreeing with the RESOLVE clauses. Number 441 REPRESENTATIVE CARNEY wondered whether the language on page one, lines 13-16, "WHEREAS regeneration on harvested land in the Tongass National Forest has demonstrated that second growth yields can reach the 23,000 board feet per acre necessary to sustain a harvest of 450,000,000 board feet per year as designated in the Tongass Land Management Plan;" is accurate. VICE CHAIRMAN HUDSON responded the committee had as much testimony for it as they did against it. REPRESENTATIVE CARNEY felt there is a need to be accurate and he assumes the statement is correct. REPRESENTATIVE JAMES pointed out that HJR 55 came as a recommendation from the House Economic Task Force. She stated a lot of testimony was heard and the resolution currently before the committee is the direct result of a request which came from the timber industry and all of the other information received. She believed there is back up in House Economic Task Force testimony to support every statement in the resolution. Number 465 REPRESENTATIVE DAVIES said his motivation is to speak to important issues raised in the resolution including what is meant by multiple use forests, what is meant by sustained yield and whether or not the resolution is calling for a reasonable thing. He pointed out that in the second RESOLVE clause, there is a request for an increase in the amount of timber available. He stressed there is not sufficient information to know whether or not the Tongass can sustain an increase over what is currently offered and furthermore, he stated he is not convinced that the current decline in the economy in Southeast Alaska is directly related to the availability of timber. He felt it is more related to market forces and independent decisions on private investments. VICE CHAIRMAN HUDSON said while in Ketchikan, he had a long discussion with Martin Pihl, the Chief Executive Officer of the Ketchikan Pulp Company, discussing the availability of trees and the impact it has on the company's ability to operate. Vice Chairman Hudson stated the company is very concerned about the cutback and proposed cutbacks and believed when the original act was passed, the harvest of 450 million board feet was, in fact, a part of the arrangement. Now they are being asked to take less. Number 518 REPRESENTATIVE MULDER made a motion to MOVE CS HJR 55(RES) with a zero fiscal note out of committee with INDIVIDUAL RECOMMENDATIONS. VICE CHAIRMAN HUDSON asked if there were any objections to the motion. Hearing none, the MOTION PASSED.
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