04/26/1996 08:10 AM House RES

 SB 307 - DUDE CREEK HABITAT AREA LAND EXCHANGE                              
                                                                               
 REPRESENTATIVE JERRY MACKIE introduced SB 307 saying that the Fall            
 Creek hydropower project is located in his district about 20 miles            
 west of Juneau in the community of Gustavus, Alaska.                          
                                                                               
 REPRESENTATIVE MACKIE said SB 307 will facilitate the development             
 of the Fall Creek hydropower project by authorizing the state to              
 engage in a land exchange with the federal government, contingent             
 on Congress passing a land exchange authorization.  SB 307 will               
 play a vital role in the future economic health of the entire state           
 of Alaska.                                                                    
                                                                               
 REPRESENTATIVE MACKIE continued, "The Power Cost Equalization                 
 program has been cut $3,000,000 this fiscal year and we must                  
 continue to develop alternatives that will provide the state with             
 efficient cost savings power alternatives.                                    
                                                                               
 REPRESENTATIVE MACKIE stated, "It is vital that we work together to           
 develop and support alternative power resources throughout the                
 urban and rural areas of the state.  Alternative energy resource              
 development must be a priority for the state of Alaska and                    
 proposals such as SB 307 will minimize the impact of future state             
 and federal budget restrictions.                                              
                                                                               
 REPRESENTATIVE MACKIE proceeded, "This hydropower plant would be              
 constructed and operated solely from private capital and supply               
 power to the National Park Service, state of Alaska, and the                  
 community of Gustavus."                                                       
                                                                               
 REPRESENTATIVE MACKIE stated that SB 307 will potentially save up             
 to $118,750 per year in decreased power cost equalization costs,              
 and it would reduce the environmental impact of diesel generation             
 and bulk fuel storage.                                                        
                                                                               
 REPRESENTATIVE MACKIE related that SB 307 includes endorsements               
 from Gustavus Community Association, the Alaska Department of Fish            
 and Game and the Department of Community & Regional Affairs.  The             
 Department of Natural Resources fiscal note with the analyses which           
 accompanies SB 307 reflects a one time expenditure of $8,000.  This           
 is for one position for a two month period at a cost of $7,000 for            
 personnel services, $800.00 for travel and $200.00 for supplies.              
 This applies only if, and when, the federal legislation passes.               
                                                                               
 Number 209                                                                    
                                                                               
 REPRESENTATIVE MACKIE continued, "This bill passed the Senate                 
 unanimously 20-0.  The timely passage of SB 307 would provide a               
 strong message to Congress in regards to HR 2561, introduced by               
 Representative Don Young, which provides federal authority of this            
 land exchange.  This bill is strongly supported by the Governor and           
 this Administration, by the environmental community and by all the            
 people involved who work directly with the park service.  To my               
 knowledge there is no opposition whatsoever either on the federal             
 or the state side with the exception of the National Sierra Club              
 and one other wildlife organization whose policies include                    
 absolutely no land coming out of wilderness, period."                         
                                                                               
 REPRESENTATIVE MACKIE explained that a portion of Glacier Bay                 
 National Park will be transferred to the state and some critical              
 habitat area at Dude Creek, adjacent to Glacier Bay National Park,            
 will be transferred to the park in exchange.  The state would own             
 the property and this privately financed hydropower project can               
 then travel through the park.                                                 
                                                                               
 Number 359                                                                    
                                                                               
 REPRESENTATIVE JOHN DAVIES moved that CSSB 307(FIN) be passed out             
 of the House Resources Committee with individual recommendations              
 and attached fiscal notes.  Hearing no objection, CSSB 307(FIN)               
 moved from the House Resources Committee.