Legislature(2021 - 2022)SENATE FINANCE 532
05/03/2022 09:00 AM Senate FINANCE
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Audio | Topic |
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Start | |
HB54 | |
SB230 | |
SB85 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | SB 85 | TELECONFERENCED | |
+ | SB 230 | TELECONFERENCED | |
+ | HB 54 | TELECONFERENCED | |
+ | TELECONFERENCED |
SENATE BILL NO. 85 "An Act relating to forest land use plans; relating to forest land use plan appeals; relating to negotiated timber sales; and providing for an effective date." 10:33:10 AM HELGE ENG, DIRECTOR, DIVISION OF FORESTRY, DEPARTMENT OF NATURAL RESOURCES, discussed the presentation, "SB 85: Forest Land Use Plans, Negotiated Timber Sales: Senate Finance Committee" (copy on file). He began with slide 1: Overview of Presentation I. SE Alaska timber industry is struggling to survive II. How to protect timber jobs? 1. Change negotiated timber sale statutes to allow local industry to sell all the timber it harvests, as export if needed. 2. Provide contractual certainty: stable and predictable supply of timber once a timber sale has been purchased. III. Sectional Analysis Mr. Eng pointed to slide 2, "The timber industry in Southeast Alaska is struggling to survive": A dwindling supply of timber from the US Forest Service has gutted the timber industry in Southeast Alaska. SE Alaska supports only 325 timber industry jobs today, compared to 4,000 jobs in the 1990s. Now, even those jobs are in danger. Mr. Eng looked at slide 3, "Negotiated & competitive timber sales": ? Negotiated sales: DOF may choose a timber purchaser not only based on the price, but also on the number of local jobs the sale provides. Negotiated sales currently may not be exported as round logs. ? Competive sales: the highest auction bidder wins. Timber from competitive sales may be exported. Mr. Eng pointed to slide 5, "How can we provide and protect jobs?" Step 1. Change negotiated timber sale statutes to allow local industry to sell all the timber it harvests, as export if needed. Currently, negotiated timber sales must be sold for local manufacture, not export. ? A changing timber supply (more young growth) means that some sizes of timber are not marketable in Alaska. ? Demand for certain species (e.g., hemlock) is only overseas or in the Pacific Northwest. Mr. Eng addressed slide 6, "How can we provide and protect jobs?" Step 2. Once a timber sale has been purchased, provide a stable and predictable supply of timber to the operator by providing contractual certainty Mr. Eng highlighted slide 7, "Stable Timber Supply": An appeal can halt harvesting, which can be disastrous to a logging company. SB 85 ensures that once the decision has been made to sell the timber, no further administrative appeals can occur. Input would still be gathered from public and agencies. Mr. Eng looked at slide 8, "Steps in a Timber Sale": Public and agency comment gathered at each step. 1. Area Plans* & State Forest Plans* 2. Five-Year Schedule of Timber Sales 3. Best Interest Finding* 4. Forest Land Use Plans* *Subject to appeal Mr. Eng addressed slide 9, "Safeguards on timber harvests": Timber harvests must adhere to the Alaska Forest Resources and Practices Act (FRPA, AS 41.17), which: ? protects fish habitat and water quality, and ? ensures prompt reforestation. Mr. Eng pointed to slide 10, "SB 85 has a zero fiscal note." 10:37:24 AM Mr. Eng addressed slide 12, "Section 1": Amends AS 38.05.035(e)(6)(A) to maintain the exemption of sales of 500,000 board feet of timber or less from a written Best Interest Finding requirement. Mr. Eng discussed slide 13, "Section 2": ? Expands from 10 acres to 20 acres the size of timber harvests exempt from needing a Forest Land Use Plan. ? Requires a Forest Land Use Plan to be adopted before harvest. ? Allows a single Forest Land Use Plan to authorize timber harvest for multiple harvest units in a timber sale contract. ? Allows DNR to award a timber sale contract before adopting a Forest Land Use Plan. Mr. Eng highlighted slide 14, "Sections 3 & 4": Section 3 Forest Land Use Plans may not be appealed. Section 4 Removes negotiated timber sales from AS 38.05.115; moved to AS 38.05.118 (see Section 7 and 8). Mr. Eng pointed to slide 15, "Section 5": Adds new subsection to AS 38.05.115(d) requiring best interest findings to consider whether the timber sale buyer will: ? hire Alaska residents, ? contract with Alaskan businesses, ? use or establish Alaskan hiring facilities, job centers, or internet job systems. 10:39:11 AM Co-Chair Bishop asked where the language in Section 5 originated. 10:39:14 AM Mr. Eng replied that the language was added in an amendment from the other body. 10:39:24 AM Co-Chair Bishop appreciated the language. 10:39:43 AM Mr. Eng noted that the commissioner already had the opportunity to consider criteria. 10:39:51 AM Mr. Eng addressed slide 16, "Section 6": Local manufacture of wood is not required for negotiated timber sales. Mr. Eng pointed to slide 17, "Sections 7-8": Section 7 AS 38.05.115 negotiated timber sales are now consolidated in AS 38.05.118. Section 8 Consolidates another provision from AS 38.05.115 into AS 38.05.118. Mr. Eng discussed slide 18, "Sections 9-10": Section 9 Allows timber sales to be negotiated for local manufacture of both high-value-added and other value-added wood products. Section 10 Deletes requirement that negotiated timber sales must include contract terms limiting the sale to the amount of timber the commissioner determines to be the maximum amount that could be commercially practical to harvest. Mr. Eng highlighted slide 19, "Sections 11-13": Section 11 A conforming amendment due to the consolidation of negotiated timber sales in AS 38.05.118. Section 12 Because of the consolidation of the negotiated sales provisions in AS 38.05.118, both AS 38.05.115(b) and (c) are unnecessary. AS 38.05.123(e) is repealed due to the amendments in Section 2 and thus to avoid redundancy. AS 38.05.123(g) is repealed because DOF has not used it for .123 timber sales. Section 13 Establishes an immediate effective date. 10:41:14 AM Co-Chair Bishop OPENED public testimony. 10:41:35 AM JESSICA PLACHTA, EXECUTIVE DIRECTOR, LYNN CANAL CONSERVATION, HAINES (via teleconference), spoke in opposition to the legislation. She believed that the states forest laws should be strengthened and not weakened. She expressed concern that the public comment opportunity was being removed from the process, thereby putting communities at risk. She lamented that loggers would suffer as their livelihoods were sold and exported. local communities would lose their say over the landscapes they depended on for their economies, recreation, and subsistence. 10:43:45 AM ESTHER GONZALEZ, SELF, CALIFORNIA (via teleconference), testified against the legislation. 10:45:15 AM MATT JACKSON, SELF, SITKA (via teleconference), spoke in opposition to the bill. He thought that the bill would harm the states ability to develop local value-added markets. He thought that the bill made to many exemptions as to when best interest finding should be considered. He thought that the criteria for local value-adding and local economic impact and the best interest findings should be applied to timber sales of any size. He opposed any exemptions to the best interest findings. He disagreed with the removal of the public comment period after the land use plan was issued, which he qualified as contrary to the public process. He strongly encouraged a no vote from the committee. 10:47:39 AM Co-Chair Bishop CLOSED public testimony. SB 85 was HEARD and HELD in committee for further consideration. Co-Chair Bishop discussed housekeeping.