Legislature(1995 - 1996)

03/29/1996 03:38 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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         SB 307 DUDE CREEK HABITAT AREA LAND EXCHANGE                        
                                                                               
  TAPE 96-39, SIDE A                                                           
                                                                               
 Number 001                                                                    
                                                                               
  CHAIRMAN LEMAN  called the Senate Resources Committee meeting to             
 order at 3:38 p.m.  The chairman brought up SB 307 as the first               
 order of business before the committee.  Chairman Leman asked                 
 Senator Frank if he wished to testify.                                        
                                                                               
 Number 014                                                                    
                                                                               
 SENATOR STEVE FRANK, Co-chairman of the Finance Committee, sponsor            
 of SB 307, stated the bill would provide for a land exchange.  He             
 said it isn't asking for any subsidies and is totally within the              
 private sector.  So he is eager to do what he can to encourage the            
 exchange and allow it to go forward.  Senator Frank stated that               
 members have in their bill packets a copy of SJR 27, which was                
 passed last year supporting this project.                                     
                                                                               
 CHAIRMAN LEMAN recalled that there was no objection to SJR 27.  He            
 called Mr. Levitt to testify.                                                 
                                                                               
 Number 047                                                                    
                                                                               
 RICHARD LEVITT, President & General Manager, Gustavus Electric Co.,           
 stated the land exchange would occur between the Department of the            
 Interior and the State of Alaska to allow the construction of a               
 hydroelectric project to provide electricity for the community of             
 Gustavus and Glacier Bay National Park.  The land exchange is                 
 necessary because the site is within Glacier Bay National Park and            
 Preserve, a wilderness area.  The removal of land from a wilderness           
 area must be authorized by congress.  We are here today, because              
 approval of the Alaska State Legislature is required for state land           
 to be given up.  SB 307 approves the land exchange.  SB 307 is                
 contingent on the passing of legislation in Washington, D.C., which           
 is going forward.  According to sources in Washington, D.C., the              
 Senate Energy & Natural Resources Committee will be hearing the               
 bill soon.  We are asking for passage of SB 307 at this time,                 
 because it appears that the federal legislation will not be                   
 complete until after the adjournment of the Alaska State                      
 Legislature.                                                                  
                                                                               
 CHAIRMAN LEMAN asked Mr. Levitt to remind the committee of the                
 level of local support.                                                       
                                                                               
 MR. LEVITT responded that three public meetings have been held in             
 Gustavus, and a vote was taken at each one.  In each case, the vote           
 was unanimously in support of the project.  That is documented in             
 minutes of the meetings and by a letter from the Gustavus Community           
 Association, who sponsored all the meetings.                                  
                                                                               
 Number 135                                                                    
                                                                               
 KELLIS SOULE, Governmental Affairs Representative, Gustavus                   
 Electric Co., stated he can answer any questions about the project.           
                                                                               
 SENATOR LEMAN asked Mr. Soule what the expected reduction in the              
 cost of power will be for Gustavus.                                           
                                                                               
 MR. SOULE responded that, under a 30-year program, they estimate              
 that the Power Cost Equalization Program will be reduced by close             
 to $200,000.00.  He believes the administration came up with a                
 figure of $100,000.00.  The discrepancy in the two figures is that            
 Gustavus took into consideration growth in the program and a                  
 continuation of the funding of the program.  There will be savings            
 to the federal government as well.                                            
                                                                               
 Nico Bus, Acting Director, Support Services Division, Department of           
 Natural Resources, supports SB 307, as long as the expense for the            
 exchange is covered.  It will be about two-staff months to                    
 accomplish this project.                                                      
                                                                               
 Number 165                                                                    
                                                                               
 SENATOR TAYLOR asked if there will be any requirements of the State           
 of Alaska to maintain any land classification, status, or use on              
 the property, once the exchange has taken place.                              
                                                                               
 ANDY PEKOVICH, Regional Manager, Juneau Office, Division of Land,             
 Department of Natural Resources, stated the process of exchange               
 could include classification of the lands.  It is his understanding           
 that there is still chapter 50 to deal with, and the only thing SB
 307 does is allow the state to do an equal acreage exchange without           
 coming back to the legislature.  It does not bypass the other                 
 elements of the exchange.                                                     
                                                                               
 SENATOR TAYLOR stated he understands that aspect of the exchange.             
 His concern is that we are giving up state lands that right now we            
 have the ability to classify any way we see fit.  He doesn't want             
 to go through the exchange and then find out that we've allowed the           
 federal government to forever restrict future use of the land.                
                                                                               
 Number 195                                                                    
                                                                               
 MR. PEKOVICH stated that the land is on the boundary of the                   
 national park; it is fairly wet, and it is sandhill crane area.  In           
 his opinion, it is very doubtful that the state would ever consider           
 developing that land.                                                         
 SENATOR TAYLOR stated that doesn't answer his question.  The                  
 question is, should there be a reason that we need to - he's not              
 talking necessarily about development, he looked at the map and               
 didn't think there was much to be done there, either.  But should             
 there be some need in the future, would we be precluded by the                
 federal enabling legislation from acting in that area.                        
                                                                               
 Number 210                                                                    
                                                                               
 COMMISSIONER JOHN SHIVELY, Department of Natural Resources, stated            
 Senator Taylor's concerns may depend on what the federal                      
 legislation says.  We are receiving land that would come out of the           
 boundaries of the park.  He thinks the land would have no                     
 designation and that the State would be free to designate the land            
 as they saw fit.  He cannot predict what congress might do, but it            
 would be the administration's intent to have it unrestricted.                 
                                                                               
 CHAIRMAN LEMAN stated Commissioner Shively was referring to the               
 land the State would be receiving.                                            
                                                                               
 COMMISSIONER SHIVELY responded that is correct.                               
                                                                               
 SENATOR FRANK stated, in other words, there would be no covenant              
 running with the land.                                                        
                                                                               
 COMMISSIONER SHIVELY responded that is correct.                               
                                                                               
 SENATOR TAYLOR stated he just wanted to make sure that was the                
 intent.                                                                       
                                                                               
 SENATOR HALFORD commented as far as he is concerned, that is a                
 condition, not an intent.                                                     
                                                                               
 Number 230                                                                    
                                                                               
 SENATOR LINCOLN asked if the analysis of the PCE (Power Cost                  
 Equalization) savings would be done in house.  She also wondered              
 why that had to be a part of the fiscal note.  At one point, PCE              
 was listed as having a 20-year guarantee.  But that has been                  
 whittled away now to the point of 3-4 years.  So PCE really is not            
 long term.  Will DCRA continue with that analysis?                            
                                                                               
 MR. BUS responded the reason that was written into the fiscal note            
 was to figure out what the savings would be.  He is not in a                  
 position to speak for DCRA, but this clearly seems like a good                
 proposal.                                                                     
                                                                               
 SENATOR LINCOLN thinks that is a good idea.                                   
                                                                               
 Number 257                                                                    
                                                                               
 SENATOR TAYLOR asked if the exchange will allow for the                       
 construction of a hydroelectric project.                                      
                                                                               
 SENATOR HALFORD stated that was the whole purpose behind SB 307.              
                                                                               
 CHAIRMAN LEMAN reminded members of the passage of SJR 27 last year,           
 supporting this land exchange.                                                
                                                                               
 SENATOR PEARCE asked why they needed money.                                   
                                                                               
 SENATOR FRANK thinks it was to hold public hearings.                          
                                                                               
 Number 275                                                                    
                                                                               
 MR. BUS replied that once the federal government approves the land            
 exchange, part of the exchange process is that there will be public           
 hearings.  People in the Anchorage office will probably have to               
 travel to Gustavus.                                                           
                                                                               
 SENATOR FRANK made a motion to discharge SB 307, and accompanying             
 fiscal note, from the Senate Resources Committee with individual              
 recommendations.                                                              
                                                                               
 Number 285                                                                    
                                                                               
 CHAIRMAN LEMAN, hearing no objection, stated SB 307 was discharged            
 from committee.                                                               

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